2 Good, 2 Bad PIMCO CEFs Paying Up to 13.9%

PIMCO recently cut the dividends of two of its popular closed-end funds (CEFs). Shareholders took a bath and, honestly, none of this was a surprise to us careful contrarians. The payout cuts themselves were not the reason for the bludgeoning. PIMCO Strategic Income Fund (RCS) reduced by 22% but still yields 7.4%. PCM Fund (PCM) cut by 20% yet it pays 11.5% post-chop. Yet shareholders down 13% and 12% respectively in the past month are now searching for meaning in their empty dividend lives. Fast double-digit losses are obviously not what these income-hopeful investors signed up for. Alas, hope is never a good strategy and those that were burned obviously did not research these paper payout tigers in Contrarian Outlook.… Read more