A dividend portfolio

[Rukh O'Rorke]

Thought this was worth quoting for the interested.

If China were to invade Taiwan, the most-advanced chip factory in the world would be rendered “not operable,” TSMC Chair Mark Liu said in an interview with CNN this week. “Nobody can control TSMC by force,” said Liu. “If you take a military force or invasion, you will render TSMC factory not operable,” Liu said

I was surprised that there is speculation that TSM is a major reason why china may invade. I guess not surprising if you think about it, but wasn't something I had heard much about. But once pointed out - seems like a very major and yet depressing motivation for china.

[Rukh O'Rorke]

Just a fly-by update. I still have not made any further changes to this portfolio. Overall, the balance seems relatively in line with the market moves, and I am doing drip for all the stocks that I could line that up for.

Still wondering if this is the way to go with my retirement funds, or not. I have stopped tracking it quite so closely, just eyeballing it on the regular. 

[Rukh O'Rorke]

Last real update was in 2021?? wow time flies! Wanted to do some housecleaning here as I have rearranged things a bit.

Symbol	Stock	Price 9/1/21	shares 9/1/21	dividend 9/1/21	Price 3/8/2023	shares 3/8/23	dividend  3/8/2023	Notations
CAIXY	CAIXABANK ADR	1.06	2048	0.0108	1.41	2048	.05279	Wow! huge increase wish I had bought more when I though of it at <$1
DSL	DOUBLELINE INCOME SOLUTIONS FUND	17.965	154.606	1.32			-	sold 169.036 6/15/2022 at 12.51 as this was in taxable and tax treatment undesireable
FSUMF	FORTESCUE METALS GROUP LTD	15.00	750	3.74	14.52	750	1.89	this is taxable but qualified dividends drip not available for this stock
LFC	CHINA LIFE INSURANCE COMPANY LIMITED SPONS ADR REPRSTG H SHARES	8.74	1000	0.4951				sold 1,048 shares 12/03/2022 at 8.26 was in IRA rollover but had misgivings....
MAIN	MAIN STREET CAPITAL CORP	41.68	272.313	2.52	41.84	295.7	2.7	steady
O	REALTY INCOME CORP	72.29	253.435	2.83	64.48	270.66	2.98	lower in value....
OHI	OMEGA HEALTHCARE INVESTORS INC	34.05	155.747	2.68			-	sold 167 shares 6/15/2022 at 27.76 as this was in taxable and tax treatment undesireable
ORAN	ORANGE SPONS ADR	11.47	1138.357	1.08	11.47	1217.04	1.08	exactly the same, but with more shares
OXSQ	OXFORD SQUARE CAPITAL CORP	4.40	630.781	0.42	3.52	65.45	0.42	sold 698.627 shares 6/17/2022 at 3.88 as those were in taxable and tax treatment undesireable; remaining shares in IRA rollover
PSEC	PROSPECT CAPITAL CORP	8.10	3109.90	0.72	7.31	2379.57	0.72	sold 1,105.738 shares 6/17/2022 at 7.10 as those were in taxable and tax treatment undesireable; remaining shares in IRA rollover
RWT	REDWOOD TRUST INC	12.61	268.971	0.72			-	sold 309.587 shares 6/17/2022 at 7.33 as this was in taxable and tax treatment undesireable
RY	ROYAL BANK CANADA MONTREAL	102.53	406.797	3.42	99.27	430.05	3.84
SRET	GLOBAL X FUNDS SUPERDIVIDEND REIT ETF	9.91	287.756	0.635			-	sold 303.95 shares 6/17/2022 at 7.77 as this was in taxable and tax treatment undesireable
STAG	STAG INDUSTRIAL INC	42.32	1012.47	1.45	33.73	1075.65	1.47	share price down quite a bit
TSM	TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD SPON ADR	120.55	200.586	1.88	90.49	206.425	2.27	big loss on share price, but dividend is up.

[Rukh O'Rorke]

Symbol	Stock	Price 3/8/2023	shares 3/8/23	dividend   3/8/2023
CAIXY	CAIXABANK ADR	1.41	2048	.05279
FSUMF	FORTESCUE METALS GROUP LTD	14.52	750	1.89
CWXZF	Doman Building Materials	5.21	142	.4116
MAIN	MAIN STREET CAPITAL CORP	41.84	295.7	2.7
O	REALTY INCOME CORP	64.48	270.66	2.98
ORAN	ORANGE SPONS ADR	11.47	1217.04	1.08
OXSQ	OXFORD SQUARE CAPITAL CORP	3.52	65.45	0.42
PSEC	PROSPECT CAPITAL CORP	7.31	2379.57	0.72
RY	ROYAL BANK CANADA MONTREAL	99.27	430.05	3.84
STAG	STAG INDUSTRIAL INC	33.73	1075.65	1.47
TSM	TAIWAN SEMICONDUCTOR MANUFACTURING CO LTD SPON ADR	90.49	206.425	2.27

So this is the cleaned up current lineup, adding in my small portion of doman building (CWXZF) I bought a bit ago. I had intended when I sold OHI, DSL, SRET, and RWT to repurchase in the rollover, but there wasn't really any available funds to do so, though of switching some out be decided against for the present.

