Older Folk Portfolio ... Adjustments.
When I first started managing this portfolio, a hefty income objective had been established. In order to achieve the high level of income, I had to oversize some assets with yields above 4%. I knew at the time that when the income goal had been achieved, and I had built a margin of safety with regards to the income flow, I could then start to de-lever the oversized positions.
With that in mind, a full equity position in this portfolio is $150,000, a full CEF position is $40,000.
DUK was sitting at $288,629 so I trimmed the position back to $201,817, still overweight.
O was sitting at $288,235 so I trimmed it back to $194,719, still overweight.
SO was sitting at $300,892 so I trimmed it back to $237,987, still overweight.
The objective I had in mind for the proceeds from these sales was to increase the income flow, raise the portfolio yield, add some dividend growth companies that have capital gain potential for future use, and to broaden out my holdings of CEF's as I wish to own more funds but in smaller sized lots as opposed to a few CEF's in larger sized lots.
The following companies are new positions.
Company/Sector ... Yield ... 5 year Dividend Growth ... Shares ... Position Size
APD (Chemicals) ............. 2.08% ... 10% ... 35 shares ... $20,173
CCI (REIT) ...................... 2.75% ... 8% ..... 51 shares .... $9,853
GD (Defense) .................. 2.43% ... 10% .. 103 shares .... $20,166
PRU (Financial) ............... 4.57% ... 13% .. 59 shares ...... $5,934
SYY (Consumer Staple) .. 2.55% ... 8% .. 135 shares ...... $9,956
The following companies were added to.
AVGO (Technology) ... 3.01% ... 52% ... 42 shares .... $32,970
CE (Industrial) ............ 1.77% ... 17% ... 61 shares .... $9,385
LMT (Defense) ........... 2.79% ... 10% ... 27 shares .... $31,728
TXN (Technology) ...... 2.18% ... 22% ... 108 shares .. $36,807
The following CEF's were added to.
ARDC (Senior Loans) ...... ..7.32% ... -3% ... 1,241 shares ... $29,915
BKT (Financial) .................. 6.44% ... 2% .... 1,558 shares ... $19,993
BMEZ (Healthcare) ............ 6.20% ... 0% .... 343 shares ...... $19,621
CCD (Convertibles) ............ 7.58% ... 11% ... 313 shares ...... $19,664
DPG (Utilities) .................... 9.75% .... 0% .... 676 shares ...... $19,638
ECC (Collaterized Loans) .. 9.15% .. -11% .. 740 shares ...... $19,586
EIC (Collaterized Loans) ... 6.65% ... NA .... 608 shares ...... $19,968
FFC (Preferred) ................. 6.59% ... -2% ... 400 shares ...... $20,418
FLC (Preferred) ................. 6.48% ... -2% ... 434 shares ...... $20,418
RQI (Real Estate) .............. 6.03% ... 0% .... 1,241 shares ... $39,778
SPE (Equity Funds) .......... 8.36% ... 16% ... 623 shares ...... $19,642
Prior to these adjustments, the forward 12 month income was $255,478 and the portfolio yield was 4.16%.
Following these adjustments, the forward 12 month income is $258,337 and the portfolio yield is 4.22%.
With the dividend growth companies that were purchased new and those that were added to, should provide dividend growth going forward and some capital appreciation potential.
It was a busy day! |
