Monthly Update May 2015

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The last months were rather busy for me, but now I’ve found some time to complete my monthly reports.
May was a quiet month. I tried to zero my expenses to counter my high expenditures from March and April. My tax prepayment increased and I’ll subtract nearly $1050 from every salary income to reflect this. Every three month I will pay the tax in advance and this won’t be listed as an “expense” any more. To speed up my time involved in the income/expense part, I’ll only list my final expense number and highlight only extraordinary expenditures.

(assuming €:$ 1:1.1 currency exchange rate )

Income

Day Job Paycheck $3435
Dividend Income $173

Total Income $3608

Expense

Total Expense $1171

Saved Net Income 68%

I contributed nothing to my broker account.

Again I received the biggest dividends from my BDC holdings (62% of $173) and I will most definitely exit most positions. In the long run, I don’t want to own more than 3 BDCs in my portfolio (with maximum of 10% of my portfolio cost value). Unfortunately my biggest BDC holding PSEC keeps going down and I will try to exit this position with averaging down first. In hindsight this wasn’t the right move and I should’ve exited this position instantly.
MAIN will be a core holding and I want to complement this BDC by another internal managed quality BDC – my choice is Hercules Technology Growth Capital (HTGC).

Additional I added the international operating REIT W.P. Carey to my portfolio as it complements my ARCP holding (both are Triple Net Reits) but WPC adds more international exposure to my REIT portfolio. I’d love to add the Realty Company but I can’t justify the much higher Price/FFO ratio.

 

Purchases

Stock Units Price Date Cost
PSEC 200 $7.60 2015-05-06 $1520
HTGC 200 $13.28 2015-05-07 $2656
WPC 32 $63.29 2015-05-19 $2025

 

Sells


 

No sells this time, but I’m looking for a good exit from PSEC.

 

Dividends

PSEC $42.48
MAIN $12.43
HCP $24.01
TIS $26.78
OHI $7.65
AAPL $6.63
HTGC $52.70
Total $173.04

I earned $173.04 in dividends this month! As already written 62% is coming from highly leveraged financial companies which is a bigger risk because of the threat of cutting dividends (as seen with FSC and PSEC). MAIN should be excluded because they continue to increase NAV and dividends. On the other side, 38% of my dividends are coming from an increasing count of quality companies.

 

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