Monday, June 6, 2016


In my previous post I discussed the sale of under performing stocks and how I benefited from reinvesting the cash.  I decided that worked out so well, it warranted a second look to see if I could perhaps repeat the process.  Here's what I came up with:

I sold my stakes in CLNY, GE and LLY, with a small loss on CLNY and gains of over 60% on both GE and LLY.  I put in an order to reinvest the cash in SPHD (S&P 500 High Dividend, Low Volatility Fund) which pays a monthly dividend.  I lost 12 dividend payments per year from the quarterly dividend payers, but gained them all back from the monthly dividend fund.  The cash collected from the sale will purchase enough shares of SPHD to increase annual dividend income by 23%!  In addition to this, both this transaction and the one I mentioned in my last post, will complete in time to see the new dividends income kick in this month!  Not to mention I'll still get to collect this month's dividend from LLY!  Making both purchases on the same day also reduced commission costs to 2.6%, so I'm pretty happy about keeping the costs down as well.

I'm pretty excited about this strategy of boosting income without any cash out of pocket!  I'm going to take a good look at my taxable account and see if I can pull it off again, with a little twist.  Instead of reinvesting the proceeds in that account, I'll transfer the cash to my Roth IRA and boost tax free income.  

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