You are currently viewing My Latest Buys: EDF, CODI

This month I didn’t add any new positions to my dividend investing portfolio. Instead, I just bought more shares of stock positions I already hold.

I bought 75 more shares of Stone Harbor Emerging Markets Income Fund (NYSE:EDF) at $13.36 per share. With a dividend of 18 cents per share, that will add $13.50 every month to my monthly average projected dividend income. I know in my January post when I first bought shares of EDF I said that it was a high risk stock with an equally high yield dividend, and with that in mind I said that I would limit myself to 75 shares. So why have greater exposure to this risky stock? Two reasons made me willing to stomach the risk:

  • Yield. The cash I had available for investing was limited, and buying safer stock shares with a 9-10% dividend yield wasn’t quite enough to get me to my goal this month, but a 16.17% yield would do the job.
  • ROC Tolerance. I usually avoid stocks with ROC as part of their distribution. But in the case of EDF, the ROC is less than 20% of the total dividend, and that I can live with.

Will I buy more EDF in the future? I don’t know, but I do know better than to never say never.

Yet again, I went deeper on Compass Diversified Holdings (NYSE:CODI) picking up 60 shares at $15.77 per share. These new shares will only raise my projected average monthly dividend income by $7.20. That’s not much, but every dollar helps.

Thanks to these two stock buys’ dividends, my monthly average projected dividend income went up by $20.70, raising it to $708.45. This new level of dividend income means that I’ve reached and exceeded the $700.00 milestone. Yeah!! The steady march towards my 2016 goal of $750.00 continues.

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