My 74 Stock Portfolio Quarterly Update Review For Income, Sectors And Value

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Includes: AAPL, ABBV, ADP, AMGN, BA, BCE, BDX, CAT, CCP, CL, CLDT, CLX, CMI, CNP, COP, CVX, D, DEO, DLR, DNP, DPS, EMR, FE, GILD, GIS, GPC, GWW, HAS, HCN, HCP, HSY, HTGC, IBM, JNJ, KHC, KMB, KO, LMT, LNT, LXP, MA, MAIN, MAT, MCD, MDLZ, MET, MGEE, MMM, MO, NHI, NKE, NOV, NSC, O, OHI, OXY, PCP, PEP, PG, PM, PNNT, SBUX, SO, STAG, STR, T, TGT, TROW, UL, UNP, V, VFC, VTR, VZ, WEC, WFC, WPC, XEL, XOM
by: RoseNose

Summary

I still own 74 stocks, however, there were a few changes.

Portfolio Value is up 8.1% from January and substantially from 2015.

Estimated Income for 2016 is up 14.8% from 2015.

My 2016 plan remains in place.

Here is my January article with my 2016 plan and all the stocks I owned at that time. One of the biggest hurdles in that plan is keeping my holdings to 74. I love reading about stocks and I continue to want many, but I have resigned myself to the fact that to do a great job of management, I must stick to those I currently own, or at least keep my holdings to 74 stocks. In other articles such as this one where I added Lockheed Martin (NYSE:LMT) and Unilever (NYSE:UL), I have discussed some changes, but not the most recent. I sold my Healthcare stock, Gilead (NASDAQ:GILD) and bought Beckton, Dickinson (NYSE:BDX). That is my latest move, and I am going to continue to accumulate BDX, UL and LMT.

Now, on to the Sectors update for my 74 stocks.

SECTORS by VALUE:

