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PTY: Safest +9% Yield Cash Machine, Paid Monthly
Published Sat, 03 Oct 2020 10:05:08 -0400 on Seeking Alpha
Seeking AlphaClosed End FundsPTY: Safest +9% Yield Cash Machine, Paid MonthlyOct. 3, 2020 10:05 AM ET|| About: PIMCO Corporate&Income Opportunity Fund (PTY), Includes: BA, CBL, CBL.PD, CBL.PE, FTR, PCI, PCM, PCN, PDI, PHK, RCS, WINMQby: Rida MorwaRida Morwa High Dividend OpportunitiesThe #1 Service for Income Investors and Retirees, 9-10% dividend yield.SummaryPTY has proven to be one of the best fixed-income CEFs ever.
Complexity creates opportunity and today's fixed-income market is full of it.
There are plenty of hazards for retail investors.
Co-produced with Beyond Saving
If you follow us, you have seen us discussing PIMCO Corporate Income & Opportunity Fund (PTY) several times as one of the best fixed income opportunities today. Currently yielding 9.6%, PTY is a cornerstone of our high-yield Model Portfolio.
Since inception, PTY has run circles around the S&P 500:
Data by YChartsThat impressive performance alone might be enough reason for many to make PTY a holding. For us, there is more to it. We follow an income focused investment style. Our goal is to generate large amounts of current income. We want investments that are going to provide our portfolio with steady cash flow that we can decide how to spend the money.
The chart above is looking at "total return price," so it adjusts for any dividends received. PTY has crushed the market over their 18 years, and we like that, but that isn't the best part. The best part is that nearly all of those returns have come in the form of cash dividends.
Here is a look at PTY vs. the S&P 500 with dividends included, and just by price:
Data by YCharts
Note that PTY's price is only up 7.5%, while their total return is 750%! This makes PTY a prime candidate for income investors. You can beat the S&P and have much higher than average income too!
How The Sausage Is Made
PTY is a fixed-income CEF, in other words they invest primarily in various types of debt that... Read more
| Stock name | Last trade | P/E | Earnings/Share | Dividend/Share | Dividend yield | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| FRONTIER COMMUNICATIONS | 1.15 | 0.0 | -58.14 | 2.40 | 201.68 | |||||||
| CBL & ASSOCIATES PROPERTIES | 1.38 | 0.0 | -0.95 | 0.35 | 27.34 | |||||||
| PIMCO HIGH INCOME FUND | 7.80 | 0.0 | 0.00 | 0.00 | 9.34 | |||||||
| PCM FUND | 10.96 | 0.0 | 0.00 | 0.00 | 8.71 | |||||||
| PIMCO STRATEGIC GLOBAL GOVERNMENT FUND | 9.17 | 0.0 | 0.00 | 0.00 | 8.04 | |||||||
| PIMCO CORPORATE INCOME FUND | 17.67 | 0.0 | 0.00 | 0.00 | 7.53 | |||||||
| BOEING | 375.63 | 44.0 | 8.54 | 8.22 | 2.22 |