08-30-2014, 04:51 PM
It's the end of the month and another market high, and I can't find anything compelling to buy that I'm not already overweight, so I thought I'd post a snapshot of where I stand.
Most of these positions were bought in 2014, when DGI really clicked in my head. A few date back to 2013, such as GE, BNS, KMI, SDRL, GIS.
Weighted average yield in the taxable account is 2.8% including cash
Weighted average yield in the Roth IRA is 8.0%
Weighted average yield of the total portfolio is 3.4%
Stocks are grouped into four profiles, defined by yield.
High Yield (> 5%) - Any high yielding stock regardless of projected growth
Balanced (2% - 5%) - Most blue chip dividend growth stocks should fall into this profile.
Growth (0%-2%) - This can include new dividend growers, maturing companies with accelerated dividend growth and payout ratios, and non-dividend paying companies with a track record of strong earnings growth.
Speculative (0%) - Companies with a good story but negative, non-existent or unreliable earnings to date
C = conviction, where I rank stocks on a scale of 1-4. The spreadsheet adds them up and divides them into 100%, giving me my target allocation.
Actual allocations can be over or under. An overpriced stock may have a high target allocation but a small position (such as NVO), whereas a bargain stock may have little or no long-term ownership target but a large short term position (such as BAC). Overallocated positions such as offshore drillers will be trimmed back to their target allocations if the valuations rise. So the strategy is DGI with a bit of value investing and yield chasing mixed in.
Target and actual positions are consolidated into sectors.
Recent changes:
- Started positions in UTX, PNR, GWW, and PCP after the dip in industrials, and added to GE
- Started NADL in both accounts
- Started a speculative position in TIS after the latest dip
- Started a position in FL
- Started a position in UNP
- Added to SNY for an overweight position due to valuation
- Trimmed SBUX due to valuation
- Trimmed NVO due to valuation
- Added to solar stocks, and sold covered calls
Note: The solar stocks are a mixed group of Chinese panel manufacturers, CSIQ, TSL, JKS, JASO. They could be fairly classified as Growth, because they are legitimate industrial companies growing at a very fast pace. However due to the short track record of recent profitability and volatile conditions in the industry, I classified them as speculative. Plus, it makes the pie chart look prettier.
Most of these positions were bought in 2014, when DGI really clicked in my head. A few date back to 2013, such as GE, BNS, KMI, SDRL, GIS.
Weighted average yield in the taxable account is 2.8% including cash
Weighted average yield in the Roth IRA is 8.0%
Weighted average yield of the total portfolio is 3.4%
Stocks are grouped into four profiles, defined by yield.
High Yield (> 5%) - Any high yielding stock regardless of projected growth
Balanced (2% - 5%) - Most blue chip dividend growth stocks should fall into this profile.
Growth (0%-2%) - This can include new dividend growers, maturing companies with accelerated dividend growth and payout ratios, and non-dividend paying companies with a track record of strong earnings growth.
Speculative (0%) - Companies with a good story but negative, non-existent or unreliable earnings to date
C = conviction, where I rank stocks on a scale of 1-4. The spreadsheet adds them up and divides them into 100%, giving me my target allocation.
Actual allocations can be over or under. An overpriced stock may have a high target allocation but a small position (such as NVO), whereas a bargain stock may have little or no long-term ownership target but a large short term position (such as BAC). Overallocated positions such as offshore drillers will be trimmed back to their target allocations if the valuations rise. So the strategy is DGI with a bit of value investing and yield chasing mixed in.
Target and actual positions are consolidated into sectors.
Recent changes:
- Started positions in UTX, PNR, GWW, and PCP after the dip in industrials, and added to GE
- Started NADL in both accounts
- Started a speculative position in TIS after the latest dip
- Started a position in FL
- Started a position in UNP
- Added to SNY for an overweight position due to valuation
- Trimmed SBUX due to valuation
- Trimmed NVO due to valuation
- Added to solar stocks, and sold covered calls
Note: The solar stocks are a mixed group of Chinese panel manufacturers, CSIQ, TSL, JKS, JASO. They could be fairly classified as Growth, because they are legitimate industrial companies growing at a very fast pace. However due to the short track record of recent profitability and volatile conditions in the industry, I classified them as speculative. Plus, it makes the pie chart look prettier.