I’m Pat Rosenheim, a.k.a. the PandA Trader.
I was recently asked about my cost basis and profit from $DHY CREDIT SUISSE HIGH YIELD BD FD SH BEN I (DHY), so I thought I’d post my closed position report;
* Cost Basis, Gain/Loss, and Holding Period Information NFS will report gross proceeds as well as certain cost basis and holding period information to you and to the IRS on your annual Form 1099-B as required or allowed by law, but such information may not reflect adjustments required for your tax reporting purposes. Taxpayers should verify such information when calculating reportable gain or loss. Fidelity and NFS specifically disclaim any liability arising out of a customer’s use of, or any tax position taken in reliance upon, such information. Unless otherwise specified, NFS determines cost basis at the time of sale based on the average cost method for open-end mutual funds and based on the first-in, first-out (FIFO) method for all other securities. Consult your tax advisor for further information.
** Less commissions.
As you can see, there’s a profit on the sales of $591.27 on cost basis of $10,672.64 with proceeds of $11,263.91.
But, that’s not the whole story!
I currently own 1,694.6125 shares with a cost basis of $4,471.38 and current value of $4,829.65 with Yield on Cost of 10.46% comprising 3.10% of my total portfolio. The Total Return on the current holdings is an annualized 18.47% and currently pays ~$467.71 with unrealized gains of $358.27.
But, that’s still not the whole story!
There’s dividends, too;
From Q2 2016;
That’s another $85.66.
From Q3 2016;
That’s another $269.67, some of which was DRIPped (i.e.; reinvested).
From Q4 2016;
That’s another $227.31, some of which was DRIPped (i.e.; reinvested).
Finally, from 2017 YTD;
That’s another $161.52.
That brings the total profit to $1,335.43 since June of 2016 when I started to accumulate this dividend paying gem (one of *MANY*!).
Plus, based on current holdings I will continue to receive approximately $38.90 every month, which more than covers a whole month of gasoline for my car (I own a Prius), even with our yearly trip from Florida to New England to see our family. It probably even covers my stops at Dunkin Donuts for iced coffee on that long 4-day drive each way.
Now, consider that this represents only about 3% of our total portfolio, with most of it held in our Roth accounts (i.e.; UNTAXED!) and it’s quite evident that this is/was a good investment. That’s my story, and I’m sticking to it.
We do have some holdings that are down more than 19%, but we also have some that are up more than 10%, but that means very little when you consider the portfolio as a whole.
Also, keep in mind that I am constantly adding to positions and selling some positions to take some profit off the table. I have 67 positions right now, and plan to add more.
I only post for my holdings, but they’re as accurate as I can make them. The symbols are; ARR-B, BBK, BDJ, BFK, BGH, BKN, BTA, CMU, CSQ, CXE, DFP, DHF, DHY, EAD, EVN, FFC, FHY, FIF, FLC, FMN, FPF, GOF, GUT, HIX, HPF, HPI, HPS, HYB, IQI, IVH, JPC, JPI, JPS, KIO, LDP, LEO, MAV, MFM, MHI, NAD, NHF, NMZ, NRO, NVG, NZF, OIA, ORC, PDT, PFD, PFO, PHK, PHT, PMF, PML, PMM, PMO, PMX, PSEC, PSF, RA, RFI, RNP, RQI, TICC, TLI, TPZ, & UTF. Quite a list, eh? (67 total issues held; 3 common stocks, 1 Preferred issue, and 63 CEFs, of which 23 are tax-free muni CEFs.) Three ETNs (BDCL, CEFL, & MORL) will start being added when the partial transfer of our Roth accounts to Capital One Investing (ShareBuilder) has been completed. Most pay monthly!
I plan to add more, I just haven’t made up my mind yet.
I also plan to start DRIPping some positions after April 18th (Tax day!), especially those that are down more than 10% so I can get more shares at a discount which will pay more dividends so I can get more shares at a discount which will pay more dividends, etc.
We have some very large positions, and some very small positions (cost basis ranging from $50.00 up to $22,353.13). Average position size (current value) is approximately $2,327.01.
We have one holding that pays as little as $0.31 per month, and one that pays as much as $188.74 per month. Our average monthly income is $1,182.23 from dividends alone. This is after the recent dividend cuts on some funds which had a very small effect overall on income. Also, we sold some at new 52 week highs, so there’s that.
I hope this helps to explain why I own this CEF, and also explains a little about the process I use to extract value when a holding has increased in value, especially when reaching new 52 week highs.
I’m not telling anyone to buy this, because that’s illegal. You see, I have no letters after my name, like RIA, CFA, etc. I DO NOT give advice. I only tell (and show!) what I do. You, like me, are all alone in this.
Remember, always do your own due diligence!