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OK, My Turn
#1
Since so many have shared their portfolio, guess I ought to share mine. Rather than a copy of the spreadsheet, I'll add a chart I have in my spreadsheet. It helps me visualize how balanced it is much easier since I am a visual learner.

   

This is as of right now. You'll notice I probably should do some rebalancing which is what I worked on today.

I have stop limit orders on partial shares of WAG and HRS in place. WAG has doubled since I purchased it and HRS is almost at an 80% gain. Interestingly, I've already trimmed both but with growth and dividend reinvestment, they're back over where I want them. The yields also dropped enough that I can balance the portfolio a little and increase my overall yield at the same time.

CVX is my next target to trim but I think it should be back over $120 before I do anything. In the meantime, I'll reinvest the 3.5% dividends. PEP is also on the list to trim but haven't decided just what to do yet --wait or lose some below $80.

After that, AFL needs a shave but it's still slightly undervalued and they have a low payout ratio so I'll wait and see what management decides to do.

Intel is sitting with a covered call so that should bring that into line if it executes. Otherwise, I'll add another premium to my pocket and try again.

With the proceeds of the first 2 sales, plan to add to DE and UL and establish an opening position in OHI.

Still need something in basic materials but yields are too low for the most part and haven't found any compelling values. Also looking to add another industrial but think I'll need to wait until the next recession before I find any with a decent margin of error and yield.

Thoughts?

And this is my wife's portfolio. As you can see, she started much later than I. I tried to minimize the overlap but some were such compelling values that I couldn't not buy them at the time. Funny thing is for every stock we both own, she's got a lower cost basis than I.

   

I've already trimmed her WAG once and now have another limit order in for a bigger haircut. With the cash on hand and the proceeds, plan to add to KRFT and TU at this time. PG is on the docket if it would only drop a little further.
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#2
Love the charts. Nothing to add, but what are your thoughts on HRS going forward? I own a small portion of HRS but hardly anyone seems to cover them.
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#3
fiveoh, HRS seems to be under the radar a lot. At these prices, I'd just let it sit and compound if it weren't over where I want it in the portfolio. Doesn't help that the yield is so low nowadays.

HRS makes great products. I think its biggest competitor is RTN. Both have secure communications equipment lines but that's been HRS specialty for years. I also think, despite most of their sales being to government, that their products are also widely represented in the first responder fields so income is not tied totally to defense spending. If they can transition their IT networking division, which seems to mainly support our troops in the field, to the civilian world a la IBM & Accenture, they'll steady their revenue stream.

Their net income fluctuates, sometimes wildly, as they write off R&D and I think their growth rate is going to slow to the mid-single digits until the next defense buildup. LT debt is higher than I want but they can cover it with cash flow. At about 40% payout ratio, they have lots of room to grow the dividend and they are very shareholder friendly.

That's my off-the-cuff opinion. I'm comfortable holding it but wouldn't buy more right now. Wait for a low-teens P/E ex-special items, at best, for a purchase.
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#4
Do you have a chart that combines the holdings? Or do you treat the two as separate portfolios?
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#5
Tom, I treat them as separate portfolios at all times.

My thinking is if one of us should die or we <gasp> Confused divorce </gasp>, we'll each have a somewhat decent portfolio. The only problem is hers is about 1/3 the value of mine. Combining the overlap will at least overweight what I feel could be part of the core holdings anyway -- AFL, BAX, MCD, INTC & WAG.

As an update, all the sell trades I mentioned above have executed. I've been able to add some DE at a decent price but the rest of the limit orders are sitting there waiting for a little further drop. Patience will pay off I hope.
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#6
Well, my re-balance is just about done.

Here's my latest portfolio makeup:

   

I trimmed some HRS & WAG. I actually sold a little more WAG than I wanted to but, with the yield down around 2%, it was easy to add to the dividend stream at a higher yield. Don't plan on selling any more since I feel they've got a good growth plan for the next few years as long as they keep the dividend growth rate up there.

As mentioned before, added to DE a little at a decent price. Also added to UL on the dip and opened a position in OHI.