Sector-Stock Ticker- Name %P- Value 2015 2016 % Sector
CONSUMER-DEFENSIVE (17) 22.4 22.2
(NYSE:KO) Coca-Cola 2.9 2.8 12.6
(NYSE:PG) Procter & Gamble 2.1 1.4 6.3
(NYSE:GIS) General Mills 1.9 2.4 10.8
(NYSE:TGT) Target 1.8 1.9 8.6
(NYSE:KMB) Kimberly-Clark 1.7 1.3 5.9
(NYSE:MCD) McDonald's 1.3 1.2 5.4
(NASDAQ:SBUX) Starbucks 1.1 1.2 5.4
(NYSE:GPC) Genuine Parts 0.8 0.8 3.6
(NYSE:CLX) Clorox 0.7 0.5 2.2
(NYSE:PEP) PepsiCo 0.7 0.6 2.7
(NYSE:DEO) Diageo 0.6 1.2 5.4
(NYSE:HSY) Hershey 0.6 0.5 2.2
(NYSE:CL) Colgate-Palmolive 0.5 0.5 2.2
(NYSE:DPS) Dr Pepper Snapple 0.3 sold
(UL) Unilever 0.4 1.8
(NYSE:PM) Philip Morris 2.8 3 13.5
(NYSE:MO) Altria 2.1 2.1 9.5
(NASDAQ:KHC) Kraft Heinz Co 0.5 0.4 1.8
CONSUMER-CYCLICAL (5) 3.7 3.9
(NASDAQ:MAT) Mattel 1.2 1.3 33.3
(NASDAQ:MDLZ) Mondelez 0.9 0.7 17.9
(NASDAQ:HAS) Hasbro 0.7 0.8 20.5
(NYSE:NKE) Nike 0.7 0.6 15.4
(NYSE:VFC) VF Corporation 0.2 0.5 12.8
ENERGY (5) 10.4 9.4
(NYSE:XOM) Exxon 3.8 3.7 39.4
(NYSE:CVX) Chevron 3.3 2.8 29.8
(NYSE:OXY) Occidental Petroleum 2.2 2 21.3
(NYSE:COP) Conoco Phillips 0.6 0.5 5.3
(NYSE:NOV) National Oilwell Varco 0.5 0.4 4.2
FINANCIAL (5) 3.9 4.6
(NYSE:MA) Master Card 1.4 1.4 30.4
(NASDAQ:TROW) T Rowe Price 1 1.6 34.8
(NYSE:V) Visa 0.7 0.9 19.6
(NYSE:WFC) Wells Fargo 0.6 0.5 10.9
(NYSE:MET) Metropolitan Life 0.2 0.2 4.3
HEALTHCARE (4) 7.3 6.5
(NYSE:JNJ) Johnson & Johnson 4.3 3.5 53.8
(NYSE:ABBV) AbbVie 1.7 1.5 23.1
(NASDAQ:AMGN) Amgen 0.9 1.1 16.9
(BDX) Becton, Dickinson 0.4 6.2
(GILD) Gilead 0.4 sold
HEALTHCARE REITs (5) 5.2 7
(NYSE:CCP) Care Capital Properties 0.6 sold
(NYSE:NHI) National Health Investors 0.3 0.8 11.4
(NYSE:HCN) Welltower new 1.2 17.1
(NYSE:HCP) HCP, Inc. 1.2 0.9 12.9
(NYSE:VTR) Ventas 1.6 1.9 27.1
(NYSE:OHI) Omega Healthcare 1.5 2.2 31.4
INDUSTRIAL (9)-MATERIAL (0) 8.6 7.3
(NYSE:EMR) Emerson Electric 1.9 0.5 6.8
(NYSE:BA) Boeing 1.6 2 27.4
(NYSE:UNP) Union Pacific 1.3 1.4 19.2
(NYSE:CAT) Caterpillar 0.9 0.6 8.2
(NYSE:MMM) 3M 0.8 0.8 11
(NYSE:CMI) Cummins 0.7 0.8 11
(NYSE:PCP) Precision Cast Parts 0.7 sold
(NYSE:GWW) W.W. Grainger 0.5 0.6 8.2
(NYSE:NSC) Norfolk Southern 0.2 0.2 2.7
(LMT) Lockheed Martin new 0.4 5.4
INDUSTRIAL-REIT (1) 1 1.3
(NYSE:STAG) Stag Industrial 1 1.3 100
TECHNOLOGY (3) 4.2 3.9
(NASDAQ:AAPL) Apple 2 2.1 53.8
(NASDAQ:ADP) Automatic Data Processing 1.1 1.1 28.2
(NYSE:IBM) Int Business Machine 0.7 0.7 18
(NASDAQ:HTGC) Hercules Tech - BDC 0.4 moved
TECHNOLOGY REIT (1) 1.6 1.8
(NYSE:DLR) Digital Realty Trust 1.6 1.8 100
TELECOMMUNICATION (3) 8.9 8.1
(NYSE:T) ATT 5 4 49.4
(NYSE:VZ) Verizon 2.9 3 37
(NYSE:BCE) BCE-Canada 1 1.1 13.6
UTILITIES (9) 14.6 15.4
(NYSE:SO) Southern Company 4.8 4.5 29.2
(NASDAQ:MGEE) Madison Gas & Elec 2 2 13
(NYSE:XEL) Xcel Energy 1.8 2.4 15.6
(NYSE:WEC) WEC Energy 1.7 1.6 10.4
(NYSE:D) Dominion 1.3 2.4 15.6
(NYSE:DNP) Duff & Phelps 1.1 1.1 7.2
(NYSE:CNP) Centerpoint Energy 0.7 0.5 3.2
(NYSE:LNT) Alliant 0.7 0.7 4.5
(NYSE:STR) Questar Corp 0.3 sold
(NYSE:FE) First Energy 0.2 0.2 1.3
REIT (4) 5.8 5.9
(NYSE:WPC) WP Carey International 2.9 2.7 45.7
(NYSE:O) Realty O 2.6 2.3 39
(NYSE:LXP) Lexington Realty Trust 0.3 0.4 6.8
(NYSE:CLDT) Chatham Lodging 0.5 8.5
BDC (3) 2.4 2.7
(NYSE:MAIN) Main Street Capital 1.7 1.5 55.6
(NASDAQ:PNNT) Pennant Park 0.7 0.8 29.6
Hercules Tech 0.4 14.8
74 companies = 100 100
Click to enlarge

Please note, I have done some redecorating. I moved the eREITs to their own separate listings, as they will be getting their own sector in August this year.

