My 82 Stock Portfolio Plan Allows Me To Sleep Well At Night And Collect Dividends From Quality Safe Holdings

by: RoseNose


82 Stock portfolio means I need quality ratings along with Value Line Safety Ratings.

I list all ratings along with my cost/share, current yearly dividend and yield.

"Don't Fight The Fed" is also in my plan.

I am adding Morning Star (M*) stock types to my list along with sectors.

"Don't Fight The Fed" is a common phrase and if you think about it, you really don't have much say in what they do. In my recent Blog: Are you a Dove, Hawk or Centrist? A Primer on "The Fed" here, I discuss some basic facts including its actions to control the economy. The blog is very basic, but reinforces my stance to be a centrist, stay balanced and stay safe in quality stocks. I do like the opportunities those rate changes offer for buying on dips during market volatility and confusion.

I don't ignore The Fed or fight it, but ride with it and follow my own plan.

MY PLAN for Quality, Safety and the Dividend

I stick with and try to stay with the following stock attributes:

- QUALITY Investment Grade/ IG ratings. I have mentioned this before in a May article here where I do go into more detail referencing credit ratings.

I like BBB- or better and or low debt if there is no rating. Common stock, for me, needs at the low end BBB or BBB+ and any combination of A type rating on up. The more letters denotes the better rating. (example: AA- is better than A+).

Many Business Development Companies /BDC and Real Estate Investment Trust /REIT stocks seem to have the BBB and lower type ratings, but I follow cash flows and other metrics of debt and value for those. Some contributors mentioned in a recent article here. help with those type metrics. I also want to add contributors BDC Buzz and Scott Kennedy along with Factoids. It is important to find contributors you agree with in all stock categories or methods you employ in your personal investing, be it DGI/Dividend Growth Investing, speculation, or options.

Stick with your plan and learn most from those that offer the most honesty and views you share over time. No one is 100% correct, so hold that in mind as well.

- SAFETY Rated Stocks by Value Line range from 1-5. I want 1, 2 and some 3, but No 4 or 5.

I own no bonds right now-or preferred anything. I stay away from stock options. I might be missing out on extra income, but then I have no fears or worries of market price movements, which just makes life easier for me. I also want a margin of price safety when I buy so I search for good pricing with my fair value or bargain price in mind. That would be another article and I have written some about my Want To Buy Lists.

When I see high frothy valuations in my larger positions, I have no trouble with trimming. I now rarely sell all of a position especially if the company has done nothing wrong and it is just plain frothy in price. I have a core # shares I want to own and just won't sell them, barring a rare, but now always possible "black swan" event.

- The DIVIDEND and hopefully an increasing one is my primary focus. I have included the most current yearly dividend in my chart which is not an exact one, but close. I do own some stocks with a frozen dividend. The BDC stocks are notorious for dividend changes, mREITs too, this is important to know, as well as why it happens. That is why I read and follow many contributors, as I mentioned previously. Over time they have earned my trust, or I admit I would not have these type investments. The dividend growth rate, which is another topic, I am not addressing here, but it is also why I have chosen many of the common stock holdings when I purchased them. I also monitor by dividend streaks or # of years they have paid steady and increasing dividends. David Fish is the provider of those lists of Dividend Champions, Contenders and Challengers. The Fish List can be found here.

The most recent article, here, addresses how nicely those other 80 holdings performed for the first 6 months of 2016. It also groups the holdings by sector and reiterates my message of being diversified.

I also want to mention the stock type within each sector as something new I am watching and added it to the chart. It is a proprietary M* stock type mentioned by Richjoy403 in the commentary of my last article that I found interesting, and will address it after the chart.

82 is my current number of holdings and I am proud of them all, picked and chosen personally with a lot of purposeful research. Many are blue chips and don't need rigorous following.

na means no available rating, which turn out to be many REIT and BDC holdings.

Unk is unknown price as most of these are dripped and have been owned for many many years.

I will discuss the rating changes below the chart.

I have sold Hershey (NYSE:HSY), Clorox (NYSE:CLX) and HCP (NYSE:HCP), and they are marked sold in the cost/share column.

New stocks are:

Ladder (NYSE:LADR), Gladstone (NASDAQ:GAIN) and Reynolds (NYSE:RAI). I hope to build the position with time.

I might write an article about these later, and won't offer any details about them now.

