Thread Rating:
  • 0 Vote(s) - 0 Average
  • 1
  • 2
  • 3
  • 4
  • 5
The Otter Retirement Fund
#1
List of current holdings, with some present/historical valuation criteria listed in the Google Sheet below:

https://docs.google.com/spreadsheets/d/1...sp=sharing

For foreign holdings where dividends are subject to withholding taxes (like RY or TD), the withholding formula has been accounted for in the annual dividend column. I update the past 5yr dividend growth % once per year in January, using the CCC list. For companies that have outrageously high 5yr dividend growth figures that have tapered off recently, I'll use the 3yr number. 

I've stated my buy criteria and other portfolio guidelines before, but will restate them here for context. For all my non-401k holdings, my criteria for buy and hold are:

1. Large or Midcap (size matters if you are looking for stability);
2. P/E or P/AFFO (REITs) 15 or Less (ideal), or below 10yr Average (ok - 10yrs will typically take into account an entire business cycle without data that's too old to be reliable);
3. Chowder Number of 8+ for Utilities/Telcos, and 12+ for all other stocks (a good yardstick for total return in the DGI investing space);
4. 25+ years of dividend growth (ideal), or 10+ (ok), subject to exceptions for quality blue chips like BA (has paused dividend growth, but not cut it);
5. Investment-Grade Credit Rating (BBB+ or better is what I prefer);
6. Dividend Payout Ratio <75% (I will bend this rule for special cases like tobacco companies, which typically have stable cash flows and expenditures); and
7. No obvious outward signs of systemic risk to the company/its business model.

There's always a bear market somewhere with stuff that is on sale. T in the $20s while the rest of the market was booming is a recent example. It's just that more stuff is on sale when the entire market nosedives like in 2008/2009. 

I don't always make a purchase that satisfies all of my criteria, but I do try to stick to them. Having them as a handy yardstick is helpful. 

As for managing overall portfolio risk, I have rules of thumb for that, too. No holding should generate more than 5% of total dividend income, and holdings should be diversified across all GICS sectors. Satisfying that second rule of thumb took some time. Different sectors go on sale at different times for different reasons. Sometimes it seems like I will spend months buying the same stuff, until those sectors suddenly become favored again, leaving me with different options as other sectors/stocks fall out of favor. 

My goal was to basically build my own personal index fund, which pays dividends, and which bears no fees. 
Reply
#2
Excellent post!
Reply
#3
That's a nice port Otter! I'd be happy to hold 80%+ of them long-term. I believe you are diversified at this time. Smile Your goal has been met, with above average dividends even compared to the average DGI fund or the Big Index. No commissions is a beautiful thing as you can now nibble as you please.
Reply
#4
Somehow I managed to omit CHWY from the spreadsheet. Cornerstone of the portfolio. LOL

99 Holdings. Almost feels like I should find something else to make it an even 100 Big Grin
Reply
#5
(12-12-2019, 08:57 PM)fenders53 Wrote: That's a nice port Otter!  I'd be happy to hold 80%+ of them long-term.  I believe you are diversified at this time.  Smile  Your goal has been met, with above average dividends even compared to the average DGI fund or the Big Index.  No commissions is a beautiful thing as you can now nibble as you please.

The no commissions thing is really a game changer. Have been dollar cost averaging like a fiend with my worst performers lately. CTVA has been my latest target for this.
Reply
#6
Also added a TTM P/E column to the Google Sheet, to aid in determining value. Omitted that info for REITs and limited partnerships like BEP/BIP/BPY, where P/AFFO is a better valuation metric. Unfortunately, Google Finance won't import that information automatically into a Sheet.
Reply
#7
(12-13-2019, 10:49 AM)Otter Wrote: Somehow I managed to omit CHWY from the spreadsheet. Cornerstone of the portfolio. LOL

99 Holdings. Almost feels like I should find something else to make it an even 100 Big Grin

CHWY, they manufacture rawhide dog treats right?  You're always on the cutting edge and making me feel inadequate here.  Smile

Who only has 99 stocks?  Yes you need 100.  You should add Tesla, or maybe an oil driller that's leveraged 350%. We still need oil in a recession. It'll be fine. Smile  

I'd be interested in that spreadsheet for my long-term stuff if it sings and dances.
Reply
#8
Otter, nice portfolio!!
Reply
#9
I assume you threw this up for something other than an "internet high five".  What % of your port is in oil? I own the same companies BTW.  Not inclined to add unless they take a truly catastrophic hit.  What are your thoughts?
Reply
#10
(12-17-2019, 08:09 AM)fenders53 Wrote: I assume you threw this up for something other than an "internet high five".  What % of your port is in oil? I own the same companies BTW.  Not inclined to add unless they take a truly catastrophic hit.  What are your thoughts?

BP           1.53% of portfolio income
CVX         2.79%
ENB         1.05%
XOM        2.64%

I trimmed a good deal of XOM and CVX over the past few years. They used to be a much bigger percentage of my portfolio income. 8% of the portfolio income from oil/gas seems about right.
Reply




Users browsing this thread: 1 Guest(s)