August portfolio update

[earthtodan]

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.

[daat99]

I don't see MCD in there, is that intentional?
It's my opinion that it is attractive at the current price.

[Roadmap2Retire]

Nice mix, earthtodan. I should do chart on my own portfolio to see what it looks like.

[earthtodan]

(08-31-2014, 02:43 AM)daat99 Wrote: I don't see MCD in there, is that intentional?
It's my opinion that it is attractive at the current price.

I'm aware of the dip, but MCD is not a company I want to own.

I've seriously considered picking up some DE right here, but when I look into it, the world of Ag and corn prices, and thus equipment demand, is something I don't have the interest or the patience to understand and make a contrarian call in the middle of a down cycle.

(08-31-2014, 09:06 AM)Roadmap2Retire Wrote: Nice mix, earthtodan. I should do chart on my own portfolio to see what it looks like.

This is hosted on Google Docs, which is a great tool because it will stream stock prices. You can look at your portfolio any time without having to log into your broker, and you can organize it any way you want.

Open a Google spreadsheet and type a ticker symbol into cell A2. To get the price, in a cell to the right put =googlefinance(A2)

To get the yield, in another cell to the right put this text string:
=index(split(ImportXML("http://finance.google.com/finance?q="&A2, "//td[@data-snapfield='latest_dividend-dividend_yield']/following-sibling::*"),"/"),1,2)/100

I have all the prices, quantities, cost basis, dollar gains, and more in my spreadsheet, I just don't show it here. I also have a formula that tells me how many shares of each company I would need to buy to meet my target allocation. That's a bit over the top, but I just like spreadsheets. Portfolio weighted yield and yearly income are pretty easy to do as well.

[daat99]

Any chance you can share that spreadsheet?

[Roadmap2Retire]

(08-31-2014, 10:36 AM)earthtodan Wrote:

(08-31-2014, 02:43 AM)daat99 Wrote: I don't see MCD in there, is that intentional?
It's my opinion that it is attractive at the current price.

I'm aware of the dip, but MCD is not a company I want to own.

I've seriously considered picking up some DE right here, but when I look into it, the world of Ag and corn prices, and thus equipment demand, is something I don't have the interest or the patience to understand and make a contrarian call in the middle of a down cycle.

(08-31-2014, 09:06 AM)Roadmap2Retire Wrote: Nice mix, earthtodan. I should do chart on my own portfolio to see what it looks like.

This is hosted on Google Docs, which is a great tool because it will stream stock prices. You can look at your portfolio any time without having to log into your broker, and you can organize it any way you want.

Open a Google spreadsheet and type a ticker symbol into cell A2. To get the price, in a cell to the right put =googlefinance(A2)

To get the yield, in another cell to the right put this text string:
=index(split(ImportXML("http://finance.google.com/finance?q="&A2, "//td[@data-snapfield='latest_dividend-dividend_yield']/following-sibling::*"),"/"),1,2)/100

I have all the prices, quantities, cost basis, dollar gains, and more in my spreadsheet, I just don't show it here. I also have a formula that tells me how many shares of each company I would need to buy to meet my target allocation. That's a bit over the top, but I just like spreadsheets. Portfolio weighted yield and yearly income are pretty easy to do as well.

Yup, I use Google Docs for most of my monitoring...never use my brokers breakdown/details. Only annoying part I find is that Google Docs has a limit on the number of ImportData fields you can have in one spreadsheet. And I have to use ImportData for a bunch of stats to get that data from Yahoo Finance (since Google Finance doesnt not provide that data).

I dont classify my stocks in high yielders, balanced and high growth as you did - thats what I meant when I said that I should try it in my portfolio. Thanks for sharing anyway.

cheers

[earthtodan]

The newest version of Docs allows more ImportData fields. You should get a prompt to switch over if you've been using the previous version.

For graphing the profiles, I have a hidden column with these equations in vertically arranged cells:

=sumif(L2:L35,"High Yield",O2:O35)+sumif(L38:L43,"High Yield",O38:O43)
=sumif(L2:L35,"Balanced",O2:O35)+sumif(L38:L43,"Balanced",O38:O43)
=sumif(L2:L35,"Growth",O2:O35)+sumif(L38:L43,"Growth",O38:O43)
=sumif(L2:L37,"Speculative",O2:O37)+sumif(L38:L43,"Speculative",O38:O43)

with column L containing the profile for each stock, and O containing the percentage held. These cells are formatted as a percentage and show the allocation to each profile. I have the names in an adjacent column, and that provides the info to create the graph.

If you only have one account, you can simplify it by not adding multiple SumIfs.

[Roadmap2Retire]

Thanks for the tip, earthtodan. Will update and hopefully that'll remove the limitations.

cheers