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; AGD, ARCC, ARR, AWP, BGH, BST, BXMX, CLM, CRF, CSQ, DIAX, DNP, ECC, FLC, FTF, GAIN, GLOP, GOF, HTD, IFN, IIF, JPC, JPI, KIO, KRP, LDP, LGI, LOAN, LOR, MAIN, MITT, NEWT, NHF, NRO, NRZ, NVG, NZF, OIA, OXLC, PCI, PDI, PDT, PFO, PHK, PHT, PMF, PML, PSF, QQQX, RA, RCKY, RFI, RNP, SAR, SPXX, STK, TPZ, UTF, & UTG. Quite a list, eh? (59 total issues held; 12 common stocks and 47 CEFs, of which 5 are tax-free muni CEFs.) Most pay monthly! Only ARCC, BXMX, DIAX, GLOP, IFN, KRP, LOAN, MITT, NEWT, NRZ, QQQX, RCKY, SAR, SPXX, & STK pay quarterly. IIF pays semi-annually.
I took last week off to celebrate Thanksgiving with our family in the frozen north. When we left our home near Tampa, Fl on Thanksgiving morning it was 71 degrees and when we landed at Boston’s Logan airport it was 15 degrees. Right there we decided to never visit in the winter months again. But, we got our rental mini-van from Enterprise which was a fairly painless exercise and held a few delightful surprises for us. It was a 2018 Dodge Grand Caravan, black and not much to look at from the outside even though it was fairly clean save for the rather large seagull dropping on the right front fender. The rest of the vehicle was almost spotless, however. We loaded ourselves into the van and I was delighted to find that there were 3 heat zones (driver, passenger, and rear), both front seats were power adjustable and also heated, and the steering wheel was also heated. Wowza! We were ecstatic! It didn’t take long to adjust mirrors, seats, etc. and we were soon on our way to the hotel. We picked a new hotel about halfway between our 2 sons, at the intersection of Rt. 1 & Rt. 128 in Peabody, MA. This Holiday Inn was more expensive than our old favorite Holiday Inn in Tewksbury, presumably because it was closer to Boston. We checked in, got our room key, and trudged the long walk down the hall to our room. We went in and it was just as cold in the room as it was outside! We also noticed there were no blankets on the beds! WTFF?!?! We went down to the front desk and told them about it and the slack-jawed yokel behind the desk said “Uh, I only have sheets here” and threw 2 on the counter. I said “Could you ask housekeeping to make the beds up *with blankets” and send maintenance to the room to fix the heat, please?”. He said, “Uh, sure”. We left and drove the 10 miles to one son’s house to have turkey dinner. Dinner was lovely and so was dessert, 6 pies and ice cream and homemade charlotte russe (a family tradition and not at all as you would imagine – cake, crabapple jelly, bananas, cool whip, etc. left to percolate for a day or so in the fridge with other ingredients I am totally unfamiliar with). Daughter-in-law’s mother came and brought her signature sweet potato casserole with marshmallows on top (a huge hit!). We all sat around a huge table and the food was being heaped on our plates with near reckless abandon and my plate was filled to the brim when I realized I didn’t have any turkey! Hold the phone! Some minor re-arranging and the turkey was added twixt the stuffing and taters and gravy was poured on the above, followed by a couple of dollops of cranberry jelly. I have to say, the best part of Thanksgiving dinner is how quickly you forget the rest of the year and any troubles you may have. Our second son and his family joined us for dessert as did our friends who recently bought a home in our park. Conversations were lively and laughter was frequent. Offers to refill your plate were ever-present and must be politely refused.
But, all good things must come to an end and so, after dessert (1st and 2nd!) we bade farewell to our family & friends and made plans to see Fantastic Beasts: The Crimes of Grindelwald on Saturday at the Imax theater in Reading, Mass.
We went back to our hotel and found there was still no heat. There was now a girl at the front desk who must have been born of saccharine because she made me sick when I spoke to her because she was indeed sickeningly sweet. I won’t go into full detail but the maintenance man came and took the cover off the a/c & heat unit and dust flew everywhere. He wiggled the plug on the side and there were a few little sparks and the unit came to life briefly and died again. We commented on the dust flying around the room but he just looked at us and did not respond. He wiggled the plug and then he wiggled the junction box and then finally the unit came to life with a grinding squeal. He replaced the unit cover and left the room. We looked at each other through the cloud of dust and said “We can’t stay here” and called the front desk.
