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Strategies & Market Trends : Young and Older Folk Portfolio -- Ignore unavailable to you. Want to Upgrade?

To: chowder who wrote (257)	8/9/2021 5:52:04 AM
From: chowder	2 Recommendations Recommended By INCOGNIT0$ The Beard Read Replies (1) \| Respond to of 25542

Re: Young Folk Portfolio ... Adjustments, upgrades. This portfolio is now in its 12th year and I'm looking for a balance between growth and income. I've had time to allow positions to work out and decided that I would now replace a couple of the weaker performers. Both D and VZ have underperformed the market by a good bit over a 1, 3, 5, and 10 year time frame. Of the utilities that are held in this portfolio, D has the weakest total return performance, and VZ has been very weak overall. Thus my desire to replace these positions now. These two positions were generating $439 in annual income, combined had a 3.93% yield, and combined had a 5 year dividend growth rate of 0.1%. D had cut their dividend significantly. I am looking at the formula; High Yield + High Dividend Growth = High Total Return. I'm looking for a number above 10 when you add the yield to the 5 year dividend growth rate, what is known as the Chowder Number. When I add the 3.93% yield and the 5 year dividend growth rate of 0.1%, I get a Chowder Number of 3.94, well below what I am looking for at this time. The positions I add today will drop the income generated annually but greatly increase the dividend growth and Chowder Number. Today's purchases when combined will have a 2.58% yield but a 5 year dividend growth rate of 9.7% giving me a Chowder Number of 12.28% I am purchasing the following assets: TROW .... 9 shares PH .......... 6 shares TXN ........ 2 shares SHW ...... 1 share BIP ........ 54 shares HSY ....... 5 shares LANC ..... 5 shares If any cash is available after that, I will add to UTG. TXN, PH and SHW were purchased for their total return potential. They all have outperformed the S&P 500 in the 1, 3, 5, 10 and 20 year time frames. Very few companies were able to accomplish this. In looking to maintain a healthy exposure to Defensive companies, I looked to utilities and consumer staples. In looking at utilities, I compared them to XLU, and where D underperformed XLU in all time frames, BIP beat XLU in all time frames. I compared HSY and LANC to XLP, the consumer staple benchmark. HSY beat in all time frames, LANC barely missed on 1. Both have been very steady performers as far as staples go. These moves may not be appropriate for all, they are goal specific to this portfolio only. I'm simply showing how I manage a portfolio to achieve specific goals.