(03-06-2014, 09:31 AM)EricL Wrote:(03-06-2014, 09:11 AM)fiveoh Wrote: I'm going to give it 5 years and see what happens. I'm halfway into that, and currently trailing the market.
I just checked out your portfolio again and in looking at the holdings it makes sense that you've trailed the market the last couple of years because you are concentrated more on low growth/higher yield type of companies.
Just at first glance AFL, DLR, WMT, INTC, LEG, PM and MO have all had recent struggles for one reason or another and have lagged the market.
I think this is a good defensive portfolio that will outperform in a down market and is also a good type of portfolio for someone who is ready to retire off the dividends or someone who is looking to play it safe, reinvest dividends, and expect an 8-10% annual total return.
However, if you are searching more for capital gains than dividend income you are going to need to mix in more higher growth stocks like CMI, PII, SBUX, QCOM, BLK, CHD, ROST, ABC, TJX, UNP, etc. and give up a bit on current yield.
I need to update that probably but yes you are right. It's full of blue chips, some of which haven't performed as well in the bull market. I'm not really searching for capital gains over dividends... I don't care how the gains come, just that they are there and meet or beat the market(otherwise I'm wasting my time, energy and money here).
Does more risk and volatility = higher returns? Maybe.
I see what you and the rest of the posters are saying about holding up better on a downturn. The market hasn't had a significant one in a while so I just keep watching my portfolio underperform, and wonder if it actually will hold up better in a downturn. I see now that I'm just being impatient.
I've updated my portfolio page and also included numbers for my returns vs the S&P. If anyone has any comments/suggestions on it, I'd appreciate it!
http://dividendgrowthforum.com/showthread.php?tid=229