My "value" portfolio

[fenders53]

(04-07-2021, 03:04 PM)stockguru Wrote:

(04-07-2021, 07:36 AM)ken-do-nim Wrote: Good morning all,

Well we've talked a lot recently about my growth strategy with the triple-leveraged funds, but today I'd like to showcase the polar opposite of those in my portfolio, the value stocks.  These are all the stocks/funds with 5%+ dividends, and any growth I get out of them is a bonus.  The last column shows their modest price increases recently.  Surprisingly, NLY is the only one slightly down on the year.  Horizon Technology Finance Corp in particular is growing nicely for a dividend payer (when I first started buying it, it was over 8%).



I might only keep these for a year or two while my monthly budget is tight.  But as long as they are not eroding either in price or dividend payout, I like the flexibility they give me.  If my budget needs it, I pull the cash out of the account.  If it doesn't, I can take the pooled dividends and invest in something pure growth or dividend growth.

Too many of the same type of stocks. All these monthly dividend names have run up and your buying near or at the top. My question is why buy 7-8 of the same like stocks. Might be be better to buy 3 and limit your risk.  I own PCI that $16.10. T, RIO, PCI, NLY ok. The rest maybe buy an O, STAG, LTC ?? These companies have a good history. 

I own MAIN and that one has run up way to much as well. In fact all these monthly dividend stocks have all run way too far 

What happens if all these correct back to their normal trading levels? Then you stuck and would have to collect the dividend for 3 years just to break even 

Anyway just something to keep in mind. I hope they all go up another 20% for you

I'm not sure why Ken even wants to keep taking theses beatings lol.  I'd cut the list in half just because it would be easier to keep an eye on them, but diversification from a single fund blowing up has some merit.  Mostly they melt down together when it hits the fan though.  There are indeed a lot of high quality funds that yield big if you catch them on a reasonable dip.  I grab RQI and ARCC every time they get hit because I know they are very well run and will work through the minefield.  20% + return with dividends and see ya til next time.  I see zero need to buy anything but proven performers.  Some are just better at not crossing the line in search of yield.  The extra 3% yield is meanigless because you a will give it back in a year or so.  Sadly they out perform my boring DGI stocks over the years but I don't own them half the time so I guess that makes the risk similar.  You can buy the very best high yielders and ride out the dips but I don't choose to.

He put astericks on "value".  It's not value, just high yield. It's a completely separate category but Ken knows that.