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.
NOTE: THERE HAVE BEEN SOME COMPLAINTS ABOUT THE FREQUENCY OF MY POSTINGS, SO I HAVE CUT DOWN ON THE NUMBER OF POSTINGS AND THE FREQUENCY AS WELL. I HAVE SUBSTANTIALLY CHANGED “MY PLAN” SO I FELT THIS POST WAS WARRANTED. APOLOGIES IN ADVANCE IF IT OFFENDS.
‘Mea culpa, mea culpa, mea maxima culpa…’
I only post for my holdings, but they’re as accurate as I can make them. The symbols are; ABR, AGD, ARCC, AWP, BFK, BGH, BRG, BSD, BST, BXMX, CME, CSQ, DDF, DIAX, DNP, ECC, FLC, FREL, FTF, GAIN, GOF, GUT, HE, HEI, HTD, HYG, IGN, IGV, IHI, IYLD, JLS, LDP, LGI, LOR, MAIN, MHD, MUA, NEWT, NRO, NVG, NZF, OIA, OXLC, PCI, PDI, PDT, PEY, PFO, PHK, PHT, PMF, PML, PSF, PSJ, PTF, RFI, RNP, RQI, SACH, TERP, TPZ, UTF, UTG, VPV, & XMMO. Quite a list, eh? (65 total issues held; 11 common stocks, 10 ETFs, and 44 CEFs, of which 10 are tax-free muni CEFs.) Most pay monthly! Only ABR, ARCC, BRG, BXMX, CME, DIAX, FREL, HE, IGN, IGV, IHI, NEWT, PSJ, PTF, SACH, TERP, & XMMO pay quarterly. HEI pays semi-annually, and some ETFs don’t pay at all!
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…
…for the newest updates, scroll to the bottom, or just keep reading…
About Fidelity – I have transferred our accounts to BAML Edge. And, we are transferring back to Fidelity. And I am glad to be back. I am even gladder to be leaving Merril Edge and Bank of America.
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.
Speaking of StockTwits, I started a dividend “room” and it has grown to over 3,000 members. I also just started an ETF ‘room’ and it now has over 400 members. Check them out, won’t you? (click the links!)
Also, I have recently started investing in ETFs! It was a little scary at first. They don’t yield very much, and some have no yield at all. But, that’s not the name of that game. It’s Total Return. I was in and out rather quickly on a couple of ETFs that had no commission, and I made some small change (school lunch money). I now hold IGN and IYLD and results are mixed so far. IYLD is doing okay. IGN is down about -0.57%. I have been buying IYLD, and I suppose I should buy a couple more shares of IGN. Maybe. We’ll see.
Well, I added some HYG and that’s actually up 0.26% but IGN is down -5.41% and IYLD is down -1.27% so results are poor. I’ll not put any more money into this for a while.
I did buy some more JQC and ABR recently. We’ll see how that goes…
UPDATE: 7/31/19 – Well, it didn’t go too well with ABR. At first, it did. It was up a lot, and then it tanked a bit. Currently it is down about 8%, but recovering (hopefully). JQC looks shaky, and I will probably sell it all on 8/1/19.
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’m neither right now.
Stocks are like religion;
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. Looks like that will be achieved this December 28th. So, then the next major milestone will be $175,000.00 in dividends received. It’s nice to be so optimistic in these times, eh? I have to be, for what else is there? We may never see that next milestone, but it’s nice to think about while I still have half of our portfolio left.
(Another) MILESTONE!: We have now collected over $150,000.00 in dividends since the inception of the #HYHRD portfolio. This milestone was reached on December 28th, 2018. Next major milestone will be $175,000.00 in dividends received. Looks like that might be achieved in 2020 or perhaps 2021. So, then the next major milestone will be $200,000.00 in dividends received. It’s nice to be so optimistic in these times, eh? I have to be, for what else is there? We may never see that next milestone, but it was nice to think about while I still had almost half of our portfolio left.
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. I will also be selling some CLM & CRF after ex-dividend date and adding ABR & OXLC in their place. That means that some ABR & OXLC will also be added to my Roth via conversion.
UPDATE: On 6/6/19 I fully converted my IRA to my Roth IRA.