Saccharine invited us down to the front desk to have a conversation. I explained that my wife uses a walker and I have COPD and neither of us can walk too far, so we need a room close to the elevator. Sac gave us a key to a room on the 4th floor and told us it was close to the elevator. We still had our luggage on the cart and I loaded my wife and the cart onto the elevator and we went to the 4th floor to examine this new room. Turns out this room was at the end of the hallway and the bathroom was filthy so we opted to return to the front desk.
I was starting to get perturbed…
I told Sac that I needed something close to the elevator and she said I gave you one and I explained it was at the end of the hall as far from the elevator as one could possible get. I also explained about the bathroom being filthy and again asked for another room. She look at the floor map and said to herself “Oh, I see it now. I was looking at it wrong.” and typed something into the computer and handed me another set of keys to a room on the 3rd floor. She assured me this room was right next to the elevator, that I should get off the elevator and turn right and the room would be on my right. Silently I took the keys and we made our way back to the elevator and up to the 3rd floor. We found that if we instead turned left the room was on our left. Seems that Sac didn’t know left from right.
We checked in and found the heat worked, and there were blankets on the bed. Good enough. It was now 1AM and we wanted to go to sleep.
I will continue to screen using the method(s) outlined in my ~monthly Watch List post(s).
I will continue to withdraw funds as needed to augment our income as outlined in my monthly income phase of The #Plan #UPDATE.
I’ll try to outline a bit of the rest of the #Plan each week with updates on my thinking, such as it is…
We filed our joint federal tax return earlier this year, and our combined taxable income was $4,665 so our tax liability was $0.00! I’m so proud! Words fail me…
One of my goals was to reduce or eliminate paying taxes and we are well-situated in that respect. Future years may see us paying a little tax, but nothing like we have been paying our entire lives. This year, we even got a refund of taxes withheld!
Now, about income; all the income from our Roth Ira accounts is untaxed and not reported to the government. My IRA is a *puny* tax-advantaged account, and is slowly being converted to my Roth IRA. Each conversion is at least a partially taxable event, so that might add to the possibility that we will at some point have to pay taxes. Our joint account is a taxable account, but we have tax-free holdings in there, as well as some that pay qualified dividends, like ABBV, BF.A, BF.B, GLOP, LOAN, RCKY, and VGR. I plan to make each holding pay a fairly equal amount so that I don’t have too many ‘tax-free’ holdings or holdings that pay ‘qualified’ dividends. I would like a level playing field there. Just because…
I liked it. I didn’t love it. All positions have been sold and the cash has been transferred out as of the end of April. The account is now closed.
Capital One Investing – I have transferred our accounts to BAML Edge. There was only a small amount left in each account, and I am still waiting for some of the cost basis to be updated. We had a total of $0.73 remaining there, but $0.01 was transferred on 6/12, and the remaining amount was transferred on 6/19. The transfers were started 3/15. So, yeah…
Fidelity – I have transferred our accounts to BAML Edge.
Capital One and Fidelity accounts were combined. PandAjoint was absorbed into ind-PandA and renamed PandA, Fidelity Roth-P was absorbed into Roth-P and renamed RothP, Fidelity Roth-A was absorbed into Roth-A and renamed RothA, and IRA-P will be renamed IRAP. Robinhood holdings were liquidated, and the cash was transferred to our joint checking. What remains now is; PandA, RothP, RothA, and IRAP, all at Merrill Edge. So much for naming conventions.
Now, a little about my investing philosophy; “If they don’t pay, I don’t play”. I LOVE dividends! So, if a stock pays dividends, I’m interested, and if they don’t I’m *generally* 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 better than that! I factor in the cash held in each account for the total portfolio value. The total value of the portfolio is now more correctly reflected on the spreadsheets because of this.
I am often 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 just really feel like it’s “my turn”!
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 I think of it when posting. 😉
I’ll also continue to try and be as helpful as I can on the StockTwits platform.
I have to tell you, I am absolutely loving this TDM dividend tracking software! I’m glad I renewed my PRO subscription.
How do you like the recent stock market action? Are you someone who will #BTFD or #STFR?
I do see some possibility of turmoil ahead. It usually begins with news items that start out with “Trump tweets…”, or something about the midget with the bad hair from North Korea, or something else equally sensational, so there’s that. Who will Trump fire next on this reality game show of his? OK, enough politics…
Let’s talk religion instead;
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 major milestone will be $150,000.00 in dividends received.
I will be converting 1/5th, then 1/4th, then 1/3rd, then 1/2, and then the remainder of my IRA to my Roth IRA in January of each year.
