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SELLING MORE BONDS. BUY HCAPZ.

Now in the 6th year of Dividend Income Investor.
Before buying any investment, go to Core Portfolio for a listing of current positions.

June 12, 2018.  We sold the low yield Wells Fargo Corporate Bond.  The total return is positive:  the price has declined but we have received numerous dividends.

We also sold the low yield Walgreens Corporate Bond.  The total return is very nice:  the price was up from what we paid and we have received the dividends.

The Companies are solid and if you are happy with the yield, keep them and hold to maturity.  But we are looking for higher yield positions. 

We are placing a $25.40 BUY LIMIT order for HCAPZ which is a Business Development Company.  The ask is $25.58 so this order will not fill quickly:  simply wait and watch on this one.  The bonds mature in September of 2022 and trade on the stock exchange just like a stock.

The price has been extremely stable and is currently paying over 6%.  

 QUANTUMONLINE.COM SECURITY DESCRIPTION: Harvest Capital Credit Corp., 6.125% Notes due 2022, issued in $25 denominations, redeemable at the issuer’s option on or after 9/15/2019 at $25 per note plus accrued and unpaid interest, and maturing 9/15/2022. Interest distributions of 6.125% per annum ($1.53125 per annum or $0.382813 per quarter) will be paid quarterly on 3/15, 6/15, 9/15 & 12/15 to holders of record on the record date that will be 3/1, 6/1, 9/1 & 12/1 (NOTE: the ex-dividend date is one business day prior to the record date). Distributions paid by these debt securities are interest and as such are NOT eligible for the preferential 15% to 20% tax rate on dividends and are also NOT eligible for the dividend received deduction for corporate holders. Units are expected to trade flat, which means accrued interest will be reflected in the trading price and the purchasers will not pay and the sellers will not receive any accrued and unpaid interest. This security was not rated by Moody’s or S&P at the time of its IPO. The Notes are unsecured and unsubordinated obligations of the company and will rank equally with all existing and future unsecured and unsubordinated indebtedness of the company. 

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