Western Asset Diversified Price, Forecast, Insider, Ratings, Fundamentals & Signals

New york--(business wire)--category: fund announcement.

New york--(business wire)--category: fund announcement.

The board of each fund announced today the appointment of eileen kamerick as lead independent director, effective november 8, 2022. ms. kamerick replaces william hutchinson, the former lead independent director of the funds, who recently passed away. the boards also announced that nisha kumar will succeed ms. kamerick as chair of each fund's audit committee.

New york--(business wire)--category: distribution related

New york--(business wire)--category: distribution related

PDI: 13.7% Yield Attractive Despite Section 19 Notices

Western Asset Diversified Income Fund continues to perform well and is nearing our 'Buy' discount target. WDI's distribution is fully covered by net investment income, but coverage may decrease with expected rate cuts in the future. WDI's portfolio is diversified with a focus on high-yield credit, collateralized loan obligations, commercial MBS, and bank loans.

We review CEF market valuation and performance through the fourth week of April and highlight recent market action. CEFs were mostly up on the week, however remain in the red through the month. Investors should evaluate funds based on historic total NAV return and individual features, rather than price behavior.

Total Annual Passive Dividend Income  $10,898.00    ALERT: Today Could Be Your Best Shot At Early Retirement (Sponsored) If you want to retire before 65, pay attention.

Western Asset Diversified Income Fund has seen a decline in share price, but when factoring in dividends, the decline is only 6.5%. WDI is currently trading at a modest 7% discount to its Net Asset Value, presenting a compelling opportunity for investors. WDI offers a substantial 13.45% dividend yield, with its fund holding an average YTM of 13.05% with an average duration of 14+ years.

The Western Asset High Income Fund II is undergoing a rights offering, which has pushed the fund to a deep discount.

Western Asset Diversified Income Fund has posted strong Q3 2023 financial results, showing once again a fully supported distribution from net investment income. The fund carries a portfolio that consists of mostly below-investment-grade issuances, but it is diversified across hundreds of holdings and instruments. With the possibility of rate cuts in the future, distribution coverage may come under pressure, but most do not anticipate aggressive cuts (i.e., not returning to a zero rate environment).

The Western Asset Diversified Income Fund offers a competitive 12.56% current yield, making it attractive for income-seeking investors. The WDI closed-end fund has delivered a reasonable performance compared to other investments and indices, with a 3.43% total return since February 8, 2023. The fund's holdings include a variety of debt securities, providing diversification and potential performance in a rising interest rate environment.

In 2021, a dozen closed-end funds, or CEFs, were launched, but none of them performed well, with all of them experiencing negative total returns since inception. The CEFs trade at wide discounts to NAV, with an average discount of -12.5%, and offer high yield income with annual yields as high as 12.9%. The hybrid funds with global allocations and higher yielding taxable fixed income funds have performed better than municipal fixed income funds and equity funds.

If you're looking for a sustainable high-yield fund, Western Asset Diversified Income Fund could be it. WDI offers a high distribution yield, growing monthly distribution, and strong distribution coverage, which could mean even more increases in the distribution. WDI is trading at a deep discount, making it an attractive investment option in the high-yield leveraged CEF space.