Friday, April 1, 2016

March 2016 Portfolio Summary

The goal of this portfolio is income replacement through assets that can generate ever growing distributions. I expect my monthly dividends to increase steadily month to month. Eventually the dividends will be large enough for me to no longer have to rely on my primary occupation. That crossover the point is when I will be financially independent.

The market has increased substantially for the month of March. We are re-surging from the depths earlier this year. This is problematic for me though. Although most will cheer at a rising market, I am unhappy that I cannot purchase those companies at their once more affordable prices. Since I did not have the cash available when the market was low, I was not able to take advantage of the low prices. It is comical how fast the general feel about the market can change in a few weeks. Everybody was doom and gloom crying recession 2 months ago but everyone is a cheerleader right now.

At the moment I hold 41 companies in my portfolio. My investment philosophy is simple. Buy companies that are high quality with consistent history of steadily increasing earnings and steadily increasing dividends. The companies that follow these characteristics usually provide services we use everyday and are considered Staples, Utilities, or Healthcare companies. As a result, I hold a larger number of these types of companies due to them fitting my screening criteria.

Name Ticker Sector       Value   Weight        Divies      Yield S&P Fin VL Fin VL Safety
Johnson & Johnson JNJ Health $9,726.54 4.98% $267.24 2.7475% AAA A++ 1
PepsiCo PEP Staples $6,840.97 3.50% $185.23 2.7077% A A++ 1
Visa Inc V Financial $6,222.70 3.19% $44.91 0.7217% A+ A++ 1
Exxon Mobil Corp XOM Energy $4,574.67 2.34% $161.02 3.5198% AAA A++ 1
The Coca-Cola Co KO Staples $4,531.22 2.32% $135.46 2.9895% AA A++ 1
Procter & Gamble Co PG Staples $3,930.42 2.01% $124.69 3.1725% AA- A++ 1
3M Co MMM Industrial $3,892.58 1.99% $103.16 2.6503% AA- A++ 1
Kimberly-Clark KMB Staples $2,996.47 1.53% $80.96 2.7019% A A++ 1
Colgate-Palmolive Co CL Staples $2,482.60 1.27% $54.39 2.1910% AA- A++ 1
Abbott Laboratories ABT Health $2,126.62 1.09% $52.42 2.4650% A+ A++ 1
Nestlé NSRGY Staples $1,132.36 0.58% $35.33 3.1200% AA A++ 1
Altria Group Inc MO Staples $11,928.34 6.11% $427.50 3.5839% BBB+ B+ 2
Realty Income Corp O REIT $9,669.11 4.95% $371.23 3.8394% BBB+ A 2
Philip Morris International Inc PM Staples $9,375.20 4.80% $383.47 4.0902% A B++ 2
General Mills, Inc. GIS Staples $7,567.10 3.88% $214.34 2.8325% BBB+ A+ 1
Dominion Resources, Inc D Utilities $6,987.19 3.58% $259.51 3.7140% A- B++ 2
Church & Dwight CHD Staples $5,350.99 2.74% $81.09 1.5155% BBB+ A+ 1
AT&T Inc T Telecom $4,838.90 2.48% $237.92 4.9168% BBB+ A++ 1
Kraft Heinz Co KHC Staples $4,159.47 2.13% $120.98 2.9084% BBB- A 2
McCormick & Company MKC Staples $4,102.72 2.10% $70.19 1.7109% A- A+ 1
Reynolds American Inc RAI Staples $3,949.19 2.02% $131.82 3.3380% BBB- A 2
Novo Nordisk NVO Health $3,708.95 1.90% $64.81 1.7474% AA- A++ 2
Becton Dickinson and Co BDX Health $2,850.97 1.46% $49.04 1.7200% BBB+ A++ 1
Southern Co SO Utilities $2,753.25 1.41% $115.56 4.1973% A- A 2
NextEra Energy Inc NEE Utilities $1,753.50 0.90% $51.40 2.9315% A- A 2
Air Products & Chemicals, Inc APD Materials $1,293.62 0.66% $28.84 2.2297% A A+ 1
Anheuser Busch Inbev BUD Staples $666.46 0.34% $18.14 2.7218% A- A++ 1
Mastercard Inc MA Financial $4,520.39 2.31% $35.83 0.7927% A A++ 2
Verizon Communications Inc VZ Telecom $3,590.81 1.84% $150.25 4.1844% BBB+ A++ 1
Chevron Corporation CVX Energy $2,195.90 1.12% $99.71 4.5406% AA A++ 1
HCP, Inc HCP REIT $2,151.58 1.10% $151.75 7.0531% BBB+ B++ 3
Praxair, Inc PX Materials $2,022.78 1.04% $52.66 2.6033% A A 1
McDonald's Corporation MCD Discret $2,014.80 1.03% $56.47 2.8027% BBB+ A++ 1
AbbVie Inc ABBV Health $1,846.47 0.95% $73.32 3.9707% A A 2
United Technologies Co UTX Industrial $1,830.20 0.94% $46.87 2.5608% A- A++ 1
CVS Health Corp CVS Health $1,434.03 0.73% $23.26 1.6218% BBB+ A+ 1
Xcel Energy Inc XEL Utilities $768.04 0.39% $24.91 3.2427% A- A 1
Ross Stores Inc ROST Discret $3,759.60 1.93% $34.62 0.9209% A- A 2
Apple Inc AAPL Tech $2,474.46 1.27% $46.79 1.8911% AA+ A++ 2
TJX Companies Inc TJX Discret $2,430.73 1.24% $25.92 1.0663% A+ A++ 1
Starbucks Corporation SBUX Discret $2,354.31 1.21% $30.87 1.3110% A- A++ 1
Misc Type ……….. Partial Totals Weight Yrly Dividends  Avg Yield …..832 …..9 …..82
Equity Stocks $162,806.19 83.37% $4,723.89 2.9015%
Liquid US Dollars $29,528.52 15.12%
Non-Liquid Assets $2,935.20 1.50%
. .. Equity + Misc Weight …..2 ….. …..222 …..2222 …..223
Total $195,269.91 100.00%