Everything is in an IRA rollover except Fsumf and Cwxzf which is in taxable accounts. These two foreign holdings are also not eligible to be set up to DRIP, everything in the IRA rollover is DRIPPING. Buying additional shares of fsumf cost 50 for a transaction so will just hold what I have. May buy additional cxxzf with new money.

I am rethinking the closed end funds that cannibalize themselves to maintain the dividend output (oxsq, psec) as the yeild isn't really that high given current inflation and then growth is also not in the cards. May keep these two and let them continue to DRIP upwards in holdings, but not acquire anymore or others similar. They just don't seem as fun to own to me!

Total invested in this portfolio is 173,814 with a current expected yeild of 5.73% gross, 5.449% when accounting for foreign taxes paid on some of the holdings.

After removing the stocks that were sold, monthly dividend output is up about 8% YOY for Jan and Feb due to increased shares per DRIP and some stocks increasing the dividend, so that would be really great if inflation was at 2-3%. As is, that is really treading water at best, IMO.

Then again - treading water isn't the worst investment outcome out there!!

So calling this all good enough for the present!

[djAdvocate]

redwood trust bums me out.

[Rukh O'Rorke]

Mar 24, 2023 19:46:54 GMT -5 djAdvocate said:

redwood trust bums me out.

I just didn't want it in taxable account, but then had other things going on so didn't replace them.

May pick them up again at some point!

[Rukh O'Rorke]

sold the psec and oxsq today, I was not really happy with how they were working. Since they canabilze themselves to pay higher dividends, seems like an indivudalized ponzi scheme to me. After 2 years of drip I had many more shares, higher monghtly dividend, and the total was the nearly exactly the same. Like they could take the money, invest in treasuries, keep the interest and pay out as "salaries" and then I have the same money I started with more shares at lower values, lol!

Not sure where to put the money from the sales. Was looking to get back into redwood and sret, but researching where those companies are since I sold, not sure I want to get back in at the moment. Redwood went negative earnings for about a year, sret did a reverse stock split which is usually negative but I can't ind a lot of info on why they did that.

Feel like I have too much already in RY, O and main seem good, but not sure I want more. May look for something new.....

[Rukh O'Rorke]

I always worry about selling stock - I'm going to sell right before a boom. I know I was doing the right thing with psec because I just feel very relieved to get it off my books.

As a partial replacement - I've put in an order for keycorp. They have been been beaten down quite a bit being a smaller financial intitution, but their fundamental look good - of course - you never know with these collapses!

It is a limit order so see if it will got hrough.......only about 2/3rd of what I had in psec, so still need to find something else. Another contender was western union, but I didn't like their numbers......

[djAdvocate]

i thought Caixa might hit $1.50 earlier this year.
it has become one of my largest holdings.
i have been accumulating this one at under $1.20.  it
is there right now.  

i seriously doubt it will fall below $1, and i think it will be $2 in less than 3 years.

not a recommendation, just a thought.  

[Rukh O'Rorke]

May 9, 2023 22:47:34 GMT -5 djAdvocate said:

i thought Caixa might hit $1.50 earlier this year.
it has become one of my largest holdings.
i have been accumulating this one at under $1.20.  it
is there right now.  

i seriously doubt it will fall below $1, and i think it will be $2 in less than 3 years.

not a recommendation, just a thought.  

Vanugard now won't let me buy any more caixy in my dividend portfolio accout! I acutally put a limit order in at my fidelity accoutn yesterday for more caixy - neither that not the key orders went through.

I have put in both orders for today at same prices. I have 1.16 for caixy, most trades past few days have been 1.17-1.19 range so looking for a little opportunistic dip. Silly! But it gives me a boost. Volume on caixy is high today, but prices don't seem to be heading higher or lower.....watching these today, and may adjust prices......

[Rukh O'Rorke]

got the key, then it dipped! Caixy hit my price, but my trade did not execute. Likely only one huge order at that price, then it popped back to 1.17.

will try again tomorrow

[Rukh O'Rorke]

Key dipped again, so I would have been better off waiting a bit! got Caixy at 1.16 - not a lot, 3000 shares in my fidelity, have 2000 odd in my vanguard account. Not a lot of metrics on caixy, so hard for me to do more - plus got a pop up about spain taxing transactions, not sure if this is new or just reiterating the same.

