crimsonghost

[crimsonghost747]

Right, time to share my portfolio. So here is what I have at the moment, order is largest to smallest in terms of current market value.

Raytheon
Aqua America
Northern Properties REIT
Boardwalk REIT
Inland Real Estate Corporation
Procter & Gamble
Colgate - Palmolive
Permian Basin Royalty Trust
Entertainment One
Ubiquity Networks
Philip Morris International
AT&T
Bell Canada

+bonds from BestBuy with maturity in 2021.

As you can see it's based on having dividend aristocrats and other companies with a strong long time performance, coupled with quite a bit of REITs and a few more risky ones (ETO, UBNT) with little weight.

In the future I will keep adding to these positions while buying up more bonds and looking for a financial sector company to invest in. (currently eyeing Royal Bank of Canada but it looks too expensive)

Any comments/suggestions/questions are more than welcome.

[Kerim]

Hey Crimsonghost, how far away are you from retirement? Do you have an idea about how many positions you're shooting for? And how large are your largest holdings, as a percentage of the total?

[crimsonghost747]

(01-24-2015, 11:39 AM)Kerim Wrote: Hey Crimsonghost, how far away are you from retirement? Do you have an idea about how many positions you're shooting for? And how large are your largest holdings, as a percentage of the total?

Hi! Thanks for the questions!
I have no idea how far I'm from retirement. I don't have much faith in the governments retirement scheme. (even though I live in Europe) And even if financially I could do it, I don't think I would fully retire early. I know that I need something to keep me occupied, so I'd rather switch to a part time job or run my own company instead of retiring. In any case, all of this is still very far away as I'm under 30.

I don't have any set limits when it comes to how many different stocks I want to have, however between 15 and 25 sounds reasonable to me. Add 5-10 different corporate bonds into the mix and I think I'll be satisfied with that.

Raytheon is somewhere around 20% to 25% of my portfolio.

[ChadR]

My personal opinion so take it for what it's worth, with you being under 30, I feel that you have too much in REITs and bonds. I'm knocking on 40s door and I have no bonds and about 3% in REITs. Though I do own a house and 42 acres of land so the Real Estate percentage of my net worth is probably closer to 15%. By being younger, I don't think that you should be going after the higher yielders. Go for a more middle of the road yield with a higher dividend growth rate such as PG, UL, MCD, and others yielding 2.5% to 4.0%. Nothing wrong with having current high yielders, I just wouldn't have the majority of my portfolio there with being under 30. Very good start to your portfolio. Also this is your portfolio so you are more than welcome to throw out my advice along with last night's trash.

[crimsonghost747]

ChadR all opinions and suggestions are welcome! That's why we are on this forum, right?
I partly do agree with you, it might be beneficial to try and go for some stocks with a higher dividend growth potential. Especially if we are aiming at not touching these investments for the next 20+ years. However due to personal reasons (mainly work related) I feel much more comfortable having some incoming cashflow from my investments and REITs hit the nail on the head with a decent yield and stable monthly payments. Also with IBs ridiculously low commissions I can already reinvest on a monthly basis even if I do not deposit any extra cash into my account. (which I've managed to do for the moment)

I always say that though I am under 30 I still invest like someone who is over 50. Mainly because I might have to rely on the dividend income earlier than a 50 year old with a stable job. So I do my best to build a portfolio that has a decent current yield without forgetting about the future either.

[crimsonghost747]

Well it's been 9 months since I started this thread. And it's 6am on a Sunday morning so figured maybe I'll do something productive while having my morning coffee. So time for a quick update. Complete coincidence, actually I just noticed it right now when looking at my portfolios, but Friday was the day when the total of my investments reached 50k euros for the first time. Guess that's some kind of a milestone.

Anyway, largest to smallest again:

Raytheon
Aqua America
Northern Properties REIT
Honeywell
AT&T
Colgate - Palmolive
Procter & Gamble
Trina Solar
Boardwalk REIT
Bell Canada
Canadian Imperial Bank Of Commerce
Johnson & Johnson
Inland Real Estate Corporation
Entertainment One
Ubiquity Networks
Permian Basin Royalty Trust
USO: United States Oil Fund

+bonds from BestBuy with maturity in 2021.

As you can see the list has grown quite a bit and I'm starting to reach a point where I think I have enough different companies for now. Of course I'm not completely against adding new ones but I feel like I have a pretty decent group and most likely my next few buys will be to strenghten my positions in some of these.

