Western Asset Diversified Income Fund

Western Asset Diversified Income Fund

Western Asset Diversified Income Fund (WDI) is a closed‑end investment company managed by Western Asset that seeks current income and potential capital appreciation through a diversified portfolio of fixed‑income securities. The fund typically invests across sectors — including investment‑grade and high‑yield corporates, securitised products, preferred securities and emerging‑market debt — aiming to tap multiple sources of yield. As a closed‑end vehicle, WDI’s shares can trade at a premium or discount to net asset value and the fund may use leverage to enhance income, which can amplify gains and losses. Key considerations for investors include interest‑rate sensitivity, credit and liquidity risk, and the potential volatility that comes with leverage and credit exposure. The fund may suit investors looking for diversified income, but it is not without risk; this is general educational information and not personalised investment advice.

Stock Performance Snapshot

Above Average

Financial Health

Western Asset Diversified Income Fund is performing well with solid profits and revenue generation.

High

Dividend

Western Asset Diversified Income Fund offers a high dividend yield of 12.39%, making it very attractive for income-seeking investors. If you invested $1000 you would be paid $123.90 a year in dividends (based on the last 12 months).

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Baskets Featuring WDI

Mozambique LNG Revival

Mozambique LNG Revival

This carefully selected group of stocks represents companies set to benefit from TotalEnergies' resumed $20 billion LNG project in Mozambique. Our professional analysts have identified key players across engineering, infrastructure, and shipping that are directly positioned to capitalize on this major energy development.

Published: July 15, 2025

Explore Basket

Why You’ll Want to Watch This Stock

📈

Diversified income sources

Investors might value WDI’s exposure to multiple fixed‑income sectors for yield diversification, though this can introduce varied credit and liquidity risks.

🌍

Global credit exposure

The fund’s reach across domestic and international bonds can enhance opportunities, but currency and emerging‑market risks may add volatility.

Leverage and NAV dynamics

Leverage can boost distributions but also magnify losses; remember shares may trade at a premium or discount to NAV, affecting returns.

Why invest with Nemo?

Nemo Logo Fade
🆓

Zero Commission

Trade stocks, ETFs, and more with zero commission. Keep more of your returns.

🔒

Trusted & Regulated

Part of Exinity Group 2015, serving over a million customers globally.

💰

6% Interest on Cash

Earn 6% AER on uninvested cash with daily interest payments.

Frequently asked questions