I’m Pat Rosenheim, a.k.a. the PandA Trader.
So, I decided I should probably post about my #PLAN for the foreseeable future. A lot of people ask about my investment theses, so that seems to justify this post. Let’s see if I can even begin to support that statement.
I only post for my holdings, but they’re as accurate as I can make them. The symbols are; ACSF, ARCC, ARR, BDCL, BDJ, BFK, BGH, BKN, BTA, CEFL, CLM, CRF, CSQ, CXE, DFP, DHF, DHY, EAD, ECC, EVN, FFC, FHY, FIF, FLC, FPF, GAIN, GLAD, GOF, GUT, HIX, HPF, HPI, HPS, HYB, IVH, JPC, JPI, JPS, KIO, LDP, LEO, MAIN, MAV, MFM, MHI, MITT, MORL, NAD, NEWT, NHF, NRO, NRZ, NVG, NZF, OAKS, OIA, ORC, OXLC, PDT, PFD, PFO, PHK, PHT, PMF, PML, PMM, PMX, PSEC, PSF, RA, REML, RFI, RNP, RQI, SAR, SCM, STK, TICC, TLI, TPZ, TWO, & UTF. Quite a list, eh? (82 total issues held; 16 common stocks, 4 ETNs, and 62 CEFs, of which 17 are tax-free muni CEFs.) Most pay monthly! Only ARCC, BDCL, MITT, NEWT, NRZ, OXLC, SAR, STK, TICC, & TWO pay quarterly.
I will continue to screen using the method(s) outlined in my monthly Watch List post.
I will continue to withdraw funds as needed to augment our income as outlined in my monthly income phase of The #Plan #UPDATE.
I will continue to invest monthly as outlined in my #ShareBuilder #Updates.
I will continue to “harvest” capital gains by selling holdings at new 52 week highs with “limit orders” in minimum 100 share lots so I can specify AON (All or None). I may also sell for other reasons (i.e.; because I can, I felt like it, I needed the money, etc.).
I’ll try to outline a bit of the rest of the #Plan each week with updates on my thinking, such as it is…
Well, I think it’s time for a little consolidation (of this posting, not the portfolio!). I am going to repeal and replace some of the following with a condensed version in the next few posts, and that process will continue so this particular post doesn’t get too long. I don’t want anybody falling asleep reading this! 😉
So, I’d heard about this new robinhood thing, and I’ve given it absolutely no thought until recently. So, I opened an account, and will start investing very slowly in things I can not buy using Capital One Investing’s sharebuilder plan, or Automatic Investment Plan (AIP). I’ll also invest in things that I don’t want to hold in our Fidelity accounts for no particular reason other than I’m a stubborn old bastard. Well, that, and Fidelity has a DTC Discount Plan that allows reinvestment at a potential discount price between 0-5%. So, I’m only holding known (to me) issues that participate in this DTC Discount Plan (DTC = Depository Trust Company) at Fidelity.
I could find no list of holdings that participate anywhere, and when I asked Fidelity for a list they said there isn’t one but they could check on a holding for me. I had 75 different holdings as of this writing, so you can imagine how very pleased they were to accomodate my request. But, they did, and the results are listed on my Google sheets on the Dividends tab. I’ve also learned of 2 more (CLM & CRF), and verified the fact with Fidelity.
Anyway, back to robinhood.
I signed up for an account, and also set up weekly deposits of $25 to the account. Hey, I said I was going to start very slowly, and I meant it. If it works out to my liking, I might increase the amount at some point. I guess that starts next Monday (the 22nd) (it did), and I guess they only do that sort of automatic deposit on Mondays (they do). They’re really not very forthcoming with information on that subject prior to signing up. They also only allow access to your account through their “app”, either available on Google Play or the itunes store, depending on what type of phone you have. Seems odd, but I guess it keeps their costs down. They do have a “plan” that costs $10/month if you want to sign up. I declined to acquiesce.
Now, as far as what I’m doing;
Since robinhood is only for holdings that aren’t available using Capital One Investing’s sharebuilder plan, or Automatic Investment Plan, or AIP (they should really shorten their name, don’t you think?), I’ll begin there perhaps by investing in things like OXLC, RA, KIO, IVH, etc.
Capital One Investing’s sharebuilder plan, or Automatic Investment Plan, or AIP has the lowest cost per “buy” trade order other than robinhood, and that’s where our Roth IRAs are held. Sell orders, OTOH, are $6.95 each, so balance that with a per trade cost to buy of less than $1 with a sell trade cost of $6.95, and the average is ~$3.975 per round-trip trade. Robinhood has no provisions currently for any type of retirement account, so they will stay where they are for now, at both current brokers; Capital One Investing (they should really shorten their name) & Fidelity (for the DTC discount plan).
