03-13-2014, 08:34 AM
(This post was last modified: 03-13-2014, 08:36 AM by hendi_alex.)
Forward dividend rate, divided by market value of equities. IMO a person has many things that can be done with a portfolio. It can be liquidated and spent. It can be invested in different equities. It can be invested in fixed income. Return on originally invested capital, which may generate an interesting number, has no relevance to making comparisons that lead to investment among alternatives in the current market.
I don't believe in being all out or all in wrt most investment classes. For me, most weighting classes are represented by a range. Taking tech for example, if the general market for tech looks very positive, then the class weighting in our portfolio may be 20% or a little higher. If the climate looks lousy, then the tech exposure may only be 10% but probably wouldn't drop below that weighting no matter how gloomy things get. Or take DG stock weighting. In a huge downdraft, I may increase the weighting to as much as 50% of the portfolio, but at times like the present where there are few obvious bargains, the weighting may be as low as 10%. I also consider cash to represent an investment class. For us, the cash weighting usually moves between near zero weighting, to as high as 30% weighting. That depends upon lots of factors, but I view cash as both a short term safety class and also view it as an opportunity class. Cash tries to wait patiently on the sidelines, until some obvious bargain arises. Then the cash is usually deployed in an incremental way.
Our regular TDA account is structured as a pure dividend play. There is no cash allocation there, except as new deposits accumulate and wait on the right opportunity for deployment. In fact, too many opportunities materialized recently, and margin use has crept to its upper level. No new purchases will be made in that account until new cash and dividends pay the margin back down to a much lower level. Five percent current yield is the threshold yield for new purchases. Because of low current yields, the account holds no blue chip large cap DG stocks, though the class is represented in our more active IRA account.
Tickers:
CSG - Property REIT
MCY - insurance company
O - property REIT
OB - insurance company
ORI - insurance company
PBA - energy transportation pipeline
POT - fertilizer
SDRL - oil service ocean, long term platform lease
SNH - medical property REIT
SSL - utility/chemical
TGP - LNG carrier with long term contract
Current market yield equals 5.94%.
I don't believe in being all out or all in wrt most investment classes. For me, most weighting classes are represented by a range. Taking tech for example, if the general market for tech looks very positive, then the class weighting in our portfolio may be 20% or a little higher. If the climate looks lousy, then the tech exposure may only be 10% but probably wouldn't drop below that weighting no matter how gloomy things get. Or take DG stock weighting. In a huge downdraft, I may increase the weighting to as much as 50% of the portfolio, but at times like the present where there are few obvious bargains, the weighting may be as low as 10%. I also consider cash to represent an investment class. For us, the cash weighting usually moves between near zero weighting, to as high as 30% weighting. That depends upon lots of factors, but I view cash as both a short term safety class and also view it as an opportunity class. Cash tries to wait patiently on the sidelines, until some obvious bargain arises. Then the cash is usually deployed in an incremental way.
Our regular TDA account is structured as a pure dividend play. There is no cash allocation there, except as new deposits accumulate and wait on the right opportunity for deployment. In fact, too many opportunities materialized recently, and margin use has crept to its upper level. No new purchases will be made in that account until new cash and dividends pay the margin back down to a much lower level. Five percent current yield is the threshold yield for new purchases. Because of low current yields, the account holds no blue chip large cap DG stocks, though the class is represented in our more active IRA account.
Tickers:
CSG - Property REIT
MCY - insurance company
O - property REIT
OB - insurance company
ORI - insurance company
PBA - energy transportation pipeline
POT - fertilizer
SDRL - oil service ocean, long term platform lease
SNH - medical property REIT
SSL - utility/chemical
TGP - LNG carrier with long term contract
Current market yield equals 5.94%.
Alex