On December 30, 2019, I bought an additional 70 shares of Stone Harbor Emerging Markets Total Income Fund (EDI) at $11.90 per share. With its monthly dividend payout of 0.1511 dollars per share, this latest buy has a dividend yield of 15.21% and will pay us an additional $10.57 (before tax) every month. Awesome!
I bought this share for our baby girl's portfolio. Without hesitation, I can say - our 18-month-old baby has a dividend portfolio generating already $86.66/mo.
It was not planned that I will buy this stock now, but as I got called away 100 shares of NRZ (and freed up trading capital) I decided to invest in some higher-yielding dividend stocks to offset the loss I will take in January 2020 dividend income.
In total this was already third time buying EDI. It's interesting to note that first I bought in back in September 2018, paying $12.32 per share, then in July 2019 paying $13,00 per share and now $11.90 per share.
Using dollar-cost averaging our my average cost per one EDI share is $12.36
Now, our baby girl's portfolio now has as TTM at $1,039.92, giving daily $2.85 and hourly 0.12$. We have got TTM above $1,000 for the first time and we are fast approaching 3 dollars a day.
I come up with a plan to build a high-yield $10,000 child investment portfolio by the time our baby girl will turn 2. (July 2020). Right now we are looking at $80-$100 monthly dividends by the time she will turn 2.
For 2020, we are looking to get an additional dividend income of $107.80 (after tax) from this stock buy,
By now EDI takes 10.60% from our US stock portfolio, and also is one of the biggest dividend payers in the portfolio by now.
In total EDI now contributes about $261.8 yearly to the dividend income portfolio.
I might increase our stake with EDI to generate at least a dollar per day in 2020. That would ask to buy about 70 more shares of EDI stock.
About Stone Harbor Emerging Mkt Total Income FD (EDI )
The Fund's investment objective is to maximize total return, which consists of income and capital appreciation from investments in emerging markets securities. There is no assurance that the Fund will achieve its investment objective. The Fund normally will invest at least 80% of its net assets (plus borrowings for investment purposes) in Emerging Markets Debt. "Emerging Markets Debt" includes fixed income securities and other instruments (including derivatives) that are economically tied to emerging market countries, that are denominated in the predominant currency of the local market of an emerging market country or whose performance is linked or otherwise related to those countries' markets, currencies, economies or ability to repay loans. The Fund normally expects to invest up to 20% of its total assets in Emerging Markets Equity. "Emerging Markets Equity" includes securities issued by either single country or regional exchange-traded funds ("ETFs"), common stocks, preferred stocks, other equity securities and other instruments (including derivatives) that are economically tied to the equity markets of emerging market countries, that are denominated in the predominant currency of the local market of an emerging market country or whose performance is linked or otherwise related to those countries' markets, currencies, or economies. The Investment Manager does not have an established performance record investing in equity securities.