The portfolio I hold emphasizes earnings consistency, anti-recessionary businesses, dividend consistency, and strong financial credit ratings. My favorite industries are in the Staples, Healthcare, and Utilities businesses. These businesses offer products and services that everybody needs in order to live a modern lifestyle. In recessions, people will still use the bathroom, eat food, and pay for electricity. I want to have income generated from these types of businesses since they have a higher guarantee on dividend safety and dividend growth. In the past recessions that have hit the world, many of the companies that have went bankrupt or nearly collapsed offer products that nobody "must have". These can include subprime lenders, restaurants, theme parks, movie theaters, coffee baristas, auto manufacturers, jewelry, and home builders.
At the time that I am writing this post, the S&P500 has hit an all time high. Even after the Brexit drop, the S&P500 was relentless in climbing back up. We have broke the resistance levels that have kept the market range bound for the last 2 years.
The market is indeed expensive. However, I will continue to add more to companies since my focus is more on acquiring income instead of timing the market for capital gains. If my holding falls in share value, I am not at all concerned as long as their income continues to grow. Since my time frame is in 30+ years, I do not plan to sell my holdings and am only concerned with the earnings or cashflow supporting the dividend payouts.
Right now, I have 3 brokerage account. I use Fidelity for my Roth IRA, Capital One for my Taxable account, and my employer's retirement provider for my 401k.
My breakdown right now is around:
$16k - Roth IRA
$168k - Taxable
$45k - 401k
As of 7/31/2016 my portfolio holdings are the following below. The top positions are highlighted green because those are my core positions with the highest quality. Quality is determined by financial strength and safety. These companies are usually larger, have long track records, strong moats, have strong balance sheets, and have been paying dividends for a long time. The green companies in the middle are still high quality but have lower ratings. Yellow and Red companies are what I consider Supporting and Speculative positions.
Name | Ticker | Sector | Value | Weight | Divies | Yield | S&P Fin | VL Fin | VL Safety |
Johnson & Johnson | JNJ | Health | $15,615.20 | 6.42% | $399.02 | 2.5553% | AAA | A++ | 1 |
PepsiCo | PEP | Staples | $8,258.99 | 3.40% | $228.24 | 2.7635% | A | A++ | 1 |
Abbott Laboratories | ABT | Health | $6,968.41 | 2.87% | $161.95 | 2.3240% | A+ | A++ | 1 |
Kimberly-Clark | KMB | Staples | $6,749.13 | 2.78% | $191.72 | 2.8406% | A | A++ | 1 |
Visa Inc | V | Financial | $6,246.07 | 2.57% | $44.81 | 0.7175% | A+ | A++ | 1 |
3M Co | MMM | Industrial | $6,166.48 | 2.54% | $153.51 | 2.4893% | AA- | A++ | 1 |
The Coca-Cola Co | KO | Staples | $5,255.21 | 2.16% | $168.63 | 3.2088% | AA- | A++ | 1 |
Procter & Gamble Co | PG | Staples | $5,096.53 | 2.10% | $159.58 | 3.1312% | AA- | A++ | 1 |
Medtronic, Inc. | MDT | Health | $4,951.31 | 2.04% | $97.18 | 1.9628% | A | A++ | 1 |
Exxon Mobil Corp | XOM | Energy | $4,945.54 | 2.03% | $166.80 | 3.3727% | AA+ | A++ | 1 |
Nike Inc | NKE | Discret | $3,880.34 | 1.60% | $44.75 | 1.1532% | AA- | A++ | 1 |
Stryker Corporation | SYK | Health | $3,060.44 | 1.26% | $40.01 | 1.3072% | A | A++ | 1 |
Automatic Data Proc, Inc | ADP | Tech | $2,968.39 | 1.22% | $70.75 | 2.3834% | AA | A++ | 1 |
