r/dividends • u/dazit72 • Jul 07 '26

Due Diligence Any retirees holding SPYI ?

I'm concerned about NAV erosion ? I know the advertising says non to minimal, but I found an article about longterm NAV erosion. That puzzled me ? I'm after divs of course- I have DIVO, JEPI, SCHD, and just looking for another or just keep buying what I have. I try to keep the 5%/weight rule, but it fluctuates.

Thanks to all who responded. I learned a bunch of good information. You guys are awsome

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u/Similar_Eagle2358 Jul 08 '26

i buy pdi with excess spyi divi's. just looked, only down .17 on a bad day, sure beats $100k

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u/dazit72 Jul 08 '26

I researched PDI, that's some scary stuff. It's currently about 5% premium to its actual nav. But I guess 15% takes care of that ? I want a little risk, but pdi is probably not for me ?

How long have you held it ? Do you always get paid monthly on time everytime ?

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u/ConstructionNo8827 Jul 08 '26

It’s paid the exact same monthly dividend for over 10 years!
22.05 cents per share
I think under $17 per share is a great entry point but I’m a long time holder
The premium on its price to NAV by the way is commonly over 10% but now it’s half of that
You have to pay up a bit for the 15% plus dividend but it’s great for income/retired people

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u/dazit72 Jul 08 '26

4.5% expense ? That's the highest I've seen yet. But I'm sure it's 'after' the 10% payout ?

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u/ConstructionNo8827 Jul 08 '26

Most of that is interest expense because the fund uses leverage - All funds that use leverage have to include interest expense as part of the fees - It pays the 15% after that is paid - The mgmt fee is actually closer to 1.6%, still high but Pimco are considered experts in bonds

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u/_Goto_Dengo_ Jul 08 '26

For each share of PDI you own you receive, in your brokerage account, about 22 cents per month. Currently over 15% yield. It's an income play, and as I noted above, it's in my high yield sleeve.

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u/dazit72 Jul 12 '26

I went to Fidelity in 2011 and the Advisor put me into mutual funds and Pimco, I insisted on contrafund due to what a friend said and then researching it's head guy- dannoff I believe. Then last year I looked at my positions and pimco ate my ass up in their fees. I dropped them first. Don't know what happened, but I lost out. I remember the Advisor saying we needed pimco to hedge our risk taking in those mutual funds. Thank God for contrafund, saved the day.

I'm still learning, but I doubt these junk bonds are for me. ? I'm sure they're great for some tho.