May 2016 Portfolio Summary

I am a bit late to summarize my May portfolio performance. So I will take this post to summarize how my portfolio stands 15 days after the end of May.

May was a rather positive month. The general index has went up a little, however it has been creeping back down. Overall, the market remains expensive and is near its all time highs. In the long term view, the market has been trading sideways for more than a year. Of extreme strength recently are consumer staples and utility stocks. Those are my favorite companies and it's unfortunate they are very high since I can no longer really add to them without overpaying greatly. I have however benefited from the rise in share prices since I am heavily favored in consumer staples.

Oil prices seem to have stabilized around 50 dollar mark. They are no longer as ridiculously low as they were at the start of this year. Higher oil prices has a tendency to make markets go higher nowadays since people seem to think it signals rising growth in the economy. However, I prefer lower oil prices. I have little exposure to oil and many of my companies actual see reduced expenses with lower oil. My portfolio really should benefit from the low cost of oil.

The US dollar has also been weakening. That is a good sign for my portfolio since many of my companies are multinationals like KO, PG, PM, JNJ, MMM, etc. With the weaker dollar, more foreign countries will be able to afford the US products. Those revenues generated outside will also be worth more when converted back into US dollars.

My portfolio as of 6/14/2016 is as follows:

Name	Ticker	Sector	Value	Weight	Divies	Yield	S&P Fin	VL Fin	VL Safety
Johnson & Johnson	JNJ	Health	$10,504.96	5.07%	$287.02	2.7322%	AAA	A++	1
Kimberly-Clark	KMB	Staples	$6,871.55	3.31%	$190.98	2.7792%	A	A++	1
PepsiCo	PEP	Staples	$7,814.64	3.77%	$227.86	2.9158%	A	A++	1
Visa Inc	V	Financial	$6,312.24	3.04%	$44.99	0.7127%	A+	A++	1
The Coca-Cola Co	KO	Staples	$5,383.48	2.60%	$167.34	3.1083%	AA	A++	1
Exxon Mobil Corp	XOM	Energy	$5,027.83	2.42%	$166.80	3.3175%	AA+	A++	1
Procter & Gamble Co	PG	Staples	$4,963.15	2.39%	$159.58	3.2154%	AA-	A++	1
3M Co	MMM	Industrial	$3,920.08	1.89%	$103.84	2.6490%	AA-	A++	1
Abbott Laboratories	ABT	Health	$2,874.67	1.39%	$79.39	2.7616%	A+	A++	1
Automatic Data Proc, Inc	ADP	Tech	$2,902.92	1.40%	$70.34	2.4231%	AA	A++	1
Colgate-Palmolive Co	CL	Staples	$2,527.32	1.22%	$54.69	2.1640%	AA-	A++	1
Nike Inc	NKE	Discret	$2,006.42	0.97%	$23.73	1.1826%	AA-	A++	1
Altria Group Inc	MO	Staples	$12,461.27	6.01%	$431.28	3.4609%	BBB+	B+	2
Realty Income Corp	O	REIT	$10,056.66	4.85%	$373.57	3.7146%	BBB+	A	2
Philip Morris International Inc	PM	Staples	$9,483.14	4.57%	$387.34	4.0845%	A	B++	2
General Mills, Inc.	GIS	Staples	$7,633.18	3.68%	$215.94	2.8290%	BBB+	A+	1
AT&T Inc	T	Telecom	$7,105.66	3.43%	$337.86	4.7548%	BBB+	A++	1
Dominion Resources, Inc	D	Utilities	$6,827.78	3.29%	$259.51	3.8007%	A-	B++	2
Church & Dwight	CHD	Staples	$5,713.59	2.76%	$81.39	1.4244%	BBB+	A+	1
Southern Co	SO	Utilities	$5,565.71	2.68%	$242.88	4.3639%	A-	A	2
Kraft Heinz Co	KHC	Staples	$4,497.66	2.17%	$121.87	2.7097%	BBB-	A	2
McCormick & Company	MKC	Staples	$4,074.81	1.97%	$70.52	1.7307%	A-	A+	1
Reynolds American Inc	RAI	Staples	$3,964.89	1.91%	$131.82	3.3248%	BBB-	A	2
Becton Dickinson and Co	BDX	Health	$3,139.24	1.51%	$49.04	1.5620%	BBB+	A++	1
Hormel Foods Corporation	HRL	Staples	$2,679.65	1.29%	$45.25	1.6885%	A	A	1
NextEra Energy Inc	NEE	Utilities	$1,846.12	0.89%	$51.40	2.7844%	A-	A	2
Air Products & Chemicals, Inc	APD	Materials	$1,288.70	0.62%	$30.81	2.3905%	A	A+	1
Verizon Communications Inc	VZ	Telecom	$6,162.92	2.97%	$262.85	4.2650%	BBB+	A++	1
Mastercard Inc	MA	Financial	$4,446.10	2.14%	$35.91	0.8076%	A	A++	2
Chevron Corporation	CVX	Energy	$2,384.00	1.15%	$100.75	4.2259%	AA	A++	1
AbbVie Inc	ABBV	Health	$1,943.92	0.94%	$73.99	3.8063%	A	A	2
Praxair, Inc	PX	Materials	$1,973.81	0.95%	$52.66	2.6679%	A	A	1
McDonald's Corporation	MCD	Discret	$1,943.27	0.94%	$56.47	2.9059%	BBB+	A++	1
United Technologies Co	UTX	Industrial	$1,864.49	0.90%	$48.64	2.6090%	A-	A++	1
Xcel Energy Inc	XEL	Utilities	$1,825.75	0.88%	$58.03	3.1783%	A-	A	1
Ross Stores Inc	ROST	Discret	$3,455.07	1.67%	$34.62	1.0020%	A-	A	2
TJX Companies Inc	TJX	Discret	$2,358.79	1.14%	$32.20	1.3650%	A+	A++	1
Apple Inc	AAPL	Tech	$2,206.08	1.06%	$51.61	2.3394%	AA+	A++	2
Starbucks Corporation	SBUX	Discret	$2,151.90	1.04%	$30.98	1.4396%	A-	A++	1
Misc	Type	………..	Partial Totals	Weight	Yrly Dividends	Avg Yield	…..832	…..9	…..82
Equity	Stocks		$180,163.37	86.88%	$5,245.73	2.9117%
Liquid	US Dollars		$24,892.49	12.00%
Non-Liquid	Assets		$2,303.20	1.11%
.	..	…	Equity + Misc	Weight	…..2	…..	…..222	…..2222	…..223
Total			$207,359.06	100.00%

