The past few months I have been transferring stocks from my portfolio at Scottrade to DivGro. Altogether, I've transferred 16 stocks and 2 closed-end funds (CEFs). This post covers the final transfer from my Scottrade account to DivGro.
Soon, I'll start transferring some stocks from a couple of IRA accounts in a similar way. Just like with my Scottrade account, I'm not actually transferring stocks out of the source accounts and closing them. I'm only transferring the management of these holdings to DivGro.
EXG is the third and final CEF I'm transferring to DivGro.
To recap, here are all the stocks and CEFs I've transferred to DivGro so far:
1.
| Coca Cola (NYSE:KO) |
10.
| Union Pacific (NYSE:UNP) |
2.
| Proctor & Gamble (NYSE:PG) |
11.
| Gilead Sciences (NASDAQ:GILD) |
3.
| Kimberly-Clark (NYSE:KMB) |
12.
| Reynolds American (NYSE:RAI) |
4.
| AbbView (NYSE:ABBV) |
13.
| Dr Pepper Snapple (NYSE:DPS) |
5.
| Dominion Resources (NYSE:D) |
14.
| Ford Motor Company (NYSE:F) |
6.
| W.P. Carey (NYSE:WPC) |
15.
| The Walt Disney Company (NYSE:DIS) |
| 7. | Toronto-Dominion Bank (NYSE:TD) | 16. | Main Street Capital Corporation (NYSE:MAIN) |
| 8. | Pfizer (NYSE:PFE) | 17. | Nuveen Premium Income Municipal Fund 2, Inc (NYSE:NPM) |
| 9. | Texas Instruments (NASDAQ:TXN) | 18. | AllianzGI Equity & Convertible Income Fund (NYSE:NIE) |
These transfers have added $2,596.46 to DivGro's projected annual dividend income (PADI) and I've added $2,535.88 in past dividends to DivGro's tally of dividends received.
About EXG
| The fund's primary investment objective is to provide current income and gains, with a secondary objective of capital appreciation. EXG invests in a diversified portfolio of domestic and foreign common stocks with an emphasis on dividend paying stocks and call option writing. To generate current cash flow, the fund writes call options on one or more U.S. and foreign indices with respect to a portion of portfolio value. The fund evaluates returns on an after tax basis and seeks to minimize and defer federal income taxes incurred by shareholders. EXG pays monthly distributions, which may include amounts characterized for federal income tax purposes as ordinary dividends, capital gain distributions and return of capital distributions. Currently, EXG is trading at a discount of 7.57% to NAV, which is just below the 52-week average discount of 7.31%. The 52-week range is -13.3% to -3.42%. |
Source: CEF Connect
|
Transactions
| 2013-10-09 | Bought: 210 shares of EXG at $9.48 per share: | $ | 1,991.14 |
| 2013-10-31 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.07 |
| 2013-11-29 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.07 |
| 2013-12-31 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.08 |
| 2014-01-31 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.07 |
| 2014-02-28 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.07 |
| 2014-03-31 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.08 |
| 2014-04-30 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.07 |
| 2014-05-30 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.07 |
| 2014-06-30 | Dividend on 210 shares at 8.13¢ per share: | $ | 17.08 |
| 2014-07-02 | Bought: 228 shares of EXG at $10.33 per share: | $ | 2,354.92 |
| 2014-07-31 | Dividend on 438 shares at 8.13¢ per share: | $ | 35.61 |
| 2014-08-29 | Dividend on 438 shares at 8.13¢ per share: | $ | 35.61 |
| 2014-09-30 | Dividend on 438 shares at 8.13¢ per share: | $ | 35.61 |
| 2014-10-03 | Bought: 62 shares of EXG at $9.95 per share: | $ | 616.79 |
| 2014-10-31 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2014-11-28 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2014-12-31 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-01-30 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-02-27 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-03-31 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-04-30 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-05-29 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-06-30 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-07-31 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-08-31 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-09-30 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-10-30 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-11-30 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2015-12-30 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2016-01-29 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| 2016-02-29 | Dividend on 500 shares at 8.13¢ per share: | $ | 40.65 |
| Total Capital Invested | $ | 4,962.85 | |
| Total Dividends Received: | $ | 951.54 |
With this transfer, DivGro's PADI increases by $487.80.
Why EXG?
Here are some reasons I like EXG and why I decided to transfer the shares to DivGro:
- EXG pays monthly dividends and yields 11.61% at the current price of $8.42.
- Because of option premiums, the fund's performance is somewhat shielded from market declines.
- EXG has exposure to foreign common stocks. As of 31 December 2015, the fund's foreign allocation totalled about 45%. The majority of those holdings are European stocks.
- Investing in CEFs like EXG provides additional diversification. In the case of EXG, the fund had 78 holdings on 31 December 2015.
- The fund has a baseline expense ratio of 1.07%, which is reasonable. Anything above 1.5% is too high.
Thanks for reading! Do you have any thoughts on EXG? Do you own any closed-end funds? Please share your thoughts below.
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