May 2026 Income investing results

[finnski1]

I have no problem sharing my info but I don't want to come across as bragging. I 100% follow the strategy of Steve Bavaria (Author of "Income Factory") never read the book but have seen several of his clips on YT. My 600k produces 115k of distributions annually. My spreadsheet say that's above 18% returns. FIDO keeps giving me different answers. Some of my positions have busted but most are doing fine.

$115K on "only" $600k investment is very impressive. How long have you developed this and how much fine-tuning does it require?

 

[Lawrencewendall]

$115K on "only" $600k investment is very impressive. How long have you developed this and how much fine-tuning does it require?

The best i can tell, I started migrating to this strategy in 2016. Even though I retired 7 years ago, I've hardly used any of it. Most of it is DRIPing until that position hits 2-3% of PV then it goes somewhere else. I keep a watchlist for future places. I like BDCs, CLOs and REits. My REITS are all in taxable to take advantage of 199a.

 

[joejetski]

The best i can tell, I started migrating to this strategy in 2016. Even though I retired 7 years ago, I've hardly used any of it. Most of it is DRIPing until that position hits 2-3% of PV then it goes somewhere else. I keep a watchlist for future places. I like BDCs, CLOs and REits. My REITS are all in taxable to take advantage of 199a.

You have done a great job with a fairly small income portfolio. My goal is ~ 10% yield on a $1M portfolio. Currently around 7% and keeping some in cash for larger pullbacks. It does not appear that you use any of the income ($115k) that you produce, is that correct? Also, when your position hits 2-3% of PV, do you take the income as cash and put it elsewhere, or do you sell the position? I couldn’t tell. It would make sense to keep positions small, given the high yield and somewhat correlated higher risk. Thanks.

 

[Lawrencewendall]

You have donOe a great job with a fairly small income portfolio. My goal is ~ 10% yield on a $1M portfolio. Currently around 7% and keeping some in cash for larger pullbacks. It does not appear that you use any of the income ($115k) that you produce, is that correct? Also, when your position hits 2-3% of PV, do you take the income as cash and put it elsewhere, or do you sell the position? I couldn’t tell. It would make sense to keep positions small, given the high yield and somewhat correlated higher risk. Thanks.

I take the Distributions as cash and deploy it to something that is below 2% or a new position i found here or other sites I frequent. XLEI, WDI and SPCI look interesting. I have some covered calls as my distributions would meet my expenses and I can take on more risk. BITO is banging!
My all time favorite is CLM. it's a weird beast. Been with them for 10 years DRIPing. The board votes once a year what the monthly distribution will be for the next year. Currently it's 21% of the closing price (might be NAV) on the last trading day of their fiscal year (ending in Oct). By DRIPing, I get it at NAV but the value is at market price. Cefconnect can show you the difference. In 10 years, my value has almost tripled.
If you go to SEC's EDGAR, you can find their shareholders filing. 1300 positions, magnificent 7 are in their top 10 holdings. I'm in for the ride!

 

[BuckeyesRC]

I take the Distributions as cash and deploy it to something that is below 2% or a new position i found here or other sites I frequent. XLEI, WDI and SPCI look interesting. I have some covered calls as my distributions would meet my expenses and I can take on more risk. BITO is banging!
My all time favorite is CLM. it's a weird beast. Been with them for 10 years DRIPing. The board votes once a year what the monthly distribution will be for the next year. Currently it's 21% of the closing price (might be NAV) on the last trading day of their fiscal year (ending in Oct). By DRIPing, I get it at NAV but the value is at market price. Cefconnect can show you the difference. In 10 years, my value has almost tripled.
If you go to SEC's EDGAR, you can find their shareholders filing. 1300 positions, magnificent 7 are in their top 10 holdings. I'm in for the ride!

I can see where CLM/CRF likely beat an index fund in a tax-favored account, but I could never quite figure out the best way to play the rights offerings. Do you hold and exercise the rights or do you try to time the rights offerings and sell all at the premium?

 

[Lawrencewendall]

I can see where CLM/CRF likely beat an index fund in a tax-favored account, but I could never quite figure out the best way to play the rights offerings. Do you hold and exercise the rights or do you try to time the rights offerings and sell all at the premium?

I haven't done the RO. Too complicated for me.

 

[joejetski]

I take the Distributions as cash and deploy it to something that is below 2% or a new position i found here or other sites I frequent. XLEI, WDI and SPCI look interesting. I have some covered calls as my distributions would meet my expenses and I can take on more risk. BITO is banging!
My all time favorite is CLM. it's a weird beast. Been with them for 10 years DRIPing. The board votes once a year what the monthly distribution will be for the next year. Currently it's 21% of the closing price (might be NAV) on the last trading day of their fiscal year (ending in Oct). By DRIPing, I get it at NAV but the value is at market price. Cefconnect can show you the difference. In 10 years, my value has almost tripled.
If you go to SEC's EDGAR, you can find their shareholders filing. 1300 positions, magnificent 7 are in their top 10 holdings. I'm in for the ride!

Thank you for the clarification. I like CLM, bought it on a tip from a friend on our trivia team a couple years ago while in the $6s. Dripping DIVIs, and has become a more consequential position. Hits well above its weight as an income position, and as long as you are dripping, should be a long term winner. My position in CLM has doubled (from 0.5. - 1% over that time). I will sell some shares for income eventually, particularly when my position is highly appreciated.