DGI Adventure 02-01-2017 Month in Review – January 2017

Last month, I introduced this feature with the following quote:

Thank God 2016 is over. It wasn’t as bad as 2012 but it sure gave it a run for its money…

I might have been a little premature welcoming in 2017. I guess it remains to be seen, but it’s not off to a good start…

We knew he was a misogynist…and a racist…and a protectionist…and in all likelihood probably a complete idiot…but I guess I was hopeful that he wouldn’t really turn out to be a fascist.

Hope, as my former boss used to say, is not a strategy.

Anyway…lots of action in the Wizard Household. We’re moving to Denver, CO in a couple weeks. We don’t have a place to live yet, but hopefully we’ll have closed on one by the time we show up with all our stuff…In the meantime, we’re sitting on lots and lots of cash.

Let’s have a look at January, shall we?

Portfolio Summary


Stock Purchases

3 stocks purchased. 3 positions increased; projected annual income increased by $288.80 based on current dividends.

01/27/17 – WMT: 100 shares purchased @ $67.00/share. This purchase was a result of a put option assignment. The put was sold on 01/03/17. I already had a small position in my ROTH IRA which this adds to. Annual projected income is increased by $200 based on the current annual dividend of $2.00/share, but they are likely to announce an increase any day now.

01/30/17 – EGF: 100 shares purchased @ $13.24/share. This purchase was adding to my CEF portfolio. Nothing special, but definitely catching more divies. Increases annual projected income by $49.20 based on current annual dividend of $0.492/share

01/31/17 – MIN: 100 shares purchased @ $4.4193/share. This purchase was adding to my CEF portfolio. Nothing special, but definitely catching more divies. Increases annual projected income by $39.60 based on current annual dividend of $0.396/share

I also purchased UVXY puts on two different occasions. The positions, which are still open, are:

2 contracts of UVXY 18JAN19 25.00 P (bought 1/19/17 for $16.7542/share)

2 contracts of UVXY 18JAN19 23.00 P (bought 1/31/17 for $15.4579/share)

I have no way of projecting what kind of income these trades will generate, but I am pretty confident they will both be positive. All UVXY put trades are documented in the “UVXY” tab of the Dividend Income Tracker.

For the uninitiated, I am shorting UVXY because it is the worst ETF ever.

Additional exploits can be found here, here and here.

Pay Days

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

Total investment income of $5,176.52 with a taxable total of $4,415.99. We’ll call it 11 “pay days” with 43 individual payments received.

Options premiums represent $470.66 of that total.

Capital gains represent $4,304.34 of that total.

Which leaves only $401.52 of actual bona fide dividends.

Is this even a dividend blog anymore?

Super question. The capital gains were strategic in a big-picture sense. But don’t worry…I wasn’t trying to time the market… We need the cash for a down payment on the new place in Denver, and  so“The Great Catfishwizard Taxable Liquidation” was the result.

Here’s a google sheet of the results if you’re interested in more details. I’m still trying to figure out my exact cost basis as far as the IRS is concerned. Fortunately I have until April of 2018 to sort that out…

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. Last month I experienced my first “charged off” loan. Now there are four loans that are late (between 31 and 120 days), one is late (between 16-30 days) and one is in the grace period.

Lending club’s algorithm has decided to write down $87.23 worth of principal for the loans that are late or in the grace period, but as the eternal optimist, I’m going to wait until the loans are actually charged off to recognize the loss.

Hope may not be a strategy, but it is often a tactic.

Comparisons

I’m not even going to bother with month over month or year over year comparisons since the capital gains recognized from the “The Great Catfishwizard Taxable Liquidation” has completely distorted all of those data.

Next month we’ll compare year over year, and hopefully in March both MoM and YoY will be meaningful.

Raises

Three of the dividend distributions received represented raises. See? This is a dividend growth blog after all!

WHG paid $0.62/share compared to $0.57/share in the previous quarter. That represents an 8.77% increase. Woo hoo!

GE paid $0.24/share compared to $0.23/share in the previous quarter. That represents a 4.35% increase. Yay!

WFM paid $0.14/share compared to $0.135/share in the previous quarter. That represents a 3.70% increase…

…which is better than nothing.

Here’s hoping for a little volatility in February but, like, not the complete dissolution of the US constitution? 

Please?

Leave a Reply