I own a few stocks and a few mutual funds in my various accounts that the point is to see how well they do. I always keep a portion of my portfiolio set aside for fun. I have to mess with it to keep me owning more reasonable stocks and bonds in my main accounts.
That being said, I am also experimeting with REITs and Municipal Bond Funds for diversity. Now I should make it clear that I have owned the two REITs for a number of years now, and they have treated me well. The earnings have been quite good.
I started buying stocks with my heart, and many of them were high risk environment companies that I had more belief in than knowledge about. There is nothing wrong with voting with my dollars, but there is no excuse for not investing wisely. That lesson cost me a lot of money when I was young, and a lot more now that I am middle age. One company, one that made a great micro-inverter for solar panels did have a product that worked. They did well, and merged with another company. It’s a growth stock, and it’s now just something sitting in my portfolio. No need to sell in my mind. In the case of another, I sold out enough to cover my initial investment, and the remaining shares were just on house money. They are making an alternative way to use passive solar power to crack grey/non-potable water into O2 and H2 for hydrogen use. Their idea is to create hydrogen for cars, energy storage, etc. It’ll be great if it works, but it’s now a fraction of a penny. I sold at $0.25 a share.
Those days are behind me. I suck at picking stocks. Let me say that again, I suck at picking stocks. All my investments that have done well are the conservative index funds and the like. So with that in mind, I am now focusing on more sensable investments and the bit of fun is now limited to making money.
I wanted to invest in municipal bonds. I found the process to be difficult and a bit of a hassle. Then I found a mutual fund that invests in many of them. I do not know how to pick a good state or town that is a good risk. I also found that you have to find a proper broker to find them, and again, I was unclear how to do that correctly. So then I got lazy and started looking for mutual funds that are easy to buy sell and trade but also have the tax advantage. The one I found and bought is ticker MYD and is called BLACKROCK MUNIYIELD FD. I did my resarch and I think this is the right fit for my risk tolerance and goals. I can’t say that’s true for you, but I think the tax benefit is there and that will raise my effective yield.
I have 3 REITs. The mutual fund REIT is the new one, and the other two I have owned for several years. They have yielded well and I have every intention of keeping them for a while. The mutual fund is a way to lower the risk a bit for me, while keeping the exposure to property and the overall yield. Only the mutual fund one is the one that makes sense to me. The other two are more about my love of higher risk.
Beyond that, I have a few stocks that I think offer a good yield and have a good business model. Again, I suck at picking stocks, but I own them with hope that the dividend yield will pay out. I also own a S&P500 index fund, and that is the only one that I add to with each paycheck. That should tell you something.
Here is my chart:
|Symbol||Description||Yield||Dividend per Share|
|SUM / AVG||7.12%|
|CIM||CHIMERA INVT CORP||10.59%||0.5|
|FXAIX||FIDELITY 500 INDEX FUND||0.92%|
|IRM||IRON MOUNTAIN INC||7.64%||0.611|
|MYD||BLACKROCK MUNIYIELD FD||4.63%||0.056|
|NYMT||NEW YORK MTG||12.97%||0.2|
|SUN||SUNOCO LP COM||10.31%||0.8255|
|VNQ||VANGUARD REAL ESTATE||3.93%||0.8841|
My investments are such that my weighted average is actually 7.37%. I’ll be curous to see how that changes over time. I will be tracking how well these stocks and funds are doing in terms of paying one month of expenses with a year’s worth of dividends, I’m starting this today, so there is nothing to show for this in spite of the fact that I have owned most of them for a few months already, and in the case off the REITs with the 10+% dividend yeield, years. I waited until I had made all the moves to get this setup, so this is the beginning.
I’d love to hear your thoughts on any part of this.