Pimco New York Municipal Income Fund II Announces Dividend: Market Impact on Ex-Dividend Date of October 14, 2025

Introduction

Pimco New York Municipal Income Fund II (PNI) continues to operate within a fixed-income municipal bond niche, targeting tax-advantaged income for investors. The fund’s dividend policy is a key draw for income-focused portfolios, particularly in a market environment where interest rates and tax-efficient returns are top priorities. With the latest dividend announcement set to go ex-dividend on October 14, 2025, investors are observing how this action might influence short-term price dynamics and investor positioning.

Dividend Overview and Context

Pimco New York Municipal Income Fund II has declared a cash dividend of $0.0295 per share. This distribution is notable given the fund’s recent performance, which shows a net income of -$6,374,000 and a negative earnings per common share of -$0.5685. Despite these figures, the fund continues to pay out a consistent monthly dividend, reflecting a disciplined approach to income generation and distribution.

The ex-dividend date is scheduled for October 14, 2025. Historically, the ex-dividend date for PNI has seen a small price adjustment due to the dividend payout, but the fund’s strong track record of rapid recovery supports continued investor confidence.

Backtest Analysis

The backtest analysis of PNI's historical dividend behavior covers 18 dividend events. It shows that the fund typically rebounds from its dividend-adjusted price drop within an average of 3.65 days, with a 94% probability of recovery within 15 days. This consistent and swift recovery suggests that the market quickly adjusts for the dividend payout, with minimal prolonged price impact.

Driver Analysis and Implications

The fund’s latest financial report indicates an operating income of $3,097,000 and total revenue of $3,688,000. While net income is negative, the fund’s operating performance and ability to sustain dividend payouts point to a well-managed asset base and a disciplined expense approach. The negative net income and earnings per share may raise questions about short-term profitability, but the continued dividend suggests a focus on maintaining income flow to shareholders.

This behavior aligns with broader macroeconomic trends, including the search for yield in a high-interest-rate environment and investor demand for tax-efficient income options. PNI’s performance reflects the balance between maintaining income yields and navigating a challenging net investment income landscape.

Investment Strategies and Recommendations

Given the consistent and temporary nature of PNI's ex-dividend price effects, the following strategies may be appropriate for investors:

• Dividend Capture Strategies: Investors may consider holding PNI through the ex-dividend date to secure the $0.0295 dividend without significant price risk, leveraging the strong historical recovery trend.
• Income-Driven Portfolios: Investors seeking regular income can continue to rely on PNI’s dividend schedule, despite short-term net income challenges.
• Monitoring and Rebalancing: Investors should keep a close watch on the fund’s next earnings report and future dividend announcements to assess the sustainability of its payout.

Conclusion & Outlook

Pimco New York Municipal Income Fund II’s October 14 ex-dividend date marks another instance in its long-standing dividend tradition. Despite recent net income losses, the fund continues to deliver consistent monthly income to investors, supported by a track record of swift price recovery post-dividend. With a strong short-term outlook and a focus on income, PNI remains a compelling option for those seeking municipal bond-based yields in a tax-efficient structure.

The next earnings report and potential dividend announcement will provide further insight into the fund's ability to maintain its dividend policy amid evolving market conditions.