Name TICKER $Cost/sh Dividend/yr Current Yield Rating VL Sector Stock Type M*
Apple Inc. (NASDAQ:AAPL) 116.08 2.23 2.2 AA+ 2 Tech-Consumer cyclical
AbbVie Inc (NYSE:ABBV) 52.98 2.28 3.4 A- 3 Health-Care classic growth
Automatic Data Processing (NASDAQ:ADP) 36.79 2.12 2.4 AA 1 Tech cyclical
Amgen, Inc. (NASDAQ:AMGN) 145.78 4 2.3 A 1 Health-Care classic growth
Ares Capital Corporation (NASDAQ:ARCC) 14.73 1.52 10.1 BBB na Financial-BDC
Apollo Commercial Real Est. (NYSE:ARI) 15.98 1.84 11.7 na na Financial
Boeing Co (NYSE:BA) 126.79 4.36 3.3 A 1 Industrial cyclical
Becton Dickinson and Co (NYSE:BDX) 149.7 2.64 1.5 BBB+ 1 Health-Care slow growth
Cardinal Health Inc (NYSE:CAH) 77.08 1.8 2.1 A- 1 Health-Care slow growth
Caterpillar Inc. (NYSE:CAT) 65.77 3.08 3.8 A 2 Industrial High yield
Care Capital Properties Inc (CCP) 23.49 2.28 7.8 BB+ REIT
Colgate-Palmolive (NYSE:CL) 28.57 1.56 2.1 AA- 1 Consumer-S slow growth
Chatham Lodging Trust (NYSE:CLDT) 20.92 1.32 5.6 na na REIT
Clorox Co CLX sold 3.2 2.5 BBB+ 2 Consumer-S
Cummins Inc. (NYSE:CMI) 92.12 4.1 3.4 A+ 3 Industrial cyclical
CenterPoint Energy, Inc. (NYSE:CNP) 16.72 1.03 4.4 A- 3 Utility High yield
Cisco Systems, Inc. (NASDAQ:CSCO) 27.67 1.04 3.4 AA- 2 Tech cyclical
CVS Health Corp (NYSE:CVS) 100.12 1.7 1.7 BBB+ 1 Consumer-S classic growth
Chevron Corporation (NYSE:CVX) 95.19 4.28 4.3 AA- 1 Energy hard asset
Dominion Resources, Inc. (NYSE:D) 67.63 2.8 3.6 BBB+ 2 Utility slow growth
Diageo plc (ADR) (NYSE:DEO) 109.93 $3.50 3.2 A- 1 Consumer-D slow growth
Digital Realty Trust, Inc. (NYSE:DLR) 44.6 3.52 3.4 BBB 3 REIT slow growth
Gladstone 7.76 0.75 9.6 Financial-BDC
General Mills, Inc. (NYSE:GIS) 52.88 1.92 2.6 BBB+ 1 Consumer-S
Genuine Parts Company (NYSE:GPC) 43.42 2.63 2.6 na 1 Consumer-D cyclical
W W Grainger Inc (NYSE:GWW) 86.94 4.88 2.3 AA- 1 Industrial cyclical
Hasbro, Inc. (NASDAQ:HAS) 0.01 2.04 2.5 BBB 3 Consumer-D cyclical
Welltower Inc (HCN) 60.89 3.44 4.4 BBB 3 REIT
HCP, Inc. HCP sold 2.3 5.9 BBB 3 REIT
Home Depot Inc (NYSE:HD) 129.73 2.76 2 A 1 Consumer-D cyclical
Hershey Co HSY sold 2.33 2.2 A 2 Consumer-S
Hercules Capital Inc (NASDAQ:HTGC) 12.75 1.24 9.3 BBB- na Financial-BDC
Johnson & Johnson (NYSE:JNJ) 86.48 3.2 2.6 AAA 1 Health-Care slow growth
Kimberly Clark Corp (NYSE:KMB) 64.6 3.68 2.8 A 1 Consumer-S slow growth
The Coca-Cola Co (NYSE:KO) 31.87 1.4 3.2 AA- 1 Consumer-S slow growth
Ladder Capital Corp 12.67 1.1 8.5 na Financial-mREIT
Lockheed Martin Corp (NYSE:LMT) 214.83 6.6 2.6 BBB+ 1 Industrial cyclical
Alliant Energy Corp (NYSE:LNT) 21.88 1.18 2.9 A- 2 Utility slow growth
Lexington Realty Trust (NYSE:LXP) 8.61 0.68 6.5 BBB- na REIT
Mastercard Inc (NYSE:MA) 82.98 0.76 0.8 A 1 Financial cyclical
Main Street Capital Corp (NYSE:MAIN) 26.67 2.16 8.2 BBB na Financial-BDC
Mattel, Inc. (NASDAQ:MAT) 37.52 1.52 4.7 BBB 2 Consumer-D High yield
