Update on the 2014-2018 Short Medium Duration Income Portfolio

We have had a few questions on some older portfolios we maintain over at the DividendInvestor.com site.  We continue to maintain these models because they are important to us on a historical basis–proving of concept.

Here we review the 2014-2018 Short/Medium Duration Income Portfolio.  We will review the other portfolios on DividendInvestor.com in the next few days.

This model was set up to attain our typical 7% target and was originated in October 2014.  The idea was that there is no trading and it is composed of Term Preferreds and Baby Bonds with shorter dated maturities.  As you will see the model has been pretty much on target through October, 2017 and we should be near–just a bit short of target come October, 2018.  Of course as interest rates fell through the first couple of years we had redemptions that make a 7% target almost impossible without addition of some perpetual preferred which we are not using for this model.

The results have been 6.2%, 6.85% and 6.95%  for years ending 2015, 2016 an 2017.  For 2018 it looks like we should end around 6.5% as obviously the cash levels have been too high–much too high at around 18% cash.  Also the portfolio has the Gladstone Investment 6.75% Term Preferred (NASDAQ:GAINO) which will be called for redemption in a couple of days and thus our cash goes even higher.

The Portfolio can be seen here–bookmark the page if you want to watch it in the future as DividendInvestor.com has it pretty well buried.