Now, a little about my investing philosophy; “If they don’t pay, I don’t play”. I LOVE dividends! Dividends are my “main squeeze”, and capital gains are my “side piece”. (NOTE: My actual “main squeeze” is my wife, and I have no “side piece”.) So, if a stock pays dividends, I’m interested, and if they don’t I’m disinterested. Simple plan for a simple man.
Our #HYHRD (High Yield, High Return Dividend) portfolio is all about the income, so that’s what I look for in an investment; high yield while minimizing risk as best I can (dividend yields of ~5%+ & annual returns of ~10%+).
According to calculations done on my Google sheets, my current YOC (Yield on Cost) is much better than that! I have recently to begun to factor in the cash held in each account for the total portfolio value, so that has changed some of the calculations slightly. But, the total value of the portfolio is now more correctly reflected on the spreadsheets.
I have been asked what my “favorite” holding is, and I really can’t answer that. Here’s why; to have a favorite entails some sort of emotional attachment and I am not emotionally enamored with any of my holdings and would sell it all in a heartbeat if they fail to pay me. I’m tired of paying for things, and I want to be paid now. I feel it’s “my turn”, and there are “no cuts” in this line!
I don’t day trade, or swing trade, or play options (anymore).
If any questions are posted on my blog, I’ll answer them and include them here in future posts if they’re worthy.
I’ll also continue to try and be as helpful as I can on the StockTwits platform.
Here’s what someone said about me recently on Stocktwits;
@panda317 By far you are my favorite poster I’ve found on the Stocktwits message board.Carry on.
— James Wulgaert (@jwulgaert) May. 11 at 05:20 PM
I thought that was very nice…
So, with my first robinhood purchases under my belt, I think I’ll just keep adding holdings that aren’t available using Capital One Investing’s sharebuilder plan, and maybe some that are available as “add-on” purchases.
I need to figure out a way to add CLM & CRF to our Roth IRAs held at Fidelity. Perhaps adding them to our Capital One plan(s) and then transferring the assets?
My wife recently had a total knee replacement, and was doing well and progressing very nicely. Then, one night she said she thought she had indigestion, and the next morning still felt the same way. She tried to take her blood pressure but couldn’t get a reading. Since she’s a retired nurse, she got her stethoscope to listen to her heart, and it was rapid, irregular, and extremely loud! She called her doctor, but could only leave messages about rapid and irregular heartbeat. She was told that an “urgent” message would be sent to her doctor’s staff and they would call back. She called twice during the day on Wednesday, but no return calls. She finally called her visiting nurse (from the knee surgery) and she came out within the hour, took her blood pressure and found it extremely low, and her pulse was rapid and erratic. She said she thought it might be afib and recommended going to the ER. I drove my wife to the ER and they took her blood pressure and pulse and whooshed her off to a room and hooked up a central line catheter and heart monitor and then the ER attending paid a visit and came back with the attending cardiologist and admitted her. Yes, it was afib and I was watching her blood pressure bottoming out and her heart rate going from 39 BPM to more than 186 bpm and everywhere in between. It was quite frightening. After they brought her up to CCU I went home. That was around 2 AM the following day. I went back the same morning about 8 AM and stayed until midnight. This went on for 4 days and the doctors tried all kinds of medications to try to stabilize her heart rate but her blood pressure kept dropping. Finally her heart rate stabilized and her blood pressure started to come up but was still too low to be discharged. I think today is the day she gets to come home because her bp has finally stabilized. She saw the cardiologist who cleared her to go home so now we are waiting for an attending to come in and write the prescriptions and discharge her. Since this is Memorial Day weekend, it may take awhile. So, I came home to write my blog posts.
Have a good weekend!
I think I’ll transfer some cash from our Capital One Investing Roth IRAs to our Fidelity Roth IRAs, and buy CLM & CRF with that cash. Any remaining cash will be transferred to the joint taxable account @ Fidelity for purchase of CLM & CRF in that account. We’ll probably take a ride to the Fidelity office next week to get the ball rolling (*if* my wife can travel).
I’m doing this because CLM & CRF are 2 new DTC-eligible holdings to be added to our Fidelity Accounts.
Well, we got to the Fidelity office and the cash transfers are in the works. I believe Capital One Investing will charge us $15 for each transfer (they did).
We’ve also received a $200 bonus in each of our Capital One Roth IRAs for transferring from Fidelity.
I’m also adding CLM & CRF to our Roth IRAs at Capital One Investing.
