IRA Portfolio Update for August 2015

By | September 28, 2015

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This post is a monthly update to track the performance of my IRA portfolio. The goal of this portfolio is to build wealth and generate income for retirement. The strategy is to buy companies with strong growth prospects and a high dividend yield. All the dividends are automatically re-invested in the stocks. Dividends help grow income by buying more shares of the company and having more shares of the company help generate more income.

Account Balance
Account Balance at start of month: $14,783.38
Account Balance at end of month: $13,368.86
Net Gain/Loss for month: $-1,406.50 (-9.5%)

IRA Portfolio Holdings:
ARCP – 747.61 shares
UHT – 100 shares

Dividend Payouts This Month:
LNCO $91.08
Total: $91.08


With oil prices so low and with no recovery in sight, I think the low oil prices will stay down for a much longer time than expected. Therefore I have decided to dump my oil holdings, even those they are at a huge loss. SDRL has already suspended their dividends and LNCO will suspend their dividends very soon. Since there are no dividend payments anymore, these “dead” stocks have to go. I think I can use the capital for a better stock. These two stocks have definitely given a a huge and painful lesson.

At the end of August, I made a move to sell all shares of LNCO and SDRL. With the little money left, I made a purchase for 100 shares of Universal Health Realty Income Trust (NYSE:UHT) at $47.50. I feel UHT’s dividend is safe and they seem to grow their dividends over the long term.

Also, on a brighter note, ARCP has some positive news. First, they have decided to renew their image by changing their company name from American Realty Capital Properties, Inc. to VEREIT, Inc. (VER). The name is the blend of the word, veritas, the Latin word meaning truth, and REIT. Secondly, and most importantly, they announced to reinstate their dividends. I feel this company is making the right moves to right a wrong ship. It will definitely take time for this company to right its ship and when they do, this stock should moved higher. I will continue to hold my VER shares and see this one play out for now.



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