Note 1). The current average yield for the IFI is just over 13.25% and just as there are bargains to be had in the Growth World so to are there bargains to be had in Income producers. Since we do not need the production from the IFI just now - all income generated is rolled over into the portfolio - which produces the flywheel income effect.
Note 2) Whatever you do…do not build an IFI port of this nature yourself. As may experts will tell you, investing in higher than the norm (2-4% Yield paying companies is fraught with incredible danger with imminent collapse and bankruptcy a split second away. Don’t Do It!! Danger…Danger Will Robinson.
Note 3). The family Income Port has been in existence for about 12 years or so and in its present format for 6-7 years now. In all that time the IFI format has been through ups and downs and all arounds…but is still throwing off ever higher significant income. It will probably all go south any moment now…any moment now.
Here is what happened in the Income Flywheel Port this Week:
A Flood of Monthly Dividends/Tariffs Rolled In:
What could be dripped…was dripped; whereby, new shares will begin producing higher Income beginning the end of May. What could not be dripped was used to add to existing income producing portfolio members on a most opportunistic basis.
Next up: Reload as noted above, enjoy life, and wait for the next Dividend/Tariff deluge to come in.
Note 3) There are some Dividend/Tariff payers that come in during the middle of the month - these are mostly, but not wholly, companies that pay on a quarterly basis.
All the Best,
Big Dumb Hick Investing
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Hey C, Julia Child once said “Give a man some clams and he’ll be happy for a day, teach him to clam and he’ll stink up your house for a lifetime”. What are some bargains that you’re finding today among the income producers – that you’re willing to share?
Thx, Ears
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Hi Ears:
Hope you and Mrs Ears are doing well.
Abraham Lincoln was asked once what he would do about two of his cabinet members who had widely differing views on how to handle policy. One urged aggressive policy while the other always called for softer policies. The two men argued vociferously at practically every cabinet meeting with tempers and voices steadily rising.
Lincoln chuckled about the question and then told the story about the two dogs.
It seems like two neighbors both had dogs separated by a wire fence along the property line. Both dogs would spend the day running up and down the fence line barking, snarling and growling at each other. There was hole in a section of the fence that either dog could have easily gotten through and one day, as it happened, both dogs arrived at the hole in the fence at the same time. They stopped in their tracks, neither barking, snarling or growling and just stood there just staring at each other through the hole in the fence. After a moment or two they then resumed running up and down the fence line barking and growling at each other.
Now an astute individual might ask what in the world that might have to do with me being asked to post any income producing companies that I might think are bargains. We both know that as soon as I did that - the more conventional income investors would smell chum in the water. And then I’d have to run up and down the debate line - which, I have no intention of doing.
All of that aside, always happy to see you and wishing you and Mrs Ears a fantastic summer.
All the Best,
Big Dumb Hick Investing
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Well, I’ve heard Lincoln’s story about the dogs and the ox half over the fence, which I think is the same point. You’re better off keeping close to the vest. Best wishes to you and the Mrs also for a wonderful summer.
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I owned them back in the day, don’t own them now, can’t say if they’re bargains, this is not a recommendation, but I love this organization CHS Inc and its clams… er, preferreds – CHSCP, CHSCO, CHSCN, CHSCM,and CHSCL. They’re all callable which is not a plus. Not really high yield either, although yieldier than most with the same credit quality. No dogs allowed. - Ears