My current portfolio is yielding around 5% annually in dividends. So if, at the time of this writing, I’m earning and reinvesting around $97.77 a month, I’m getting back $0.41 cents per month in dividends. That means that if I did absolutely nothing for 6 months, barring a dividend cut to one of the stocks in my portfolio, I would start earning over $100 a month in dividends.
So why the title, The Ripping Off of the Bandage? Because Prospect Capital (PSEC) is garbage. I have to cut my losses. Luckily, the losses are not so great that I feel the impact. I have stopped reinvesting dividends into this company. And as soon as I surpass around $105 dollars in monthly dividend income I will be selling it completely. Next on the chopping block are NVDY and potentially GOF. NVDY was a fun experiment and I got lucky, but the writing is on the wall.
With current interest rates as well as a looming trade war and tariff’s on the horizon, I want a strong portfolio that keeps producing. The only way to do that is to fill it with strong, diversified companies.
And though yield is good for calculations, I am less and less concerned with yield and more concerned with actual monthly income supported by solid investments.