3Lun·

High Yield Income Portfolio

Disclaimer: I know that this is not an optimal strategy (I also have a real portfolio). I also know that very few people are interested in this type of portfolio, so feel free to skip the post, you won't miss anything.

I started building this HY Income portfolio about three months ago.

The first position was $QYLE (-1,07 %) and now I've gradually added more stocks.

$QYLE (-1,07 %) is pretty much the classic when it comes to covered call ETFs and is in my opinion a must have for every portfolio of this type.

$ACRE (+0,21 %) I have great confidence in the management of Ares and the company is one of the few MREITs that I trust with my money. ACRE's portfolio is currently being restructured to be more defensive.

$GAIN (-0,91 %) Solid monthly dividend payer with some growth. The management seems pretty solid to me.

$OBDC (+0 %) Since the company has changed its strategy a bit and is now investing more in equity to increase NAV, it is my favorite BDC.

$STHE (+0,27 %) PIMCO specializes in high yield funds, in my opinion it is especially important in the high field area that you trust the management, which is why I chose this product.

$DIV (-1,1 %) I like the portfolio of royalties and it offers further opportunities for diversification.

$JEGP (+0,05 %) I really like the JP Morgan Covered Call ETF strategy, but will possibly exchange it for $JEPI as soon as it is tradable at TR.

$RITM (+0,09 %) I like the vision of the CEO and the dividend is double covered.

$SEDY (-0,26 %) was recommended to me by a friend.

QYLE is now being saved less, the focus is on the other stocks.

What are your favorite high yield stocks?

26 Comentarios

Dividendenopi👴@Dividendenopi

3Lun

I am invested in $QYLE with a full position, so far it has performed as expected, but I have to keep a close eye on it. The $SEDY is held in the ETF portfolio via a savings plan. Otherwise there are some nice stocks for me as a dividend freak, I've put 2 on my whatchlist. My friend this year is $HAUTO as an individual share. I bought it at a good price at the beginning of the year and it has lived up to expectations so far

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TaxesAreTheft@TaxesAreTheft

3Lun

@Dividendenopi I'm glad if there was something for you. QYLE should be a maximum of 25% of the portfolio in future, more like 20%.

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John@Transporter

3Lun

I also have a few high yielders in my portfolio. Starting with BAT and Imperial Brands, followed by Legal & General, Ares Capital, Owl Rock Capital and Hercules. Last but not least, the two tanker stocks Torm and Hafnia.

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TaxesAreTheft@TaxesAreTheft

3Lun

@Transporter Legal&General and hafnia are added to the watchlist

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Solitair@Solitair

3Lun

I also have the $QYLE as a mini position. Even up 5% YTD, although I've only been in it for caa. 3 months in it. After an initial investment of 1k, I always invest the round-up and the saveback from the Trade Republic card. However, if there is a strong setback on the Nasdaq100, it will take it almost in full but will hardly recover afterwards due to its construction. But just let it run as an experiment and see what happens.

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Lori202@Lola556611

3Lun

@Solitair however, it also recovered very well during the last "crash", so I assume that it will also be able to do so with something bigger...

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Dave@Trendisyourfriend

3Lun

Interesting topic, but I wouldn't choose BDCs that are gradually declining in price or dividends.

I chose my stocks based on their performance since 2007, especially stocks that have outperformed the s&p500 in TR since then.

So far, $ARCC $HTGC $MAIN has turned out to be extremely solid and crisis-resistant, and I added $JEGP when it became tradable.

Otherwise, I can recommend Ruben Wunderlich's channel on the subject on YouTube, very good impressions on this, perceived, unpopular topic.

However, my high-yield share is "only" ~30%, 70% is made up of basic world ETFs $FGEQ $TDIV and some us $WTEF, I've heard that leverage and bonds are currently in vogue 😄

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TaxesAreTheft@TaxesAreTheft

3Lun

@Trendisyourfriend as far as I know the NAV grows with $GAIN and $OBDC, with BDCs you should not pay too much attention to the price, NAV and none accrual rate are much more important. The price often does not reflect a change of strategy well over a long timeframe, especially after a "crash".
When it comes to high yield, I prefer to rely on the Americans, who in my opinion have much more experience in providing opinions or incentives.

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Victor@DividendenVictor

3Lun

I like this strategy. What is you total value of your portfolio?

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TaxesAreTheft@TaxesAreTheft

3Lun

@DividendenVictor this one is at ~1000€ right now, the first goal is to achieve monthly dividends of 50€ until the end of next year. Like I said it’s not my main portfolio and I definitely don’t want to have too much capital in here. This is primarily just a hobby.

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Victor@DividendenVictor

3Lun

@DividendenVictor and how is your experience with the covered call ETF from Global X?

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TaxesAreTheft@TaxesAreTheft

3Lun

@DividendenVictor I like it very much I view it as a 11% savings account atm, but I definitely want it to be like 20-25% of my portfolio

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Epi@Epi

3Lun

Something different! 👍
What is your CAGR including distributions?

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TaxesAreTheft@TaxesAreTheft

3Lun

@Epi difficult to say due to all the capital inflows and the short duration. The yield is around 12%.

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Peter@Beeferking76

3Lun

Certainly not the best choice in the 20s, but in the 50s the direction of income investing was exactly to my taste! My income portfolio includes $SPYI $QQQI $IWMI $PFFA $PBDC $XEI $DEMD $STW $BRLA $BRWM
GLTA

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TaxesAreTheft@TaxesAreTheft

3Lun

@Beeferking76 Fortunately, I have my Growth Portfolio. Which chunk do you use?

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Peter@Beeferking76

3Lun

@TaxesAreTheft IBKR, SCBLE,Swissquote

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S.A.U.@SAUgut77

3Lun

What do you think of $PFLT in this regard?

The figures have also been continuously high yield for 13-14 years.

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TaxesAreTheft@TaxesAreTheft

3Lun

@SAUgut77 $GAIN seems to be a better investment for picking, but there's nothing against $PFLT per se.
That's why I decided against it for now. I can recommend videos from Dividend Bull if you need an additional opinion.

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Nils Novak@nino99

3Lun

$QYLE I also have it in my cash flow portfolio 💰🤩

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Artur@aser0815

3Lun

Luckily JEPQ is coming soon QYLE I wouldn't want. BDCs are cool.

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TaxesAreTheft@TaxesAreTheft

3Lun

@aser0815 then also consider swapping

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Sidespin1976@Sidespin1976

As I would like to open a small position … I really can’t choose between $ARCC and $OBDC …
What would you choose for high yield and decent price stability ?

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TaxesAreTheft@TaxesAreTheft

@Sidespin1976 I think $OBDC is trading at a fairer valuation. $ARCC is always trading at a slight premium because of its track record. $OBDC distribution is more generous, while $ARCC is more conservative almost a little too conservative. If you really can’t decide I would go with $BXSL

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Sidespin1976@Sidespin1976

@TaxesAreTheft thanks, comparing all the 3 looks like $ARCC have more “dividend sustainability “ or I’m wrong ?

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TaxesAreTheft@TaxesAreTheft

@Sidespin1976 sustainability not really but its covered by a greater amount.

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