In late May 2013, two closed-end funds were added: The Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (ETW) and the Nuveen Equity Premium & Growth Fund (JPG). One CEF was dropped: the ING Global Advantage & Premium Opportunity Fund. This shift was described in an Instablog on May 30.
Here is the portfolio as of June 7 2013:
Retirement Income Portfolio
|Company and Ticker Symbol||Port||Jun 7||Div||Yield|
|Genuine Parts (GPC)||2.8%|
|Johnson & Johnson (JNJ)||3.0%||84.91||2.64||3.1%|
|National Retail Properties (NNN)||3.2%||35.70||1.58||4.4%|
|Realty Income Corp (O)||4.1%||44.83||2.17||4.8%|
|WP Carey (WPC)||4.3%||65.54||3.28||5.0%|
|Southern Company (SO)||3.6%||44.44||2.03||4.6%|
|NuStar Energy (NS)||4.6%||47.10||4.38||9.3%|
|Natural Resource Partners (NRP)||3.6%||22.50||2.20||9.8%|
|Starwood Property Trust (STWD)||4.5%||25.55||1.84||7.2%|
|Eaton Corp (ETN)||2.8%||65.62||1.68||2.6%|
|Prospect Capital (PSEC)||5.1%||10.26||1.32||12.9%|
|LTC Properties (LTC)||3.0%||41.87||1.86||4.4%|
|PPL Corp (PPL)||4.2%||29.29||1.47||5.0%|
|Annaly Capital (NLY)||3.8%||13.49||1.80||13.3%|
|BlackRock Utility (BUI)||3.8%||18.62||1.45||7.8%|
|NFJ Dividend & Premium (NFJ)||4.1%||17.07||1.80||10.5%|
|Eaton Vance TM BW Opp (ETV)||4.0%||13.34||1.33||10.0%|
|Nuveen EP Advantage (JLA)||4.0%||12.72||1.14||8.9%|
|Nuveen EP & Growth||4.0%||14.15||1.12||7.9%|
|Eaton Vance TM Global BW||4.1%||11.38||1.17||10.3%|
The current portfolio yield (as of June 7 2013) is 7.0%. My long term goal actually is to lower this yield to the 5.0% to 6.0% range by adding some blue chip dividend payers. (You can see my shopping list here, which is being updated concurrent with this article).
As I look back over the twelve months, I made a mistake by completely closing out some blue chip positions that I thought had appreciated too far, too fast. Now, I'm committed to maintaining a minimum number of shares in my core positions, such as Genuine Parts (GPC), Johnson & Johnson (JNJ), Eaton (ETN), etc. As I reintroduce some of the blue chips into the portfolio, I will lower the percentage of some of the higher yielding stocks and funds.
Here are the current sector weightings and targets:
Overweight REITs at 24.0%. The target is 20%.
Overweight energy at 8.4%. The target is 8%.
Slightly overweight closed end funds at 20.2%. The target is 20%. These funds write call options but they do not use leverage.
Underweight healthcare at 6.0%. The target is 8%. (One of the healthcare stocks is LTC, a healthcare REIT.)
Underweight consumer at 2.8%. The target is 4%.
Underweight industrials at 2.8%. The target is 4%.
Underweight utilities at 11.6%. The target is 12%. (One of the utility holdings is BUI, a closed end fund that writes options.)
Underweight materials at 3.6%. The target is 4%.
Business Development Companies at 9.9% is right on the 10% target.
My target cash weighting is 10%. It is currently 10.7%. As the market escalated this Spring, I raised the cash percentage. On May 22, the cash percentage was 18.0%, which allowed me to make some purchases during the recent selloff.
As always, this is not a suggestion to buy any of these stocks or funds. This is simply my portfolio and it is presented as possible stocks and funds for your study. Everyone's situation is different. Do your own due diligence.