Sunday, June 8, 2014

May portfolio summary

Every month I will post a portfolio summary of how my stocks did in the last month. In the noise of things, I don't think that fretting over monthly price fluctuations is worth it. However, doing this every month will allow me to keep record of what has happened. I also think it is interesting to see how my stocks are paying off.

May was the first month of my dividend investing journey. I transferred my taxable Vanguard index funds to a brokerage this month. I am still waiting on my Roth IRA transfer from Vanguard. At the moment, my 401k is still on Vanguard index funds and I plan to keep it that way.

This post will summarize the results of my dividend stock portfolio for the month of May 2014. The market this month did very well. There were a lot of dips that I bought into that are starting to pay off. I am a little nervous at the moment of ever increasing stock prices. A lot of stocks have entered "zombie" like periods where they just continuously increase without any fluctuations. I am thinking of saving some % of my portfolio in cash for some margin of safety.

Below is an illustration of stocks sorted from top gain % to lowest gain %. Some high % gainers may have less dollar gain than others since some stocks have less weight in the portfolio.

DescriptionQtyMarkMarket ValueCost BasisGain/LossGain/Loss (%)
AAPL Stock21$92.22$1,936.62$1,817.31$119.316.57
PETM Stock6$59.01$354.06$333.06$21.006.31
SDRL Stock22$39.38$866.36$817.52$48.845.97
KMI Stock65$35.08$2,280.20$2,186.24$93.964.30
KMR Stock12$74.92$899.04$866.52$32.523.75
COP Stock15$80.84$1,212.60$1,177.95$34.652.94
CMCSA Stock16$52.91$846.56$823.84$22.722.76
JNJ Stock22$103.18$2,269.96$2,210.34$59.622.70
WMT Stock8$77.21$617.68$604.56$13.122.17
MO Stock24$41.39$993.36$972.72$20.642.12
GPC Stock10$86.75$867.50$852.00$15.501.82
CHD Stock36$69.46$2,500.56$2,458.64$41.921.71
PM Stock22$88.33$1,943.26$1,914.00$29.261.53
TJX Stock16$56.42$902.72$893.16$9.561.07
ROST Stock13$69.08$898.04$889.46$8.580.96
MCD Stock4$101.96$407.84$407.40$0.440.11
VZ Stock22$49.42$1,087.24$1,087.68-$0.44-0.04
PG Stock13$80.03$1,040.39$1,044.68-$4.29-0.41

Apple has climbed unexpectedly high after the Beats purchase and the coming 7-1 stock split. I am quite happy with its performance so far. AAPL's PE is starting to approach the value it had in its past peak, so I am thinking about selling part of this stock and moving the money to dividend champions. Apple has a higher beta than most stocks in my portfolio and I am not comfortable with holding the stock during a market high.

I bought PetSmart after a massive sell off after unexciting earnings reports. The price has jumped dramatically as investors suddenly realized that PETM was extremely well priced for a business with a very clean balance sheet. 

I bought Seadrill when they announced their partnership with Rosneft in Russia. The opportunity presents a lot of new drilling contracts for SDRL. The stock has risen handsomely since then. The price has fluctuated a bit as most analysts are still SDRL-haters for the last several months, but it seems most people are catching up with this stock. SDRL is highly volatile and provides a very high dividend yield of around 10%. The stock has the highest beta my portfolio and I considering selling it after it reaches its past peak.

Comcast and ConocoPhillips have both risen quite well. I am quite concerned with COP's bull run but its PE is still relatively low compared to its competitors. COP still has a high yield after its run up in price, so even if it drops in price I will be happy to buy more. Comcast has low yield so I only have an entry position. I bought CMCSA for its growth.

Kinder Morgan (KMI and KMR) have been climbing steadily since I last purchased the stocks. Kinder Morgan has been hit hard by analysts and website commentary for the last several months. They have performed behind their other peers and the stock has been mostly sideways. I am a fan of Kinder's business and believe their pipelines will be in high demand with the ongoing oil renaissance in America. The stocks also offer very high attractive yields with low beta.

Church and Dwight climbed by a small amount over the last couple weeks. However, the percentage increase is not high and the only reason the dollar increase is bigger than other stocks is because of my large allocation to CHD. I am a fan of CHD and consider it one of my core holdings.

MO and PM also have continued their zombie-like increase to record highs. Their percentage increase is small but my allocation to tobacco is large.

TJX was dropping several percent below what I bought the stock for. However, it has recently climbed back to around the same price as what I paid. ROST has stayed relatively unchanged. I believe these stocks will see higher profits in the summer and holiday season this year, which should promote their earnings. Both TJX and ROST have solid earnings and dividends in previous years, even through recessions. I consider these two to be part of my growth dividend stocks allocation.

MCD, VZ, and PG are boring stocks that just sat still last month. Not that I am arguing, since these 3 stocks are solid dividend payers :)

I am considering adding to MCD, WMT, PG, and starting a new position in CVX this month. At this moment, I have around $3980 in cash for stocks and emergency funds. Some of it is still in the bank but I will have around 3000 cash in my brokerage account by this coming Thursday.

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