Well, almost the end of the month, and <decisions, decisions> jumbled the 2026 basket. Then, I decided on this workaround option - A primary basket, and a follow-along basket.
Primary basket:
- QCOM (17.52%)
- over 10%: FLNG, INSW, BWLP (new), TRMD,
- over 5% : YMAG, QYLD, TGT, GLNG,
- less than 5%: GPTY, RWTO (4.07%)
Follow-along basket:
BWLP (old), HRL, NAT (has exited. But, could make a return), HAFN, NVDY
It was a combination of factors that created this scenario.
- Not saying I won’t add to the existing positions in the primary basket. But, unlike 2025, when I tinkered with many of the names, less mess. This version allows me to place idea repurchases in the follow-along basket.
- With the strong sense that BWLP will be pruned during the year, I opted to separate the taxable ac BWLP shares into two flavors (one for each basket)
- New dividend ideas that I find appealing and get purchased will show up in the follow-along basket
- The four shipping ideas in the Primary basket have experienced some run-up in 2026 YTD. The four are still significant - 44% of the total (edit: Primary basket, not total). But overweight vs majority are two different things. If the situation shows up in the follow-along basket? Well, that basket is more transitionary or fluid.
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Have not completely forgotten this basket. The shipping ideas in the core basket make sure I am reminded about the dividend side. A couple of ideas reported their results this past week - FLNG and RWT (sponsor of RWTO).
FLNG closed out Q4 2025 reasonably well. But some risk added for 2026 - another vessel rolled off charter, and thus trades in the bouncier spot market. RWT results were quite positive, and that was a two-fer plus, well … until 02/13/26. Around the time of my initial interest in RWTO, I had nibbled on RWT (trading below book at the time). Shares bounced on this week’s results, and I booked my gains on RWT. Shares still trade below book value. But the discount has narrowed.
RWT awakened my thoughts on another mREIT idea I owned - UWMC. Major development occurred with that name in Dec 2025, that might offer opportunities in different avenues.
UWM Holdings agrees to acquire Two Harbors in $1.3B all-stock deal (UWMC:NYSE) | Seeking Alpha
There’s UWMC or TWO. And TWO has a baby bond and several preferred share options. Again, some choices with, essentially one name.
03/31 While the overall market has seen some challenges, the dividend ETF, DVY has ended on a positive note YTD. That said, for the quarter, my dividend basket has performed better than DVY. Not even including the dividend payouts in the stat. The heavy shipping weighting certainly helped. While QCOM saw a price retreat it is still the largest stake in the basket. But, its lead has dropped significantly. By %, the basket stacks as follows
QCOM 14.15%, FLNG 13.33%, INSW 13.08%
Over 10%: BWLP, TRMD
Over 5%: YMAG, GLNG, TGT, QYLD
Under 5%: GPTY, RWTO 3.75%
Yield for primary basket: about 34.5% of target
The follow-along basket is also holding up well in this market. Positive and probably at the DIVY level (excluding the payout). It is a smaller port. However, it has received infusion via additional stakes, including UWMC, RWTO & increasing FRO. NAT left the port after a nice gain. But continued powering higher. Yes, that was a possibility. RWT bounced, and I closed the position. RWT now trading lower. It works out that way sometimes.
06/13 End of the week and the FLNG dividend showed up. That moved the primary dividend basket over the 50% target mark. There are still a couple more accruals for this month, including the hefty payout from INSW.
The follow along basket has been growing. I have been selectively adding to DHT and FRO, and recently nibbled on RWT. The latter was in the basket at the start of the year, and then saw a major unexpected bounce, so I closed out the small stake. Now, I’m back in. The tanker names had seen a 10% - 30% pullback, but the prices seem to be reversing that action now. FRO might be among the extreme cases - rose to around $39, pulled back to $30-ish, and now back over $36/sh.