Due to changes by Capital One Investing outlined in my previous posts about the sharebuilder updates, I felt it warranted a little further explanation.
Here is my attempt to explain some of my strategy;
I am currently focusing on a modified ‘dividend capture’ investment plan. As it stands, this type of plan calls for a short-term horizon for holding stocks. I have a much longer-term horizon, hence the modification previously noted. I am currently buying stocks before their declared and/or expected ex-dividend dates. This is an effort to ‘jump-start’, if you will, some of the rather meager dividends from investments in ‘qualified’ dividend paying stocks held in this taxable account. The investments scheduled for this type of strategy have or will take place on September 1st (1st Tuesday), September 15th (3rd Tuesday), and October 6th (1st Tuesday).
It is after the October 6th investment that I will ‘switch gears’ and will instead focus on investing in highest-scoring stocks based on my ‘score’ spreadsheet twice each month, adding incrementally to stocks already owned. In December, I may consider adding some new stocks from the ‘qualified spreadsheet’ that are scoring at or above the top 6 (or 12) from the ‘score’ spreadsheet, such as the current example;
The #6 stock, AOS, currently has a combined score (TTM yield plus TTM return) of 42.91%
The #12 stock, BGCP, currently has a combined score (TTM yield plus TTM return) of 28.95%
Compare that to the ‘qualified’ spreadsheet;
Here, you can see that GSB might be a good fit with a score at 47.92% above the previously mentioned AOS and also above the #5 scoring stock (FAF @ 46.42%), but it needs further DD before it is added to our holdings. Both AOS and FAF are much better stocks, IMHO, but that is based some very sparse DD on GSB to date, so it could change…
Additionally, all 12 stocks currently scoring ‘in the green’ on the ‘qualified’ spreadsheet might be good additions because there are some ‘juicy’ yields in that lot. But, we will see. There’s no rush, especially in this economy.
If I had to base my selections on scores for the upcoming investment on 9/15, my choices would have been; NTRI, LOAN, CBRL, HAS, FAF, & AOS, instead of AI, AOS, CBRL, CNSL, HAS, & LOAN. So you can see there are some subtle differences.
I expect this will change for the expected implementation date (10/27) of this new strategy and subsequent change from 1st & 3rd Tuesday investment days to 2nd & 4th Tuesday investment days. I expect that the 2nd & 4th Tuesday investment days won’t change in 2016, but of course that could also change.
I currently still have some residual cash left in the account from the sale of 100 shares of VGR on 7/29, but I expect that to be fully re-deployed by the end of this year, leaving a ‘zero’ balance at the end of each month in 2016.
I am also currently depositing $50 per week to augment that figure, but that will end after the 12/18 deposit request. I will then be implementing a once a month deposit beginning 12/31/15 for the next year’s investments at $300/month which would allow $25 for each of the 12 investments I will make each month.
You might notice I declined to mention any plans for our tax-advantaged accounts, which are down significantly (more than 25%). That is intentional, as I plan no changes in this current economic environment that is based on extreme douchebaggery and outright fuckery by China, ECB, ‘The Fed’, oil speculators, and, of course the ‘1%’ and their puppets, the GOP and Dumbocrats, along with those wholly-owned Koch subsidiaries, the ‘TEA Party’ and the ‘Libertarian Party’, among others. Sorry for the rant. Where is my torch and pitchfork?
Some plans for the future include investigating a covered call strategy to attempt to earn additional income, as well as further DD on preferred issues.
As always, none of this is advice, and you would do well to ignore it.
But, YYMV of course!
Be safe, and trade wisely and safely!
Pat (a.k.a. The PandA Trader)