My apologies for the late posting, but I’ve been a little busy with work.
The yield this month dropped massively, I’d suspect low stock value with lower volatility has lead to half of the yield that I’ve received in previous months.
However, it is still enough to pay an additional 1000 towards the loan.
This has now reduced my remaining loan to 1290 which means that this loan will be cleared by July.
A few considerations:
1. So far, the IncomeShares has shown no upside even when the underlying stock goes up.
2. I suspect the dividends to be reduced onwards due to price drop
3. As the loan is paid off, I’ll focus on re-investing the similar amount on 8-10% yield stocks
4. For now, it does look like the income received from IncomeShares has matched the NAV erosion, which basically means that I could have simply moved the CC cash directly to the loan (instead of doing it through the income) and I would have saved even more interest.
From what I read, IncomeShares will change their strategy to attempt to maintain NAV and be more responsive to price increases of the underlying stock, but we’ll see.
Cheerio peeps!