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Jul 03 2019

My Latest Trades: VFL, DMF (sells); PNNT, HQL (buys)

Photo of stock ticker board
June was certainly an unusually busy month for trades, with two sells and two buys. With all the dividend cuts my portfolio has suffered this year, I decided to sell off some low yielding (but tax-free) stock and buy stocks with higher yields. Plus I needed to tap my portfolio for some cash to cover some July expenses. I HATE selling assets to raise cash to cover expenses, but sometimes it becomes necessary to do so.

First, I sold off all 300 shares of VFL at $13.25 per share, which was used to buy 300 shares of PNNT at $6.5445 per share and 65 shares of HQL at $15.8692 per share. My timing of the stock buys wasn’t too bad. My PNNT buy at $6.445 was well below its approximate 52-week average of $7.025, and my buy of HQL’s at $15.8692 was below its 52-week average of $17.315.

Later in the month, I sold 85 shares of DMF at 8.60 per share. Considering how its 52-week high is $8.61, my timing was very good.

Overall, this series of sells and buys worked out well. It gave my projected monthly dividend income an approximately $8 boost and I got some additional cash to help cover July expenses.

Image Credit: AhmadArdity (pixabay.com)

 

2 comments

  1. Reinis

    Hi DQ!

    Great blog, a lot of inspiration.

    Have you thought about selling puts or calls?
    Like I just sold DEC 20 put on PNNT with strike price $7.5 but got premium $1.4 – yes, this is ITM (In the money), but if I will get assigned, my break-even price is $6.1, still below current $6.36 stock price

    Well, obviously PNNT is not the best example of options trading, just my 2 cents

    1. Dividend Quest

      Thanks for the kind words Reinis. Options trading has always seemed like a higher order of complexity that I have never really grasped it. If the “buy low/sell high” technique is akin to checkers, then options trading is like 3D chess in comparative complexity. Dividend investing is only slightly more complex than “buy low/sell high” trading, and I’ve been comfortable with that. But perhaps I should give options trading a second look. It can’t hurt to learn something new, right?

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