With the start of the new month and investing money burning a hole in my pocket (no stock buys in June!), I bought 125 shares of Pimco Income Strategy Fund II (NYSE:PFN) at $11.00 per share. Why PFN? It seemed like a good choice, as I have bought it before (now 375 shares total). When searching for a new stock purchase, I went through my usual screening tools (CEFconnect.com, google.com/finance) and nothing really stood out. With so many stocks riding high right now, there just aren’t many bargains or semi-bargains to be had. So I went with a stock that I had liked enough to buy earlier, and so I bought more.
This new purchase raises PFN’s weight in my portfolio from 4.20% to 6.17%. That’s a little higher than I would like, but I know that future purchases of other stocks will bring the weight down. I would like to add new positions to my portfolio for greater diversification, going from my current 11 positions to about 20 with each having a weight of around 4-6%.
With this stock purchase, my projected annual dividend income is $5829.90 or, dividing by 12, a projected average monthly dividend income of $485.83. I’m certainly on track to meet and beat my 2014 goal of $500.00/month, which will be a huge milestone. After 6 years of dividend income investing, my dividend income tree is finally bearing some respectable fruit.