And, I have to tell you, I am absolutely loving this TDM dividend tracking software! I’m glad I renewed my PRO subscription.
I’ve been giving some thought to traveling, and how best to manage the investing, blog, etc. I don’t think I’ll be bringing my laptop with me, but I will have a 64GB USB thumb drive with the Portable Apps suite loaded, and TDM software. I also plan on moving the text files that are the basis for my blog posts. I have Firefox synced up and ready to go (almost), so I should be all set. Another plan would be to just let it all go and catch up with it when I return from any travels. 😉
So, I have increased my weekly deposit amount for robinhood from $25 to $94 starting June 5th (that $25 per week thing didn’t last long, only 2 weeks!). I will continue at that new rate, buying every Monday until it changes.
The partial cash transfers from our Roth IRAs held at Capital One Investing to our Roth IRAs held at Fidelity are in progress. Once complete, I will buy CLM & CRF as they are DTC discount eligible.
Any cash left over from those purchases will be transferred to (or withdrawn into, actually) our joint account at Fidelity to be combined with the $50 monthly deposit and the random $50+ transfers from our Fidelity Rewards Visa so CLM & CRF can be purchased in that account as well. If/when ORC is sold in the IRA, CLM & CRF will be purchased there as well.
I will most likely add ECC to our Capital One Investing accounts with next month’s investments on Wednesday, July 5th. Investment day is Wednesday because Tuesday is a holiday.
I was once asked, after returning from a trip abroad (to England, etc.) if they also have a 4th of July there. My response was; “Well, no actually, their calendars go from July 3rd to July 3rd and a half, then right to July 5th, skipping the 4th of July entirely.” They responded with; “I thought so.” and left it at that. I was gobsmacked! 😉
Planned robinhood investments;
On the robinhood tab of my Google sheets I have outlined some multiples I want of each holding (CLM, CRF, IVH, KIO, OXLC, & RA) as well as the estimated maximum I could buy each week given the weekly deposit amount.
I want multiples of 1 in each of IVH & OXLC, where I have 4 and 10 respectively, so will add in lots of 1 randomly.
I want multiples of 2 in KIO, and I have exactly that amount now, so will add in multiples of 2 randomly.
Since both of the above have already been obtained, I will work on the following next;
I want multiples of 10 in RA and I only have 9 currently. I can buy about 4 each week, so for next week I will buy one.
I want multiples of 100 in each of CLM, CRF, & REML, where I have much less than 100 of each, so will add in lots of 1 or more randomly until I reach 100 shares.
After I have 10 shares of RA, I will accumulate mostly CLM, CRF, & REML, with shares of IVH & OXLC being randomly acquired as well as lots of 2 of KIO. I will strive to bring share counts of IVH, KIO, OXLC, & RA up in increments of 10 until 100 shares are obtained.
So, after I have 20 shares of IVH, KIO, OXLC, & RA, I will still accumulate mostly CLM, CRF, & REML, with shares of IVH & OXLC being randomly acquired in single share lots as well as KIO in lots of 2. I will continue to bring share counts of IVH, KIO, OXLC, & RA up in increments of 10 until 100 shares are obtained.
That should take care of the next few months.
And then, after I have 100 shares of each of those 6 I’ll either begin accumulating the next 100 shares of each, or add something else into the mix, or not.
I purged some losing positions on June 13th, taking a small loss and moving on. I added a little more CLM & CRF, too. Positions eliminated; BBK CMU FMN IQI NMZ PMO. Positions reduced; MAV MFM MHI ORC PMF.
We had a lively little discussion on StockTwits about CLM & CRF, discount/premium to NAV, and all sorts of things. I even made a quick blog post I thought might be relevant to part of the discussion. (NOTE: sites referenced, cefconnect.com & seekingalpha.com, require you to register for free to view the content. A small price to pay, IMHO).
For accounts held at Capital One Investing: I have decided to add to the ind-PandA account based on Total Return, and have also decided to add ARR (and 11 others) to that taxable account in the next monthly sharebuilder buy on July 5th. Also on that date, in both of our Roth IRAs, I will add ECC & MORL (and 10 others) to those untaxed accounts based on YOC (Yield On Cost). This will boost total return in the taxable account, and monthly income in our untaxed Roth IRAs. Final investment determination will be made next weekend, on July 1st.
For accounts held at Fidelity: I moved cash from the Roth IRAs and my IRA to PandAjoint, the taxable account. This will count as withdrawals from these retirement accounts, and 25% Federal tax withholding will apply so this was documented in July’s “Income Phase” post. This taxable account also has small monthly deposits of $50 on the 15th, as well as periodic deposits from our Fidelity Rewards Visa. When enough cash became available, I added to CLM, CRF, & MHI. This helped by averaging down on PPS for these 3 holdings.
