SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Strategies & Market Trends : Young and Older Folk Portfolio
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: chowder who wrote (868)3/17/2022 8:15:26 PM
From: chowder2 Recommendations

Recommended By
INCOGNIT0$
red cardinal

  Read Replies (2) of 21917
 
Re: Old Folk Portfolio ... Adjustments

As interest rates rise and inflation is in play, earlier this year I was selling or trimming CEF's that carried a high amount of leverage. As we all should know, leverage works well to the upside but can be devastating to the downside. Today I continued de-leveraging the portfolio.

I trimmed or completely sold out of the following positions:

BHK .. BTO .. GRX .. HTD .. RNP .. PTY.

The objective was to still continue to grow the monthly dividend/distribution cash flow rate and the positions sold generated a very nice yield. With this in mind, I added to some funds that don't use leverage and that included both CEF's and ETF's. Additionally, I added a couple of high yield equities that also provide some dividend growth.

I added to the following positions:

XYLD - 10.92%
RYLD - 9.82%
BMEZ - 9.29%
EIC - 9.24%
IDE - 8.31%
BDJ - 7.08%
MO - 7.02% (equity)
RFI - 6.38%
ENB - 6.12% (equity)
CII - 5.95%
*EIM - 4.77%

EIM is a municipal bond fund and the distributions are tax free from Federal taxes. Given the persons effective Federal tax rate the yield actually works out to 6.12% instead 4.77%.

The assets sold generated $12,137 in annual income and had a yield of 7.03%.

The assets purchased will generate $13,651 in annual income (+12.5%) and have a yield of 7.89%.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News