DSL Stock Recent News

DSL: Fully Covered Distribution But Amortizing NAV; Avoid

Closed-End Funds: A Look At The DoubleLine Trio

Inflation continues to run hot, meaning that people need growing amounts of income simply to maintain their lifestyles. DSL invests in a portfolio of bonds and then applies leverage to boost the overall yield.

21 out of 22 CEF sectors were positive on price and 20 out of 22 sectors were positive on NAV last week. MLPs are the most discounted CEF sector.

The latest annual report once again shows that distribution coverage remains strong. Strong enough that they declared another special year-end for the year to distribute excess earnings.

DSL invests in a leveraged portfolio consisting mostly of junk bonds that provide shareholders with substantial income. The fund's portfolio is very well diversified across countries, maturities, and credit quality, which helps to reduce risks.

DSL is a CEF which yields 11.68%. It pays a monthly $.11 distribution.

DSL has consistently generated an exceptionally high yield and has the potential to deliver strong and steady income on the back of its strong coupon income. DSL has been disappointing in terms of price growth and is far from its pre-pandemic price level of $20, and is currently trading at a discount to its NAV.

It has been a challenging year for fixed-income investments and, to be fair, the equity space as well. DSL's discount has continued to widen further, presenting a more attractive opportunity.

With the latest shareholder report out, we take a look at DSL - a multi-sector credit fund from DoubleLine. DSL trades at a 9.1% discount and a 10% current yield. The fund has generated fairly average performance in its sector since we added it to our High Income Portfolio in 2021.