I determined the monthly withdrawal amounts and I outlined that part of the plan in my last monthly “Income Phase” post.
Well, I decided to add $250.00 to my Robinhood account, and bought some RA & REML shares. So, now I have REML in the portfolio. There should be a fairly large dividend declared for July. And, as it turns out that was $1.2235 per share, so there’s that!
I changed the calculation of investments @ Capital One Investing so that now the highest ranking holding gets the “lion’s share” of the monthly investments and the rest are weighted according to their rank. Also, for the 2 Roth IRAs I made some substitutions for some quarterly paying holdings, and added ECC, ARR, MORL, and TWO in their place. It was all shown on the individual tabs for Roth-A & Roth-P on my Google sheets. There should be a fairly large dividend declared for MORL in July as well (see above reference to REML). And, as it turns out that was $0.7097 per share (larger than last July), so there’s that!
Sharebuilder investments took place on Wednesday, July 5th due to the Independence Day Holiday.
Well, “the plan” is rolling along. Most of our holdings have declared dividends, and REML declared a dividend of $1.2235 per share, and MORL declared a dividend of $0.7097 per share which is larger than last July’s declaration. AAMOF, 41 of our 82 holdings go “ex-dividend” next week, fully half of our holdings! Most pay at the beginning or end of the month so dividends are very concentrated around that time.
Robinhood purchase plans for Monday were 2 more shares of REML for a total of 7 before ex-dividend, and 1 more share of RA to make 10. Most of the next buys will be CLM and/or CRF (maybe).
Weekly deposits of $94 into my taxable account at Robinhood are ongoing.
Monthly deposits of $50 into our joint taxable account at Fidelity are ongoing, along with “rewards” dollars from the Fidelity Rewards Visa.
Weekly deposits of $106 into our joint taxable account at Capital One Investing are ongoing.
I am toying with the idea of making sharebuilder investments every week again, or twice monthly. For now, they are still monthly.
We are going to surpass $125,000.00 in dividends received since #HYHRD portfolio inception on 4/4/12 on the 1st of August!
With next month’s Capital One Investing’s sharebuilder investments, there is a change with how investments will be calculated;
For the joint taxable account, the focus will be on those holdings paying the least and adding to them proportionately so that their monthly contribution to the account will increase. I will look for Annual Dividend, and pick the bottom 12 for investments in this taxable account. Investment amounts are weighted, with the lowest ranked getting the largest investment, and shared proportionately among the remaining 11 investments. With this method, my aim will be to increase the amounts paid until all are paying fairly equal amounts each month. This will take a while, I imagine.
For the Roth IRA accounts, the focus will be on those holdings with the highest yield and adding to them proportionately so that their monthly contribution to the account will increase. I will look for Yield on Cost (YOC), and pick the top 12 for investments in this untaxed account. Investment amounts are weighted, with the highest ranked getting the largest investment, and shared proportionately among the remaining 11 investments. With this method, my aim is to increase the amounts paid each month. It’s like giving myself a raise each month.
Well, except for when holdings cut their dividends. This is where having a large amount of holdings actually helps mitigate the effects of cuts.
On July 21st, $DFP -3.125% $FFC -7.03125% $FLC -5.263157894736847% $PFD -6.8181818181818095% & $PFO -5.479452054794507% all announced dividend cuts. $DFP makes up 1.16% of our portfolio, $FFC 2.9%, $FLC 2.2%, $PFD 3.37%, & $PFO 1.35%. BONUS: On July 17th, I sold 100 shares of $PFO just under new 52-week highs in each of our Roth IRA accounts.
Somebody else recently blew me away on StockTwits with these comments;
@panda317 what is the best dividend paying stock for your buck. Mine is orc but I’m a newbie with minimal money.Your warren buffet to me
— Robert Estes (@BigRedBob) Jul. 24 at 11:17 PM
@panda317 I only do what I learn from you and read on the internet. To me your the Oracle in a sense
— Robert Estes (@BigRedBob) Jul. 24 at 11:20 PM
On July 26th, DHF declared declares $0.0235 dividend, a decrease of -11.32075471698113% so on July 27th, I sold 1700 shares of DHF in our Roth IRA accounts held at Capital One Investing for a slight profit. This money will be re-deployed over the next month or so for better returns. I still have 100 shares left in my Roth, and 500 shares left in my wife’s Roth. I will eventually sell another 400 shares in her account. Someday…
I’m thinking that, for September, the Roth investment thesis will change from looking for highest yield (YOC) to looking for highest Total Return (Annualized Return). The holdings with the highest total return are the holdings that are more likely to be sold at a profit, so it makes sense to accumulate enough that can be sold in 100 share lots. It’s not that looking for increased income (YOC) was a bad thesis, but Total Return might be a better thesis for the coming months. I do see some possibility of turmoil ahead. It usually begins with news items that start out with “Trump tweets…”, so there’s that. Who will he fire next on this reality game show of his? OK, enough politics…
Let’s talk religion instead;
OK, so last update mentioned some changes to the investment theses for the Capital One Investing (Sharebuilder) Roth IRA accounts. Dammit, they really need a new name! Shorter, more concise, etc.
