Rocky’s Weekly Stock Picks
Over the last week we received several semi-annual reports from several ETFs that we’re invested in. We noticed something we had overlooked before - we noticed that in several cases the funds were investing into many of the same stocks we are!
This tells us we’ve been picking correctly. Or just copying ETFs.
No, it’s the first one. In hindsight we probably could have saved a lot of time and effort by doing the latter. Would this, however, be ideal?
Well, on the one hand, you’ve got the knowledge of winning stock picks. These large funds that take your money and invest on their own behalf (later charging you an expense fee and distributing practically nothing every quarter) don’t make money if your invested money doesn’t make money.
You do have the benefit of a more secure and stable nominal price, as the portfolios are professionally managed and balanced on a regular (sometimes daily) basis.
The only real downside is that your quarterly distributions are most likely going to be less through a fund than through buying your own shares outright.
ARR - $5.17/share, ex-div 7/14, $0.08/share per month. The Global X Superdividend ETF holds this REIT.
PBR.A - $12.13/share, ex-div 6/13, dividends are…pretty nuts. They seem to distribute two or three times per quarter, in varying amounts. This Brasilian ADR is held inside Global X Superdividend.
SBLK - $17.21/share, ex-div 6/6, dividends average around 8% return over the year. Realistically, this has been a pretty good one for dividend capture strategies and could have netted double digits.
We have been on the fence about dumping our shares in this Greecian security, because well…because Greece. Since it’s inside the Global X Superdividend Fund, however, maybe we’ll hang on just a bit longer.
The price history isn’t bad, honestly. We’re just wary of Greek stocks because, well, because Greece.SDIV - $22.28/share, ex-div 7/6. TD Ameritrade is showing $2.99 yield over the year, for about 13.42%.
We think this may be slightly exaggerated, but not by much. This ETF holds a bunch of high-yield dividend stocks.FTCH - $5.71/share, options trade weekly. Unusual $8 call options activity near the ask price.
Honestly, full disclosure, we saw a commercial for Farfetch and it reminded us that we need to keep averaging down $35/share cost-average basis.
We’ve also been selling Puts near-the-money. Honestly it’s kind of a no-lose situation at this point.
If you’re just now getting into FTCH, set a sell order in the double digits with an expectation to sell in the next 18 months.
