| ai cost aicost.orgx jtpr2e@outlook.com 23.158.72.51 | Interesting to see someone making active adjustments to their passive income strategy. I’ve been debating whether to rebalance my own dividend portfolio lately, especially with the current market volatility. Do you find that switching positions frequently affects your long-term yield? |
When I switch a position, hopefully the position has made a profit and the capital and the profit can be re-invested into the SNOWBALL. If the price rises the yield falls but unless it’s for portfolio diversification the SNOWBALL only re-invests in a higher yielder.
The recent purchase of AIRE was at a lower yield but still above the required 7% yield, why 7% ? Because by doing nothing your can double your income in ten years, better if you have longer. Also with AIRE there is a chance of corporate action, if not the SNOWBALL will keep re-investing the dividends, also AIRE has real assets. REIT’s are liable to lose money when interest rates rise, so the ‘safe’ yield is very important.
I sometimes buy just before the xd date because, you can either flip the share or hold and receive 5 dividends in just over one calendar year.
The SNOWBALL has 12k invested in XSTR, ready cash if the market falls, it only yields 4% but as the SNOWBALL is ahead of target for this year, I can afford the hit to income. If the market doesn’t fall I will have to re-invest in a higher yielder before xmas as I need the higher income to achieve next year’s target, which hasn’t been set yet.
Remember a profit is not a profit until the underlying share has been sold and the cash is sitting in your account.
GL
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