Have all assets at one brokerage and one bank vs. multiple places

Parent Cafe
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<p>BCEagle, just curious what stocks that you hold have 6% and 12% yields, if you don’t mind my asking? That sure beats anything I’ve ever held.</p>

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<p>[SIPC</a> - Investor Protection](<a href=“http://www.sipc.org/how/brochure.aspx]SIPC”>http://www.sipc.org/how/brochure.aspx)</p>

<p>You are not insured for dollar value. You are insured to get your securities back if possible. If the securities drop in value, too bad. if the value rises…you get that increase.</p>

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<p>PBA and PSEC.</p>

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<p>Thanks BC. Of course PSEC is close to its 52 weeks high now. Do you expect it to continues the dividend moving forward?</p>

<p>We have a hour long review with our banker yesterday. The key question we discuss was “when” to call it quit. John did find one thing we have been doing wrong and that could save us about $600 a year. </p>

<p>We are also way too heavy in the stocks now. So a dividend play like PSEC suits us well.</p>

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<p>I don’t have a crystal ball - PSEC will do well if the interest rate environment stays low as they borrow cheap and lend out dear. It is hard to do fundamental analysis on their customers because most of them are private companies. I can go and look on the web sites of their clients but there typically isn’t any financial information there because they aren’t public.</p>

<p>So basically, I’m trusting their portfolio management and risk analysis folks to do a good job.</p>

<p>There are no guarantees in the market - I have some criteria for exiting and I have three other people in this with me that keep an eye on the company along with me and we will let each other know if there are problems or upside surprises.</p>

<p>PSEC is a BDC - you should understand these companies before getting in.</p>

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<p>Friday I opened an account at Fidelity. I guess technically I reactivated a dormant account because I used to have an account there but closed it at least 5 years ago. They still had my information. I was able to do everything online, and now just have to fund the account.</p>

<p>My “star” dividend holding has been NCT. I own and have owned plenty of duds, but this one has been great - pays a very healthy dividend and has appreciated in price as well. (Also cut down on the size of my position way too early)</p>