Friday, December 15, 2017

November 2017 Portfolio Summary

The general market has been ramping up in value quite intensely over the last several weeks. Check the plot below of the S&P500 to know what I mean.

The Consumer Staples sector was previously lagging quite hard but recently the staples sector has made a large come back. Industrials, discretionary, financials, and tech are doing very well. The price of companies are increasing which is great for people who like to look at the dollar value of their portfolio, however I care more about the dividend and it is hard to buy more shares at a good value when everything is so expensive.

I think a lot of the recent rise in prices is due to the anticipated tax reduction for corporations. A lot of companies in the USA will benefit greatly. Altria for example has been running up a lot since they pay 36% tax rate right now. Any reduction to the 20s% will help greatly improve share buybacks, EPS, and other financial metrics.

Name Ticker Sector       Value   Weight        Divies      Yield S&P Fin VL Fin VL Safety
Altria Group Inc MO Staples $38,060.45 8.86% $1,401.98 3.6835% A- B+ 2
Philip Morris International Inc PM Staples $34,910.87 8.13% $1,362.31 3.9023% A B++ 2
Johnson & Johnson JNJ Health $26,411.97 6.15% $622.94 2.3586% AAA A++ 1
Home Depot Inc HD Discret $22,867.74 5.33% $445.88 1.9498% A A++ 1
Visa Inc V Financial $22,544.30 5.25% $154.49 0.6853% A+ A++ 1
NextEra Energy Inc NEE Utilities $17,655.11 4.11% $437.95 2.4806% A- A 2
Becton Dickinson and Co BDX Health $17,179.49 4.00% $232.72 1.3546% BBB+ A++ 1
PepsiCo PEP Staples $16,139.23 3.76% $435.90 2.7009% A A++ 1
Realty Income Corp O REIT $14,617.20 3.40% $649.37 4.4425% BBB+ A 2
Ross Stores Inc ROST Discret $13,817.41 3.22% $116.42 0.8425% A- A 2
3M Co MMM Industrial $13,017.01 3.03% $257.06 1.9748% AA- A++ 1
Mastercard Inc MA Financial $12,190.71 2.84% $79.47 0.6519% A A++ 1
McCormick & Company MKC Staples $12,007.85 2.80% $246.24 2.0507% A- A+ 1
AT&T Inc T Telecom $11,430.44 2.66% $585.87 5.1255% BBB+ A++ 1
Procter & Gamble Co PG Staples $9,422.20 2.19% $283.00 3.0036% AA- A++ 1
Dominion Resources, Inc D Utilities $9,164.46 2.13% $332.43 3.6274% BBB+ B++ 2
The Coca-Cola Co KO Staples $8,377.47 1.95% $268.43 3.2042% AA- A++ 1
Automatic Data Proc, Inc ADP Tech $8,362.42 1.95% $178.30 2.1322% AA A++ 1
Illinois Tool Works Inc. ITW Industrial $8,276.14 1.93% $156.33 1.8890% A+ A++ 1
Xcel Energy Inc XEL Utilities $8,250.44 1.92% $233.96 2.8358% A- A+ 1
Medtronic plc MDT Health $7,997.72 1.86% $176.24 2.2036% A A++ 1
Church & Dwight CHD Staples $7,376.87 1.72% $114.28 1.5491% BBB+ A+ 1
Starbucks Corporation SBUX Discret $7,358.43 1.71% $151.49 2.0587% A A++ 1
Clorox Co CLX Staples $7,165.65 1.67% $163.09 2.2760% A- B++ 2
Kimberly-Clark KMB Staples $7,152.02 1.67% $234.16 3.2740% A A++ 1
TJX Companies Inc TJX Discret $6,075.56 1.41% $102.39 1.6853% A+ A++ 1
Air Products & Chemicals, Inc APD Materials $5,651.12 1.32% $133.86 2.3688% A A+ 1
McDonald's Corporation MCD Discret $5,637.26 1.31% $130.84 2.3210% BBB+ A++ 1
Kraft Heinz Co KHC Staples $5,118.00 1.19% $160.86 3.1431% BBB- A 2
Colgate-Palmolive Co CL Staples $4,641.20 1.08% $100.28 2.1607% AA- A+ 1
Stryker Corporation SYK Health $4,489.97 1.05% $54.72 1.2188% A A++ 1
WEC Energy Group, Inc. WEC Utilities $4,167.26 0.97% $135.10 3.2419% A- A+ 1
General Mills, Inc. GIS Staples $3,704.78 0.86% $127.64 3.4452% BBB+ A+ 1
Abbott Laboratories ABT Health $3,347.99 0.78% $63.94 1.9099% BBB A++ 1
General Dynamics Corporation GD Industrial $3,181.44 0.74% $53.76 1.6898% A+ A++ 1
Southern Co SO Utilities $2,992.79 0.70% $135.32 4.5215% A- A 2
Misc Type ……….. Partial Totals Weight Yr Dividends  Avg Yield …..832 …..9 …..82
Equity Stocks $410,760.99 95.65% $10,519.04 2.5609%
Investable US Dollars $13,265.19 3.09%
Miscellaneous Assets $5,399.00 1.26%
. .. Equity + Misc Weight …..2 ….. …..222 …22 …..223
Total $429,425.18 100.00%

