PIMCO Dynamic Income Fund

PDI

Market cap $7.67B

NEW YORK, Oct. 01, 2025 (GLOBE NEWSWIRE) -- The Boards of Trustees/Directors of the PIMCO closed-end funds below (each, a “Fund” and, collectively, the “Funds”) have declared a monthly distribution for each Fund's common shares as summarized below. For the following Funds, the distributions are payable on November 3, 2025 to shareholders of record on October 14, 2025, with an ex-dividend date of October 14, 2025:       Monthly DistributionPer Share   Fund NYSE Symbol Amount Change FromPreviousMonth PercentageChange FromPreviousMonth PIMCO Corporate & Income Strategy Fund (NYSE: PCN) $0.112500 - - PIMCO Corporate & Income Opportunity Fund (NYSE: PTY) $0.118800 - - PIMCO Global StocksPLUS® & Income Fund (NYSE: PGP) $0.069000 - - PIMCO High Income Fund (NYSE: PHK) $0.048000 - - PIMCO Strategic Income Fund, Inc. (NYSE: RCS) $0.040000 - - PCM Fund, Inc. (NYSE: PCM) $0.064240 - - PIMCO Income Strategy Fund (NYSE: PFL) $0.081400 - - PIMCO Income Strategy Fund II (NYSE: PFN) $0.071800 - - PIMCO Dynamic Income Fund (NYSE: PDI) $0.220500 - - PIMCO Dynamic Income Opportunities Fund (NYSE: PDO) $0.127900 - - PIMCO California Municipal Income Fund (NYSE: PCQ) $0.036000 - - PIMCO Municipal Income Fund II (NYSE: PML) $0.039500 - - PIMCO New York Municipal Income Fund II (NYSE: PNI) $0.029500 - - PIMCO Access Income Fund (NYSE: PAXS) $0.149400 - - PIMCO Dynamic Income Strategy Fund (NYSE: PDX) $0.133400 - -           Fund Distribution Information as of August 31, 2025: Fund NYSE Symbol CurrentAmount Annualizedcurrentdistributionrateexpressed asa percentageof NAV as of8/31/2025 Annualizedcurrentdistribution rateexpressed as apercentage ofMarket Price asof 8/31/2025 PIMCO Corporate & Income Strategy Fund (NYSE: PCN) $0.112500 11.33% 10.33% PIMCO Corporate & Income Opportunity Fund (NYSE: PTY) $0.118800 12.01% 10.07% PIMCO Global StocksPLUS® & Income Fund (NYSE: PGP) $0.069000 9.87% 9.74% PIMCO High Income Fund (NYSE: PHK) $0.048000 12.36% 11.61% PIMCO Strategic Income Fund, Inc. (NYSE: RCS) $0.040000 10.37% 6.64% PCM Fund, Inc. (NYSE: PCM) $0.064240 12.98% 12.14% PIMCO Income Strategy Fund (NYSE: PFL) $0.081400 12.16% 11.49% PIMCO Income Strategy Fund II (NYSE: PFN) $0.071800 12.00% 11.34% PIMCO Dynamic Income Fund (NYSE: PDI) $0.220500 15.56% 13.47% PIMCO Dynamic Income Opportunities Fund (NYSE: PDO) $0.127900 11.58% 11.07% PIMCO California Municipal Income Fund (NYSE: PCQ) $0.036000 4.69% 5.22% PIMCO Municipal Income Fund II (NYSE: PML) $0.039500 6.16% 6.52% PIMCO New York Municipal Income Fund II (NYSE: PNI) $0.029500 4.81% 5.36% PIMCO Access Income Fund (NYSE: PAXS) $0.149400 11.60% 11.15% PIMCO Dynamic Income Strategy Fund (NYSE: PDX) $0.133400 6.13% 6.48%           Distribution rates are not performance and are calculated by annualizing the current distribution per share announced in this press release and dividing by the NAV or Market Price, as applicable, as of the reported date.

This analysis examined PIMCO Dynamic Income Fund and PIMCO Dynamic Income Opportunities Fund's price premium, their latest net investment income, and leverage structure. My conclusion is that PDI's current price premium has already factored in the potential impacts of lower rates. From this point on, I see PDO better positioned to benefit from lower rates.

The current economic environment is marked by persistent inflation and a weakening labor market, raising uncertainty and risk for investors. Despite these risks, large-cap equities, tech stocks, and high-yield credit continue to climb, defying expectations of repricing. Income-focused assets like real estate, financials, dividend growth (SCHD), and quality CEFs (UTG, PDI) now offer lower yields as well.

Interest rates are one of the most important drivers of asset valuations, directly impacting discount rates and valuations. So, as the Fed lowers rates, yield compression occurs, making it harder to find safe, high-yield investments - now even above 8%. In the current environment, reliable yields of 6% to 8% are still achievable (at scale), while yields above 10% are mostly speculative.

PIMCO Dynamic Income Fund remains a strong income-generating closed-end fund, but we are forced to move to a "don't buy" stance here. PDI offers a reliable income stream with a decade-long record of consistent income, with a catch. The fund's complex portfolio spans over 2,000 holdings, with concentration in consumer cyclical, real estate, and corporate debt, making it sensitive to interest rate changes.

PIMCO taxable closed-end funds offer attractive value with strong NAV trends, improved coverage ratios, and compelling yields, especially after recent US dollar strength. PCN and PTY stand out as the best value opportunities, with strong NAV growth, lower-than-average leverage, and valuations below their fair value estimates. PDI remains a hold due to its rich valuation, while PCN and PTY are recommended buys; PCM is also rated a buy for its unique positioning.

PIMCO taxable CEFs show persistently low distribution coverage, raising the risk of future distribution cuts and potential valuation hits. Current valuations across the PIMCO suite are not attractive, with premiums and tight credit spreads limiting upside potential. Tight credit spreads and a flat yield curve mean limited additional income growth on leverage, even if short-term rates decline as expected by the market.

NEW YORK, Sept. 02, 2025 (GLOBE NEWSWIRE) -- The Boards of Trustees/Directors of the PIMCO closed-end funds below (each, a “Fund” and, collectively, the “Funds”) have declared a monthly distribution for each Fund's common shares as summarized below.

PIMCO Dynamic Income Fund offers broad fixed income exposure but has a history of aggressive leverage and lower credit quality. PDI's current setup presents significant risks. We give you 3 reasons to cash out your chips here.

Market timing is futile; a disciplined, diversified, and rules-based approach is essential for long-term investing success. A Near-Perfect Strategy portfolio aims for consistent income, growth, and lower volatility through diversification and strategic planning. The portfolio targets 6% income and S&P 500-beating returns, with lower volatility and drawdowns, making it suitable for investors seeking financial freedom or retirement income.