Week in review May 4th to May 8th
Weekly Recap:
Another up and down week in the market that saw my Robinhood portfolio following suit. A strong trading day on Friday had my portfolio update $58.66 or 2.29% for the week.
I have also been taking a deep look at my finances over the last week and while I would love to continue trying to dump as much money as possible into my portfolio, I have realized that while investing is a good thing it is kind of a wash with gain if I continue to carry my current debt load. So I have begun working on a plan to accelerate paying off all my debt minus my mortgage as fast as possible. So with that said I will be sticking to only depositing $100 a month into this account and diverting every thing possible to paying off my debt. Why pay a credit card company 14-20% in interest while only getting back maybe 4% from investments. Once the debt is paid off them I can really start growing my investment accounts at a much more rapid pace.
Portfolio Status:
So what has changed with the portfolio this week. I sold my entire position in Yamana Gold at a nice profit. I have held positions in Yamana Gold since I started my Robinhood portfolio and it had been steadily trending in a positive direction, but with a very low dividend yield. The low dividend yield was the main reason that I decide to sell my position in the company and reinvest that money in to a company that was paying out a better dividend to get more bang for my buck. I also sold my shares in United Microelectronics for a similar reason, with a dividend that only pay out on an annual basis. So now lets take a look at what was added to the portfolio to replace these positions.Purchases:
Main Street Capital(MAIN):
The sale of Yamana Gold led to the purchase of 20 shares of Main Street Capital at $23.75 a share. Main Street Capital is a fund that focuses on providing customized debt and equity financing solutions to lower middle market companies. One of the main things that drew me to Main Street was the fact they pay a monthly dividend that currently works out to around $2.46 per share annually. There dividend has grown for the last 9 years, but is currently showing a payout ratio of 114.95% most like due to a drop in revenue caused by the COVID-19 pandemic. I am hoping to see that pay out ratio drop back to a more sustainable level as the economy bounces back.
Oxford Lane Capital(OXLC):
Oxford Lane Capital is a position that I added to in my portfolio. I already owned 24 shares and picked up another 24 shares. Oxford Lane is a closed-end management investment company that maximizes return by investing in debt and equity tranches of collateralized loan obligations. Oxford is another stock that pays a month dividend which is what drew me to the stock to start with and as it was trending downward this week I decided to increase my positions in the company and lower my overall cost basis. Even after buying more positions and as the market turned positive overall for the week this is a stock that did not follow that trend and continued to fall in price. I am hoping for a rebound in the stock price, but if it continues to maintain the current price or drops further I may be forced to make the tough decision to sell at a loss.
AT&T(T):
AT&T is a stock that I already had 7 shares in and increase my position by 15 shares this week. I saw AT&T's price drop below what I had originally paid for the first 5 positions so I was able to lower my cost basis by adding more shared to my position. AT&T has a long history and has a very good dividend history and is a stock I will continue to increase my positions in going forward.
Dividends:
This week I received no dividend payout, but I have a couple of dividend payouts pending for the month of May. In May I am expecting dividend payouts somewhere around $10 for the month. While it's not much it is a start and it is money I get for doing nothing more than owning stock.
Thanks for reading and be sure to like, follow, share and comment if you want to follow along on my journey. If you haven't started investing and are looking to get started investing for your future be sure to check out the following brokerages and take advantage of some free stocks to get you started.
Robinhood offers commission free trades and will give you a free stock valued at between $2 and $250 just for signing up. You can also earn more free stocks when you refer other users. Robinhood offers basic research capabilities and is working to bring fractional share purchasing to users in the near future. This is a really good application for beginners with it's simple UI and ease of use.
WeBull is another brokerage that offers commission free trading. WeBull also offers new accounts a free stock valued at between $2.50 and $250 dollars. They also will give you a second free stock when you make a qualifying initial deposit of $100 the second free stock will have a value between $12 and $1400.
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