I have been in this fund for over 2 years because of Gundlach's investing success and primarily for an income stream and good assurance of preservation of my capital. The dividend has dropped close to 25% since 1/2012. I would guess the current dividend is in the low 6+% range, a far cry from the early days of close to 8%. Although my total return is fine considering this is a bond fund, I am disappointed the yield has dropped-my main focus is from the latter. Will see how it goes in next 6 months. TGLMX , a comparable fund with a high rating has maintained a steady dividend for the most part over the past year.
DLTNX is a agency and non-agency MBS fund. I am sure you
knew that. The rMBS market has been very strong in 2012 &
this market has seen large amounts of prepayments of higher
MBS as well.
The fund price for DLTNX has gone up as the mortgage
backed market has strengthened due to QE3 and other market
forces. With MBS re-fi and prepayment activity increasing
as long term mortgage rates have dropped, DLTNX dividend
has been reduced as prevailing rates in the new issued MBS
market have shrunk.
DLTNX seems to be acting exactly as an non-levered MBS
securities fund should act in the current market.
Those who appear angered by the lower dividend this year
may not understand the investments that make up DLTNX.