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Portfolio

This is my personal portfolio, as of 09/01/2012. It doesn’t change that often, but when it does it will be updated here. I also have a pocket change portfolio that is not published (as some point it might).

View 2011 Portfolio Performance

View 2012 (Sep) Portfolio Performance

Portfolio Strategy

I use the following investing strategies at the portfolio level.

  • Concentration – There are very few positions to amplify returns. Diversification breeds mediocrity.
  • Dividend Growth – Investments in companies are expected to grow dividends.
  • Current Income – Some of the investments are high yield investments that offer stable, attractive overall returns which will likely beat the market without taking on much principal risk. These are what I call “bird in the hand” investments.
  • Liquidity – Portfolio generally has a significant percentage in cash to take advantage of unusual opportunities when they arise.
  • Tax Diversification – Investments offer different strategies for taxes, to hedge against future tax rates. Taxes are not a primary determiner for investment selection, but among equivalent investments I chose those that offer advantages.
Investment Name YOC Past 5 Yr Dividend Growth
PM Philip Morris 7.14% 13.90%
EPD Enterprise Partners 8.08% 6.10%
MO Altria 8.81% 6.50%
PAYX Paychex 4.35% 12.30%
LO Lorillard 6.61% 27.00%
O.E Realty Income E preferred 7.00% N/A
MER.E Merrill Lynch E preferred 8.09% N/A
KMI  Kinder Morgan, Inc. 3.95%  N/A

Investment Position Attributes

For each position, there are different attributes they have. Each of these attributes offers their own benefits depending on what it is that you are trying to accomplish with your portfolio. The key here is that we want the best returns after taking into account valuation, dividend yield, dividend growth, taxes.

PM, LO

  • High Yield
  • High Growth
  • Qualified Dividend

EPD

  • High Yield
  • Tax Deferral (Return of Capital)
  • Alternative Investment

MO, PAYX

  • High Yield
  • Qualified Dividend

O.E

  • Monthly Dividend
  • Cumulative Preferred Stock
  • Alternative Investment
  • Unqualified Dividend
  • High Yield
  • Stable Principal Value
  • Bird In The Hand

 

MER.E

  • Trust Preferred Stock
  • Alternative Investment
  • Tax Deferral (Return of Capital)
  • High Yield
  • Stable Principal Value
  • Bird In The Hand
  1. December 18th, 2014 at 05:04 | #1

    You have a pretty solid portfolio for its size with some nice yield. Not too diverse though. Do you plan on adding additional companies in other sectors anytime soon?