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I've only really just begun to invest in dividend stocks in the last year, so not much of a nest egg built up-yet! Currently have shares in AAPL, ARR, CIM, COP, GIS, JNJ, KO, MCD, MO, MSFT, PEP, PG, PM, T, and WMT.
Currently enjoying a ROI yield of 4.81, though that is inflated by ARR and CIM, neither of which I consider to be long term investments. About 3.5 without those.
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One month later, I've since added shares in TGT, VZ, VGR and sold what I had in ARR. Also increased my positions in MO, PM, and KO.
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Only thing that jumps out at me is an increase in KO weighting while also holding PEP. These two should behave almost exactly the same with macro economic changes, so would consider them as a combined weighting rather than individual. Also, I totally agree with your assement of CIM, as just being a fair weather holding. So far portfolio is very heavy in the consumer staples area. Perhaps consider developing some diversification categories and asses how each purchase fits into that overall scheme.
Alex
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That's a nice group of stocks, Shawnjeffrey!
While it is true that KO and PEP may respond similarly to macro conditions and events, I think they are both good defensive stocks as a general matter, and I very much like the idea of holding both -- assuming you get them at good prices. Even if they respond similarly to marco events, they are by no means redundant. They perform quite differently from each other due to company-specific stuff, and as a result they tend to thrive and stagnate on separate schedules.
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I agree 100% that both holdings are a good fit. But for weighting purposes would not aggressively add to one without considering the weight of the other. I've seen folks before who considered themselves to have a diversified portfolio, yet they might have six or eight tickers that consists of BCDs and MREITs with a cumulative weighting of 40%-50%. They considered the portfolio diversified, but I considered it a disaster waiting to happen. KO and PEP are totally different animals in that regard, but establishing allocations and remaining disciplined in sticking to the plan require a good bit of forethought and followup.
Alex
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Thanks for the feedback guys.
I only just started my portfolio in august when I decided to contribute to my Roth IRA. Maxed my Roth out with 11 stocks at roughly $500 each. A starters pack you could say. Since my portfolio is so small (16k or so currently) I'm just buying what looks good to me with little thought to weighting right now. Long term I hope to be more evenly diversified than I am now though.