Colgate-Palmolive Co | CL | Staples | $2,609.35 | 1.07% | $54.69 | 2.0959% | AA- | A++ | 1 |
Altria Group Inc | MO | Staples | $12,971.18 | 5.34% | $433.01 | 3.3383% | A- | B+ | 2 |
Realty Income Corp | O | REIT | $11,237.73 | 4.62% | $375.80 | 3.3441% | BBB+ | A | 2 |
Philip Morris International Inc | PM | Staples | $10,348.06 | 4.26% | $421.11 | 4.0694% | A | B++ | 2 |
AT&T Inc | T | Telecom | $8,456.54 | 3.48% | $375.06 | 4.4352% | BBB+ | A++ | 1 |
General Mills, Inc. | GIS | Staples | $8,436.38 | 3.47% | $225.31 | 2.6707% | BBB+ | A+ | 1 |
Kraft Heinz Co | KHC | Staples | $7,274.18 | 2.99% | $193.66 | 2.6623% | BBB- | A | 2 |
Dominion Resources, Inc | D | Utilities | $7,252.48 | 2.98% | $260.28 | 3.5888% | A- | B++ | 2 |
Reynolds American Inc | RAI | Staples | $5,860.64 | 2.41% | $196.68 | 3.3560% | BBB | A | 2 |
Southern Co | SO | Utilities | $5,801.01 | 2.39% | $242.88 | 4.1869% | A- | A | 2 |
Church & Dwight | CHD | Staples | $5,559.06 | 2.29% | $80.35 | 1.4454% | BBB+ | A+ | 1 |
Becton Dickinson and Co | BDX | Health | $5,239.50 | 2.16% | $78.59 | 1.5000% | BBB+ | A++ | 1 |
Mastercard Inc | MA | Financial | $4,476.28 | 1.84% | $35.72 | 0.7980% | A | A++ | 1 |
McCormick & Company | MKC | Staples | $4,192.25 | 1.72% | $70.52 | 1.6822% | A- | A+ | 1 |
Air Products & Chemicals, Inc | APD | Materials | $3,945.81 | 1.62% | $90.84 | 2.3022% | A | A+ | 1 |
Hormel Foods Corporation | HRL | Staples | $3,770.15 | 1.55% | $58.55 | 1.5529% | A | A | 1 |
NextEra Energy Inc | NEE | Utilities | $3,418.35 | 1.41% | $92.73 | 2.7126% | A- | A | 2 |
Home Depot Inc | HD | Discret | $3,244.56 | 1.33% | $64.78 | 1.9965% | A | A++ | 1 |
Verizon Communications Inc | VZ | Telecom | $6,444.37 | 2.65% | $262.85 | 4.0787% | BBB+ | A++ | 1 |
McDonald's Corporation | MCD | Discret | $3,746.66 | 1.54% | $113.37 | 3.0259% | BBB+ | A++ | 1 |
Xcel Energy Inc | XEL | Utilities | $3,400.40 | 1.40% | $105.15 | 3.0923% | A- | A+ | 1 |
United Technologies Co | UTX | Industrial | $3,254.92 | 1.34% | $79.82 | 2.4524% | A- | A++ | 1 |
Praxair, Inc | PX | Materials | $1,981.18 | 0.81% | $51.00 | 2.5742% | A | A | 1 |
Ross Stores Inc | ROST | Discret | $3,973.73 | 1.63% | $34.71 | 0.8734% | A- | A | 2 |
TJX Companies Inc | TJX | Discret | $2,529.99 | 1.04% | $32.20 | 1.2726% | A+ | A++ | 1 |
Starbucks Corporation | SBUX | Discret | $2,247.93 | 0.92% | $30.98 | 1.3781% | A- | A++ | 1 |
Misc | Type | ……….. | Partial Totals | Weight | Yrly Dividends | Avg Yield | …..832 | …..9 | …..82 |
Equity | Stocks | $221,834.75 | 91.25% | $5,987.57 | 2.6991% | ||||
Liquid | US Dollars | $19,701.86 | 8.10% | ||||||
Non-Liquid | Assets | $1,572.00 | 0.65% | ||||||
. | .. | … | Equity + Misc | Weight | …..2 | ….. | …..222 | …..2222 | …..223 |
Total | $243,108.61 | 100.00% |
In the previous blog post, I highlighted that in July 2016 I have received $444 in dividends. This is a large raise over the $309 I received last July. Income continues to grow month after month. Stay tuned for next month's report.
-YD
Well done YD! I love the last graph showing 'goal vs results.' That is such an informative graph showing your diligence over the years. Keep it up! I'm afraid that the market won't keep up its share of the work, but you are well on your way!
ReplyDeleteGreat job YD! The markets surge higher has really boosted our net worth so far this year which is fun to watch but I wouldn't be surprised to see it drop because the market sure does look expensive. That doesn't mean that you can't find value out there but it's much harder to find now a days.
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