Careful readers pointed out that DLY's distribution isn't currently fully covered by net investment income (NII). About 16% of the payout is classified as return of capital—cash in DLY's checking account. This is not a red flag. CEFs use leverage, borrowing money to invest for higher yields. With short-term rates still elevated, Gundlach's borrowing cost is pinching net income. getty Monthly dividends and panic readings? Now that's a path to profits. Two weeks ago, my Contrarian Income Report readers and I ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...