Western Asset Diversified Income Fund
WDIFinancial Services · Stock · monthly payer
Forward Yield
13.95%
Annual Dividend
$1.78
Payout Ratio
163%
5-Yr Growth
—
Ex-Date
Sep 23, 2026
Frequency
Monthly
Summary
As of September 2026, Western Asset Diversified Income Fund (WDI) yields 13.95% ($1.78 per share annually), with a blended fair-value estimate of $27.63 — +115% upside, so it screens as undervalued. Dividend safety grade: C (63/100). 4 years of dividend growth.
Is WDI a good dividend stock?
Yes, with caveatsWestern Asset Diversified Income Fund (WDI) pays a monthly dividend yielding 13.95% ($1.78/yr), with 4 years of growth and a dividend-safety grade of C. It's a solid income payer, but check the caveats below before buying.
Advantages
- Never cut its dividend on record
Risks
- Elevated payout ratio (163%)
- Very high yield can signal elevated risk
- Share price is down over the past 5 years
Key Data
- Dividend Yield
- 13.95%
- Payout Ratio
- 163%
- Annual Dividend
- $1.78
- 5-Yr Avg Growth
- —
- Ex-Dividend Date
- Sep 23, 2026
- Years of Growth
- 4
- Frequency
- monthly
- Beta
- —
- Market Cap
- $660.3M
- P/E Ratio
- 11.7
- 5-Yr Total Return
- -33%
- 52-Week Range
- $12.75 – $15.28
- Dividend Safety
- C · 63/100
- Ever Cut?
- No
Frequently Asked Questions
WDI Price — Last 12 Months
Daily close
Price Return
1 Year
-13%
3 Years
-3%
5 Years
-33%
52-Week Range
$12.75 – $15.28
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is WDI worth?
Undervaluedlow confidenceOur blended fair-value estimate for Western Asset Diversified Income Fund is $27.63 per share, versus a market price of $12.87. That implies 115% of upside — a margin of safety of about 53%.
Fair Value
$27.63
Current Price
$12.87
Upside
+115%
Margin of Safety
53%
How we get there
Discounted cash flow
Discounts projected free cash flow back to today.
Dividend discount
Discounts the future dividend stream back to today.
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 4.8% — below our estimate, leaving room for upside if the business executes.
Assumptions: 9.3% discount rate (CAPM), 4.8% stage-1 growth, 2.5% terminal growth, $1.38 EPS, $1.78 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
WDI Dividend Safety Score
Borderline
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Aug 24, 2026 | — | $0.1490 | regular |
| Jul 24, 2026 | — | $0.1490 | regular |
| Jun 23, 2026 | — | $0.1490 | regular |
| May 21, 2026 | — | $0.1490 | regular |
| Apr 23, 2026 | — | $0.1490 | regular |
| Mar 24, 2026 | — | $0.1490 | regular |
| Feb 20, 2026 | — | $0.1490 | regular |
| Dec 31, 2025 | — | $0.1490 | regular |
| Dec 10, 2025 | — | $0.1490 | regular |
| Nov 20, 2025 | — | $0.1490 | regular |
| Oct 24, 2025 | — | $0.1490 | regular |
| Sep 23, 2025 | — | $0.1490 | regular |
| Aug 22, 2025 | — | $0.1490 | regular |
| Jul 24, 2025 | — | $0.1490 | regular |
Income Calculator
At $1.78 / yr per share