McDonald's Corporation (NYSE:MCD) 78.71 3.56 3 BBB+_ 2 Consumer-D cyclical
3M Co (NYSE:MMM) 139.65 4.44 2.5 AA- 1 Industrial cyclical
NEWTEK Business (NASDAQ:NEWT) 12.57 1.4 13 na Financial-BDC
National Health Inv (NYSE:NHI) 60.24 3.6 4.6 na na REIT
Nike Inc (NYSE:NKE) 61.28 0.64 1.2 AA- 1 Consumer-D cyclical
New Residential Inv (NYSE:NRZ) 13.47 1.84 13.2 BBB+ 2 Financial-mREIT cyclical
Norfolk Southern Corp. (NYSE:NSC) 35.38 2.36 2.7 BBB+ 2 Industrial
Realty Income Corp (NYSE:O) 15.41 2.39 3.4 BBB+ 2 REIT
Omega Healthcare Inv (NYSE:OHI) 33.49 2.4 7 BBB- na REIT
Occidental Petroleum (NYSE:OXY) 90.07 3.04 4.2 A 3 Energy distressed
Procter & Gamble Co (NYSE:PG) 64.98 2.68 3.1 AA- 1 Consumer-S slow growth
PennantPark (NASDAQ:PNNT) 9.88 1.12 15.3 BBB- na Financial-BDC
Reynolds American 50.03 1.8 3.7 BBB 2 Consumer-S aggressive growth
Starbucks Corporation (NASDAQ:SBUX) 48.72 0.8 1.4 A- 1 Consumer-D cyclical
New Senior Investment (NYSE:SNR) 10.62 1.04 8.7 na REIT
Southern Co (NYSE:SO) 40.12 2.24 4.2 A- 2 Utility High yield
Stag Industrial Inc (NYSE:STAG) 18.09 1.39 5.6 BBB na REIT
Starwood Property Trust (NYSE:STWD) 20.32 1.92 8.9 BB na Hybrid Reit
AT&T Inc. (NYSE:T) 30.25 1.92 4.4 BBB+ 1 Tele-Com High yield
Target Corporation (NYSE:TGT) 61.89 2.4 3.2 A 1 Consumer-S slow growth
T. Rowe Price Group Inc (NASDAQ:TROW) 72.7 2.16 3.1 A+ 2 Financial cyclical
Urstadt Biddle Properties (NYSE:UBA) 20.79 1.04 4.3 na na REIT
Unilever plc (ADR) (NYSE:UL) 43.82 1.41 2.5 A+ 1 Consumer-S slow growth
Union Pacific Corp (NYSE:UNP) 91.61 2.2 2.4 A 1 Industrial cyclical
Visa Inc (NYSE:V) 60.88 0.56 0.7 A+ 1 Financial cyclical
VF Corp (NYSE:VFC) 60.56 1.48 2.5 A 2 Consumer-D cyclical
Valero Energy Corp (NYSE:VLO) 55.23 2.4 4.6 BBB 3 Energy hard asset
Ventas, Inc. (NYSE:VTR) 58.92 2.92 4.1 BBB+ 3 REIT High yield
Verizon (NYSE:VZ) 44.78 2.26 4.2 BBB+ 1 Tele-Com High yield
WEC Energy Group Inc (NYSE:WEC) 42.86 1.98 3.1 A- 1 Utility classic growth
Wells Fargo & Co (NYSE:WFC) 46.98 1.52 3.2 A 2 Financial cyclical
W.P. Carey Inc. REIT (NYSE:WPC) 64.67 3.92 5.5 BBB 3 REIT
Exxon Mobil Corporation (NYSE:XOM) 84.49 3 3.4 AA+ 1 Energy hard asset
Philip Morris International (NYSE:PM) unk 4.08 4.1 A 2 Consumer-S High yield
DNP Select Income Fund (NYSE:DNP) unk $0.78 $7.40 na na CEF-Utility High yield
Altria Group Inc (NYSE:MO) unk 2.26 3.4 A- 2 Consumer-S growth
Xcel Energy Inc (NYSE:XEL) unk 1.36 3.1 A- 1 Utility slow growth
MGE Energy, Inc. (NASDAQ:MGEE) unk 1.18 2.1 A- vl 1 Utility hard asset
PepsiCo, Inc. (NYSE:PEP) unk 3.01 2.8 A 1 Consumer-S slow growth
Kraft Heinz Co (NASDAQ:KHC) unk 2.3 2.7 BBB- 2 Consumer-S slow growth
Mondelez International (NASDAQ:MDLZ) unk 0.76 1.8 BBB 2 Consumer-S slow growth
FirstEnergy Corp. (NYSE:FE) unk 1.44 4.3 BBB- 3 Utility High yield
Metlife Inc (NYSE:MET) unk 1.6 1.6 A- 3 Financial High yield


