November 11, 2013
Go to “Investments Core Portfolio” for current holdings.
This blog discusses dividend paying investments which may include corporate bonds, business development companies, and master limited partnerships including many others.
I have discussed bank loan funds ie floating rate securities in the past. PHD is a good holding that pays over 7%. Quite frankly this thing has been declining for the last six months due to all the economic noise. but I really don’t care. The funds are a bet on rising interest rates which will happen eventually. In fact we may have to wait six months or a year to see any increase.
But while waiting you earn a reasonable yield. And you want to be in this position early. If you see a price of $12.11 I believe this would be the best entry point.
As I look at the charts, this may be a good time to start buying a little for your portfolio. Or you may want to add to existing positions if you already own them. There is the possibility that this segment will decline further….down to $12.11. You can wait if you want. But it would be a good idea to start buying small amounts and add if they decline further.
So…… what are bank loans.? (from seekingalpha.com) “But because bank loan funds regularly and frequently adapt to rate changes, they have virtually no sensitivity to them. Hence, their duration is effectively zero. As rates rise, so will the yields of these funds.”
There are a number of etfs and funds that you can buy. I just happen to like PHD. Do your research and give a serious look at this dividend payer. FRA, PFLT, and VVR are other positions to evaluate…there are at least a dozen out there to pick from.
As always, a single position should never constitute a large segment of the portfolio. I normally think in terms of one or maybe two percent. PHD goes ex dividend November 14. Typically you would see a price drop giving you an excellent buying opportunity.
KYE. Tanking but watching to buy at sale prices.
Another point: Never ever go out and start buying single issues. Unless you are a trained stock trader who has extensive experience, you will almost certainly lose money. Most people are NOT good stock traders. I know from experience!! Do you really think you r smarter than the professional traders on Wall Street? LOL Give me a break. This blog discusses dividend paying funds and etfs which are the best approach for 99% of the people. Truth be told, I have been tempted to buy IBM recently but common sense keeps telling me to stay away.
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Go to “HOME” (top of page) for the most current posts. Go To +FOLLOW at the top of this page to follow this blog. (Please respond to POLL Click Here) This blog discusses dividend paying investments that I find appropriate for myself…..and for investors seeking dividends and income. I am not an investment professional. You must do your own research before buying any position. All gains or losses that you realize are based on your choices.