We will write a short article each Sunday outlining, very briefly, buys and sells we made within our personal accounts during the previous week.
We do this just to keep things ‘real’. Many times we exchange ideas etc in the comments of the website, but we seldom make quick decisions on moves–although there are exceptions. Additionally we don’t really want anyone following our lead as we have no ‘secret sauce’ for moves we make–this is more in reference to newer income investors.
Last week, as would be normal for us in any given week, we made just a few changes.
–we sold the position we had in Invesco High Income 2023 Target Term Trust (IHIT).
–we bought a position in Invesco High Income 2024 Target Term Trust (IHTA).
This move follows our closer inspection of the difference in these 2 trusts last week which can be seen here. This doesn’t mean IHTA is ‘better’, just that the yield to maturity is higher–but you incur slightly more risk with IHTA since the overall quality is slightly lower and there is an extra yield to maturity.
–we bought a position in the new perpetual preferred stock from utility NiSource (NI). The issue carries a 6.50% coupon and floats in a little over 5 years. While NiSource has had issues with the natural gas explosion in Massachucetts ealier in the year we believe this will pass–as most these issues do over time. Further info on the new issue can be found here.
Lastly in what was one of the quickest ‘dividend captures’ on record–at least for us — we bought 400 shares of iStar Financial 7.50% perpetual preferred (STAR-I) for $21.85 on Thursday and sold it on Friday for $22.10. Thus we sold for a 25 cent capital gain and captured a 47 cent dividend as well as it went ex-dividend Friday. As more seasoned folks know it is extremely rare to be able to lock down a 72 cent gain in 24 hours with a dividend capture–30 cents yes–but 72 is very rare. We count this in the ‘even a blind squirrel finds a nut’ category and newbies should understand this was pure luck.