Wednesday, August 24, 2016


Just read an article on Seeking Alpha about PSEC's dwindling distributable cash flows and the possible upcoming dividend cut, so I decided to sell the stock and cut my losses.  I'll take the cash from the sale and reinvest in additional shares of CLM.  This move will boost monthly dividend income by a little over 3% while reducing average price per share on CLM.  It's always good to be able to increase monthly cash flow without any additional cash out of pocket, so I'm pretty excited about the move!

The sale of PSEC will reduce my total annual dividend payments to 272.  However, I'm more concerned about increasing cash flow than increasing number of payments.  I'll be looking for a good stock to replace PSEC, but I'm in no hurry since I've actually increased income from the trade.  It occurs to me that I should take CLM dividends in cash and use that money to buy the replacement stock.

I'm still waiting for my first statement from my 401k account, but I really have no idea when I'll get that.  I'm wondering how many dividend payments the two funds I picked will add to the annual total.  Whatever it adds will be a nice bonus as far as I'm concerned, since my contributions are coming out of taxes and have not noticeably affected my take home pay.  Should I get a raise, I'll be increasing the withholding amount to build this account even more.

The Roth IRA account is doing quite well.  Just collected a nice dividend from GUT today!  I'm more excited about building this account than any of my other accounts since the income is tax free.  I continue to pour as much cash as I can into this account and have begun diverting dividend income from my taxable account to the Roth.  It's really exciting to see the snowball effect as dividend income increases month after month.  It's been a great year!  

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