Friday, September 16, 2016


A big part of my investment plan, for the remainder of this year and for 2017, is to bolster middle of the month income.  Currently my portfolio churns out 291 dividend payments per year, with the majority of cash coming in at the beginning and end of each month.  This week's purchase of CHI gives me 4 monthly dividends on the 15th of each month with some quarterly dividends paying on the 15th throughout the year.  So it's a simple matter to boost mid month cash flow by purchasing additional shares of CHI, MAIN, JMP and IGD.  I also plan to buy more shares of CSX which pays quarterly on the 15th.  While it really doesn't matter when I get paid, I just like the idea of a nice stream of cash coming in all month long.

That being said, I have no intention of ignoring the rest of the month.  The purchase of CRF stock for my Roth account this week will significantly boost end of the month income.  I also plan on purchasing shares of CLM  for the Roth account, another end of month paying stock.  Both of these funds have an extremely high dividend yield, so they're great for collecting cash payments, but I won't reinvest the dividends.  I believe you should not reinvest dividends in any fund who's payouts include a large portion of "return of capital."  However, funds like UTG who's dividend is a payout from earnings, it's perfectly O.K. to reinvest the dividends.

Completed three of the thirteen stock purchases from my list for 2017.  I'm getting a little ahead of the game, but I can always add to the list or buy additional shares in current holdings.  One stock I'm very interested in is Prudential Financial (PRU).  They have a low price to earnings and a decent history of increasing dividends since 2002.  They're a bit pricey, at a little over $79, compared to stocks I usually buy, but I think they're worth it.  Then too, they're not a holding of any of the funds I currently own, so there would be no overlap in investment.  I'm not terribly concerned about investment overlap, since individual stocks can outperform funds who hold shares of their stock.  However, it's nice to have some stocks that are not widely held.  

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