Our portfolio updates for the week ending on October 25, 2024 are as follows.
It’s Time To Party Y’all!
I know we’re going to reach our first goal of $1,500 a month in passive dividend income at the end of October! We wanted to make sure by having 6 consecutive months of hitting the target.
We would have been celebrating at the end of August, but April missed by $16… That means 7 of the last 8 months we were above $1,500.
Our next target is $1,750 a month. I’m not sure how long it will take but we’re excited!
Just so you know… we’re making $1,500 a month with only about a $105k portfolio. We started the year off at $90k in value.
If you compare our gains to those of the Dow Jones, we’re only off by 0.25%. Who says income portfolios have to sacrifice capital appreciation? 😄
Okay so onto our portfolio changes.
Taking Profits On Overpriced Funds
Sold DSU
The price of our BlackRock Debt Strategies Fund signals that selling is in order, so we exited our position. We bought DSU in July of 2023. At the time, it was discounted by about 16.5%.
How did we know that? With funds, you have to look at the historical data to determine if one is undervalued. Currently, DSU trades at a pretty decent premium.
We bought it at $9.88 and have netted a 30% return on a boring old bond fund. That money can be put to use in another fund that’s undervalued and has a similar yield.
Selling PDI
This PIMCO Bond Fund is currently showing that it’s 150% overvalued compared to historical NAV premium. So you guessed it, we put a limit order in to sell all our shares.
We got PDI dirt cheap at $15.50 and have been collecting nice monthly dividends. It just too overvalued to hold onto right now. I’m sure we’ll get back into it at some point in the future.
Stick to your metrics
Your investing system and rules keep you on track no matter what your emotions are doing. That’s how you overcome the fear of a losing trade, or in this case, the greed of a massive winning trade.
I hope you’re starting to see a pattern with popular bond funds. Everyone’s getting into them, so we’re getting out of them.
It’s now time to switch our focus to the next sector that’s out of favor with the masses — energy.
Investing Profits And Proceeds
Cash From HTGC Rebalancing
Our limit order hit last week for HTGC. We took part of the proceeds to run an experiment. YieldMax ETFs launched some funds that do short selling options.
TSLY is the YieldMax Tesla long ETF and CRSH is the YieldMax Tesla short ETF. I have a hunch that we’ll negate principle losses and pick up juicy diviez on both sides.
The only way to know is to test, so we put $538 into TSLY and $534 into CRSH. Stay tuned for updates.
Bond Fund Profits
I’d like to take the money from selling DSU and put it into another fund. Nothing I want is undervalued right now, so I’m moving $2,000 into Bulletshares (BSJU).
I took the remainder of DSU’s proceeds and picked up 13 more shares of CIVI. Remember I said energy is my the next out of favor sector.
We’re sill waiting for PDI to sell. When it does, I’ll let you know what I do with the profits.
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