As promised in my previous articles, we will do a quick review today based on our purchases of additional shares during a "dip" (or actually starting a portfolio) on 11/23/2011.
Our portfolio consists of ExxonMobil (XOM), Johnson and Johnson (JNJ), AT&T (T), General Electric (GE), Annaly Capital (NLY), Exelon (EXC), Proctor and Gamble (PG), McDonald's (MCD), Philip Morris (PM), Intel (INTC), Realty Income (O), ConocoPhillips (COP), Pfizer (PFE) Chevron (CVX), E.I. du Pont (DD), Duke Energy, PPL Corp. (PPL).
This portfolio was a consensus of our readers comments (review this previous article) as well as several direct messages to me. It is extremely close to my actual portfolio of stocks I happen to own.
|Stock||Buy 11-23||12-13 PPS||Cost Basis||Cur.Value|
The Portfolio Highlights
1) We are up 5.76% from our original purchase price on 11/23/2011.
2) This does NOT reflect dividends already received from XOM, JNJ, EXC, INTC, O, COP, PFE, CVX, DD, DUK; for the purposes of our portfolio we will add all dividends received to our cash reserve basket, beginning in 2012.
3) We currently have $3,300 in our cash reserves from our option strategy discussed in "part 4" of selling calls on many of our stocks.
4) Several of our stocks have announced dividend increases already, such as GE, and more are certain to follow.
5) Based on our initial date of purchase, our dividend yield is a pretty cool 4.15%, and will go up based on the dividend increases, and no stocks have announced any decreases as of now either.
Actions to Take Now
1) Make certain that each stock is still a valuable part of your holdings and investment goals.
2) Our re-balancing of our portfolio should be completed and our desired allocation for each stock is where we are comfortable.
3) Re-assess our risk tolerance to begin seeking out a limited number of stocks to purchase going forward, for capital appreciation potential.
4) Review current expenses and identify areas where money can be saved by lowering some flexible costs.
5) Make certain all insurance policies are up to date, as well as seeking out better values for them to reduce expenses and potentially increase benefits if possible.
It appears that we have done our homework and bought shares during a rather significant "dip" period, and our performance thus far reflects a positive result.
Obviously things can change quickly which is one reason i wanted to do this review on a day after the market took somewhat of a hit, rather than on an up day.
When we maintain a diversified, well balanced portfolio of both dividend and growth blue chip large cap stocks, we could continue to see an improving overall portfolio which will meet our investment goals. Let's stick with what we have for now, and check back again at the end of January 2012!
* Please do your own research for each stock and do not make a decision to either buy or sell based on the opinions expressed here, or in any article written.