(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.