I'm sure some will take this the wrong way, but could turn a lightbulb on for someone. It is a
big market. To think you will play just the slices you want, and beat the market, is foolish imho. Some will
say they don't care, that it is all about the income, which would be fine, except I've tracked income and DGI
portfolios all over the net, and any with any reasonable amount of time in, trail the SPY. Every one of them,
if not yet needing the income, has wasted their time. They would have been better off to invest in the SPY
and walk away, coming back when they were ready to invest for income.
From DVK: "But at the end of February, I was at +268%, the index at +309%. If his portfolio had been invested in SPY, he
could buy 15% more income. The fact that switching a little earlier would have been better, doesn't change the fact that
investing in SPY would still be giving him more income if switched right now.
All the articles, videos, comments, buying undervalued stocks, talking about portfolio income is up year over year, etc.,
doesn't change the facts.
If you are younger, learn about more than just common stocks. Some investors think all high yield
is common stocks, and that's just not so. I like preferreds and baby bonds. From a post after the 2020 crash:
"One addendum: I have to get this off my chest. On another investment board I follow, several people are
complaining vociferously that their earlier-in-the-year 9%-yielding mReits have cut their distributions 90% or
100%. While I am truly sympathetic to their pain, I want to ask them "Do you know what risk is? Do you
think that you are so much smarter than many of us in that you can find low-risk 9% while the rest of us are
only able to luck into a JNJ?" I really don't mean to be unsympathetic, but really people, understand what
you are buying. There. Whew!"
I don't think I am smarter, but you have to look to find.
JNJ vs. TECTP. The same money could have bought 120 shares of JNJ, which is now about exactly where
it was at that time. One would have collected three dividends for a total of $382. TECTP is currently $10.56
for a $1120 gain.
07/06/2021 10:47:40 Bought 300 TECTP @ 10.035 -3,010.50
07/09/2021 14:59:18 Bought 700 TECTP @ 9.9999 -6,999.93
08/05/2021 07:01:50 Bought 1000 TECTP @ 10.03 -10,030.00
08/16/2021 00:00:01 QUALIFIED DIVIDEND (TECTP) 225.00
11/15/2021 00:00:01 QUALIFIED DIVIDEND (TECTP) 450.00
02/15/2022 00:00:01 QUALIFIED DIVIDEND (TECTP) 450.00
Lately I have been reading where it would be a bad time for those that invested in growth, to switch to
income. I call baloney. I've actually been going from income to growth, but when the market takes off again,
there will be plenty of income for those who look outside the box.
These are all the preferreds I have recently sold in order to buy growth. Made just a little money, but got
paid well in the meantime.
One other point. Owning individual preferreds comes with it's own risks. On the other hand,
preferred CEFs will not give you the best opportunity when you want to sell to take advantage of
the market. I lost a little money on three out of twelve. On 2/23 and 2/24, preferred CEFS were
in the tank. After ending the year at $9.76, JPC hit a low of $8.21 on 2/24. FFC from $20.59 to $18.80 over
the same span. Just when you might want to sell, you have no advantage.
AGNCO AGNC INVESTMENT CORP 6.5% S Sell.LIFO 100 09/27/19 2,493.48 02/23/22 2,411.10 -82.38
ATLCP ATLANTICUS HOLDINGS CORP 7. 500 --- 12,448.80 --- 12,637.20 188.40
BHR-D BRAEMAR HOTELS & RESORTS IN 250 --- 5,540.23 --- 6,387.47 847.24
CIO-A CITY OFFICE REIT 6.625 12/3 250 --- 5,315.66 --- 6,230.37 914.71
ECC-D EAGLE POINT CREDIT COMPANY Sell.LIFO 100 12/02/21 2,461.00 02/23/22 2,471.99 10.99
GLP-A GLOBAL PARTNERS LP 9.75% SE 200 --- 4,991.96 --- 5,159.95 167.99
HMLP-A HOEGH LNG PARTNERS LP 8.75% Sell.LIFO 100 07/28/21 2,116.00 02/23/22 2,261.36 145.36
NRZ-D NEW RESIDENTIAL INVESTMENT Sell.LIFO 200 09/17/21 4,980.95 02/23/22 4,819.98 -160.97
PRIF-K PRIORITY INCOME FUND 7% SER Sell.LIFO 100 11/12/21 2,490.00 02/24/22 2,399.98 -90.02
TRTN-A TRITON INTERNATIONAL LTD 8. Sell.LIFO 150 03/14/19 3,753.95 02/23/22 3,971.98 218.03
TRTN-B TRITON INTERNATIONAL LTD 8% 200 --- 4,992.95 --- 5,274.21 281.26
UMH-C UMH PROPERTIES INC 6.75% PE Sell.LIFO 200 05/14/19 4,924.95 02/22/22 5,029.97 105.02
If the market wants to tank some more, I have another $40,000+ in preferreds/baby bonds I can sell.
Actually $60,000+, but that 9% TECTP isn't for sale. Yet. |
