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With the January "effect" coming to a close, and my promise to review our Retirement Stategy Core Portfolio (our advanced series), it is time to see how we are doing and what steps we can take from here.

Our portfolio consists of ExxonMobil (NYSE:XOM), Johnson and Johnson (NYSE:JNJ), AT&T (NYSE:T), General Electric (NYSE:GE), Annaly Capital (NYSE:NLY), Exelon (NYSE:EXC), Procter and Gamble (NYSE:PG), McDonald's (NYSE:MCD), Philip Morris (NYSE:PM), Intel (NASDAQ:INTC), Realty Income (NYSE:O), ConocoPhillips (NYSE:COP), Pfizer (NYSE:PFE) Chevron (NYSE:CVX), E.I. du Pont (NYSE:DD), Duke Energy (NYSE:DUK), PPL Corp. (NYSE:PPL).

How Are We Doing?

stockBuy 11-231-30-PPSCost BasisCur.Value
XOM75/SHR85/SHR75008500
JNJ62/SHR66/SHR62006600
T27/SHR29/SHR27002900
GE15/SHR19/SHR15001900
NLY16/SHR17/SHR17601810
EXC41/SHR40/SHR1640016000
PG61/SHR63/SHR1220012600
MCD92/SHR98/SHR92009800
PM71/SHR75/SHR994010500
INTC23/SHR27/SHR23002700
O32/SHR36/SHR32003600
COP67/SHR69/SHR67006900
PFE18/SHR22/SHR18002200
CVX94/SHR102/SHR940010200
DD44/SHR50/SHR44005000
DUK20/SHR21/SHR20002100
PPL28/SHR28/SHR28002800
Tot.Valuexx100000106110

Our capital appreciation dropped from our previous review (see part 6 here), but still stands at a healthy +6.11% and as we all know, nothing goes up forever, down forever, or does nothing forever....so far we are in good shape.

Portfolio Highlights

  • Expired covered call premiums: about $1,490 in cash reserves
  • Paid dividends income received: about $4,200 in cash reserves
  • Our current dividend yield stands at 4.20%
  • A total return with dividends and capital appreciation: 11.7%
  • Cash reserve balance: $5,690

Actions To Take Now

  • Sell out of the money covered calls on many of the stocks we own, with a March expiration, no later
  • Review our holdings and decide if we should add, hold, sell
  • Pick stocks we do not own now and research them to see if we should deploy our cash reserves into adding new stocks or keeping our cash reserves for further pullbacks to add to existing positions.

My Opinion

The "January Effect" had little effect on our core portfoilo, but we collected the dividends, collected the premiums on the covered calls, and have a steady cash reserve fund. I believe that since we began this portfolio, we were due for a pullback. We have been seeing that now and it gives us a moment to pause, review our holdings, and take steps to make changes if we need to, and to sell another round of covered calls.

As far as the holdings, I have several issues that need to be looked at a bit more. Most notably with Exelon and falling natural gas prices. The other stocks we own I am satisfied with thus far and would consider adding more shares of the following; NLY, T, and GE.

Keeping an eye on the Euro Zone folly is prudent as well. Although I do not believe in the apocalyptic views of some folks, it does need to be monitored. Using the cash reserves we now have and with the ensuing premiums we receive from the new calls we sell, I will review our updated positions in Part 8, in the next few days.

Source: Retirement Strategy: Buy On Dips, Add To Core Holdings (Part 7)