May 7, 2019: PFLT, AGNC, LTC

Dividend Portfolio

Table key at the bottom of article


PFLT

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Table Takeaways

PFLT has appreciated 12.08% in 2019, from $11.76 to $13.19. This has cut my DRIP yield 1%. My average unit cost is $13.33, so even after this great first quarter, I’m actually still down on this stock .081%. I don’t know if there could be another 15% rally, but that would be what I need to start selling this stock. If you factor in the dividend payments, I’m up 6.41%. In reality, it is better that this stock stays low because I have only owned 15% or 287 of my shares longer than a year. If there is another 15% rally, I may not have enough long-term shares to sell off to re-balance my portfolio properly without suffering the short-term tax burdens.

However, at the end of the day, I’m not going to be upset with a 15% rally. Most analyst are rating this stock a hold, so they seem to think there is still a bit more gas in the tank.


AGNC

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Table Takeaways

AGNC is the gift that keeps on giving. The writers who cover this stock always seem surprised that they continue to shell out a 12% dividend. I’m not complaining, but I probably wouldn’t recommend this stock to a client. This is a risky investment and really doesn’t have a place in a dividend portfolio that is being built to last. However, I don’t have a better investment at the time because I feel that almost everything is risky in this current economic environment. I’m three months away from meeting my investment goal on this stock, which is $25,000. I’m going to stay the course and hope they keep up the good work. Every payday I buy about $10 in monthly income, so I’m loving this stock.


LTC

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Table Takeaways

LTC has obnoxiously appreciated 11.5% since I first purchased it in January 2019. Funny thing is, I bought this stock thinking it would stay exactly the same price and grow slowly with inflation, but I was very wrong. I am still 17 months away from meeting my investment goal for LTC, so I hope their price either retreats back to $40 or stays around the same place for the next year and a half. If not, they will need to raise their dividend to stay attractive for this portfolio. Anything under 5% is going to drag down my average portfolio yield down quite a bit. Having said that, I do think this is probably one of the safest monthly dividend stocks. Most writers are very bullish on senior care and living, so I think this will be in my portfolio for a very long time.


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