Deployed a little cash from checking.
music selection: “Double Nature” — Mustasch
I had about 13,400 in checking this morning. I’m targeting 10,000 so I decided to send the extra to my Wells Trade brokerage account. To that end, I wanted some more fixed income. I like PIMCO Dynamic Income Fund (PDI). The distribution has been stable and growing a tiny bit over a decade or so. The fund is also at roughly its inception price after taking a COVID-19 hit.
Ordinarily, I wouldn’t buy a closed end fund for more than NAV. But this one routinely sells for a 20% premium and is available for only 9% premium at the moment. I got 136 shares at 25.00 each. Assuming the trailing twelve months distributions, that is an indicated yield of 12.26%. This is a very safe yield with a conservatively managed fund. The fund will be slightly more volatile than BND as it includes foreign issues and uses 24% leverage. I’m comfortable with this as a “hold forever” bond allocation.
I added 416.98 in annual distributions by buying this. That is good for 34.75 a month. This brings the monthly distributions in WF to checking up to 141 a month. Total expected inflow to checking is now 22,160 a year versus a budget target of 18,000.
Devour your prey raptors!