Probably at some point $6.50-$7.00 per share although since no investor trusts Pimco dividends/distributions anymore, in the future even lower. The new .10 cents monthly distribution is also unsustainable. My guess maybe .06 per month would be.Too bad Pimco didn't reduce it long ago instead of pretending it could go on indefinitely paying out far more than it earned. How many other Pimco funds will also see a cut? I own one other, PFN, and suspect Pimco will cut it too.
Pimco has to take some of the blame too. Overpaying the dividend for so long gave the wrong impression to investors. Yes, investors stayed in this disaster too long thinking the dividend would go on forever at a high premium. But, other Pimco cef''s like PFN were at a discount and that has not done well either....losing NAV
Pimco PHK and PFN show NAV still dropping while competitors HIX and DHF show recent steady or rising NAV. Has Pimco lost their touch? Too much for them after Gross left? Whatever the reason, very poor results for their investors and still going downhill.. Sorry I ever bought Pimco cef's.
Now that it broke below 8.00 (7.90), how much lower can this go. Possibilities: down to NAV of 7.11, below NAV, mid to high 7.00's? Issues are: 1. Dividend cut ..more on the way?,2, now lack of faith in Pimco, 3. NAV keeps dropping, 4. Not enough earnings to support even the lower dividend?, Will investors ever trust Pimco enough to pay a premium for any of it's funds? This fund has dropped from 13's to 7's and NAV has also taken big drops as well. Many investors have now lost a lot of money in PHK in 2015 as well in last 12 months. My guess, PHK will go to mid 7's before leveling off.