12-19-2021, 04:48 PM
Comments on the 16 transactions on Dec 17, 2021, after 1.5 years of watching.
The portfolio is between accumulation phase ( - 2019) and decumulation, currently 1-3 years ahead. Some 10% of the portfolio still need to be held in cash for coincidences (market drop, taxes, decumulation ...).
Set 1 of transactions:
Kicked spin-offs KD, OGN, ONL and closed SPG, a full position, with a loss of 10%.
Proceeds went into O, NNN, MRK, AMGN and ATO - 0.2 FPEs each [1].
O is now overweight 1.2 FPE, AMGN now 1.0 FPE, and ATO a new position.
Set 2:
About half of the dividends of 2021 reinvested into
TD, MDT, LMT, and INTC - 0.2 FPEs each.
TD now overweight, 1.2 FPE, LMT a new position.
Set 3:
In the none-to-low dividend section, GOOGL and AMZN got a boost of 0.4. FPEs each. AMZN now a full postion.
Set 4:
“Closed a position” of 22 CAD, a remnant from transactions in 2020. A fee of 10%, acceptable to get it out of sight. Yet I still see 1 CAD on the list.
Dividend income:
Set 1 was neutral, set 2 increased dividend income by some 1.8%.
Utilities:
That's 4% of the portfolio. After I sold D (dividend cut) and NEE (cash management) in 2020, I kept eyes open for a new no. 3. So that’s ATO, next to SO and DUK which reside at the lower end of quality measures. WEC and more are on watch.
REITs and cyclicals:
In 2020 I could not make my mind up about SPG and NNN. SPG’s cut and the erratic 20-years chart (my Fastgraphs interpretation) doesn’t sound “reliable, predictable and increasing” as some saying goes. I put AVB, ESS and FRT on watch. Some day, there might be a third REIT on board again, or just one survivor. REITs are 5% of the portfolio and will probably stay there. My favoured sector within cyclicals (supersector) are financials with 15.5%, seven stocks, includes V and MA.
Healthcare:
This is our largest sector, 22%, 8 stocks, well within our circle of competence/wellness. Outside the portfolio we hold shares of a pharma cooperative worth 3 FPE, which I’d prefer to trim. [2]
Industrials, 4%:
With LMT now we hold three: MMM, GD and LMT. In general, industrials are outside the spa and holdings may turn out as longterm swingtrades.
Outlook:
No idea when withdrawals are need. Maybe within two years. Until then I might reinvest part of the dividends, switch stock to better DGI measures or just watch.
- - - -
[1] FPE = Full Position Equivalent, used to track cost. 1 FPE is about 1/33 to 1/30 of cost. During accumulation, from 2015 to 2020, the amount of Euro per 1 FPE was increased annually. It reached a factor of 5 over 2015. Meanwhile some stocks are at 1.2 FPE. Of course I run columns for market value. Whenever gains or losses are realized, proceeds will turn to FPEs.
[2] The coop’s share price and dividends are fixed, lit(t!)eraly - until not: in 2020 they cut the dividend by 25%. Since, I try to convince my wife to fade out of the coop instead of withdrawels from the DGI portfolio.
The portfolio is between accumulation phase ( - 2019) and decumulation, currently 1-3 years ahead. Some 10% of the portfolio still need to be held in cash for coincidences (market drop, taxes, decumulation ...).
Set 1 of transactions:
Kicked spin-offs KD, OGN, ONL and closed SPG, a full position, with a loss of 10%.
Proceeds went into O, NNN, MRK, AMGN and ATO - 0.2 FPEs each [1].
O is now overweight 1.2 FPE, AMGN now 1.0 FPE, and ATO a new position.
Set 2:
About half of the dividends of 2021 reinvested into
TD, MDT, LMT, and INTC - 0.2 FPEs each.
TD now overweight, 1.2 FPE, LMT a new position.
Set 3:
In the none-to-low dividend section, GOOGL and AMZN got a boost of 0.4. FPEs each. AMZN now a full postion.
Set 4:
“Closed a position” of 22 CAD, a remnant from transactions in 2020. A fee of 10%, acceptable to get it out of sight. Yet I still see 1 CAD on the list.
Dividend income:
Set 1 was neutral, set 2 increased dividend income by some 1.8%.
Utilities:
That's 4% of the portfolio. After I sold D (dividend cut) and NEE (cash management) in 2020, I kept eyes open for a new no. 3. So that’s ATO, next to SO and DUK which reside at the lower end of quality measures. WEC and more are on watch.
REITs and cyclicals:
In 2020 I could not make my mind up about SPG and NNN. SPG’s cut and the erratic 20-years chart (my Fastgraphs interpretation) doesn’t sound “reliable, predictable and increasing” as some saying goes. I put AVB, ESS and FRT on watch. Some day, there might be a third REIT on board again, or just one survivor. REITs are 5% of the portfolio and will probably stay there. My favoured sector within cyclicals (supersector) are financials with 15.5%, seven stocks, includes V and MA.
Healthcare:
This is our largest sector, 22%, 8 stocks, well within our circle of competence/wellness. Outside the portfolio we hold shares of a pharma cooperative worth 3 FPE, which I’d prefer to trim. [2]
Industrials, 4%:
With LMT now we hold three: MMM, GD and LMT. In general, industrials are outside the spa and holdings may turn out as longterm swingtrades.
Outlook:
No idea when withdrawals are need. Maybe within two years. Until then I might reinvest part of the dividends, switch stock to better DGI measures or just watch.
- - - -
[1] FPE = Full Position Equivalent, used to track cost. 1 FPE is about 1/33 to 1/30 of cost. During accumulation, from 2015 to 2020, the amount of Euro per 1 FPE was increased annually. It reached a factor of 5 over 2015. Meanwhile some stocks are at 1.2 FPE. Of course I run columns for market value. Whenever gains or losses are realized, proceeds will turn to FPEs.
[2] The coop’s share price and dividends are fixed, lit(t!)eraly - until not: in 2020 they cut the dividend by 25%. Since, I try to convince my wife to fade out of the coop instead of withdrawels from the DGI portfolio.