Here are three questions I regularly ask myself, which I have found helpful regardless of market conditions:

What's My Perspective?

My perspective of the market, the "lens" through which I observe the market, is that it is a place where I can obtain dividend income. My focus is the purchase of shares of companies that provide steady, growing dividends over the long term. For that to happen, a company must be sound, well-managed, able to grow its business faster than the economy as a whole, and has a demonstrated an investor-friendly commitment to dividends.

This leads to a healthy bias in favor of

The annual dividend is listed along with what the target price would yield at the current dividend. The stocks are ranked according to the number of consecutive years they have raised their dividend. (For example, Coca Cola has raised its dividend every year since 1963.)

Company (Ticker)		Target	Div	Yield
Diebold, Inc. (DBD)	'54	28.75	1.15	4.0%
Dover Corp. (DOV)	'56	46.67	1.40	3.0%
Genuine Parts Co. (GPC)	'57	71.67	2.15	3.0%
Procter & Gamble (PG)	'57	68.74	2.406	3.5%
Emerson Electric Co. (EMR)	'57	46.86	1.64	3.5%
3M Company (MMM)	'59	72.57	2.54	3.5%
Johnson & Johnson (JNJ)	'63	75.43	2.64	3.5%

]]> Mon, 10 Jun 2013 08:38:35 -0400 Dividend Sleuth By Dividend Sleuth:

On April 8, 2013, I presented a shopping list from my stock universe, with some target buy prices based on dividend yield. It's time to revisit that list of stocks. Several recent dividend increases are reflected in the table below, with target buy prices adjusted upward.

The annual dividend is listed along with what the target price would yield at the current dividend. The stocks are ranked according to the number of consecutive years they have raised their dividend. (For example, Coca Cola has raised its dividend every year since 1963.)

Company (Ticker)		Target	Div	Yield
Diebold, Inc. (DBD)	'54	28.75	1.15	4.0%
Dover Corp. (DOV)	'56	46.67	1.40	3.0%
Genuine Parts Co. (GPC)	'57	71.67	2.15	3.0%
Procter & Gamble (PG)	'57	68.74	2.406	3.5%
Emerson Electric Co. (EMR)	'57	46.86	1.64	3.5%
3M Company (MMM)	'59	72.57	2.54	3.5%
Johnson & Johnson (JNJ)	'63	75.43	2.64	3.5%

Complete Story »]]> NLY PSEC STWD SO PPL WPC NS NRP CLX Dividend Sleuth http://seekingalpha.com/article/1490722-update-on-retirement-income-portfolio?source=feed 1490722 My retirement income portfolio was last updated on February 25 2013, when Realty Income (O) and Prospect Capital (PSEC) were added.

Chambers Street Properties (CSG) began trading on the NYSE on May 21 2013, and it was added to the portfolio. This decision was described in an Instablog on May 22.

In late May 2013, two closed-end funds were added: The Eaton Vance Tax-Managed Global Buy-Write Opportunities Fund (ETW) and the Nuveen Equity Premium & Growth Fund (JPG). One CEF was dropped: the ING Global Advantage & Premium Opportunity Fund. This shift was described in an Instablog on May 30.

Here is the portfolio as of June 7 2013:

Graham's classic "Mr. Market" character is perhaps the greatest illustrative tool in the history of investing. Graham's simple figure, Mr. Market, gives us an imaginary (though very real) "foil" to represent the person on the other side of any trade we might consider. Mr. Market reminds me of "Rich Uncle Pennybags," the man with the top hat in the Monopoly game.

Mr. Market (perhaps Ms. Market, if Graham had been born a generation or two later) is symbolically the one from whom we purchase a stock and he

I have identified a target "buy" price for each stock. The Q1 2013 leg of the current bull market has left very few stocks close to my target buy price. It's tempting to forget about these "out of range" stocks, but the recent broad market advance is a good time for homework--some objective, dispassionate study to be prepared for any future pullbacks in price.

The two most recent purchases were Prospect Capital Corporation (PSEC), a business development company, and Realty Income Corporation (O), an old favorite that is returning to the portfolio.

Prospect Capital Corporation

Prospect Capital provides private debt and equity capital to middle-market companies in the U.S. and Canada. Its initial public offering was in 2004. It invests primarily in first-lien and second-lien senior loans and mezzanine debt, which in some cases include an equity component. As of December 31, 2012, PSEC reported investments in 106 companies. (Recent investments are listed in the 2013 Q2 report.)

PSEC's first quarterly dividend of $.10 was paid in

PennantPark is a business development company ((BDC)) headquartered in New York City, founded and led by Arthur Penn since its inception in January, 2007. The initial public offering was in April 2007. PNNT invests primarily in U.S. middle-market companies. As of December 31, 2012, PNNT was invested in 56 companies, with an average investment of $19 million. Of these, 29% was in senior secured loans, 20% in second lien secured debt, 39% in subordinated debt, and 12% was in preferred and common equity investments.

The

Thanks to everyone who responded to that article. Several of you suggested more diversification. Several of you suggested using mutual funds or ETFs alongside (or in lieu of) individual stocks.

At year-end 2012, the portfolio consisted of 14 stocks plus a small position in one closed-end fund that writes call options. I try to follow each stock closely by keeping up with Seeking Alpha articles, press releases, and quarterly earnings calls. My general rule of thumb has been to limit a single stock to 5% of the portfolio, but in 2012 I sold some stocks that I believed were a bit overpriced. Each of the remaining stocks averaged about 7% or so of the portfolio.

Beyond the stocks in the portfolio, I track about 35 additional stocks, mostly blue chips. I monitor these to

My approach to stock study is a version of the NAIC philosophy, which values growth stocks. My work as a volunteer with NAIC, teaching their Stock Selection Guide and helping form investment clubs, has helped me see that everyone has different strengths and weaknesses in investment philosophy and practice. My strength is identifying undervalued stocks. They don't all work out, of course, but over time I've developed a knack for spotting winners. The hard part (for me and for many others with whom I've talked) is knowing when to sell. I am drawn more to value than growth. I have always favored dividend-paying stocks, particularly real estate investment trusts, and as I drew nearer