Capital One Investing 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 not fit for print…
…their phone support is abysmal. “It’s like I’m talking to a dolphin”…
I 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 am terminating my relationship with Bank of America and Merril Edge because I can’t stand their blatant douchebaggery and continuing lies! Their lies contradict one another; I can’t talk to one representative and get the same lie in response to a question twice in the same week!
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 the margin interest rate is 9.825% the best way to fully utilize the buying power would be to buy holdings that yield over 9.825% (Duh!). 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…
I have turned on DRIP in all accounts at Fidelity as of 1/26/19. I was going to eliminate one or more from DRIPping, but decided against it. It should start to take effect shortly. I was given 300 free trades in each Roth account when I transferred to Fidelity, and will use those to buy/sell to rebalance as necessary.
UPDATE 6/15/19: I have stopped DRIP for some holdings, and will let the dividends accumulate to cash in the accounts.
UPDATE 6/22/19: I have updated GTC limit sell orders for some holdings, and will let the cash accumulate in the accounts to be deployed when applicable.
UPDATE 6/29/19: I have begun a new strategy of buying some holdings a few days before ex-dividend with the expectation that they will appreciate up to ex-dividend date, where I will sell all or some of these newly acquired shares. A “Hatlo Tip of The Hat” to the Crane Capital room on Stocktwits for the tip on that. The 2 positions I initiated this new strategy on are $PCI & $PDI on June 27 & 28, 2019.
UPDATE 7/6/19: I have begun to reduce our exposure to margin in our joint account by selling some holdings. I still have some holdings I would like to sell and anticipate selling those shortly. Work on the screening process continues, as does the Dividend Histories tab on my Google sheets.
UPDATE 7/13/19: I purchased some new (& old) holdings pursuant to my two recent Watch List posts; $DDF $ECC $HE $IGV $IHI $IYLD $JQC $MUA $PSJ $PTF & $XMMO. I also re-entered two old positions; $RQI & $SACH.
UPDATE 7/20/19: I purchased some new (& old) holdings pursuant to my two recent Watch List posts; $GUT (& $HEI *after further review* and posting about it on StockTwits). I will continue to set limit buy orders for the 2 ETFs in our Roth accounts; $PSJ & $PTF.
UPDATE 7/27/19: I have enabled DRIP for ALL holdings again (except JQC, which I may liquidate shortly). I have begun to sell holdings in the joint account to reduce exposure to margin. I have begun adding HEI in both ROTH accounts and will sell all HEI in the joint account with a limit sell order.
UPDATE 8/3/19: I have decided not to liquidate our JQC position, but I may trim it shortly. I am continuing to sell holdings in the joint account to reduce exposure to margin. I have begun adding OXLC in both ROTH accounts.
UPDATE 8/24/19: I have decided to finally liquidate our JQC position, and bought some other equities to replace it. I continue to try to sell holdings in the joint account to reduce exposure to margin, but alas I have once again purchased some more equities and increased our margin position again. I have begun to implement a NO DRIP policy in our Roth IRA accounts *ONLY* for holdings that do NOT participate in the ‘DTC Discount Plan’. Currently, in our Roth IRA accounts *only*, the following symbols DO NOT DRIP; ABR, AGD, AWP, BRG, DDF, GAIN, HE, HEI, LGI, MAIN, PCI, PSF, & SACH (for updates, please see the account tabs on my Google sheets; https://docs.google.com/spreadsheets/d/1LBorL9d7ks1q92tp_mKPkrmvLZb6B3r3U0P86KDgjtw/edit?usp=sharing. I have also implemented a quarterly automatic withdrawal plan of earnings beginning the last Friday in December, 2019. This will include cash dividends and capital gains, but again in our Roth IRA accounts *only*. Consequently, any investments should then be made to feed this cash machine or self-made ‘mini annuity’ so that only the best performing assets would be acquired with any available funds. These 2 charts would consulted in order; https://stockcharts.com/freecharts/perf.php?ABR,AGD,AWP,BRG,DDF,GAIN,HE&n=200&O=011000 and https://stockcharts.com/freecharts/perf.php?HEI,LGI,MAIN,PCI,PSF,SACH&n=200&O=011000 and the top performers from each of these would then be considered for acquisition. All #ETF positions currently #DRIP, but that may change in the future. The amount of dividends from any such change is minimal, however. (In actuality, it is probably wiser to consider ALL HOLDINGS for acquisition, so this will be a “wait and see” type of thing”.)
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!