We Have Added to the 2014/2015 Short/Medium Duration Portfolio

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We have made a purchase in the 2014/2015 Short/Medium Duration Income Portfolio today. We made the purchase with funds accumulated from the receipt of dividends and interest over the last many months.  In order to maintain returns in the portfolio occasional purchases must be made to put cash received to work and to replace issues that are from time to time called or redeemed.

We have added the Gladstone Capital 6.75% Term Preferred issue (ticker:GLADO) today–200 shares which we purchased for $25.40 share.  We do not really like to pay over $25/share for these issues, but given the nature of this portfolio it was necessary to ‘pay up’.  Since we want shorter duration issues our choices are limited–we believe this is the best issue available at this moment. The optional redemption date is about 2 years out yet so paying 1.5% over par still leaves us a ‘yield to worst’ of around 6% and maturity is in 2021 which would give us a 6.5% annual return.

The purchase of this issue still leaves us with cash for 1 more purchase which we will wait on a bit before deploying–maybe a new issue or a day with issues ‘on sale’.


Tim McPartland

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Tim McPartland
Tim McPartland is a private investor with over 45 years of investing experience. His analysis, research and writing is devoted to the hunt for income producing securities of all types, but in particular specializing in preferred stocks, exchange traded debt and Master Limited Partnerships.
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