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12-22-2021, 01:21 PM
(This post was last modified: 12-22-2021, 01:39 PM by rnsmth.)
I am going to post occasionally about some characteristics of my portfolio. Today's post will be about dividend yields as lof today.
- Thirty-three percent of our holdings (by market value) yield between 2% and 3%,
PG, CSCO, TXN, JNJ, PEP, DLR, SCHD and JNJ
- Thirty percent yield between 3% and 4%
UGI, WEC, LMT, EOG, D, TD, GILD and SO
- Sixteen percent yield between 4% and 5%
O, CM, TU, and VZ
- The remaining 21% yield over 6%
PBA, UTG, ETO, KMI, ENB and PTY (UTG, ETO NIE and PTY are CEFs)
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12-22-2021, 01:38 PM
(This post was last modified: 12-23-2021, 06:47 AM by cemanuel.)
Gonna try. We'll see how it formats. This is from my 3rd quarter portfolio review, end of September: https://seekingalpha.com/instablog/48196...retirement
Sorted by Yield
Category Stocks % of Account % of Dividends
High, 4% & above ABBV, DUK, GILD, LYB, MO, OGE, PM, PNW, T, VZ 30.36% 60.62%
Medium, 2-3.99% ADM, BBY, CVS, GD, ITW, JNJ, LMT, PFE 24.71% 24.82%
Low, < 2% AAPL, AOS, GOOGL, MSFT, NEE, UNH, WSM 44.06% 14.56%
Sorted by 5-yr Dividend Growth Rate
Category Stocks % of Account % of Dividends
High, 10% & above ABBV, AOS, BBY, GD, ITW, MSM, NEE, UNH 29.30% 30.27%
Medium, 4-9.99% AAPL, ADM, GILD, JNJ, LMT, LYB, MO, MSFT, OGE, PFE, PNW, WSM 52.44% 50.20%
Low, < 4% CVS, DUK, GOOGL, PM, T, VZ 17.39% 19.53%
Simpler than I thought so long as the post resembles what I see in the editor. I no longer own GILD, JNJ, PNW, DUK
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12-22-2021, 03:46 PM
(This post was last modified: 12-22-2021, 04:46 PM by Scooterd.)
(12-22-2021, 01:38 PM)cemanuel Wrote: Gonna try. We'll see how it formats. This is from my 3rd quarter portfolio review, end of September: https://seekingalpha.com/instablog/48196...retirement
Sorted by Yield
Category Stocks % of Account % of Dividends
High, 4% & above ABBV, DUK, GILD, LYB, MO, OGE, PM, PNW, T, VZ 30.36% 60.62%
Medium, 2-3.99% ADM, BBY, CVS, GD, ITW, JNJ, LMT, PFE 24.71% 24.82%
Low, < 2% AAPL, AOS, GOOGL, MSFT, NEE, UNH, WSM 44.06% 14.56%
Sorted by 5-yr Dividend Growth Rate
Category Stocks % of Account % of Dividends
High, 10% & above ABBV, AOS, BBY, GD, ITW, MSM, UNH 29.30% 30.27%
Medium, 4-9.99% AAPL, ADM, GILD, JNJ, LMT, LYB, MO, MSFT, OGE, PFE, PNW, WSM 52.44% 50.20%
Low, < 4% CVS, DUK, GOOGL, PM, T, VZ 17.39% 19.53%
Simpler than I thought so long as the post resembles what I see in the editor. I no longer own GILD, JNJ, PNW, DUK
I was quite surprised to read you let JNJ go.
Johnson & Johnson (JNJ) will split into two public companies within the next 18 to 24 months. One will get its many consumer brands, while the other will get its pharmaceuticals, medical devices, and medical technology businesses.
This should unlock Growth and Value. I could never part with JNJ, After holding for decades my cost basis hovers around Zero. Just slow and steady reinvestment of Dividends.
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I only had the one buy of it. I first picked it up in late 2020. When I moved my retirement up a year it, along with the others I mentioned, except GILD, were companies I had just a single buy of and hadn't had the chance to build the positions. They were so small I decided they weren't worth the time I'd spend on them. PNW had some issues but even with them I likely wouldn't have sold otherwise. And as traditional utes go, I really like Duke.
