11-24-2014, 03:42 PM
(11-24-2014, 03:22 PM)ChadR Wrote: OK. By not wanting to lose income from the portfolio, wouldn't you be better off having more positions instead of 15? Losing 1/15th of you income my be hard to handle. It's the reason that I have as many different positions as I do. Losing 2% of my income once I'm retired wouldn't cause me have to go back to work.
It is a balancing act. Losing 1/15 of this portfolio's income would not be a hardship. Once it is invested its value will be less than half of my total stock investments, and my existing investments are yielding 7% combined.
I built this list to be my highest conviction high-ish yielders. There are lots of other names I could put in this account, i.e. MCD, BAX, LXP, PG, CL, JNJ, PEP, KO, LMT, but none of them have what for me is the right combination of high-ish yield and quality.
You might notice that there are a lot of equity REITs. I am trying to become a rent collector, i.e. a landlord, once removed. I think this is a good way to collect reliable income and not need to cash out part of my portfolio to meet living expenses. My use of leverage is part of the landlord theme.