LTC: Investing During the Bullish Run
Per my plan, I invested roughly $1,000 in LTC on payday circa June 7th, 2019, the year of our Lord. LTC is basically my only stock performing this year on the basis of appreciation. On January 3rd, I bought shares at $40.52. Today, LTC is trading around $46.20. So of course, the stock will appreciate while I buy it but the second I’m done pouring money into it, I’m sure it will slowly find its way back down to $40.00 for the rest of time. However, this is a long term hold and despite the price, LTC is still paying a monthly dividend. I have about 14 more paydays until I’m done investing in LTC, so hopefully this stock will cool down before breaking out into more 52-week highs.
Additionally, I added two new columns to the table. First, I added Today. Today is merely
Shares Acquired * Today’s Price
In contrast, Cash Paid is
Shares Acquired * Settlement Price
Today represents the current value of that transaction.
The second column I added is Today - Paid, which, you guessed it, is Today - Cash Paid. On June 7th, I bought $989.54 shares worth of LTC, and on June 25th, those shares are worth $1016.40.
I use LTC for this illustration because it is my only stock that has a positive value for Today - Paid and it makes me feel better about myself.
I take that back, my most recent two AGNC transactions have positive Today - Paid values. Also, June 21st completes my investment goal for AGNC. I have officially dropped $25,000 in this bad boy. Today, that investment is down $1,400… yikes. However, this investment has paid me $1,300 and in July, the additional $223.70 I plan to receive from the monthly dividend will put me back on top.
I didn’t start investing in this stock until January 2018, so none of these transactions go tax advantageous long term until January of 2020, so in all honesty, I don’t mind this stock hitting lows for the next few months.
GAIN: How Special
Every so often, GAIN pays a special dividend. The special dividend was $0.09 per share, representing a 9.19% yield. GAIN has been one of my most volatile stocks in 2019. I like to purchase more when it trades over 7%, and even more when it trades around $9. Lower fed rates will be a boon for this stock, so I doubt we will see $9 any time soon.
Lastly, I added a column called Add Div * DRIPs to see if it is something worth tracking. I’d love your opinion. This column is the per month amount of cash the transaction purchased me multiplied by how many times those shares have paid out. So, in the row called Feb Drip, the column reads $4.06, or
($0.94 x 3 DRIPs) + (13.807 shares + $0.09)
I hope this column helps justify reinvesting in these stocks even when it looks like I am losing money. As you can see, I’m down $6.35 on the shares February bought me, but they have also paid me $4.06 since I owned them in March, April, May and June. In a few days, the June DRIP will send me an additional $0.94 per share, and so on. I’m going to track PFLT, APLE, and GAIN using this method.