The intent of this area is to include items that all of us consider “sock drawer” holdings.
My definition of “sock drawer” is those issues I own that I consider extremely safe and don’t have to be watched to closely. Normally they would have more modest coupons, but you can sleep well at night (relative to safety)–you know the income stream is extremely safe, althought the share price may move around quite a bit.
Others may have their own definition–in fact I know they do–that is fine
For instance, I have held the Tricontinental 5.00% preferred (TY- or TY-P) issue for years and years. Tricontinental is a closed end fund managed by Columbia Threadneedle. TY was formed in 1929 and this small amount of preferred stock is the only leverage the fund uses–2.2% leverage. Because it is a CEF they must maintain a 200% asset coverage on the preferred stock–the last time I calculated the coverage it was over 4000%. This is a $50/share issue and last traded at $54.66. The issue is callable anytime at $55/share. Shares were issued in 1963.
I have held WVVIP for approaching a decade and consider it to be sock drawer material. Yield is approaching 7% now but only pays once annually. I bought direct from the company, and they will try to periodically entice you with discounts on wine in exchange for not taking a cash distribution. Which is fine and creative if you ask me. Well run company with hard assets and good wine. I like that it is uncorrelated with most of my other investments.
Hi Guys: newbie here. Is the sock drawer page no longer published? I get page not found when I navigate here under the education menu —
https://innovativeincomeinvestor.com/sock-and-underwear-drawers/#comment-9036
thanks…
Harrold,
Try clipping on “older comments”. There haven’t been any recent comments in this section.
No, not the disussion channel. Try the URL I pasted. It’s a broken link.
I think I had read somewhere on the site that comments have a defined lifetime. The one that you are after might be gone