DCA and Chasing Dividends

April and May are heavy trading months for us as we get prepared for the YE JUN ex-dividend dates. We’ll either be focusing on dollar cost averaging (DCA) our buys, or we chase dividends, and liquidate our positions after payout. We’re currently averaging around DFC 9%+ for our Income Funds and 10%+ in our Dividend Income ETFs. What we won’t be doing is we won’t be purchasing if the funds are within 10% of their 52WH or if we’ve reached our initial targets.

We still have 50K+ available cash-to-date. Based on our estimates, we can DCA Buy about 15K within our risk assessment and focus on funds outside of the 52WH -20% range, and target DY% of > 9%.

We also have about 20K+ in DCA Sells. Depending on where the range is from the 52WH, either target 5% or 7.5% TSP. 20K at 5% is 1K, and at 7.5% is 1.5K, so avg is 1.25K or 6.25%. Our target is to capture the dividends and DCA Sell for a profit, then churn the same batch and reinvest back at 10% discounted, or DCA Sell, and buy back before ex-dividend assuming at discounted rate.

I’ll calculate MAR YTD Dividends for all of our positions this week to get a better picture of our Holdings and update our targets as needed.