I tried to indicate those moves in the chart. I also indicate if a company is sold and if it is new. The Dec 2015 value is as shown in the January article.

Abbreviations: PV= Portfolio Value, Inc = Income, or PinC= Portfolio Income

This chart sums up the sectors and the changes:

VALUE
Sector % 2015-PV % 2016 +/- Change
Consumer-D 22.4 22.2 -0.2
Consumer-C 3.7 3.9 0.2
Energy 10.4 9.4 -1
Financial 3.9 4.6 0.7
Healthcare 7.3 6.5 -0.8
HealthC-Reits 5.2 7 1.8
Industrial 8.6 7.3 -1.3
Material 0 0 0
Industrial-Reit 1 1.3 0.3
Technology 4.2 3.9 -0.3
Tech-Reit 1.6 1.8 0.2
Telecom 8.9 8.1 -0.8
Utilities 14.6 15.4 0.8
REITs-other 5.8 5.9 0.1
BDC 2.4 2.7 0.3
Total % 100 100
Defensive
Consumer Total 26.1 26.1 0
Utes 14.6 15.4 0.8
Telecom 8.9 8.1 -0.8
Total % 49.6 49.6 0
Click to enlarge

The amazing thing here is that there is no change with my total portfolio value %s for:

Consumer: It was 49.6% and still is.

Utes + Telecom: 23.5% and remains so.

Others did change, but I was pleased to at least see these sectors did not vary. I am going to increase them with my 2016 plan.

Here is another interesting chart showing the stocks by descending % portfolio value :

% PV # Stock Ticker Total%
GROUP 1 = 19 Stocks = 51.9%
4.5 1 SO 4.5
4 1 T 4
3.7 1 XOM 3.7
3.5 1 JNJ 3.5
3 2 VZ and PM 6
2.8 2 KO and CVX 5.6
2.7 1 WPC 2.7
2.4 3 XEL, GIS, and D 7.2
2.3 1 O 2.3
2.2 1 OHI 2.2
2.1 2 AAPL and MO 4.2
2 3 MGEE, OXY and BA 6
GROUP 2 = 13 Stocks = 19.9%
1.9 2 TGT and VRR 3.8
1.8 1 DLR 1.8
1.6 2 TROW and WEC 3.2
1.5 2 ABBV and MAIN 3
1.4 3 UNP, PG and MA 4.2
1.3 3 MAT, KMB and STAG 3.9
Group 1 + 2 = 32 Stocks = 71.8%
GROUP 3 = 42 stocks = 28.2%
1.2 4 DEO, MCD, SBUX and HCN 4.8
1.1 4 BCE, AMGN, DNP and ADP 4.4
0.9 2 HCP and V 1.8
0.8 6 GPC, NHI, MMM, HAS, CMI, and PNNT 4.8
0.7 3 LNT, IBM and MDLZ 2.1
0.6 4 NKE, PEP, GWW and CAT 2.4
0.5 9 COP, CL , WFC, VFC, CNP,
CLX, EMR, CLDT and HSY 4.5
0.4 7 LXP, HTGC, NOV, KHC, LMT, UL+ BDX 2.8
0.2 3 NSC, FE, and MET 0.6
Click to enlarge

A word about portfolio value:

Energy, Industrial, Telecom and Utilities have experienced a nice bump up in value.

I have added to some growth stock holdings, which have lower yields. Example: (V and SBUX)

These increased values do decrease total portfolio yield, and that is the next topic that goes hand in hand with income.

