High Dividends Keep Rolling In With PTY, Yield 11%

PTY is no stranger to a tough market environment.
In 2009, PTY saw its NAV drop considerably, and its price dropped more as investors ran in fear.
With 20/20 hindsight, we know investors should have been running toward PTY, not away from it.
Don't make that mistake!
Co-produced with Beyond Saving
The PIMCO Corporate & Income Opportunity Fund (PTY) has long been one of our favorite fixed income funds. As of Friday, April 24, PTY is yielding an impressive 11.4% and that's without factoring in the frequent special dividends that PTY has at the end of the year.
Like much of the market, PTY took a significant fall in March.
Data by YChartsFalling more than SPY, investors are running away. If we look at NAV, it has fallen almost as much.
Data by YChartsWe post this to save ourselves the trouble of the numerous comments we will get about PTY underperforming year-to-date. Yes, it absolutely has.
Fortunately, we are not investors who are selling today. We do not invest for three to four months. We invest for years and collect income. PTY was on our short list of investments that we consistently recommended buying throughout the downturn. The reason is that PTY has a solid history of producing great income, and in the long term, will beat the market. High immediate income, combined with market beating total returns, makes PTY a core position in our portfolio.
PTY has been a reliable payer of dividends since inception. This chart compares the Total Return of PTY vs. SPY, including dividends:
Data by YChartsDespite the recent underperformance, PTY would have returned $68.53k as opposed to SPY's $43.86k. Most of these returns have come in the form of dividends.
This is what the Income Method is about, utilizing your assets to obtain a significant stream of income which you can decide how you want to use - whether that's reinvestment, investing in new investments, or spending it.
One of the biggest reasons we like PTY is because... Read more