Certainly there has been more than enough activity reported in the economy to keep one vigilant with their holdings, but for us personally we only bought or sold a couple issues.
We purchased a “sock drawer” holding in the new Gabelli Dividend & Income Trust (NYSE:GDV)–of course we paid a little more than we wanted at $25.10, but our hope for a purchase below $25 was simply a dream. This issue is a 5.375% cumulative, perpetual so we may be holding it for a lifetime anyway–what’s a dime or quarter–nothing at all. The new issue is trading on the OTC Grey market right now under ticker GDVVP at $25.23–lots of folks want the safety of the strong investment grade.
We sold a full position yesterday in the WR Berkley WRB-D 5.75% baby bond which I had bought just for a dividend capture. “Captures” are more difficult now and although we are happy with the 1% we gained we were spoiled by the 1.5% or 2% I had been able to nail down earlier in the year. This was the 2nd time this year we owned this issue and the Berkley baby bonds seem to be good for a 1% monthly gain on a capture. Additionally they are investment grade so if it doesn’t work out a person at least holds a quality issue.
The jobs number this morning was kind of weak at 75,000 jobs added and the 10 year treasury is off 5 basis points to 2.07%. The stock market is doing a bit of partying and up over 1%. The “put” that Fed Chair put under the market is disturbing–I don’t like this never ending yakking from the Fed. Markets need to move based on market conditions–not the suggestion of never ending easy money. Eventually this will end–and it will end badly, but that could be years away–who knows.
Definitions for new readers.
“Sock Drawer”–where we put our quality long term holdings.
“Capture” or “Dividend Capture” — shares bought prior the the ex-dividend date with the intention to hold for a short period of time (for me about 30 days) for the sole purpose of receiving the dividend/interest.