Hold All Positions and Your Open Order to Buy RGLD.
You’re doing OK in the Income Investments section, and as noted last month, I will ramp up the income positions as soon as I get more clarity from the mining sector and the Dow’s expected first-quarter 2017 pullback.
So for now …
è Even though miners could fall further, maintain your open order to buy one of my favorite royalty mining companies: Royal Gold, Inc. (RGLD). RGLD receives royalty streams from 38 producing and 24 development gold and silver properties.
It is the best-of-the-best of royalty companies, yielding 1.4 percent at its current share price of $67.47.
My recommendation: Using 3 percent of the funds you have allocated to Income Investments buy Royal Gold, Inc., symbol RGLD, on a pullback to $60. When filled, place a good-till-canceled protective sell-stop at $51.33.
In the meantime, …
è Hold Westlake Chemical Partners LP (WLKP) from roughly $19.75 … and maintain a good-till-canceled protective sell-stop at $18.07. Your open gains are 13.4 percent, including an annualized dividend yield of roughly 6.5 percent.
If not on board WLKP, use 5 percent of the funds you have allocated to Income Investments and buy at the market. Be sure to place a good-till-canceled protective sell-stop at $18.07.
è You should be long shares in GAMCO Global Gold, Natural Resources & Income Trust (GGN) from about the $6.27 level. GGN pays out a healthy $0.07 per share per month, amounting to an annual yield of better than 15.6 percent.
Hold GGN, and maintain a good-till-canceled protective sell-stop at $4.21. Reinvest the dividends to compound your return.
If not on board, you may purchase GGN at the market, using 5 percent of your Income Investments funds. Place a good-till-canceled protective sell-stop at $4.21.
