PCI: A Must-Own CEF Yields 8.5% For Volatile Times

A key part of building an income stream is to have core investments that can be counted on to be reliable in any conditions.
When looking at CEFs, we want a high-quality manager, a good strategy and proven income generation.
This CEF consistently hits all of our targets.
PCI offers an 8.5% yield with lower price volatility.
Co-produced with Beyond Saving
At High Dividend Opportunities, some might say we are obsessed with dividends. When we think about it, we are guilty as charged. Your brokerage account will focus on the big number, that number will change second to second, and it's a measure of how much money you would have if you had sold every stock in your portfolio at a specific point in time.
Investors will put great weight on that number, even when they have no intention of selling anytime soon. Even though anyone who has invested through a few bear markets, through the flash crash, through a few waves of panic, is all too keenly aware of how quickly that number can change for the worse.
For most people, what's the ultimate purpose of their investment accounts? In most cases, it's to provide an income during retirement, so that when they are unable or simply no longer wish to work, they do not need to sacrifice their standard of living.
We focus on building an income stream. After all, if income is what you need, why wouldn't generating income be your primary focus? A large part of our strategy is to invest in funds that can be relied on to provide stable income in a variety of economic conditions. Through a bubble bursting, housing collapse, coronavirus or whatever fears the market is reacting to, we want to know that our dividend payment is coming in.
PIMCO Dynamic Credit and Mortgage (PCI) is one of five "must-own" funds that we have in our model portfolio. This is a super high-quality fund that we can rely on to provide us with a stable dividend through a wide variety of macro-economic conditions. PCI pays a monthly dividend of... Read more