Dan, I did NOT sell, and I am still getting back more than 10%, even after the div. reduction. Since I don't have too many other things out there that are returning this level of income, I think that I will hold on for a while.
So under Carter (and Ford), we had 18% mortgages, but we also had 18% muni bonds (3x exempt). And under Bush, we lost 30% of our 401K. Not certain which is worse.
In case you hadn't noticed, the dividend is paid monthly. That would be 8c PER MONTH, or 96c per year, in case you are not up on your math skills. And if you are familiar with PIMCO, you would know better than to even suggest this.
So even at 8c, the return will be 10%, based on today's price. If the price goes down to 7, it is 13.7%. What is wrong with that? Oh yeah, and it's a FUND, not a company, so it will not go down to 0.
And in another three or so years, you will have ALL of your money back, and continue to collect the distribution. Enjoy.
Sentiment: Strong Buy
This is not something that you hold for a few months, it is something that you hold for a few years. I have held it for a few years,a and my average price is a little over $11. With my dividends, I am still way ahead. I would not sell (or short) at this point, I would buy. But of course, if your investment horizon is only "a couple of months", I would suggest that you go somewhere else. There are plenty of short term "pops" that you can gain from. PHK, with a dividend that has not changed in ten years, and a very narrow trading range (look at the 10 yr chart), is a slightly longer term investment.
First of all, you are not getting 10%/year, it is currently 15%.
Second, as you get 1.46 in div. for every year that you hold, thus reducing your cost basis by the same amount, you are still way ahead on PHK if you have held for more than about three year, even if you purchased at around $14 ($14-4.38=$9.62), which is VERY high, as the trading range, which is very steady, is $11-$14.
Third, the price has been as low as around $4 in 2009, but they have never changed the dividend. By the way, if you had purchased in 2009, you would be earning 36.5% in dividends, and you would have earned $8.76 in dividends, and you would STILL be earning the same dividend. That's more than a 200% return, with a continuing flow. Not a bad deal!!!
I wish that I could have purchased almost any stock at the "low", and seen a gain...NFLX comes to mind. But, alas, I purchased stocks that pay a nice, reliable, dividend, and even if they don't "grow", my returns over the years are almost always good. By the way, comparing your portfolio to the DOW is a false argument, because when DOW companies fail (GM, C), they are simply replaced with more successful companies. If you held onto your "DOW" for the last 20 years, your return might not be so great.
My experience with PIMCO funds is similar, and I look at the trading range, which for PHK it is between 10 and 15, so I only buy when it is below 11. With a 15%+ return at that price, I am not complaining, or looking at "what I COULD have done."
"You want to be greedy when others are fearful. You want to be fearful when others are greedy" Warren Buffett
You just sold at the lowest price since 2009.
Not certain as to why I wild look to dan86 for investment advice as I have put him on ignore due to his hysterical rantings. And even at 5c per month, you are still at 8%. Not bad as far as I am concerned. Right now, you are at 15%, which is also quite fine with me.