Ron's portfolio in retirement

[rnsmth]

Now that the last two companies I wanted to take to full weight positions in our portfolios are approaching full positions (TU and STOR), I am hunting for the next one to add to the stable, in case that is the choice I make (instead of making any current positions overweight or more overweight). 

The four that come up in my screen for a deeper look are: ALL, BMO, SNA and TROW.

Not only that, but with the dividend reinvestments so far this year and with a few raises and NIE's special dividend, we a have reached the next intermediate way station in route to our main goal, namely the average monthly dividends now are a wee bit higher than both of Kathy's pensions combined.  Have been working on this for a decade, and the dividend growth (in dollars and cents) has been accelerating.  

Onward and upward.

[cemanuel]

The four that come up in my screen for a deeper look are: ALL, BMO, SNA and TROW.

I don't own any of them - but all four are on my watch list for the IRA in 3 weeks. I'm just now starting to dig into what to buy. Let us know what you decide.

[rnsmth]

It was a so so week in Ron's dividend world

Got one divvy increase, a disappointing one, from GILD - but it was an increase. Looks like account balances declined a little, but that is not big deal.

I did a little buying, which along with the divvy increase once again gives us a all time dividend/distribution forward 12 month estimate high of all times.

Feb is one of our smaller dividend months, but March comes in as a lion.

Upcoming dividend announcements from: CSCO, DLR, JNJ, KMI, PEP, SO, and UGI.

[rnsmth]

It was an okay week in Ron's dividend land. Februrary is a slow month, so just got one dividend this week, TXN. Used the proceeds to buy some STOR.
Got a nice raise from PEP announced last week, 7%. It was higher than last year's PEP raise of 5.1%, so I like that. It was high enough to make me smile, but not high enough for a fist pump .

This coming Friday is SO's ex-div date. That might be significant because SO is both a bit overvalued and a bit overweight - those conditions make it a candidate for a trim. Here is what SSD writes about the valuation:

+++
SO's current dividend yield of 3.95% is 13% below its 5-year average of 4.52%. The stock could be overvalued unless you believe the company's long-term outlook has strengthened.

In addition, SO's forward P/E ratio of 19.7 is well above its 5-year average of 17.3. Simply put, the stock looks pricey compared to how the market has valued it in recent years.
+++

I am strongly leaning in the direction of trimming SO back to a full position as I type this. I would spend the trim on and end up with full positions in STOR, TU - and still have one in SO.

While I call it my @peace4 strategy, trimming overweight and overvalued positionsand reinvesting proceeds into companies with faster dividend growth, there are many more of us who do that from time to time. I guess it could be called Reinvest, Rinse and Repeat - the Triple R's.

As thing are looking now - with no further dividend increases (and there will be a couple of more in Feb.) no further dividend reinvestments (and there will be) or dividend/distribution cuts and our 2022 dividend increase over 2021 will be about 12%, so I am targetting a 14% portfolio income growth for 2022. I would be very pleased with that.

As to the next company up? It is looking like it will be a new company, TROW, but I will review that later in Feb and March as I get ready to reinvestment the next 3 or 4 batches of dividends accumulated for reinvestment.

Have a great weekend everyone!!

[fenders53]

If you are going to sell UTEs, sooner is probably better than later. They are finally starting to struggle with coming interest rate hikes,

[rnsmth]

(02-12-2022, 09:13 AM)fenders53 Wrote: If you are going to sell UTEs, sooner is probably better than later.   They are finally starting to struggle with coming interest rate hikes,

I am not going to sell utes.  I am talking about trimming one ute back to full weight while taking some profits from it.  

Utes will be, as they have in past rising rate envirnoments, just fine AND still defensive. I will keep a high allocation to them and doubt that any of mine will cut their dividends. No good reason to engage in wholesale selling of Utility companies.

[fenders53]

(02-12-2022, 09:24 AM)rnsmth Wrote:

(02-12-2022, 09:13 AM)fenders53 Wrote: If you are going to sell UTEs, sooner is probably better than later.   They are finally starting to struggle with coming interest rate hikes,

I am not going to sell utes.  I am talking about trimming one ute back to full weight while taking some profits from it.  

Utes will be, as they have in past rising rate envirnoments, just fine AND still defensive.  I will keep a high allocation to them and doubt that any of mine will cut their dividends.  No good reason to engage in wholesale selling of Utility companies.

I don't think I suggested that.  You said you were selling some SO.  That's why I commented.  I'd do it soon.  I am about the biggest fan of utilities you will ever find.

[rnsmth]

I said I was trimming SO back to a full weight position, and that is what I am considering after its ex-div date this Friday.  I am surrent abouty 19% utilities and that will not change by much.  That weighting does not include my position in UTG.

I regularly take some profits in selected overweight and overvalued positions.  That is AND overvalued, not OR overvalued.  I then take those proceeds and invest them in dividend growth stocks with faster dividend growth rates.  

Just routine portfolio management moves.

[fenders53]

I'm sorry I commented. Carry on.

[rnsmth]

(02-12-2022, 09:45 AM)fenders53 Wrote: I'm sorry I commented.  Carry on.

I am not.  Gave me a chance to clarify.

Thank you.

[rnsmth]

+++As thing are looking now - with no further dividend increases (and there will be a couple of more in Feb.) no further dividend reinvestments (and there will be) or dividend/distribution cuts and our 2022 dividend increase over 2021 will be about 12%, so I am targetting a 14% portfolio income growth for 2022. I would be very pleased with that.+++

I looked at the potential in 2022 for dividend growth. I was too modest in the part I quoted.

I took our January dividends received and added the SSD projections (based on current share counts and dividend rates) for the rest of the year.
I am already at a projected 14% portfolio income growth for 2022. So, I am revising my goal and now seeking 16% increase in dividend/distribution income for 2022.

I think I will get there, and be delightfully laughing and celebrating.

Reply

[rnsmth]

A more active week than usual in Ron's dividend land

1) On the announcement of a 3rd year of a penny a quarter increase in their dividend (2.7% increase), I liquidated CSCO. Had previously trimmed it twice. No too bad, had about a 20% gain in the position in a relatively short time period.

Used the funds to fund positions in AMGN and TROW. TROW is now a .75 weight position and AMGN smaller, at a .20 weight. It will get built using accumulated dividends over the next year or so.

TROW's most recent dividend increase was 11% while AMGN's was 10%.

2) Trimmed SO some. It is still an overweight position. Used the proceeds on TROW and put some left over funds into SCHD.

Net results of these moves is increased dividend income and increased dividend growth.. Looking at an estimated 15% or so increase in dividend/distribution in 2022 over 2021.

Have good weekends!