Dividend Portfolio Sector Allocation - April 2016

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Includes: CCP, HCN, HCP, VTR
by: Divhut

Every few months, I like to take a look at my portfolio holdings and examine my overall sector allocations to see if they meet my comfort level as to how my capital is distributed. As we all know, market forces affect certain sectors at different times throughout business cycles which can often throw many portfolio balances out of sync. I think we are all familiar with this phenomenon after witnessing the collapse of oil prices and the entire energy sector, and more, with it. At the time, it seemed every dividend income investor was buying an oil major, oil driller or oil services company. With attractive valuations and higher yields being offered, many dividend growth portfolios began to skew heavily to energy-related stocks. This is why it's vital to assess your holdings from time to time, if nothing else, to simply decide if your allocations are meeting your needs and comfort level. After all I'm a big proponent of "sleeping well at night," which is why I perform these informal audits of my portfolio holdings every few months.

In general, without seeking to achieve a specific percentage goal in mind, consumer staples will be my largest sector overall among my three portfolios as a whole. Industrial and health stocks should follow with finance next. I don't plan to ever hold any tech names in my portfolio and would make energy a very, very small part if I ever decide to pull the trigger within that sector.

Below you will find my asset allocation for my dividend stocks. I still may be adding to my Canadian banks going forward, but not as aggressively as in months past as valuations and yields are slightly less attractive than earlier this year. I still am looking to increase my health exposure via my REIT holdings in my IRA as well as other names already in my portfolio such as JNJ, ABT, BDX, BCR, among others.

Brokerage Account

Sector

Sector %

Market Value

Consumer Staples

29.70%

$40,872.81

Industrial Products

20.90%

$28,764.39

Medical

11.82%

$16,270.38

Finance

10.63%

$14,633.38

Utilities

6.98%

$9,611.64

Multi-Sector Conglomerates

6.57%

$9,045.05

Retail/Wholesale

5.69%

$7,826.05

Basic Materials

4.20%

$5,775.08

Auto/Tires/Trucks

1.93%

$2,662.35

Consumer Discretionary

1.58%

$2,169.07

Click to enlarge

ROTH Account

Sector

Sector %

Market Value

Finance

44.48%

$19,883.19

Consumer Staples

27.66%

$12,365.71

Industrial Products

15.79%

$7,057.27

Retail/Wholesale

6.26%

$2,799.34

Multi-Sector Conglomerates

3.61%

$1,614.23

Medical

2.20%

$984.08

Click to enlarge

IRA Account

Sector

Sector %

Market Value

Finance

100.00%

$9,783.90

Welltower, Inc. (NYSE:HCN)

38.99%

$3,815.10

Ventas, Inc. (NYSE:VTR)

29.04%

$2,841.49

HCP, Inc. (NYSE:HCP)

26.48%

$2,591.19

Care Capital Properties, Inc. (NYSE:CCP)

5.48%

$536.12

Click to enlarge

And since many of you are following along with baby DivHut since birth, here is his portfolio allocation below:

Baby DivHut

Sector

Sector %

Market Value

Industrial Products

51.28%

$3,828.27

Retail/Wholesale

15.66%

$1,168.99

Consumer Discretionary

12.78%

$953.72

Medical

12.18%

$909.61

Consumer Staples

8.10%

$604.52

Click to enlarge

How are your stocks allocated? What is your largest sector holding(s) and how do you feel about having a relatively high overweight sector in your portfolio? Please let me know below.

Disclosure: Long HCP, VTR, HCN, CCP