Sold NLY-P-F (1.8%)

I still like the 9% yield and low price volatility of this preferred stock, but I needed some cash for the buys below. It’s a variable rate preferred so the distributions are trending down with interest rates, but slowly. By contrast, I expect the distributions from RQI (discussed below) to remain constant.

Reduced ADAMH (From 3.2% to 1.2% Allocation)

Selling some ADAMH to buy KSLV. I still like ADAMH, but it is a steady place holder for cash that yields 9.65% (small amount of price appreciation since I bought it 2 months ago) and I can buy back into it later if needed.

Bought KSLV (2.15% Allocation)

Better late than never? We shall see…

Monthly distributions from silver (ie KSLV yields 18.5%) is a relatively new thing for income investors. The timing of this purchase is not a prediction that silver will appreciate in the near term. Instead, the timing is the result of how long it took me to learn about a new asset class. I’m in discussions with Kurv to schedule an interview with Howard to discuss gold and silver.

I made the purchase on 1/9/26, and am open to adding to this allocation when there’s a significant correction.

Why Silver? A combination of:

1/ Limited supply (limitations on expanding production)

2/ Increased demand for silver for industrial/tech use 

3/ Increased demand for silver as a hedge (eg. from central banks) 

4/ A lot of price speculation (momentum buyers/sellers), and 

5/ Various other geopolitical issues (eg. Chinese silver export controls effective Jan 1st, 2026). 

I don’t know what will happen to the price of silver (I’m not a trader), but my expectation is continued volatility for the near term, including some significant corrections, but continued appreciation over the long term. In other words, I intend for this to be a long term hold.

I like the diversification away from equities, and accept the risk of a significant price correction (eg. -50%). To buy something this volatile, you have to be completely OK with it falling like a rock the day after you buy it.

I’m not a silver (or gold) bug, and not suggesting “everybody needs to buy silver”. However, I do suggest:

1/ Reading up on it, and deciding whether you fit into the “demand exceeds supply” camp or the “it’s mostly speculation that won’t end well” camp. I think there are reasonable arguments for both. In other words, have an informed opinion about silver, but don’t ignore it.

2/ If you want a silver income investment, KSLV is the best option I’ve found so far. Covered call funds inherently underperform the underlying asset, but during sharp bull runs is when they underperform the most. Given that backdrop, KSLV’s ability to follow the price of silver so closely during a bull run is impressive.

Bought RQI (1.8% Allocation)

High interest rates were tough on REIT’s. Now that rates appear to be trending down, I’m open to adding to IYRI and RLTY. 

RQI yields 9.2% and it kicked off 2026 with a bang. The fund recently surprised shareholders with a $0.13 per share special distribution, and a 12.5% increase to its regular monthly payout, raising it from $0.08 to $0.09 per share. It currently trades at a small discount to NAV, and an RQI review episode (currently being edited) will air on Sunday January 18th.

This is the second Cohen & Steers real estate fund I’ve purchased (RLTY is the other). Both are leveraged by approx 30%. If you prefer zero leverage, RFI is an alternative worth considering, at a slightly lower yield.