The Rose Portfolio
This portfolio is for real and consists of 3 brokerage accounts (2 Roth and 1 taxable) and 6 separate companies all managed by Rose, a retired lady pharmacist, married and living in Iowa. My last article here is as an excellent alphabetical listing reference for the 93 holdings owned in August. The now 91 holdings are in 10 sectors, with none in the material sector.
Common Stock and RICs
There are 62 mostly common stocks in 9 sectors shown below in chart #1 that are ~ 77% of the portfolio value, PV, providing ~ 61% of its income, not shown. Shown is the S&P Credit rating as known and provided by my paid subscription service to Fastgraphs. Chart #2 has the other 29 holdings and you will note very few credit ratings are known, as they are regulated investments companies or RICs, preferred shares and a bond. Real estate, the last sector I own, does have a few with credit ratings. In each sector or type all holdings are listed by descending %PV. I have also noted if there is a K1 tax form, ADR fee, or any other interesting tidbit for ownership.
|15.7%||13||Cons S||Cr R||Ticker||Name||PV|
|no K1||(KNOP)||Knot Offshore LP||0.5%|
|No K1||(HMLP)||Hoegh LNG||0.5%|
|no K1||(AMZA)||Infracap ETF MLP||0.5%|
|no K1||(AMLP)||Alerian ETF MLP||0.4%|
|AAA||(JNJ)||Johnson & Johnsn||3.0%|
|AA||(ADP)||Automatic Data P||0.5%|
|A-||(MGEE)||Madison Gas E||2.1%|
|cef||(DNP)||Duff N Phelp||1.0%|
Note in the energy sector, I have taken the liberty to divide it for my own use as follows:
-Integrated Oil Companies/IOC and Refiners
-Master Limited Partnerships, MLP, or Exchanged traded funds or ETFs.
Chart #2 follows next and is again most of the HY, or high yield type of investments, with this first section being fixed Income and preferred debt.
|Value||#||or Type||Cr R||Ticker||Name||PV|
|Retail-mall||A||(SPG)||Simon Prop Grp||1.3%|
|triple net||BBB-||(KRG)||Kite Realty Grp||0.3%|
|triple net||BBB-||(EPR)||EPR Proprty||0.3%|
|BDC||BBB-||(FSK)||FS KKR Cap||0.2%|
At the time of writing I had 4.6% PV in cash and cash alternatives or option puts.
Portfolio Value is up 3.3% from August and up 19% for the full year 2019, similar to the S&P 500. The Rose portfolio has a 4.55% dividend yield beating the S&P easily which sits at ~2%.
September dividends compared to 2018 are an amazing 32.6% higher, and 20.5% more in Q3, but it must be known many HY additions and changes have been made along the way and into even this year.
2019 dividends are still moving pleasingly higher, with 8.6% more than the comparative month of Q2 and 7% higher for this last Q3. Income is on track to still be 13.8% higher for this full year 2019; even with the most recent selling of some HY eREITs. Sticking with the same investments for 2020, it’s too early to predict dividend gains, but I see a ~ 3% increase already. This also would give the current portfolio ~ 4.6% yield which is just fantastic.
Here are the 6 dividend raises I received for September with the % increase change:
Here are the other companies by date, with the 7 monthly payments shown in bold:
|SEPT||STOCK||$ Amount||SEPT||STOCK||$ Amount|
I believe much of the success of receiving higher dividends also comes from adding HY preferred with their constant and steady income.
Any price with a T after it was done in the taxable account.
|SEPT||2019||T = taxable|
|Energy/MLP||Hoegh NLG||HMLP||14.28/15.63||11.7% yield||1.76 div/ no K1|
|Energy/MLP||Knot Offshr||KNOP||18.63||11.2% yield||2.08 div/ no K1|
|Energy/MLP||Alerian ETF||AMLP||9.05||8.4% yield||no k1/ ave down|
|Energy||Shell.b||RDS.b||56.8 T||6.6% yield||3.76 div/ frozen|
|Energy||Occidental||OXY||44.75 T||7.1% yield||too cheap to ignore|
|Cons-S||Altria||MO||39.93 T||8.1% yield||quality co cheap|
|Cons-S||Phillip Morris||PM||72.44 T||6.3% yield||quality co cheap|
|Cons-S||Molson CBC||TAP||56.14||4.1% yield||too cheap to ignore|
|H-c||CVS Health||CVS||62.86||3.2% yield||$2 div/ frozen/ quality co|
|Tech||Broadcom||AVGO||273.7||3.9% yield||close to 4% yield|
|ETF loans||Ares Bond||ARDC||14.8||8.8% yield||monthly pay/ building|
|Industrial||Boeing||BA||367.95 T||60% trim||Made 200% from 2014|
|Cons-Discr||Home Depot||HD||228.25||10% trim||overvalued large position|
|Utility||Wis Energy||WEC||95.26 T||trim||overvalued still|
|RE-Data||Digital Realty||DLR||128.2||trim||Low 3.3% yield eREIT|
|RE-Shop C||Kimco||KIM||19.91||trim||Sold at cost/ rest options|
|Retail S-c||Kimco||KIM||18.6||all sold/opt||overvalued low div raises|
|RE-Health-c||Ventas||VTR||63.63||trim/ options||overvalued low div raises|
|RE-nnn||WP Carey||WPC||79.85 ave||all sold/opt||overvalued low div raises|
The chart pretty much says it all in the comments. I hate it when something like WPC, a very quality holding, gets over bought or priced. Its dividend raises are pathetic, which reflects caution and another reason to just sell with a yield of 4.6%.
Kimco is doing pretty great, but now is ahead of itself in valuation and it also is reflecting lower FFO growth and poor dividend raises, if any.
I wrote an article about the Boeing trim and still feel strongly it will stay at its current price for some time, and perhaps dip lower. I took profits and have no shame in doing so, as it was a large position size.
-Home Depot was also trimmed for a large position size.
-Wisconsin Energy, a utility, is like most all utilities just plain over bought. I took profits on some and might be doing so again. It was down to only 2.5% yield when I am used to having it around 3.5% or more.
-DLR is yielding low 3.3% and it was time to say goodbye to some shares.
-VTR with a low 4.3% yield got trimmed, and it also has a pathetic dividend raise this year of 1c. I like eREITs to have higher yields for the type of investment they are and most likely will be saying goodbye to all of VTR by the end of this year.
ADD on Buys were numerous-11
The chart as shown above indicates the yield at the time of the add and comments mention my thoughts or intention which should suffice for your reading pleasure. I like AVGO better near 4%, but could not stop myself with adding just a bit more at a 3.9% yield, as I own very little in tech stock with a decent higher yield. I most likely have stopped adding to the energy sector for now, but if something screams cheap, cheap, cheap again, I always have trouble ignoring a great buy.
I continue to want defensive stocks and have them provide a minimum of 50%PV. I have met that goal again and I show it in the summation chart below. In bold are the defensive sectors and again separated off on the right side to show the totals. It also shows portfolio income, Pinc and then Def Inc for the 91 total stocks as shown on the left side column for each sector.
|SECTOR||PV||PInc||Def PV||Def Inc|
That is my plan and I like it and it seems to work for the Rose portfolio.
Happy investing to all.
Disclosure: I am/we are long AVGO. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Additional disclosure: and 90 other stocks in the article charts