SECTORS by INCOME

Sector-Stock Ticker- Name INCOME% 2015 2016 % Sector
CONSUMER-DEFENSIVE (17) 17 16.8
Coca-Cola 2.2 2.2 13.1
Procter & Gamble 1.7 1.1 6.5
General Mills 1.3 1.7 10.1
Target 1.2 1.3 7.7
Kimberly-Clark 1.2 0.9 5.4
McDonald's 0.9 0.9 5.4
Starbucks 0.4 0.4 2.4
Genuine Parts 0.6 0.6 3.6
Clorox 0.4 0.3 1.8
PepsiCo 0.5 0.5 3
Diageo 0.4 0.7 4.2
Hershey 0.4 0.3 1.8
Colgate-Palmolive 0.3 0.3 1.8
Dr Pepper Snapple 0.1 sold
Unilever 0.3 1.8
Philip Morris 3.1 3 17.9
Altria 2 2 11.9
Kraft Heinz Co 0.3 0.3 1.8
CONSUMER-CYCLICAL (5) 2.7 2.9
Mattel 1.6 1.6 55.3
Mondelez 0.3 0.3 10.3
Hasbro 0.5 0.5 17.2
Nike 0.2 0.2 6.9
VF Corporation 0.1 0.3 10.3
ENERGY (5) 10.9 9.6
Exxon 3.4 3.3 34.4
Chevron 3.7 3.2 33.3
Occidental Petroleum 2.3 2.2 22.9
Conoco Phillips 0.9 0.3 3.1
National Oilwell Varco 0.6 0.6 6.3
FINANCIAL (5) 1.7 2.2
Master Card 0.3 0.3 13.6
T Rowe Price 0.7 1.2 54.5
Visa 0.1 0.2 9.1
Wells Fargo 0.4 0.4 18.2
Metropolitan Life 0.2 0.1 4.6
HEALTHCARE (4) 5.4 4.9
Johnson & Johnson 3.1 2.5 51
AbbVie 1.6 1.6 32.7
Amgen 0.5 0.7 14.3
Gilead 0.2 sold
Becton, Dickinson 0.1 2
HEALTHCARE REITs (5) 7.5 10.3
Care Capital Properties 1 sold
National Health Investors 0.4 1.1 10.7
Welltower 1.5 14.6
HCP, Inc. 1.8 1.7 16.5
Ventas 1.9 2.3 22.3
Omega Healthcare 2.4 3.7 35.9
INDUSTRIAL(9)-MATERIAL(0) 6.5 5.8
Emerson Electric 1.7 0.7 12.1
Boeing 1.1 1.6 27.6
Union Pacific 0.9 1 17.2
Caterpillar 1 0.6 10.3
3M 0.6 0.5 8.6
Cummins 0.7 0.8 13.8
W.W. Grainger 0.3 0.3 5.2
Norfolk Southern 0.2 0.1 1.7
Lockheed Martin new 0.2 3.5
INDUSTRIAL-REIT (1) 1.8 2.4
Stag Industrial 1.8 2.4 100
TECHNOLOGY (3) 3.2 2.4
Apple 1 1.1 45.8
Automatic Data Processing 0.6 0.7 29.2
Int Business Machine 0.7 0.6 25
Hercules Tech - BDC 0.9 moved to BDC
TECHNOLOGY REIT (1) 1.8 1.9
Digital Realty Trust 1.8 1.9 100
TELECOMMUNICATION (3) 11.2 9.4
ATT 6.6 5 53.2
Verizon 3.3 3.2 34
BCE-Canada 1.3 1.2 12.8
UTILITIES (9) 15.3 15.2
Southern Company 5.3 5 33
Madison Gas & Elec 1.2 1.2 7.9
Xcel Energy 1.6 1.9 12.5
WEC Energy 1.5 1.4 9.2
Dominion 1.2 2.1 13.8
Duff & Phelps 2.3 2.2 14.5
Centerpoint Energy 0.9 0.6 3.9
Alliant 0.6 0.6 3.9
Questar Corp 0.5 sold
First Energy 0.2 0.2 1.3
REIT (4) equity 8 8.1
WP Carey International 4.6 4.3 53.1
Realty 2.8 2.2 27.2
Lexington Realty Trust 0.6 0.9 11.1
Chatham Lodging new 0.7 8.6
BDC (3) 7 8.1
Main Street Capital 3.8 3.4 42
Pennant Park 3.2 3.5 43.2
Hercules Tech 1.2 14.8
Click to enlarge

Here is the summary chart for the changes:

INCOME
Sector %2015-Inc 2016 change
Consumer-D 17 16.8 -0.2
Consumer-C 2.7 2.9 0.2
Energy 10.9 9.6 -1.3
Financial 1.7 2.2 0.5
Healthcare 5.4 4.9 -0.5
HealthC-Reits 7.5 10.3 2.8
Industrial 6.5 5.8 -0.7
Material 0 0 0
Industrial-Reit 1.8 2.4 0.6
Technology 3.2 2.4 0.8
Tech-Reit 1.8 1.9 0.1
Telecom 11.2 9.4 -1.8
Utilities 15.3 15.2 -0.1
REITs-other 8 8.1 0.1
BDC 7 8.1 1.1
Total % 100 100
Defensive
Consumer Total 19.7 19.7 0
Utes 15.3 15.2 -0.1
Telecom 11.2 9.4 -1.8
Total % 46.2 44.3 -1.9
Click to enlarge