I still have the April covered call on INTC but it's back out of the money at this moment. If its exersized, I'm OK with that. If not, I'll sell another CC.

Still have an open cash-secured put on MAT but it keeps climbing. It's not a conviction stock but the yield still looks good and willing to wait out management fixing the sales stream. We'll see what happens.

My big worry is the cc on ABBV (I mentioned that in the Options thread). It's bouncing around in and out of the money without any seeming news to move it far in any direction. Their HEP C drug has finished phase III trials but I think anything definitive won't come out about production until after the put expires. Long term, ABBV is a company I like and their pipeline is pretty broad but still in the early stages. Their looking at another possible treatment for Humira. If so, that could extend the patent protection for Humira on that indication and protect some of that revenue stream.

As for the rest, I'm satisfied where I'm at for now. Still want to add some O and OHI and open some positions in AVA and CLX. Was hoping Yellen taking over the Fed and interest rates to give me some movement but it looks like the Mr. Market is happy to keep inching up. Angry

In my wife's portfolio, this is where we're at:

   

As mentioned, I sold VOD with the uncertainty around the VZ deal and trimmed WAG once again (and that's it!).

Took the proceeds and added to TU and added to HCP. Sitting on a limit order for JNJ in the mid-80s which should give us a yield above 3% but might have to wait on that unless we have a decent correction. In the meantime, if PG corrects or one of the others on her watch list takes a tumble, I'll cancel the JNJ order and purchase something else.

Next up for her would be a triple-net REIT (favoring WPC or NNN right now) or a ute -- possibly WEC or SO. Still looking at adding to KRFT but would prefer it closer to 50 than 55 so that might replace the JNJ order also.

As we both keep aging and so far none of the drug majors have come out with a forever young pill Big Grin, I'm slowly transitioning to higher yielding companies. A recession or good correction should help with that.

Thoughts?
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#7
Well, I trimmed the CVX as I mentioned earlier. I had a trigger set to open a stop limit order at $126.10 when it reached $126.20. Just sold a small portion to bring it down to a little over 6% of the portfolio versus almost 9.5%. Used some of the idle cash and the proceeds to open positions in MAT and GE.

MAT is not planned to be a very long term holding at this juncture. Every time I looked at it I saw an A credit rating, 50% payout ratio, P/E around 15-16 and more licensing deals. I'm willing to hold for a couple years to see if the the Barbie situation corrects itself or if Mega Blocks can make up some of the lost sales. In the meantime, a 4% yield seems pretty interesting.

GE may turn out to be a core holding if they keep going in the same direction. I like their shedding much of the financial business. Earnings are up even as sales drop due to losing the finance income; it appears they're putting their capital to more productive use. Their cost reduction program seems to be helping also. I'll watch over the next several years to see if the dividend growth continues and the various business segments can increase margins.

I have open limit orders on AVA, OHI and an add to MAT at a lower price than my first purchase. I'm also thinking of adding a small position in BBL to get into the materials sector. 11 years of dividend increases despite the volatility of the ore markets interests me.

In the wife's portfolio, we bought a first tranch of WPC at a little over $58.00. The higher income stream made up for KRFT and JNJ staying higher than I want them. Now working on the next pile of cash to either wait for JNJ or KRFT to 'come to mama' or move on to something new that's on the watch list.
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#8
DW,
Your charts are great and I will add this to my dividend income tracker spreadsheet.
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#9
Bought 46 shares of AVA today. Impatience gets to me when I have cash sitting in my account.
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#10
(05-12-2014, 02:27 PM)ChadR Wrote: Bought 46 shares of AVA today. Impatience gets to me when I have cash sitting in my account.

LOL, Chad. You don't know how many times I almost pulled the trigger because I have the cash sitting on the sidelines. Dodgy Then it inches up some more, moving it further from where I really wanted it. Angry That's why I bought a little GE ... to scratch that itch. Big Grin

AVA is still an interesting company. A small-cap compared to its utility brethren, quite a bit of renewable energy supply, their non-regulated energy management subsidiary Ecova and their recent purchase of Alaska Energy in Juneau seem interesting pluses in their column.

Certainly a nice yield and IIRC, you have more time than I to get to the goal post.
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