#HYHRD: Rolling on the #dividend train with $ARRPRB $EAD $DHY $IVH $HHY $PHT $HIX $LDP $BGH $DFP

This is a followup to my recent post; #HYHRD: Rolling on the #dividend train with $ARRPRB $EAD $DHY $IVH $HHY $PHT $HIX $LDP $BGH $DFP in which I outlined my plan to roll some dividends during the 8-day continuous parade of symbols going ex-dividend.

From that post;

So, take a quick look at the symbols from that timeframe (ARRPRB BDJ GOF EAD JPC JPI JPS KIO NMZ DHY IVH CMU CXE HHY MAV MFM MHI PHT HIX LDP PSF BGH DFP FFC FLC PFD PFO), that’s 27 symbols going ex-dividend in just 8 trading days!

I also planned to augment upcoming dividends by rolling some cash through the accounts, and capturing gains along the way.

The plan is this;

  • Buy an amount before ex-dividend day approximately equal to the number of shares I intend to sell on/after ex-dividend day. New shares will be at a higher price (raising the basis) and the captured gains and extra dividends earned are pure profit.
  • On or after ex-dividend day, sell about half of any holding showing sufficient gain, adding to the cash position. Dividends have now been earned and will be paid.
  • Use the cash position to purchase additional shares of high yielding issues showing good gains, and/or to increase position size in smaller positions.
  • Use this procedure only in our Roth accounts.

So, then, on Monday I will;

Probably sell 132 shares of IVH in my Roth, and sell 171 shares of IVH in my wife’s account. Buy $3,000 worth of the next day’s 10.12% dividend in PHT (probably, because HHY is already overweight). We’ll see…

Tuesday’s plans look like this so far;

Sell 1259 DHY in my Roth, and sell 1962 DHY in my wife’s. Sell 200 HHY in my Roth, and sell 290 HHY in my wife’s. Buy some HIX, LDP, PSF, and/or BGH.

Well, here’s how it went so far, Dividends received from FHY ($31.52) & FPF ($63.74). TOOPRB ($106.26) is a foreign company, so dividends are usually delayed a bit.

In my Roth;

I sold 50 CLNYPRC ($63.93), 72 CSI ($52.05), 132 IVH ($70.30), 100 RSOPRB ($303.00), & 50 TOOPRB ($97.06).

I bought 55 ARRPRB, 69 BGH, 262 HIX, 181 PHT, & 110 RSOPRC.

In my wife’s Roth;

I sold 309 BDJ ($48.06), 50 CLNYPRC ($70.99), 106 JPC ($34.67), 46 JPI ($24.57), 100 RSOPRB ($284.22), & 50 TOOPRB ($97.07).

I bought 55 ARRPRB, 130 BGH, 265 HIX, 171 IVH ($102.66), 64 LDP, 234 PHT, & 110 RSOPRC.

Not counting the dividends, I harvested $1,145.92 in gains, and increased my position a little on arbitrage (RSOPRBRSOPRC). Technically, it really isn’t arbitrage, because I paid 3 cents more for my new position, but I increased the new position size by 10% and also got a higher yield. I can live with that.

So you see, today’s plan changed a bit. Tomorrow’s plan, as laid out above, is already changing slightly;

Sell 1259 DHY in my Roth, and sell 1962 DHY in my wife’s. Sell 200 HHY in my Roth, and sell 290 HHY in my wife’s. Buy some HIX, LDP, PSF, and/or BGH.

It’s now looking more like;

Sell 1270 DHY in my Roth, and sell 1460 DHY in my wife’s. Sell 200 HHY in my Roth, and sell 290 HHY in my wife’s. Sell 507 DHY and 171 HHY in my IRA (to capture gains and be replaced later). Buy some (more) HIX, LDP, PSF, and/or BGH? Maybe add some DFP, FFC, FLC, PFD, and/or PFO?

The top 10 holdings in the position size category are now: BGH, CSI, DHY, FPF, HHY, HIX, JPC, JPI, PHT, and cash.

The top 10 holding in the % gains category are now; ARI-A, CLNY-C, CMRE-D, DHF, DHY, FFC, KIO, PFD, PSF, and TOO-B.

I will try to capture some gains tomorrow, and boost the dividends, if I can.

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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