Amazing to see no real change in Consumer and Utilities, even though I was changing some companies. The telecom sector got a drop from me trimming some T. I just had too much, which has gone up nicely in price for a trim. I am thinking of raising the position in VZ, because I am having trouble finding any other telecom I could really want. If T drops in price, I will add it back.

Here is the chart showing the stocks by descending portfolio % income yield/PinC:

% PinC # Stock Ticker Total%
GROUP 1 = 19 stocks = 57.7%
5 2 SO and T 10
4.3 1 WPC 4.3
3.7 1 OHI 3.7
3.5 1 PNNT 3.5
3.4 1 MAIN 3.4
3.3 1 XOM 3.3
3.2 2 VZ and CVX 6.4
3 1 PM 3
2.5 1 JNJ 2.5
2.4 1 STAG 2.4
2.3 1 VTR 2.3
2.2 4 OXY, O, KO and DNP 8.8
2.1 1 D 2.1
2 1 MO 2
57.7
GROUP 2 = 10 Stocks = 16.2%
1.9 2 DLR and XEL 3.8
1.7 2 HCP and GIS 3.4
1.6 3 BA, ABBV, and MAT 4.8
1.5 1 HCN 1.5
1.4 1 WEC 1.4
1.3 1 TGT 1.3
Group 1 + 2 =29 Stocks =73.9%
GROUP 3 = 45 stocks =26.1%
1.2 4 BCE, TROW, HTGC, and MGEE 4.8
1.1 3 PG, NHI, and AAPL 3.3
1 1 UNP 1
0.9 3 KMB, LXP and MCD 2.7
0.8 1 CMI 0.8
0.7 5 EMR, DEO,AMGN, CLDT, and ADP 3.5
0.6 6 IBM, CNP, LNT, CAT, GPC, and NOV, 3.6
0.5 3 MMM, HAS and PEP 1.5
0.4 2 WFC and SBUX 0.8
0.3 10 UL, COP, GWW, HSY, CL, CLX, MA,
VFC, KHC, and MDLZ 3
0.2 4 LMT, V, NKE, and FE 0.8
0.1 3 NSC, BDX, and MET 0.3
Click to enlarge

Just to reinforce that my income from 2015 has been finalized, I compared it to the final portfolio value at the end of 2015, and the actual yield was down from the beginning of the year. I did lose KMI and COP, which hurt the yield. In the middle of last year, I wrote an article where my yield was ~ 4.1% on the portfolio. That included those stocks. I am sad to announce my income yield came in at 3.7% on top of an improved portfolio value, which lowers that yield.

A bit of clarification on this point:

From the math equation: Portfolio Income Yield= Income (or dividends) divided by portfolio value, it reveals their inverse relationship. So you get less yield when your holding value goes up.

So you are "kind of" punished in terms of yield when the value goes up. Thus, note, my portfolio value is up 8.1% from the January review. Using my income from 2015 on that value, my yield goes down to only 3.4%. That really shows how portfolio value makes it look like I am doing less than I should. My proposed income for 2016 is projected to go up 14.8% with my changes. The current portfolio value gives me a 3.9% yield, which would be 4.2 % on the old 2015 value. So everything becomes how you look at it all.

I just like to see my income growing, and it sure looks like the final bottom line will be an increased and growing income. My portfolio value is rising, which is nice, and my income is rising, so my spirits rise. The actual yield moves with the market and it just isn't that important for my purposes.

I have picked my stocks for dividend growth and steady reliable payments. They were purchased for great value and historical yields. They should continue to follow the trends for the future with continued upward income, which is my goal and what I planned.

Please let me know if I left anything out of this review. I am learning. And I am not an expert. I do all my calculations by hand and haven't found a program as yet to aid me.

Happy Investing.

Disclosure: I am/we are long I OWN 74 STOCKS MENTIONED.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.