Sunday, May 1, 2016

April 2016 Portfolio Summary

Compared to last month my net worth has increased a tiny bit. Almost scraping the $200k surface.



There have been improvements in the US Dollar strength. The dollar has been getting weaker which helps my portfolio since a lot of my companies are multinationals that benefit from selling more goods from a weaker dollar. The SP500 has maintained appreciable highs so there are not any decent bargains. The price of oil also seems to be stabilizing somewhat which helps my smaller positions in energy companies. Oil was down all the way at $26 earlier this year. But now it is around $46.

There have been slight pullbacks in the technology sector but not many of those companies fit my investment philosophy. The consumer staples sector has run up considerably. Since my portfolio is mainly consumer staples I have benefited from that run up. REITs and utilities and industrials too have run up a lot.

This portfolio's goal is income replacement. Most people wake up everyday to go to work. They are reliant on that paycheck to survive. My end goal is to have multiple sources of income besides my work paycheck. Eventually my alternate income sources will be able to sustain my living costs. My investment philosophy is to purchase assets that generate consistent and growing income. This can be either from purchasing parts of public companies, real estate rental, or other forms of business. At the moment I am more heavily pursuing the purchase of publicly traded companies but eventually want to diversify to other forms of business.

Currently the businesses that I buy are predominantly non-cyclical. They offer products and services that people need no matter the economic condition. These include products like food, drinks, utilities, medicine, toilet paper, tobacco, and soap. I like to emphasize quality. I usually will only consider companies that are investment grade, preferring to buy only those that are rated A- or above. The chart below summarizes my holdings. The highest quality companies in my portfolio, in my opinion, are highlighted with their entire row in green at the top of the chart. These are the businesses that I find least likely to fail based on their financial strength and moats.

Name Ticker Sector       Value   Weight        Divies      Yield S&P Fin VL Fin VL Safety
Johnson & Johnson JNJ Health $9,983.98 5.06% $267.24 2.6767% AAA A++ 1
PepsiCo PEP Staples $6,786.91 3.44% $185.23 2.7292% A A++ 1
Visa Inc V Financial $6,194.63 3.14% $44.91 0.7250% A+ A++ 1
Exxon Mobil Corp XOM Energy $4,874.65 2.47% $161.02 3.3032% AAA A++ 1
The Coca-Cola Co KO Staples $4,367.51 2.21% $136.48 3.1250% AA A++ 1
Procter & Gamble Co PG Staples $3,769.97 1.91% $126.10 3.3450% AA- A++ 1
3M Co MMM Industrial $3,889.09 1.97% $103.16 2.6526% AA- A++ 1
Kimberly-Clark KMB Staples $2,772.85 1.41% $81.51 2.9395% A A++ 1
Colgate-Palmolive Co CL Staples $2,472.84 1.25% $54.39 2.1997% AA- A++ 1
Abbott Laboratories ABT Health $1,960.79 0.99% $52.42 2.6735% A+ A++ 1
Nestlé NSRGY Staples $1,131.76 0.57% $35.31 3.1200% AA A++ 1
Altria Group Inc MO Staples $11,967.02 6.07% $431.28 3.6039% BBB+ B+ 2
Realty Income Corp O REIT $9,224.13 4.68% $372.39 4.0372% BBB+ A 2
Philip Morris International Inc PM Staples $9,315.10 4.72% $387.34 4.1582% A B++ 2
General Mills, Inc. GIS Staples $7,186.66 3.64% $215.58 2.9997% BBB+ A+ 1
Dominion Resources, Inc D Utilities $6,623.88 3.36% $259.51 3.9177% A- B++ 2
Church & Dwight CHD Staples $5,293.88 2.68% $81.09 1.5318% BBB+ A+ 1
AT&T Inc T Telecom $4,869.88 2.47% $240.86 4.9459% BBB+ A++ 1
Kraft Heinz Co KHC Staples $4,136.80 2.10% $121.87 2.9461% BBB- A 2
McCormick & Company MKC Staples $3,845.20 1.95% $70.52 1.8341% A- A+ 1
Reynolds American Inc RAI Staples $3,891.91 1.97% $131.82 3.3871% BBB- A 2
Novo Nordisk NVO Health $3,766.33 1.91% $64.81 1.7207% AA- A++ 2
Becton Dickinson and Co BDX Health $2,995.29 1.52% $49.04 1.6371% BBB+ A++ 1
Southern Co SO Utilities $2,668.04 1.35% $115.56 4.3313% A- A 2
NextEra Energy Inc NEE Utilities $1,736.81 0.88% $51.40 2.9597% A- A 2
Air Products & Chemicals, Inc APD Materials $1,298.79 0.66% $30.62 2.3579% A A+ 1
Anheuser Busch Inbev BUD Staples $658.66 0.33% $18.14 2.7541% A- A++ 1
Mastercard Inc MA Financial $4,573.20 2.32% $35.83 0.7836% A A++ 2
Verizon Communications Inc VZ Telecom $3,424.26 1.74% $151.92 4.4366% BBB+ A++ 1
Chevron Corporation CVX Energy $2,380.41 1.21% $99.71 4.1887% AA A++ 1
HCP, Inc HCP REIT $2,232.07 1.13% $151.75 6.7987% BBB+ B++ 3
Praxair, Inc PX Materials $2,061.75 1.05% $52.66 2.5541% A A 1
McDonald's Corporation MCD Discret $2,006.40 1.02% $56.47 2.8145% BBB+ A++ 1
AbbVie Inc ABBV Health $1,961.59 0.99% $73.32 3.7377% A A 2
United Technologies Co UTX Industrial $1,910.75 0.97% $46.87 2.4528% A- A++ 1
CVS Health Corp CVS Health $1,380.74 0.70% $23.36 1.6915% BBB+ A+ 1
Xcel Energy Inc XEL Utilities $739.12 0.37% $25.11 3.3975% A- A 1
Ross Stores Inc ROST Discret $3,640.35 1.85% $34.62 0.9510% A- A 2
Apple Inc AAPL Tech $2,108.88 1.07% $46.79 2.2189% AA+ A++ 2
TJX Companies Inc TJX Discret $2,339.40 1.19% $32.09 1.3717% A+ A++ 1
Starbucks Corporation SBUX Discret $2,169.50 1.10% $30.87 1.4227% A- A++ 1
Misc Type ……….. Partial Totals Weight Yrly Dividends  Avg Yield …..832 …..9 …..82
Equity Stocks $160,611.77 81.43% $4,750.99 2.9581%
Liquid US Dollars $34,073.02 17.27%
Non-Liquid Assets $2,557.60 1.30%
. .. Equity + Misc Weight …..2 ….. …..222 …..2222 …..223
Total $197,242.39 100.00%

In April 2016 I generated $341 in dividends. The dividend report is in the earlier post. My Dollar cash position has grown from $29k to $34k. My monster positions are in Cash, MO, JNJ, PM, O, and GIS. Some readers may be wondering why I have such a ginormous cash position. I am in the process of saving for my first property purchase, so I need to save up enough for the 20% down payment. It's an annoying process but I want to eventually move away from renting to building some equity in a place that I can call my own.


That is the conclusion of this month's report. Everything seems to be going as planned and there hasn't been much surprises so far. Happy investing.    -YD

1 comment:

  1. Nice dividend payout and i like the way you present with sector information.

    ReplyDelete