Retirement Strategy: An Update On Our 'Buy The Dips Portfolio'

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 |  Includes: AAPL, AMBA, CVX, F, GE, JNJ, KO, MCD, MO, MSFT, PFE, PG, T, WMT, XOM
by: Regarded Solutions

Summary

The BTDP was built mainly to compare an ETF only portfolio (ETFOP), but has taken on a life of its own.

This portfolio is a wonderful portfolio for any dividend income investor who wants to own the best of the best.

After 4 months the portfolio is off to a solid start.

As most of you know, I began the "Team Alpha Retirement Portfolio" (TARP) over 2 years ago, and the results have been as I anticipated. Now I have the "Buy The Dips Portfolio" to follow here on Seeking Alpha. While the initial intention was to simply compare a dividend stock portfolio to an ETF only portfolio, the BTDP has taken off so nicely that I have been getting messages on how it is doing, and if we will be expanding it.

As of right now, this new portfolio will stand alone as it is, until we can evaluate the comparison to the ETFOP experiment (check this out). Once we have a consensus, then the BTDP will be expanded to include other types of stocks that might not be dividend winners, but offer dividend opportunities as well as some select growth stocks, such as the one I wrote about yesterday, Ambarella (NASDAQ:AMBA).

For Now, Let's See How The BTDP Is Actually Doing

The BTDP consists of the following stocks: AT&T (NYSE:T), Exxon Mobil (NYSE:XOM), Johnson & Johnson (NYSE:JNJ), Coca-Cola (NYSE:KO), Procter & Gamble (NYSE:PG), Altria (NYSE:MO), McDonald's (NYSE:MCD), Chevron (NYSE:CVX), Apple (NASDAQ:AAPL) General Electric (NYSE:GE), Ford (NYSE:F), Microsoft (NASDAQ:MSFT), Wal-Mart (NYSE:WMT) and Pfizer (NYSE:PFE).

Using my "ultimate" format, here is an update through June for this portfolio.

52 wk lo 52 wk hi TGT PRICE Symbol Shares Orig.Yield Dividend Yrly Income Share Price Tot.Cost Tot. Value 30-Jun Tgt Price % To Sell Tgt Price % To Sell
31.74 39.01 35.37 T 300 5.60% 1.84 552 31.95 9585 10068 $35.36 $47.00 25% $64 50%
84.79 103.69 93.41 XOM 100 2.80% 2.76 276 90.05 9005 10068 $100.68 $135.00 25% $180 50%
81.71 106.45 93.44 JNJ 100 3.10% 2.8 280 86.78 8678 10462 $104.62 $129.00 25% $174 50%
36.83 43.43 40.13 KO 200 3.00% 1.22 244 37.21 7442 8472 $42.36 $56.00 25% $75 50%
73.61 85.82 79.72 PG 100 3.10% 2.57 257 75.71 7571 7859 $78.59 $108.00 25% $150 50%
21.11 28.09 24.61 GE 300 3.60% 0.88 264 24.35 7305 7884 $26.28 $36.00 25% $49 50%
92.22 103.71 97.91 MCD 100 3.50% 3.24 324 93.02 9302 10074 $100.74 $140.00 25% $186 50%
109.27 131.09 120.55 CVX 100 3.60% 4.28 428 111.14 11114 13055 $130.55 $166.00 25% $222 50%
55.01 94.42 75.52 AAPL 105 2.25% 1.88 197 75.21 7897 9758 $92.93 $112.00 25% $151 50%
33.12 38.58 35.85 MO 100 5.20% 1.92 192 37.71 3771 4194 $41.94 $56.00 25% $75 50%
12.65 18.02 15.34 F 400 3.20% 0.5 200 15.15 6060 6896 $17.24 $23.00 25% $30 50%
28.51 43.55 35.08 MSFT 200 2.80% 1.12 224 40.16 8032 8340 $41.70 $60.00 25% $80 50%
71.51 81.37 76.44 WMT 100 2.50% 1.92 192 76.11 7611 7507 $75.07 $114.00 25% $152 50%
27.12 32.96 30.04 PFE 200 3.20% 1.04 208 32.18 6436 5936 $29.68 $48.00 25% $64 50%
x x x Div.Cash x x x x x 633
x x x x x 3.60% x 3838 x 109809 121,206 x x x x x
Click to enlarge

The portfolio currently gives us $3800 annually in dividends, and has risen about 11% in total value since we started it. The numbers to the left are what I happen to use to add shares when I have the cash, and the price points that are halfway between the 52 week high and lows of each stock. Those numbers will change as well, but it will quite easily keep potential investors from paying at the top price, and very often at a "corrected" price.

The numbers to the far right suggest selling price targets for investors who choose to trim positions at various price levels. That is the action I happen to take with my own portfolios by the way.

Ongoing Status And Updates

While I intend to keep the ETF vs. stock portfolio challenge going for as long as I can, I will also be updating the BTDP each month through the balance of this year, here on Seeking Alpha. After that the portfolio will be included in my email service, for subscribers who have chosen to follow this new portfolio.

The intention is for dividend investors to become comfortable with actually beginning a portfolio as well as some suggestions as to share prices to buy and sell, to be used as a guide only.

I believe that keeping this strategy simple, will encourage new investors to finally take control of their financial future.

I look forward to everyone's comments as to how to develop this portfolio even further.

Disclaimer: The opinions of the author are not recommendations to either buy or sell any security. Please remember to do your own research prior to making any investment decisions.

Disclosure: The author is long AAPL, AMBA, CVX, F, GE, JNJ, KO, MCD, MO, MSFT, T, XOM. The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.