I have crossed the $200,000 mark and am now shooting for hitting my next milestone. My first milestone was $100k. My upcoming milestones are 1/4 Million, 1/2 Million, and 3/4 Million. I believe by the end of this year I can have a 1/4 of a million dollars. That will mean I am 1/4 of my way to my $1M goal! Although it will still take several years to hit the lovely $1M, I seem to be on schedule.

Right now this portfolio is pulling in a bit more than $5.2k in dividends per year. From my calculations, the dividends of my companies are growing on average by 8% this year and they average a 2.9% yield. So if I didn't contribute anymore my income from dividends will still be able to at least grow by around 10-11% a year. Not too shabby.

Below is a breakdown showing the weightings and sector of my portfolio. I have started new positions in Nike (NKE) and Hormel (HRL) this last month. I am heavily weighted in US dollars at the moment. I do plan to spend some of these in the coming weeks on higher yielding stocks to boost my dividend income. It is hard to find reasonable priced stocks at this moment in time so my decision making is rather slow.

- My stock in Altria (MO) has performed extraordinarily. It is one of the best performers in my portfolio at the moment. My position sits now at a double sized position of $12,400.
- The stable dividend growth company Johnson and Johnson (JNJ) has also done very well and now sits at $10,500. Their earnings and dividend growth have been excellent so far.
- Realty Income (O) has seen large share price increases and is now severely overpriced, my holding sits at $10,000. I do not recommend adding to it here. It yields far too low for a REIT.
- And lastly of mention, Philip Morris (PM) has risen from its sideways movement from the weakening US dollar and now sits at $9500.

In my earlier post I have listed the dividends I have received in May. They totaled $385 for May 2016. As of now, looking forward, I expect my dividends to be over $400 for each month with the 3/6/9/12 months hitting close to $500. By the end of this year I hope I can reach $500 average for every month in dividends. That is more than enough at this point to cover for my food and utility bills. I, however, take this cash and reinvest the proceeds right back into the companies that produced them. I am of the opinion that one should reinvest the dividends to the same companies instead of picking stocks that one thinks is undervalued. I want to see all of my positions grow and I want my strong positions to get even stronger. Usually the best high quality companies will remain overvalued as they continue to grow. I have no problem paying for quality.

Stay tuned for next month's report.

-YD