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Interesting way to look at your portfolio -- great idea. Here's mine, with a little more detail even. I broke it up into:
High: >5%
Medium: 2.5 to 5%
Low: .01% to 2.5%
Zero: zero dividend
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(12-22-2021, 11:40 PM)Kerim Wrote: Interesting way to look at your portfolio -- great idea. Here's mine, with a little more detail even. I broke it up into:
High: >5%
Medium: 2.5 to 5%
Low: .01% to 2.5%
Zero: zero dividend
I suppose it is. My goal last year and going forward is to use the dividends from my higher yield positions (4% and up) to increase my holdings is mid-yield (roughly 2.5% to 4%) faster dividend growth positions. 2021 was the year of SCHD, mid-yield, divvy growth of 10.8% in 2021 over 2020, so I consider that a success. So far for 2022 I have my three likely suspects for building up. Mid-yield, average to fast dividend growth (better than most of my high yielders) for building. They are all underweight and undervalued to fairly valued. That is what I have selected as my sweet spot.
Without any outside money going in, our dividend/distribution income will have increased by 11.5% in 2021. Indications are that it will be higher in 2022.
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SA has announced the death of the blogs, but has not killed them off yet.
Here is something I wrote this morning
I do trim winners and reinvest the proceeds into companies with a combination of better valuation, higher yield and equivalent safety scores.
For example, CSCO has been on a little run. Our position is up 40% and, as a result, the yield is now 2.38% Safety score is 91. Last divvy increase 2.8%
I could trim that 40% unrealized cap gains and put the money into any of the following 3, with an increase in current yield and not a lot of difference in dividend safety - and better valuation for EOG and LMT
D yields 3.46%, SSD score 80, last divvy increase, 6% (and that is the annual increase projected through 2025.)
EOG yielde 3.35%, SSD score 82, last divvy increase 82% (plus a special of $2 a share being paid later this week)
LMT yields 3.20%, SSD score 84, last divvy increase 7.7%
I could trim CSCO back to a full position, more or less, and benefit ourselves.
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I like EOG by a margin for the next year over LMT. LMT has some issues to work through. Over a longer term LMT will be more stable IMO. Oil will always be much more cyclical.
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This morning I made a couple of moves.
1) Trimmed some profit from JNJ and used the proceeds to add to D. JNJ is still a full weight position, D is getting close to that.
2) Trimmed some DLR and used the proceeds to add to LMT. DLR is still our largest positioln. LMT is now full weight.
Increased portfolio income some.
Potential moves to come, a trim of CSCO after its ex-div date in early January, and a trim of PEP. It would take both of them back to full-weight positions and free up some money to increase portfolio yield a bit more.
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Today I think I will trim PEP back to a full weight position, taking some of the gains out of it.
I will spread the proceeds between EOG, D and may start a new position in RY. That would give me a total of three Canadian banks.
We'll see, but I think that is my next move.
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(12-29-2021, 08:42 AM)rnsmth Wrote: Today I think I will trim PEP back to a full weight position, taking some of the gains out of it.
I will spread the proceeds between EOG, D and may start a new position in RY. That would give me a total of three Canadian banks.
We'll see, but I think that is my next move.
Trim of PEP and use of proceeds
I did it. PEP was trimmed to a full weight position.
Added to D, now full weight
Added to EOG, now close to full weight and probably not going to add more soon.
Started a position to RY, adding it to my other Canadian banks, TD and CM.
I am pretty much done for 2021 :-)
Added to dividend income - PEP yield, 2.49%.
D, EOG, and RY at 3.43%, 3.34% and 3.57% respectively.
All at the top of the Safe dividend safety range, or in the Very Safe range.
Dividend growth: PEP and D, average. EOG and RY most recent increases fast to very fast growth.
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Some would disagree but I like your strategy of trimming overweight positions. Few would disagree PEP is a very good DGI stock and an aristocrat, but it's getting a little pricey for it's expected growth rate. IMO it's just not going to offer the downside protection in a rough market like aristocrats usually do. No matter when that happens, I'd rather just plus it back up then when the yield is 20% or more higher. I am going to do the same with JNJ if it happens to run much higher. When I am overweight anything, I think it reasonable to expect the reward to outweigh the risk.
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