The market is pushing all-time highs. That’s not a lot of fun for me.
Oh well. The wizards are still plenty active though. Don’t you worry about that.
Peer to Peer Lending
Towards the end of May we put $3,000 into a Lending Club account. My wife has decided she wanted to be in charge of the peer to peer (P2P) portfolio, because she liked the voyeuristic aspect of looking into people’s financial lives and deciding if they deserved a loan from us or not.
We bought loans in $25 increments, which means we had to find 120 loans. It took a while! They have automatic portfolio builders that will take your criteria and buy loans automatically as they become available…but that takes the voyeurism out of it.
Well towards the end of June, into the first week of July, we finally finished picking out our 120 loans. I have to admit, it is pretty fascinating to see the kinds of debt/income situations people get themselves into across this great country of ours.
It can take a while from the point when you decide to partially fund a loan until it is actually issued, so there’s quite a bit of lag before you actually start getting income. We started collecting payments this week on some of the loans we first selected back at the beginning of June.
So far we’ve collected $7.34 in interest and paid $0.25 in fees, meaning we’ve earned $7.09 of profit. $17.17 of principal has been returned, which means it won’t be long before we have to find another loan to buy $25 worth of.
I must admit that I’m a bit surprised by how much of the payments are principal rather than interest. The fees are pretty steep too, but it’s probably a lot of work gathering all that credit data.
I’m not going to track every payment on the dividend income tracker. That would be too tedious. I’m thinking I will just aggregate things by the month.
CEF Portfolio Building
Of the 10 CEFs I’ve chosen for my CEF Portfolio, DSU was the only one I hadn’t gotten any shares of yet.
It goes ex-dividend on Wednesday. The market was mostly up, so there weren’t really any good put writing opportunities. DSU was down a couple pennies per share, so I figured “what the hell?”
DSU: 350 shares @ $3.60771/share. NAV $4.03 representing a -10.48% discount to NAV. $1,262.70 invested out of my target ~$6K.
To date $16,537.43 has been invested into my CEF portfolio out of a target of ~$65K.
Projected annual income up to $1,253.70 out of the targeted $5,036.22.
More CEF Portfolio Building
BLW also goes ex-dividend on Wednesday, but it is paying a special dividend of $0.18/share on top of the usual $0.087 distribution.I have no idea what the special dividend is all about, but as someone who’s in the market to increase their position in BLW, tomorrow seems like as good a time as any. My original plan was to build up a position of ~330 shares, and I bought 100 shares last month, so I’m planning to buy another 100 shares today. I might not document the trade itself until the month-end summary, but just so you know…