DGI Adventure – 04-03-2016 Month in Review – March 2016

Well that wraps things up for the first quarter. That was quite the upswing. Will it continue? I’m currently intrigued by the theory that most of the buying volume right now is coming from corporate buyback programs. That means that when the blackout period for earnings season kicks back into gear, the support should drop out and volatility will come back. Here’s an article about that exact problem from around this time last year, and then the stock market went on to set new record highs in May. Go Figure.

Let’s recap March before we get too far ahead of ourselves.

Portfolio Summary

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Good Lord that is a stupid amount of cash! It’s a confluence of factors. 1) The upswing in the market hasn’t presented many great buying opportunities. 2) I’ve been stashing cash because I knew we were going to have some major cash outlays in April – taxes, basketball playoff tickets, baseball tickets, PLUS I just finished up probate so I have a pretty big lawyer bill to pay.

I have been too timid to transfer the Beneficiary IRA to the Interactive Brokers account, otherwise there’d be even more cash since none of those mutual funds trade on the IB platform.

I don’t mind being cash heavy at the moment, because I really don’t trust the market. As Financial Velociraptor says, “the market is guilty until proven innocent”. It does drag down the invested yield though. Oh well.

Stock Purchases

No stock purchases in March. Didn’t buy any in February either. That is quite a drought.

Pay Days and Raises

Dividend Income Tracker is published back at the mothership.

Total of $436.54 of passive income received. 8 “pay days”. 13 individual payments received.

This represents a 31.4% decrease from last month’s income of $636.07 and a 59.0% increase from March 2015’s income of $274.52. I’m more interested in YoY than month to month.February is apparently a big month for our dividend payments, plus last month was a little inflated because I had income from rolling the call options forward on my gold mining stocks. Those calls expire 4/15/16, we’ll see if I decide to roll them out again. I’m thinking I will. We’re due for an interest rate increase.

VLO dividend payment is a $0.10/share increase of 20%. I didn’t own any shares for the previous quarter’s dividend, so I can’t really count it as an increase, but I felt like mentioning it because damn…that’s a hefty increase!

One final note on the value of those call options in terms of the total investable assets: the googlefinance lookup function can’t find their price on the innerwebs so I’ve just added a row within the taxable brokerage account, and I plug in what sharebuilder says they’re “worth”. Being as deep in the money as they are, there are kind of big bid/ask spreads. I’m not sure if that really represents what it would cost to close the position, but it’s close enough. The goal is to offset the value of the shares held since I don’t really own the gains above the strike price. It should all come out in the wash more or less.

And that was the month that was. Hello second quarter. Let’s do this.

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