My largest companies are now MO, JNJ, O, PM, GIS. My portfolio is almost reaching the $200k mark. Some of my positions are starting to spill over $10k, an exciting point. I used to think $2k was a lot for a position when I started but that is the value of my smaller positions now. My perception of money has also changed in the last few years. When I started I gave a lot of emphasis over $1k and $2k trades, but now such transactions are less important to me until I start moving to amounts in the $10k mark. This is probably due to my tendency to look at everything in a total net worth percentage point of view.

My dividend income is rather low compared to the amount of asset I have, but I am finding it difficult to find stocks with dividends above 3% that are worthy of buying. It is tough when interest rates are so low. I will continue to stick with my philosophy though, that is to buy high quality with consistent earnings and consistent dividends. A lot of companies over 3% of yield do not meet that criteria and may be yield traps. I would rather hold a lower 2.5% yield than a risky company at 5% yield.

I am heavily weighted in Staples, cash, and healthcare this month. I want my 3 largest positions to be in Staples, Healthcare, and Utilities. My cash positions will stay large unless I find a good opportunity to enter on the various high quality companies on my watchlist. Since the market is at an all time high I see no rush to enter right now.

I am currently on track of hitting my 1 million dollar net worth goal. Below is a graph indicating my weekly progress since I started with goal lines into the future. You can see how a larger asset portfolio can really do a lot of work during the good times from the results in the last few weeks. A 10% rise in a $200,000 portfolio is around $20,000 and such market gyrations have been happening frequently in the last few months. My assets have been growing steadily primarily from my contributions and I hope in the future  my portfolio can do a lot of the heavy lifting by itself without me contributing.


  1. Awesome stuff YD! You're nearing in on the $200k mark which is huge. Although I know you wouldn't mind "losing" $10-20k of value to pick up better valuations for your cash. Keep up the great work and stick to your plan. All the best.

  2. You're so close to $200k. Very nice progress. I crossed over the $200k mark earlier this year, thanks to market goodness. It's a double edged sword. I love that my net worth is up, but I hate that there is very little value in the market right now. I'd love another dip so I can buy more shares. Keep up the good work.