For those that have seen my previous summaries, the portfolio weightings are largely unchanged. I am targetting stable companies that are not cyclical. I prefer stable growth to explosive growth. A lot of these companies that fit this profile are consumer staples, healthcare, and utility stocks. My cash position is around $13k right now. I will consider purchasing some more stock in the coming weeks.

My portfolio net value was flat previously for several weeks as the consumer staples was underperforming. The trend has completely reversed recently and I am now largely over my 2017 goals. I was originally planning for $400,000 this year but my portfolio is sitting near $430,000 and I believe I can pass $430k before the year ends. I am taking this time to travel for 2 weeks and enjoy the overshooting of my goals.

The recent growth in my portfolio from 400k to 430k shows how money by itself is able to do a lot of heavy lifting by itself. A 7.5% percent climb is not much but if one's investment base is large it is noticeable. 7.5% of $100k is only $7,500 but 7.5% of $1MM is $75,000. I eventually want my money pool to be so large that my money can start working for me in noticeable ways. The recent growth also shows how one must be in the market and not sell out when one is experiencing bad weeks. I was adding to consumer staples companies when that sector was weak (dollar cost averaging), sticking to my philosophy and buying better yields. Studies have shown that the market's best returns in a year are often only in a very handful of days. If one misses those few special days, one will have bad performance compared to the index. This is why I am fully invested all the time, good times and bad. It is impossible for me to know if that special day is tomorrow or next Monday.

Price is one thing, dividends to me are more important. Price is to me ephemeral. It can change one day and another day depending on the prices people want to pay. It is up to the whim of people and their emotions. Not something I want to bet my investment philosophy on. Dividends however are less prone to random fluctuations. They are dependent on the business's fundamentals. As long as the companies I hold continue to earn more and grow, the dividends will also grow or at least continue to be maintained. I will in turn use those dividends to reinvest in more companies or pay for my living expenses.

My forward annual dividends is slow and steady. The growth is like clockwork. Every share I buy adds a drop into the big bucket of annual dividends. Right now around 8 out of 12 of the months in the year, I am able to receive ~$1000 in dividends which is not so bad. This money can be used for living expenses or pleasure or buying more investments.


  1. Hi YD, Totally agree with you on the tax act. Personally I'm not too happy since my taxes will most certainly go up. The recent rise in the market (although secondary to me just like you) is partly due to the tax break corporations will get which will increase their earnings. The upside I hope to us dividend growth investors is that we should see the benefit in corporate dividend increases over the next year or so. Love your portfolio summary. One of the best I have seen. Easy to read and follow. Enough info to assess your situation, but not too much to overwhelm the reader. I bet it works well for you in managing your portfolio. Tom

  2. Congratulations on passing your 2017 goal of $400K

  3. YD,

    Amazing results. The one sentence I love is how it is evident that your portfolio can do the heavy lifting for you. Now that your portfolio is sizable, the emotional swings of Mr. Market will have a larger impact. Yes, you have seen a large run-up in companies that pay high tax rates and are starting a large tax cut down. It'll be interesting to see what the final bill looks like and if it eventually passes. IF so, I am expecting a lot of dividend increases and share buybacks when more cash becomes available.

    Take care,


  4. Congratulations on moving past your 2017 goal of $400k -- I like your long outlook chart and it looks like your well on your way to that $1M mark!

  5. Nice portfolio and I like that you track S&P credit ratings. I do the same and normally don't buy any stock below a BBB rating. I would like to have access to Value Line score but it is quite expensive.

  6. If you are in the US, check your local city's library. It's free. I have a library card from mine and have access to their Value Line's research using my library card number.