IRA Portfolio Update for Feb 2015

By | March 18, 2015

Image credit: TaxCredits

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: $19,878.27
Account Balance at end of month: $21,730.98
Net Gain/Loss for month: $1,852.71 (9.3%)

 

IRA Portfolio Holdings:

ARCP – 747.61 shares
LNCO – 831.38 shares
SDRL – 401.92 shares

 

Dividend Payouts This Month:

ARCP $0
LNCO $85.91 (Reinvested)
SDRL $0

Total: $85.91

 

Summary

Oil prices rebounded temporarily in February, hence, the oil stocks helped lifted up my portfolio. I decided to take advantage of the run-up in prices and also sold covered calls against my oil stocks. This helps generate some income from the shares, which will help soften loses if the oil prices continue to drop.

The good news for ARCP is that the audit committee’s investigation did not identify any material changes relating to ARCP’s real estate ownership, rental revenue or fundamental business operations. When it was all said and done, it turned out that only a total of 30 cents was overstated from AFFO over the last six quarters. The damage was not as severe as people had anticipated. However, ARCP has yet to announced the reinstatement of the dividends. Shareholders like me are waiting to see what those numbers would be like. I expect the dividends to be less than previous, but it should not be much less, since ARCP is still a huge REIT business with lots of revenue.

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