The closed end funds CSQ and CHW, both owned, raised their monthly dividends. CSQ's monthly dividend was increased to 7 cents per share from 5.25 cents. CHW raised its monthly dividend to 6.2 cents per share from 5 cents. Calamos Closed-End Funds It remains to be seen whether the foregoing increases will be supported by a return of capital. My last purchase of CSQ was last December. Added 50 of the Balanced CEF CSQ at $8.28 I am reinvesting the dividend. I also recently made a small purchase of CHW. Bought 100 of CHW at $7.18
Calamos Strategic Total Return Fund (CSQ) closed at $9.37 yesterday. Calamos Global Dynamic Income Fund (CHW) closed at $8.24.
1. Added 50 NYB at $12.79 Last Wednesday (REGIONAL BANK BASKET STRATEGY) (see Disclaimer): Prior to this purchase, I owned 100 shares of New York Community Bancorp, bought in a taxable account. Those purchases were made in October 2009, and my total average cost per share is $11.31. Bought 50 NYB at $11.3 Added 50 NYB at $11
|2010 NYB 50 Shares Realized Gain= +$331.03|
Sold NYB in IRA at $17.51 (JULY 2010 Post). I would have been better off selling the remaining 100 shares at that price. I had not previously included the foregoing snapshot and gain in my tally of realized gains, which I corrected last week. I noticed that 200 shares had been included in my 2009 Gateway Post, Regional Bank Stocks, and conducted a search on what happened to the other 100 shares since the OG has trouble remembering those kind of details these days.
The shares went ex dividend last Friday, 2/3/2012. New York Community Bancorp The dividend yield at a total cost of $12.79 is approximately 7.82%. The current quarterly dividend is 25 cents per share. While I have no reason to expect a dividend cut, no one should be surprised by one. GAAP net income is trending slightly above 25 cents. NYB reported 4th quarter net income of 27 cents per share.
Morningstar has a 4 star rating on NYB. I reviewed the most recent report, which was informative. That report is available only to subscribers. I also reviewed the Credit Suisse report available to Charles Schwab customers. CS has an outperform rating and a $17 price target. I view that target to be too high with a one year time frame even though I did sell 50 shares in 2010 at a higher price.
NYB is discussed in a number of articles found at Seeking Alpha.
The current consensus E.P.S. estimate is for $1.06 in 2012 and $1.12 in 2013. That low expectation E.P.S. growth is a problem. NYB Analyst Estimates
Profile page at Reuters
Key Developments page at Reuters
New York Community Bancorp fell 22 cents in trading yesterday to close at $12.48.
2. Sold 1 USG 6.3% Senior Bond Maturing 11/15/2016 at 89 Last Thursday (Junk Bond Ladder Strategy)(see Disclaimer): I have now bought and sold this bond twice. The last purchase was made last August at $80.98. Last March I sold this same bond at 94.25, having bought the bond at 89 a few weeks earlier. The latest profit on the bond came to just $48.23.
After I sold this bond, the company reported a worse than expected loss for the 4th quarter. SEC Filed Press Release Reuters I am not likely to buy this one back anywhere near its current price.
3. Sold 30 ZINC at $11.59 Last Friday (Lottery Ticket Basket Strategy)(see Disclaimer): The Lottery Ticket strategy has been unusually successful over the past few weeks. One of the recent successes is the 30 shares of ZINC purchased at $7.9 last October. The percentage gain was excellent, so the RB harvested it without giving it too much thought.
|2012 ZINC 30 Shares +$94.79|
Horsehead Holding closed at $11.4 yesterday.
4. Bought 100 of KFN at $9 in Regular IRA-Last Friday (see Disclaimer): I noticed that Cramer was recommending this company which is not a reason to buy it. His recommendation did cause me to look at the company. The dividend yield at a $9 total cost is approximately 8%. KKR Financial Holdings
Thornburg Investment Management filed last Friday a SEC Schedule 13G claiming a 8.85% ownership stake in KKR Financial Holdings.
KKR Financial Holdings LLC website
SEC Form 10-Q for Q/E 9/30/11 (E.P.S. of 18 cents up from 12 cents)
Link to FAQs about this LLC: FAQs
This company will send out K-1s which is just another headache when and if held in a taxable account. K-1 & Tax Information
KKR Financial Holdings LLC closed at $9.1 yesterday. After the market close yesterday, KFN reported its 4th quarter earnings. Fourth Quarter and Full Year 2011 Net income for the quarter was reported at $77 million or 43 cents per share. Book value per share increased to $9.41 from $9.14 as of 9/30/11. The Board declared a 18 cents quarterly dividend and a special dividend of 8 cents per share.
5. Sold 100 HTGC at $10.85 Last Friday (See Disclaimer): I just bought this Business Development Corporation (BDC) @ $9.7 (1/26/2012 Post). Last Friday, the shares popped over 10% based on an upgrade to buy at Stifel Nicolaus (PT $11.5).
I would be content with any gain on the shares of a BDC after collecting a few dividends. The only reason for me to invest in any of them is for the income generation. A 10%+ gain in the shares is worth over 1 year of dividends, even for this high yielding security, and I realized that amount in a few days. That percentage gain is too much, too quick, for the OG to ignore for a BDC.
Hercules Technology Growth Capital fell 32 cents in trading yesterday to close at $10.58.