Tuesday, June 14, 2016

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.


1 comment:

  1. Impressive growth there, YD -- congratulations! I really like how you present your portfolio, including the S&P and Value Line ratings and color coding them so one can see which stocks are best of the best. You're making great progress on you guidance chart as well. Keep up the good work!

    FerdiS, DivGro