#HYHRD – Overweight positions revisited $ARRPRB $CLNYPRC $CMREPRD $CNSL $PSEC $RSOPRB $TOOPRA

This is a follow-up to Monday’s post…

All I can say is; PLANS CHANGE

Last Friday, overweight positions were trimmed and capital deployed into a few (33!) closed end funds. Net gain from that day was exactly $6,156.00, not too shabby for a few short months invested in preferred shares.

Last Friday, June 3rd, I sold some of our preferred shares for a sizable profit and re-deployed the capital. We now have 48 47 positions with an average dollar weight of 2.08% 2.13% across the portfolio.

I am looking to trim positions that exceed 4.0% 6.0% of our portfolio and they happen to be some of the exact same positions (preferred shares) I trimmed last Friday, plus 2 more (common stock).

This is how I plan to address that;

  • ARRPRB – ARMOUR Residential REIT, Inc. Preferred Series B
    • June 13th is the next ex-dividend date – position size is 5.10% – currently holding 400 shares – 200 shares will be sold after “capturing” the dividend.
  • CLNYPRC – Colony Capital, Inc 7.125% Series C Cumulative Redeemable Perpetual Preferred Stock
    • June 28th is the next ex-dividend date – position size is 5.58% – currently holding 400 shares – 200 shares will be sold after “capturing” the dividend.
  • CMREPRD – Costamare Inc. 8.75% Series D Cumulative Redeemable Perpetual Preferred Stock
    • 2nd week of July should be the next ex-dividend date – position size is 4.69% – currently holding 400 shares – 200 shares will be sold after “capturing” the dividend.
  • CNSL – Consolidated Communications Holdings
    • July 13th is the next ex-dividend date – position size is 4.28% – currently holding 300.094 shares – 3 covered calls expire October 21st – I will probably sell more covered calls unless the position is called away. Rinse and repeat if necessary.
  • PSEC – Prospect Capital Corporation
    • June 28th, July 28th, and August 29th are the next ex-dividend dates – position size is 14.84% – currently holding 3,321.056 shares – Trailing stop orders entered to close out the position, but I am expecting a run up to $8.00 per share or higher before that happens so I will just collect the monthly dividend(s) in the interim.
  • RSOPRB – Resource Capital Corp. Pfd Ser B
    • The end of June should be the next ex-dividend date – position size is 7.11% – currently holding 600 shares – 400 shares will be sold after “capturing” the dividend.
  • TOOPRA – Teekay Offshore Partners L.P. 7.25% Series A Redeemable Preferred Units
    • The beginning of August should be the next ex-dividend date – position size is 4.42% – currently holding 400 shares – 200 shares will be sold after “capturing” the dividend.

    We currently have 48 47 different holdings; 9 8 common stock, 6 preferred shares, 6 tax-free closed end funds, and 27 taxable closed end funds.

    I have trailing stop orders to close out 4 3 of the common stock positions, and have sold covered calls against the remaining 5 positions. When/if the calls expire worthless I will either sell more covered calls or close the position(s). If the stock(s) get called away I will not buy any more common stock. At least I have no current plans to do so now or in the foreseeable future.

    I have outlined the plans for the preferred shares above, and the only “fly in the ointment” is the merger of CLNY-NSAM-NRF. It will be interesting to see how that plays out. The rich get richer…

    The plans for the closed end funds are to acquire more at some point. They are moderately stable at this point, and have reasonable yields.

    As always, YMMV!

Well, plans indeed changed. As it turns out, I did not wait to ‘capture’ any of the dividends, opting instead for cash in hand (“A bird in the hand is worth 2 in the bush”).

No change to the plan for CNSL at all.

I sold yesterday instead of waiting, and net profit was $2,216.90 from those sales. So, the total net profit from those 2 days of sales is $8,372.90. This is short term capital gain, mostly in our Roth IRAs.

That capital has already been re-deployed, and now I have a new list of overweight positions. 😉 Looks like I will have to raise the bar somewhat in that respect.

I’ve also decided that holdings in my IRA will be DRIPped, as will the lone holding in our taxable PandAjoint account. Also being DRIPped are the holdings in my Roth, and all CEFs in our other taxable account, ind-PandA. This information is shown on the Google sheets.

Although my yield is now considerably lower, my nights have been much more restful. That is the goal now, to Sleep Well At Night. Some people call that SWAN investing. Since I have been sleeping well at night lately, I am inclined to agree.

Now I’m off to get the car washed, go to Costco (new sale starts today!), and get back in time to get some laps in the pool before the forecasted afternoon thunderstorms. Then, it’s home to shower before going out (again!) to re-celebrate my birthday and my wife’s birthday…

About PandA Trader

I am, I think... "Disobedience, in the eyes of anyone who has read history, is man's original virtue. It is through disobedience and rebellion that progress has been made." -- Oscar Wilde
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