[Dividend Watcher]

C, nice adds with JNJ and HON in the mix now. RTN has certainly been doing quite well for the last few years.

Conspicuously missing, IMO, is a consumer staple in the food sector. They didn't take much of a hit in the latest correction. However, many are overvalued right now for their growth rates. Is that anything you're considering?

I also echo your cheer with portfolio value. Even though about 1/3 of our positions in both my and my wife's portfolio are in the red and we both still have some cash sitting in limit orders, portfolio values ended up at record highs after the August/September mayhem. More importantly, portfolio income is at record highs due to getting in on some good bargains.

[crimsonghost747]

(10-25-2015, 08:51 AM)Dividend Watcher Wrote: Conspicuously missing, IMO, is a consumer staple in the food sector. They didn't take much of a hit in the latest correction. However, many are overvalued right now for their growth rates. Is that anything you're considering?

Thanks.
Now that you mentioned it, I did notice the same a couple of days ago: I have zero companies involved in the food business. But I haven't given it a deeper thought recently. If anyone has some favourites in the industry feel free to post a couple of tickers and I'll take a look.

[Dividend Watcher]

GIS, KHC, UL for the established stalwarts although I wouldn't take any of them with less than a 3% yield.

HRL, MKC in the faster growth field.

SJM, HSY for a mix between growth & yield.

Then there's SBUX, JJSF (one I'm kicking myself in the butt about & way overvalued right now), GMCR in the more volatile, potentially riskier portion.

[crimsonghost747]

--- this is going to be quite a long read-

Ohh my, has it really been over a year since I last posted here? Might as well do another update then! It's great to be able to look into the past and see how things have been evolving.

Smallest to largest:
Raytheon
Aqua America
Northview REIT (for those of you wondering, this is the new company that came out of the merger that Northern properties underwent)
Canadian Imperial Bank of Commerce
Honeywell
AT&T
Trina Solar
Procter&Gamble
Boardwalk REIT
Johnson & Johnson
Colgate - Palmolive
Bell Canada
Ubiquity Networks
Wells Fargo
Lowe's Companies
Entertainment One
Permian Basin Royalty Trust
Orbital ATK

+ those very same bonds from bestbuy.

So overall I'm at 18 different companies now, which is starting to be in the range of what I was originally aiming for. And I must admit that I feel like this is close to the appropriate amount since I enjoy keeping up-to-date on what's going on with the companies and now the earnings seasons are starting to be quite busy if I feel like looking through all of the quarterly reports.

The one thing that I do need to work on is balancing. I never planned to have any sort of a formula when it comes to how much (either $ or %) a certain investment should be from my portfolio. Rather I've decided to buy what seems to me like the most profitable investment at the time. I'm fine with the top dogs having quite a lot of weight, however I'm a little concerned about the bottom end of the list. Trina Solar is around midway of the list but the market value of it is only 4% of my portfolio. This is where I could use some suggestions. The first thing that comes to mind is dedicating a fixed amount per month (for example 30% of the new cash I deposit) to go into buying companies where the market value of my investment is below a certain point, more or less regardless of their current valuation. But the thought of (for example) grabbing more JNJ at $120 doesn't appeal to me. So, help please!

For obvious reasons it's been really quiet on the bond front. I'd still like to have a small bond ladder (say, 5 different bonds all with different maturities more or less evenly spaced) however I don't see it as a viable option with the current yields.

Looking at this from the passive income point of view, July was the only month this year where I had less than 100 euros income from my investments. (before taxes) So the dream of having a relatively stable income from my portfolio is slowly but surely progressing. I've managed to deposit quite a bit of cash into the investment account in the recent months and that should continue so I'm feeling quite optimistic about next years dividends.

That's it for now, thanks for reading and don't hesitate to let me know what you think.

[blkflm6888]

Very nice im s newbie so im guessing you have monthly dividends with occasional qtrs. Thanks for the motivation

Sent from my SCV32 using Tapatalk

[crimsonghost747]

(11-12-2016, 03:41 AM)blkflm6888 Wrote: Very nice im s newbie so im guessing you have monthly dividends with occasional qtrs. Thanks for the motivation

The two REITs pay a stable monthly dividend and Permian Basin Royalty Trust also pays monthly but the amount varies each month. All the others pay quarterly, though there are a couple which don't pay at all for the moment.