PIMCO Corporate Opportunity Fund (NYSE:PTY)
A closed-end company
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17% premium to NAV
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While pure dividend plays rarely outperform the S&P during an "average" market, I see little catalyst for any large market swings in the next year or more. Granted, market euphorium from the Eurozone or from our governement getting off thier ASSets might put me temporarily underwater for periods of time. Long term compounding should put an 8% dividend payer in play here on CAPS, especially one I was able to upthumb near a 52 week low unrationale selldown.
The March 2008 bottoming was a different type of recesssion, that hopefully dividend payers don't match again. That said there is risk in a dividend payer in a hard market selloff, same as in an equity, but PIMCO Corporate Opportunity Fund held the dividend stable throughout.
Stability portfolio play, looking for a VERY LONG term outlook with compounding. May close the pick if it's green but below my initial entry at any point to reload at a lower cost basis and maximize dividend reinvestment.
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Barron 6/15/11
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Barron's Roundtable 2011 Bill Gross' pick
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like takin candy from da kids
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I like the dividends
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Risky bet, but the yield is high enough to make a gamble.
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great yield - Pimco managed.
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Pimco Bond Fund
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Closed-end debt funds beaten down at present. As current bond fears subside, their holdings will pop.
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need to gain critical mass on consultancy services. Recently dropped European divisions to increase profitability
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