Retirement Strategy: Buy On Dips, Add To Core Holdings (Part 5)

by: Regarded Solutions

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 (NYSE:XOM), Johnson and Johnson (NYSE:JNJ), AT&T (NYSE:T), General Electric (NYSE:GE), Annaly Capital (NYSE:NLY), Exelon (NYSE:EXC), Proctor 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 (DD), Duke Energy, PPL Corp. (NYSE: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.

Our Performance

Stock Buy 11-23 12-13 PPS Cost Basis Cur.Value
XOM 75/SHR 80/SHR 7500 8000
JNJ 62/SHR 64/SHR 6200 6400
T 27/SHR 29/SHR 2700 2900
GE 15/SHR 17/SHR 1500 1700
NLY 16/SHR 16/SHR 1760 1760
EXC 41/SHR 43/SHR 16400 17200
PG 61/SHR 64/SHR 12200 12800
MCD 92/SHR 99/SHR 9200 9900
PM 71/SHR 75/SHR 9940 10500
INTC 23/SHR 24/SHR 2300 2400
O 32/SHR 34/SHR 3200 3400
COP 67/SHR 71/SHR 6700 7100
PFE 18/SHR 20/SHR 1800 2000
CVX 94/SHR 103/SHR 9400 10300
DD 44/SHR 44/SHR 4400 4400
DUK 20/SHR 21/SHR 2000 2100
PPL 28/SHR 29/SHR 2800 2900
Tot.Value 100000 105760

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.

My Opinion

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.

Disclosure: I am long XOM, JNJ, T, GE, NLY, EXC, PG, INTC, O.