PIMIX dividend raise

sfnative

Shareholders might notice that this fund appears to have raised its monthly dividend by almost 20% (which sounds a lot more impressive than saying it increased from 4.6 cents to 5.5). That's what happened in September anyway. It was last raised in June; a lot has changed since then in the world of interest rates.

yogibearbull

Thanks. I see the history in M* PIMIX Performance/Distributions.
https://www.morningstar.com/funds/xnas/pimix/performance

LewisBraham

This should be happening in most bond funds soon. The Fed raises rates and you get a raise too.

Sven

You should already see that in money market funds. It was not long ago when they yielded virtually zero % and many are yielding over 2%.

I notice that too with few of my bond funds with higher monthly yields, but that does not make up for their sizable loss this year.

yogibearbull

Just because bond fund NAVs decline, their $distributions don't go up, although the 30-day SEC yield and YTM will go up.

However, as bond funds replace maturing bonds with higher coupon bonds, or trade from lower coupon to higher coupon bonds, $distributions will go up.

The effect is seen quicker in the m-mkt funds because of their shorter maturities.

BaluBalu

"Trade from lower coupon to higher coupon bonds, $distributions will go up."

Presumably by going to a lower credit bond or if one of those bonds is mispriced and the manager decides to swap for the underpriced bond?

Of course, if fortunate to have inflows that would help too.