DGI Adventure 11-04-2016 Month in Review – October 2016

Historically, October is the most volatile month of the year. There was a little bit of activity, but honestly nothing to get all that excited about.

I had high hopes for the month. In the end it was kind of average, and because of the timing of some old trades, this is the first month since I started keeping track that I actually had negative investment income.

Let’s get right down to it then shall we?

Portfolio Summary

Stock Purchases

2 stocks purchased. 1 positions increased; 1 new position. Projected annual income increased by $234 based on current dividends.

10/21/16 – GRC: 100 shares purchased @ $25.00/share. This was an assigned put, which I had sold a month earlier. This is a new position. It adds $46 to my projected income based on the current forward annual dividend of $0.46/share.

10/28/16 – GILD: 100 shares purchased @ $74.05/share. This was another option assignment. The put was sold at the end of September. This is an increase to an existing position (and is now what I would consider “full”; I don’t think I’m going to take any more long positions for a while). This adds $188 to my projected income based on the current annual distribution of $1.88/share.

Pay Days and Raises

Dividend Income Tracker is published back at the mothership and has been updated..

Total investment income of -$1,524.59, with a taxable total of -$2,098.14. We’ll call it 13 “pay days” with 32 individual payments received.

Lending club income is aggregated into a single income record for simplicity’s sake. It actually arrives as a lot of small payments over the course of the month. There are two loans that are late (between 31 and 120 days). Lending club has some algorithm that has decided to write down $36.40 worth of principal for those two loans. Last month it was $36.67 so maybe it’s getting better? Kind of weird. From an income perspective, I’m not going to realize the loss until those are actually written off or settled.

This month’s income was obviously horrible, primarily because I finally let my covered call against AUY shares get assigned, which means I realized the paper loss that I’ve been carrying for a long time.

Since that trade wasn’t really reflective of my investing strategy going forward, you have to take this month’s total with some perspective.

If we subtract out that one capital loss, total income was $635.41, which is still a decrease of -35.4% compared to last month, but would be a 31.0% increase over October 2015’s total of $485.08.

None of the dividends represented an increase, which is kind of a bummer, but there were some raises announced, so we should see some next month.

There is nothing fun about losing money. There is some consolation that I can write it off next April, but that is a very small consolation.

Leave a Reply