Capital One Investing also had this notice about our account(s) being moved to etrade on login;
Regarding Merril Edge; So far, I’m underwhelmed. Dividends show up a day later than the pay date. It’s hard to see all activity on one screen, but their math seems to be correct, so far. It’s early yet, so let’s see how it goes. I want to get the cash bonus they promised…
My opinion of Merrill Edge is slightly higher than my last post. I guess I’m getting used to it…
…although their phone support is abysmal. “It’s like I’m talking to a dolphin”…
I am starting to like Merrill Edge a little bit more, and find their dividends are either posted same day now or up to a day late. Could things be improving?
I still greatly dislike the fact that they are absolutely unwilling to bend on waiving the corporate action fee of $30 for rights offerings, etc.
There’s also the small matter outstanding that they outright lied to us about several aspects of our relationship with their brokerage, and their bank. To partially compensate, they have given me some small extra perks for one year ending in July, 2019.
I have just started making small weekly transfers from our BofA checking to our joint CMA brokerage @ Merrill Edge.
I participated in the CLM & CRF RO in our Roth IRA accounts in July.
I added some CHGG, KRP, & MDB for capital gains (hopefully). That didn’t work out so well for CHGG & MDB so I sold my small positions.
I added some MAIN & GAIN to capture some special dividends. I might add more.
I added some FTF @ $9.27 to capture some dividends and hopefully some capital gains. It looked like it was at a bottom. It wasn’t, but now my basis is $9.21 for the 1 share I do own (I have done some dividend capture with ther taxable account, and will be spreading that out to involve both Roth IRAs for the high-yield securities, as well as some securities that don’t seem to go down in share price on ex-dividend day. I don’t want to use too many free trades, especially in my wife’s Roth because for some reason Merrill Edge has seen fit to only give her 30 free trades each month, whereas I get 100 and it’s unclear whether they’re shared and with which account(s).
I updated the paragraph that begins with “I only post for my holdings, but they’re as accurate as I can make them…”, again. And, again.
I have margin on the joint taxable account, and I’m going to use it. I will add to high yield holdings before ex-dividend day, and sell on ex-dividend day. Since I get about 100 free trades each month I’ll use as many trades as I need to temporarily beef up high-yield positions for added dividends. There are some special dividends coming and I’d like to take full advantage of as many of them as possible. It will be interesting to see how well this works out! Since the margin interest rate is 10.625% the best way to fully utilize the buying power would be to buy holdings that yield over 10.625%. I realize that will be a lot of trades but since they’re free (up to 100 a month are currently free, anyway) there’s no additional trading cost for this method. I plan on leaving at least 1 share and DRIPping the dividends whenever possible to take advantage of any possible DTC discounts or DRIPping @ NAV (in the case of the Cornerstone funds). If this works it should be a great boost to earnings in the account. Of course, selling on ex-dividend day might involve some loss in share price but if the yield is high enough it should be worth it, even with the cost of margin figured in. We’ll see how it goes…
Merrill Edge has a feature that allows me to project Estimated Investment Income for all investment accounts or separately and project those earnings over the next 12 months. Of course, now that some of the higher-yielding positions in the joint taxable account are being loaded to over capacity and then reduced to barely more than 1 share on ex-dividend day this screenshot won’t really give a true estimate of investment income but it should provide some interesting “snapshots” if the screenshot shows the account positions loaded or not. Of course, this “over-loading” and “emptying” of positions won’t really happen in the Roth IRAs or my IRA to the same extent as happens in the taxable account. I will begin to employ some dividend capture methods in both Roth IRAs starting in December.
Currently this edge feature shows that I will ‘earn’ approximately $1,300/month in dividends if I do nothing. Of course, I’ve already laid out my plans to manipulate dividend capture using margin in the taxable account and this procedure should boost monthly earnings to $2,000/month or higher. Of course, the special dividends just declared by a few of my holdings helps a bit, too.
I should probably start to trim some smaller positions, or add to them. I will wait to do that until after I’m off the 3 different narcotics I’m currently taking for pain to make any decisions on that, however. I will continue to make decisions that could eventually blow up my account, though. (I’m just kidding!) Although, some might argue that using margin in the taxable account for my dividend capture strategy is foolhardy. I think it’s well-founded, and is playing out nicely…so far.
I will leave you with a (rather large) screenshot from the Div. tab on my Google sheets that shows all of our holdings, ranked by total return (there’s also position size ranking, %change since purchase rank, rank by yield, type of security, frequency of dividend payments, total return), etc.;
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!