On my previous holding - I have 2048 shares, dividend in april was 172.44, which is great, about 7%, but then there was 34.41 fee - for what I don't know! then 32.76 in withholding - I assume for spain, this is in a 401k rollover account. That left me with 105.27 cash, cannot drip caixy. Slightly over 4% so still a goodly amount on the dividend. Similar patter for ORAN (french telecom). So I just guess cost of business/international diversifying....

feeling a bit uncertain about the KEY stocks, I wasn't sure I was fully figuring in the ongoing banking meltdown. Key still looks really good to me, PE under 6, PB under 1, with an 8% dividend. But with the banking and RE markets getting shaky - may get the rugged pulled out even if it does look better than other smaller banks.

Based on the latest info tdameritrade is using, key had TTM EPS of 1.77 and paid out 0.82 in dividends. PSEC which was giving me heartburn had an EPS of 0.09 while paying out 0.72 in dividends. So - hopefully - this is a good move. Time will tell!

[djAdvocate]

i really like CAIXY in the intermediate term.  it gyrates quite a bit, but i think it is in a very good growth position.  extremely high quality, well capitalized banks will benefit from the weaker ones folding.

[Rukh O'Rorke]

price on key has been stable, and up a bit even, so that is a releif I was rather worried about the timing of that. At least so far not a disaster....

sold out O - realty income. EPS was 1/2 of the yearly dividend. Also the free shares I got on orion office, nothing good there. Also looking to maybe sell stag for the same reason, and maybe oran.

Although, I'm not 100% sure I'm looking at this right. If the EPS is after dividends, then I'm wrong about this. but what I've been able to cobble together says EPS is calculate after preferred dividends but before ordinary share dividends. Would appreciate any commentary or sources that would elucidate me on this.

Over all, having a crisis of faith on the dividend portfolio idea, lol! Feel like I hear a crusty old wall streeter with a cigar clamped in his teeth and a raspy voice saying there aint no free lunch......i.e. you can't get the growth of stocks, the income of bonds, and the security of treasuries all wrapped up together! Even though I was ok with a little less on all these metrics, I thought I was on to something. Now I think I'm not!

Amid continuing concerns on banks and RE, with me eschewing most consumables as being non vegan or highly pollutionary....really tough to find good dividend stocks.....maybe a good time to buy treasuries within my 401k rollover? Trying to accumulate them in treasury direct has been slow going!

[djAdvocate]

not too confident about RE pricing.
also, i think interest rates are at about peak in US.
not sure how either of these things portend to this portfolio.

RWT was up 9% on Friday.  huge move there.

[Rukh O'Rorke]

Jul 30, 2023 16:29:39 GMT -5 djAdvocate said:

not too confident about RE pricing.
also, i think interest rates are at about peak in US.
not sure how either of these things portend to this portfolio.

RWT was up 9% on Friday.  huge move there.

oh! I had missed this message in July! Was just coming to post updates

So far - I think this experiment has been worthwhile, but overall I'm questioning the stratgy - particularly with 5% interest relatively easy to find these days, with no risk of capital. The dividend stocks were not as robust to market downturn as I was looking for, maybe because I did go for larger dividends? But given the muted growth expectations of higher dividends, and which I may not have been fully appreciating how that would go long term.....having them lose quite a bit of value in 2022 was something I am still thinking about in terms of my long-range strategy. Overall, I am invested aggressively and was hoping to tame that with the dividend portfolio. Not sure that is working as I was thinking it might.

I have sold quite a few over the past year, and I think RWT was the only 'winner' out of those. I somewhat meant to buy back in my 401k rollover but then never did. I did not like the tax treatment of REIT dividends. Maybe that will change when I don't have my salary but for now, it didn't make sense based on tax. Super glad I got out of psec, I am calling that a scam! 

Still retaining:

CAIXY
KEY
MAIN
ORAN
RY
STAG
TSM
fsumf


plus I have added treasuries and some growth stocks replacing what I sold. When I saw how much the interest was on the money I hadn't reinvested in my vanguard acct (about 5%), I just left it there (17k getting over 70 in interest per month).

Key has done well since purchase, think I picked it up at a particular low. fsumf I may considering dumping. TSM I still like and am considering holding, I think they are being smart about plans for if china tries a takeover of Taiwan and the company. although it could go south depending on all the whens and whys and hows......The other ones I've evaluated and find them doing well performance wise. That doesn't mean I am not entertaining selling it all and put in high interest vehicles or index funds. 

[Rukh O'Rorke]

I'm going to be selling my positions on most of these. It's been a valuable learning experience, but with treasuries and money markets up at about 5%, I'm going to be converting to a mix of stock ETFs and cash positions. Just putting in reasonable limit orders over the next week or so and see how it goes. Sold out of Key and RY today from orders placed last night. RY came out slightly ahead after holding and DRIPing for a few years, Key was a nice bump up over a short period of time - over 20% - but I put less than 10k into so still small potatoes.

Overall, trying to minimize risk going forward. I thought this portfolio would be that move to less risk, but it didn't really work out that way. Added a bit of stress and too much work to keep an eye on it. Also going to streamline my growth portfolio a bit.

[djAdvocate]

Rukh- see PM.