Monday, August 8, 2016


Placed an order to purchase shares of Wells Fargo Income Opportunities Fund (EAD) for my Roth account.  I'll collect the first dividend payment October first, since I missed the ex date for September's dividend.  However, this will increase monthly cash flow by a little over 2%!  It will also add an additional dividend payment at the first of every month, which I'm pretty excited about as well.  With this purchase, I'll be well set as far as the number of dividend payments at the first and last of the month.  Now I need to concentrate on building up the middle of the month dividends.  When I retire, I'd like to have money rolling in throughout the month.  While it doesn't really matter when I get paid, I just like the idea of having cash payments spaced throughout the month.  

If I complete the purchase of SPLV by August 15th, I'll collect the first dividend on August 31st.  Have to see whether I'll have the cash to make both trades, but I'm definitely going with EAD first for the current yield of 9.88% versus SPLV's yield of 1.86%.  SPLV may be the better investment in the long run, but I'm still working on increasing monthly cash flows as rapidly as possible.  I'm adding SPLV to balance out some of the riskier high yield investments.

I'm pretty happy about the progress made on building up tax free income with the Roth account.  Already have a good monthly cash flow and am reinvesting dividends from half my investments and collecting the rest in cash.  I may just use this money later on to buy more stock, but with the market being kind of pricey right now, I think it prudent to take some cash off the table and put it in reserve for possible buying opportunities should there be a correction in the stock market.  I'm still growing shares owned and dividend income every month by reinvesting some of my dividends in each account.  With my new 401k, I'm reinvesting all dividends until I have to start drawing the money in my retirement.

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