I want to share what I believe my most successful investment has been in my income investing portfolio.
This is the holding that helped me decide to change my investing strategy completely to focus on high yield income investing.
Psst…If this is your first time at my blog please read this post first.
I used to believe that a high dividend/distribution yield meant that the asset was extremely risky and would inevitably decline in price due to over distribution.
This is not always true.
My best performing holding has been my investment in a closed end fund offered by Pimco. The ticker symbol is PCI.
My returns with PCI
PCI has performed extremely well for me since I originally purchased it for my portfolio in late 2016.
It has paid me almost $650 in distributions in the short time that I have owned it.
It has done this while increasing in value as well. At today’s closing price if I closed my position it would net me over 30% in profit.
I have already trimmed some and reinvested proceeds into other holdings in the past because it almost seems too good to be true.
My cost basis and yield
Accounting for my reinvested distributions my cost basis is down to $17.80 which works out to a yield over 11% based on the current annual distribution of $1.97.
I wish all of my holdings performed this well and would happily add more shares if the price dropped. Based on my current allocation PCI represents over 14% of my expected annual income.