S&P- I noted 11 credit rating changes from my last list, mostly minor. 9 went down and 2 up.

Good News First:

LNT and MO, BBB+ to A-

Lowered slightly were the following:

ABBV: A to A-

CL and CVX: AA to AA-,

GIS: A to BBB+

GPC: A to na,

HAS and HCP: BBB+ to BBB


WFC :, A+ to A.

CCP still remains at BB+, but I expect an increase in the near future.

STWD is rated BB and I knew that when I bought it.

Nothing concerning here for me.

Value Line (VL) had 2 changes:

OXY went down to a 3.

MA or Mastercard went up to a 1.

I did find a value omission for FE and added it.

SECTOR & Stock Type

I enjoy diversity by sectors and now will be watching stock type, which was added to my list.

Richjoy403 introduced this definition by M* in the commentary from my last article. I agree with Rich in knowing what type of growth or cyclical nature each stock provides.

Here are the definitions as Rich posted it in the commentary from my last article ( his part 1):

<<Addendum #1: For those unfamiliar, following are Morningstar's (proprietary) Stock Types...

"AGGRESSIVE GROWTH: Companies showing a bit more maturity than their speculative-growth counterparts: They post rapid growth in profits, not just in sales-a sign of more staying power. At this point, it's time to make some money."

"CLASSIC GROWTH*: These firms are in their prime and have little left to prove. The best classic growers have blossomed into money machines, churning out steady growth, high returns on capital, positive free cash flows, and rising dividends. The catch is, their growth is nowhere near that of the aggressive-growth group."

"SLOW GROWTH and HIGH YIELD: The growth of these companies is a fading memory. Having run out of attractive investment opportunities, most of them pay out the bulk of their earnings in dividends-expect high payout ratios-rather than plow the profits back into their businesses."

"CYCLICAL: Cyclical companies core businesses can be expected to fluctuate in line with the overall economy. In a booming economy such companies will look excellent; in a recession, their growth stalls, and they might even lose money."

"HARD ASSET: These companies main businesses revolve around the ownership or exploitation of hard assets like real estate, metals, timber, etc. Such companies typically sport a low correlation with the overall stock market and investors have traditionally looked to them for inflation hedges."

"SPECULATIVE GROWTH: Don't expect consistency from speculative growth-companies. At best their profits are spotty. At worst they lose money. In fact, many companies never make it beyond speculative growth, going instead to bankruptcy court. That's why they're speculative. But current profitability isn't what makes speculative-growth companies interesting. It's future profits. Hopefully, a speculative-growth company will eventually blossom into a world-class company."

"DISTRESSED : These companies are having serious operating problems. This could mean declining cash flow, negative earnings, high debt, or some combination of these. Such "turnaround" stocks tend to be highly risky but also harbor some intriguing investments."


Rich did post his portfolio in 3 parts explaining his 45 stocks in detail. It is a definite important post. I thank him again for sharing it with us all.

My Stock Type Results:

Aggressive Growth: 1

Classic Growth: 4

Slow Growth: 17

High Yield: 11

Cyclical: 21

Hard Asset: 4

Speculative Growth: 0

Distressed: 1

Uncovered by M* were most all REIT and BDC stocks.

I had no idea some of those were considered cyclical, like Mastercard and Visa. I thought they were growth stocks with dividends.

I am off now to make a chart for these individual types by sectors. I really enjoy investigating new methods for stock evaluation and will look forward to analyzing these results, hopefully with some kind of new understanding of my portfolio stock types.


Sleep Well At Night and Protect your assets with Quality and Safety, have a Plan and follow it.

Keep your emotions out of your investing and do not make any sudden trading actions.

As always I will look forward to your commentary.

Happy Investing.

Disclosure: I am/we are long ALL STOCKS EXCEPT HSY, CLX AND HCP.

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.