A Practically Perfect TFSA Stock With a 10.3% Monthly Payout for March 2026

PGI.UN is a TFSA-friendly way to target high monthly income, but the payout only matters if the fund’s bond portfolio can keep supporting it.

Key Points
  • It pays a steady monthly distribution and currently screens near a 10% yield, which is attractive for reinvestment.
  • Because it’s a leveraged closed-end bond fund, the unit price can swing with rates, credit spreads, and NAV discounts.
  • Treat it as a satellite income tool, not a “set-and-forget” core holding, and watch coverage and leverage.

A high-yield monthly payer can look especially appealing in a Tax-Free Savings Account (TFSA). These give investors two useful things at once: regular cash flow and tax-free sheltering of that income. When the yield gets close to 10%, every reinvested payout can buy more units and help compounding do some of the heavy lifting. Of course, high yield alone is never enough. The real appeal comes when that payout looks steady, the asset mix makes sense, and the price has not run too far ahead of itself. That is when a dividend stock like this comes in.

dividend stocks are a good way to earn passive income

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PGI

PIMCO Global Income Opportunities Fund (TSX: PGI.UN) is not a traditional operating company. It is a closed-end fund that invests mainly in global fixed-income securities, including mortgage-related securities and other credit assets, with the goal of providing monthly cash distributions and maximizing total return. That makes it a little different from the usual TFSA income name. You’re not buying a phone company or pipeline, but a professionally managed global income portfolio.

Over the last year, the biggest news has been consistency. PIMCO kept the monthly distribution at $0.05688 per unit through 2025 and into 2026, which is useful when many income investors just want something steady. It also announced a year-end special reinvested distribution of $0.02655 per unit for 2025, a small extra sign that taxable income needed to be distributed. That does not guarantee anything for the future, but it does suggest the fund kept generating enough income to support its structure.

The other thing worth noting is that this fund still trades like a closed-end fund, not like a savings account. PIMCO’s own disclosures remind investors that closed-end funds may use leverage, can trade at a discount to net asset value, and carry risks tied to the underlying assets. That risk is part of the bargain. You get professional fixed-income management and a rich payout, but you also need to accept that the unit price can move around when bond markets, credit spreads, or currencies get moody.

Numbers don’t lie

On valuation, the math is what grabs attention first. PGI.UN’s monthly distribution of $0.06 works out to annual income of about $0.72 per unit. That puts the forward yield at about 10.2% at writing, which is right in line with the headline appeal here.

Because this is a fund, the “earnings” story looks a bit different from a normal stock. Instead of focusing on revenue growth or earnings per share (EPS), investors need to look at whether the portfolio can keep producing income and whether the distribution policy stays intact. So far, the record is encouraging. The payout has remained unchanged month after month, and the fund also paid that year-end reinvested distribution for 2025. That is not the same as saying it is risk-free, but it does suggest the income engine has held together.

The future outlook is tied closely to the bond market. If interest rates fall further or credit markets stay healthy, a global income fund like this can keep looking attractive for investors hunting yield without diving straight into equities. PIMCO has also been talking more broadly about policy volatility and shifting market opportunities in 2026, which fits a flexible fixed-income approach. The risk, naturally, is that leverage and credit exposure can cut both ways if markets seize up. That is why this fits best as an income tool, not a no-brainer core holding for every investor.

Bottom line

For a March TFSA pick with a 9.7% monthly payout, PGI.UN has a pretty straightforward case. It offers regular cash, a globally diversified income mandate, and a yield that is hard to ignore. And right now, here’s what the dividend stock could bring in from just $7,000.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
PGI.UN$7.07990$0.72$712.80Monthly$6,999.30

It is not as simple as buying a blue-chip dividend stock, and it does carry fund-specific risks. But for investors who want tax-sheltered monthly income and can handle a little extra complexity, this one looks like a compelling option right now.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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