Anyway, the joint taxable brokerage will continue investing in the lowest paying holdings for at least another month until they’re all paying amounts greater than, say, $0.46 per month (for OIA). (!) I know, right… This account is great, because while being a taxable account it does contain some tax-free CEFs and some of those are also AMT-free. About half of the holdings are (federal) tax-free. So, getting them to the point where they all pay more is a great idea. Plus, this account is currently DRIPping all dividends, so it’s not like I’m going to withdraw any more money from this account, at this time. I did make a small withdrawal on August 1st, but that was just to get the YTD total withdrawn to an even amount ($2,500.00). Do you watch Big Bang Theory? My wife calls me “Sheldon”…
The investment theses for both Roth IRA accounts is changing from a purely yield-based method to a methodology using Total Return. It should still boost our income, but it should also boost our holdings that are likely to be sold. Recall that I like to sell in minimum 100 share lots using limit orders at or above the 52-week high. I also like to get a minimum of about $1,000.00 total proceeds for each sale. The reason for the minimum of 100 shares is so I can specify AON (All Or None) and guarantee a minimum price instead of having the order trigger when a new high is reached and then having the price retreat so that by the time the stock is sold it is no longer at or above the new 52-week high. The difference can be substantial when that happens. Also, if you have a limit order to sell 500 shares and it is triggered and you sell 14 shares the order remains open until the original number of shares specified are sold. This can take days, sometimes. And, if you change or cancel the rest of the order you must now reconcile the fact that you just sold 14 shares at a new 52-week high (yay!) but now there’s a trade fee, which alters the percentage gain quite a bit and could turn it into a loss (boo!).
I want to briefly mention our 4 accounts held @ Fidelity. These contain only DTC discount eligible holdings, and all DRIP. The only account getting new money deposited is the joint taxable account. We can’t put any more money into our Roth IRA accounts or my IRA account because we have no earned income. I do want to continue to make investments in the taxable account at Fidelity, and have targeted a quarterly investment scheme. Since I only deposit $50 each month plus the rewards from our Fidelity Rewards Visa that might be a good plan, but it also might turn out to be a situation where I only invest every 6 or 9 or even 12 months because the cash balance is so low. Remember that trade fee thing? Yeah, that puts a stop to a lot of investing that I do, especially @ Fidelity.
As far as Robinhood is concerned, they’re getting $94 each week to invest, and they have no trade fees. So far, so good. Dividends are coming in.
Sharebuilder joint taxable account gets a deposit of $106 each week.
Those are the only 3 accounts that are getting new money, and it ain’t much, is it? That’s why it’s so important to me to get the maximum amount of income in each of the Roth IRA accounts so I can invest and/or withdraw as needed. I only withdraw from the Capital One Investing Roth IRAs, so that is my focus for income at this time.
MILESTONE!: We have collected over $125,000.00 in dividends since the inception of the #HYHRD portfolio. This milestone was reached on August 1st, 2017. Next milestone will be $150,000.00 in dividends received.
CLM & CRF have rights issues pending. Capital One Investing (sharebuilder) and Fidelity both charge more than $30 for each rights issue in each account, so that makes it cost-prohibitive. However, Robinhood charges $50 for rights issues over 100 shares. When pressed, they admitted there would be no charge for rights issues under 100 shares. So, I decided to participate in the rights offerings in my Robinhood account, only. That will be a first for me! As you can imagine, this has enamored me even more towards Robinhood, and I am willing to forget they shorted me a penny on my first statement. The math just doesn’t add up. I did write to them about that, though, and am awaiting their response.
Next week, I will begin to trim some of this posting…
PLEASE TAKE NOTE AND REMEMBER THIS!
I’m not telling anyone to buy anything or giving anyone any advice, because that’s illegal. You see, I have no letters after my name, like RIA, CFA, etc. I SIMPLY DO NOT GIVE ADVICE. I only tell (and show!) what I do. You, like me, are all alone in this.
And remember, always do your own due diligence!