Month in Review – February 2019

Last February ushered in a new regime of uncertainty and volatility. This time around, things were a lot more tame. Mr. Market continued what appears to be a slow and steady recovery, but the major indices started to approach significant resistance levels as the shortest month of the year came to a close. I personally think we might be in for some fun in March and beyond.

But the future’s not ours to see. Let’s take a look at the past instead.

Portfolio Summary

Metric

End of February 2019

End of January 2019

Total Invested

$531,262.34

$511,291.10

Market Value of Total Invested

$538,035.60

$526,022.52

Allocation % – Equity

52.09%

54.12%

Allocation % – Bonds

17.25%

17.52%

Allocation % – “Other”

2.80%

3.05%

Allocation % – Cash

27.78%

25.30%

Income Assets – Invested

$259,715.82

$269,826.30

Income Assets – Market Value

$259,247.61

$268,644.70

Projected Annual Income

$20,635.70

$18,741.33

Invested Yield

7.95%

6.98%

Market Yield

7.96%

6.95%

Stock Purchases

02/15/19 – EVC: 400 shares purchased at $4.05/share. This rounds out my position to 1,000 total shares. The share price was really devastated in December. I sold some puts at a $2.50 strike but didn’t manage to get assigned. This still represents a nice opportunity to average down. I wrote up an investment thesis back in September.

Total investment income is increased by $80.00/year based on the annual dividend of $0.20/share.

I still remain skeptical of this recent rally. Since I’m expecting the correction that started late last year to continue, I’m not being particularly aggressive with my long equity positions.

Thou can’t time the market, so thou shalt not try to.

Pay Days

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

Total investment income of $1,981.44 with a taxable total of -$285.35. We’ll call it 12 “pay days” with 47 individual payments received.

Options premiums represent $895.86 of that total.

Capital gains made up $800.00.

Which leaves $600.52 of actual bona fide dividends (plus $10.66 of P2P interest, -$308.88 of sports betting losses, and $12.87 of treasury interest).

Lending Club

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.

One loan got charged off this month. Boo!

The overall situation technically improved a little, but not by much. We still have four very late loans, and one in the 16-30 day range.

The number of bad (charged off) loans we’ve invested in so far comes to 24 out of 270 or 8.89%.

I’ve given up reinvesting principal as it gets paid back to me. The number of quality loans that meet my selection criteria has plummeted recently, which means I can’t keep up with the amount of principal that’s accumulating.

I’ll continue to track the existing loans’ performance to their maturity.

Month

In Grace Period

Late (16 -30 days)

Late (31 – 120 days)

Charged Off (aggregate)

End of 2017

0

0

6

8

End of  2018

1

0

5

23

January 2019

1

0

5

23

February 2019

0

1

4

24

Lending club’s algorithm is suggesting I should write down $46.54 worth of principal for the  loans that are late, but as the eternal optimist, I’m going to continue to wait until the loans are actually charged off before I recognize the loss.

That is down significantly from what it suggested last month ($66.85). The discrepancy is due to the fact that a couple of the loans that are currently showing as “very late” do not have a lot of principal remaining.

Comparisons

Month over month, investment income was up 1.49% compared to $1,981.44 in January.

Month over month comparisons are stupid given the way that I count “income”. Options activity and capital gains are pretty erratic. But that’s how I count it, so it is what it is.

I now have 5 years (!) of data on my income tracking sheet. So I can make graphs like this:

Pretty cool huh?

As 2019 progresses, I will start tracking more things here using fancy graphs like this one. Stay tuned.

Raises

Two of the dividend distributions represented a raise this month.

O increased their quarterly payout from $0.221 to $0.226/share, which is good for a 2.26% increase. That isn’t exactly earth shattering, but it’s better than a poke in the eye. They typically make at least two raises in a calendar year, and this increase already surpasses both of last year’s combined, so that’s something; I’m certainly not giving it back.

FAST increased their quarterly distribution from $0.40 to $0.43/share, which represents a 7.5% increase. That’s right in line with what I would expect considering shares yield 2.75% as of yesterday’s close. I’m a big fan of this company and its stock. If the broader market swoons I will be watching closely to see if a buying opportunity presents itself.

So there you have it. Tell me what you think in the comments below.

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