We started rotating the portfolio toward higher-yielding stocks on Friday with ICMB, which raised our average passive income close to 2 percentage points to keep the portfolio as a whole competitive with cash. Great. But we aren’t done yet. Phibro (PAHC) has been with us a long time and still only pays about 2.8% a year. While we could wait for another run back to $18.50 and grab another 6-7% here, I think we can make our money back faster by rotating it into something fresh that pays higher yields.

I’m thinking Travel & Leisure Co. (TNL) is a good place to start. They run resorts and timeshare properties. Business is good enough to pay shareholders $0.50 per share quarterly and the stock is roughly where PAHC is in terms of proximity to its 52-week high. We have more near-term upside to capture on TNL and the stock will pay us 2 percentage points more every year we wait. It’s a no brainer.

Sell PAHC and establish a position on TNL below $44 to lock in a 4.5% annualized yield. Inner Circle, you too. This is why we raised cash earlier this morning.