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 ...