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…’
The spreadsheets for each individual account are now found in the Google docs spreadsheets. Our Fidelity accounts are tracked by this spreadsheet, and my M1Finance portfolio is tracked by this spreadsheet, and our M1Finance Joint portfolio is tracked by this spreadsheet.
I only post for my holdings, but they’re as accurate as I can make them. The symbols are; AAPL, ABR, AGD, AMT, AMZN, ARCC, ARR-B, AWP, AWR, BFK, BGH, BRG, BSD, BST, BXMX, CBL-D, CHE, CLM, CME, CRF, CSQ, DDF, DHR, DIAX, DNP, ECC, ELS, ETX, FLC, FREL, FTF, GAIN, GASX, GOF, GOOG, GOOGL, GUT, HE, HEI, HEIA, HTD, HYG, IGN, IGV, IHI, IYLD, JLS, LDP, LGI, LOR, LTS-A, MAIN, MHD, MMD, MSFT, MUA, NEWT, NRO, NVG, NXP, NXQ, NXR, NYMTN, NYMTP, NZF, OIA, OXLC, PCI, PCQ, PDI, PDT, PEY, PFO, PHK, PHT, PMF, PML, PNF, PSF, PSJ, PTF, REML, RFI, RNP, ROP, RQI, SACH, SOXL, SUI, TERP, TPZ, USLV, UTF, UTG, VPV, & XMMO. Quite a list, eh? (96 total issues held; 29 common stocks, 5 Preferred stocks, 12 ETFs, 2 ETNs, and 48 CEFs, of which 17 are tax-free muni CEFs.) Most pay monthly! Only ABR, AMT, ARCC, BRG, BXMX, CBL-D, CME, DIAX, ELS, FREL, HE, IGN, IGV, IHI, NEWT, NYMTN, NYMTP, PSJ, PTF, SACH, SUI, TERP, & XMMO pay quarterly. HEI & HEIA pay semi-annually, and some stocks & ETFs don’t pay at all! (Most of our portfolio is held @ Fidelity, but we also have accounts @ M1Finance.)
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 had transferred our accounts to BAML Edge. And, we transferred back to Fidelity. And I am glad to be back. I am even gladder we left 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 7,000 members. I also just started an ETF ‘room’ and it now has over 1,400 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. Well, I added some more, but results are poor. I’ll not put any more money into this for a while.
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.
Capital One Investing had this notice about our account(s) being moved to etrade on login;
Regarding Merril Edge; 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. I wanted 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 terminated my relationship with Bank of America and Merril Edge because I couldn’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 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 6/22/19: 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”.)
UPDATE 8/31/19: I have decided to re-enter the realm of “Preferred Profits”! – I will begin screening for preferred stocks and since *most* sell at or near ‘par’ (i.e.; $25.00, hopefully!) I will enter positions when enough available cash accumulates in the Roth IRAs (only!) to facilitate such purchases. The previously mentioned ‘automatic withdrawal plan’ was quickly scrapped. I also turned ON the #DRIP feature in BOTH IRA ACCOUNTS, but *MAY* turn it OFF to accumulate more cash to expedite this ‘cash accumulation’ process (if there aren’t enough sales of current holdings from limit orders). I aim to have at least a 25-50% exposure to preferred stocks at some point in the future.
UPDATE 9/29/19: I have entered 3 preferred positions; CBL series ‘D’ & NYMT series ‘B’ in our Roth IRA accounts & LTS series ‘A’ in our joint account (because it pays a ‘qualified’ dividend). I have also opened an account at M1finance.com, and began funding that with $100 initially, and an ongoing weekly contribution of $10.00 which will be invested along with any and all dividends earned in that account. I have 10 slices in my current portfolio ‘pie’ that I fund at 10% each; https://m1.finance/uJWJbQ06i. At some point I will trim some of those 10 slices and will eventually add another slice to that portfolio ‘pie’ that will begin to receive the majority of the funding; ‘The Tax-Free Municipal Pie’ that I created which I hope will continue to have good Total Performance; https://m1.finance/S7JPUKTcb. The Total Performance for the 10 slices in that pie (PNF, PML, PCQ, MMD, NXR, NXQ, NXP, NZF, NVG, ETX) can be charted at https://stockcharts.com/freecharts/perf.php?PNF,PML,PCQ,MMD,NXR,NXQ,NXP,NZF,NVG,ETX&p=5&O=011000 (that link gives 1 year Total Performance). The links to M1 are referral links, and if you decide to join using either link and you deposit $100 then we will both receive $10. If you just want the $10 from the referral and decide not to invest in either of those ‘pies’, the regular referral link is; https://mbsy.co/Bz9lz. I added some HEI common stock along with the Cl ‘A’ shares to our joint taxable account. When my strike price is reached in the Roth IRA accounts, the HEI position will be closed in those accounts. Since our portfolio is so small, holding an ‘expensive’ stock like HEI doesn’t make much sense. I’ve also initiated a joint account at M1Finance that will get funded initially @ $100.00 and then an ongoing investment at $25/week and invest solely in my ‘Tax-Free Municipal Pie’. This will probably change, because it’s so new!
UPDATE 11/7/19: NTC (a TAX-FREE ‘municipal’ CEF) declared a ‘special’ distribution of $1.4353/share payable 11/11/19 (ex-dividend 11/6/19). I bought 1,000 shares in our taxable account because NTC is being acquired by NVG, which we currently hold. I was hoping for a little gain on that, and possibly even adding to our NVG holdings. The ‘special’ dividend was a taxable event, and would have resulted in a dividend of $1,435.30 on November 11th. Of course, that much would theoretically be deducted from the share price of NTC and would have been difficult, if not impossible, to regain. As it happened, I sold all on 11/5 for a small gain (*much* smaller than the amount of the distribution). Total acquisition cost was $13,485.70 (plus margin interest). Total recovered from the sale was $13,608.44 which represents a gain of $122.74 for holding from 10/29 through 11/5 (8 days or 6 trading days). So far, the margin interest accrued in the account is $22.33 so the net return is approximately $100.41. #winning – Average share price for acquisition was $13.4857/share. Average share price (less fees) for disposition was $13.60844/share. Closing share price on 11/6 was $12.24 which represents $1.36844/share ‘lost’ on ex-dividend from the sale price, and $1.2457/share ‘lost’ on ex-dividend from the acquisition price. M1Finance portfolio acquisitions continue weekly, and the palan is to continue that for approximately 2 years, and then re-evaluate. Changes to those portfolios will be done as necessary, and can be tracked via the spreadsheets linked at the top of this post. I recently had a hearing test at our local Beltone office (GN.CO) and was told I’d need hearing aids. I knew that, of course, but I was unprepared for the cost. I was told the cost to me would be $8,795.00 and I was flabbergasted because there’s no way I could afford that so I was prepared to go without. Then, on a trip to Costco, I noticed they had a hearing center. Having recently purchased eyewear for my wife and later for myself, I made an appointment for another hearing test. I was told that I’d need hearing aids (“quelle surprise!”) and then I was told the cost. I could get a pair for $1,499.00 that needs batteries, or a rechargeable pair for $1,799.00. So, if I went to Costco (COST) I’d save $7,000 on a pair! Still, on a fixed income, $1,500 or $1,800 is tough to take. It’s under consideration. Also under consideration is a medical marijuana card for my various medical conditions. Again, the cost is very high.
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 disregard the first few at the top of this table as they show outrageous amounts for Total Return. This is due to the fact that most of these positions were sold at a profit, leaving 1 or 2 shares at a greatly reduced PPS which is then reflected in the Total Return.;
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!