Friday, June 15, 2012

Added 50 of the ETF SDIV at $20.43-Roth IRA/Sold 52 FNLC at $15.55/Regional Bank Basket Table

I noticed yesterday that the stock symbol for Santander had changed from STD to SAN. I own the floating rate equity preferred issued by Santander Finance, whose symbol changed to SANPRB from STDPRB. 

The Trust Certificate, Merrill Lynch Depositor Inc. 6.0518% Index Plus Trust Series 2003-1 (IPB), is ex interest today for its semi-annual distribution. This TC is unusual in that the underlying securities consist of 15 corporate bonds and U.S. treasury strips. Prospectus I have owned 150 shares for over two years in the ROTH IRA. Bought 100 of the TC IPB at $16.99 August 2009Sold 50 IPB at $20.28 February 2010Bought 50 of the TC IPB at $21.3Bought: 50 of the TC IPB at 23.11 in IRA. In retrospect, it was a mistake to sell 50 at $20.28. I have no interest in this security at its current price.

Consumer Price Inflation fell .3% in May on a seasonally adjusted basis. Consumer Price Index Summary Over the past 12 months, CPI has increased 1.7% before seasonal adjustment. Core CPI rose .2%. Gasoline prices fell 6.8% in May which led to a decline in the energy index.

Moody's cut the bond rating of R.R. Donnelley to Ba2 from Ba1 and kept the outlook at negative. I own 2 RRD bonds. Bought Back R.R. Donnelley 8.875% Senior Bond Maturing in 2021 at $96.95Bought 1 R.R. Donnelley 6.125% Senior Bond Maturing 1/15/2017 at 89

1. Averaged Down By Adding 50 SDIV at $20.43 Last Wednesday-ROTH IRA (see Disclaimer): SDIV is the symbol for the recently launched Global X SuperDividend ETF. I bought 50 shares at $22.33 last February. This ETF pays variable monthly dividends.  Distributions So far, I received $27.13 in dividends from the 50 shares purchased in February. By splitting the order into small lots, I was able to lower my average cost per share, compared to buying 100 shares at the $22.33 price.  

This fund has an eclectic selection of high yielding stocks. The management fee is .58%.

Global X SuperDividend ETF (SDIV) closed at $20.61 yesterday, up 23 cents for the day.

2. Sold 52+ FNLC at $15.55 Yesterday (Regional Bank Basket Strategy)(see Disclaimer): I have not been favorably impressed with this small bank's earnings reports, as noted in several prior posts. {Item # 4 FNLC-April 2012 Post; Item # 2 FNLC January 2012 Post; Item # 6 FNLC October 2011 Post}

I did like its quarterly dividend of $.195 per share.

I decided to harvest the unrealized gain of $123.88, given the lackluster earnings reports. I bought those shares at $12.79 (9/2011), so the total return was good. The dividend yield at a total cost of $12.79 is approximately 6%.

2012 FNLC 52 Shares +$123.88
The fractional shares (.72) will be liquidated by the broker at 15.55 on the settlement date.

First Bancorp closed at $15.9 in trading yesterday.

3. Regional Bank Basket Table (Regional Bank Basket Strategy): I last posted this table in May: Regional Bank Table as of 5/8/12. I have added slightly to this basket strategy since that time. The following table does not reflect shares purchased with reinvested dividends. Over the expected life of this strategy, I would anticipate that dividends will provide close to half of the total return. To date, as shown in snapshots REGIONAL BANK BASKET STRATEGY GATEWAY POST, I have net realized gains of $9,156.51, originating from stocks purchased under this strategy since its inception in 2009. The largest realized loss was in PBIB shares.

I am currently reinvesting the dividends paid by BDGE, FBSS, FMER, FNFG, HCBK, TRST and UBCP.

The dividend yields shown in this table would be at yesterday's market price rather than at my cost.

My largest unrealized loss is in FNFG shares, almost entirely due to a boneheaded decision made by the Board and management after my purchases. First Niagara: Just Another Incompetent Bank Board of DirectorsFirst Niagara Dividend Slash.

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