May 7, 2019: PFLT, AGNC, LTC

Dividend Portfolio

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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.



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.



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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