By funu50401, January 28, 2013

This is a discussion topic or guest posting submitted by a Stock Gumshoe reader. The content has not been edited or reviewed by Stock Gumshoe, and any opinions expressed are those of the author alone.

If anyone knows, are this funds payouts ”qualified,” I.e., suject to the 15% dividend tax or are the payouts ordinary income. The ”hype” I’ve read on this says it can be DRIPed; if so, and if one DRIPed ones holdings, and the payouts continue at their present rate, this value of ones holdings in this fund would double in about 8 years.
Any one ”out there” know about thus PIMCO fund?

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1 Comment on " PIMCO’s HPK"


Travis Johnson, Stock Gumshoe
I think you mean PHK, which is Bill Gross’ high yield corporate debt closed-end fund. I presume it’s not eligible for the lower tax rate, since it’s generating taxable income from bonds, but don’t know for sure — I would ask them if that matters to you. Many closed-end funds have dividend reinvestment plans and let you DRIP your dividends very similarly to what you would do with a dividend-paying stock, I believe PHK does provide for this but your broker can give you a specific answer. Do note that this fund has traded at a hefty premium ever since… Read more »