Portfolio Summary And Brief Walk-Through Of My Current Positions

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Includes: AAPL, AMD, BA, BBL, CIM, CMI, DOC, FB, GME, GOOG, GSK, HP, HRL, IP, IRM, JNJ, KR, MA, MAIN, NRZ, O, OHI, PFE, QCOM, RDS.A, SBRA, SBUX, SNR, T, TIS, UNIT, V
by: Thomas Landell

Summary

New funds invested and a few companies added.

Projected dividends rise over $1k for the first time.

Going through trades gives you valuable lessons of what not to do and also shows where you were lucky to sell or buy.

I felt like I should briefly go over my portfolio and explain my different positions, why I chose these companies and why I keep them. I will also name a few positions I’ve closed this year and my reasons for doing so. Worth noting is that my projected yearly dividends has risen from $828 to $1,098 since my first article. Most of it is due to new money being put to use. The portfolio value has simultaneously risen from $18,524 to $23,429, half of which is new money.

My current portfolio looks like this:

Total Value: $23,429.80

Projected yearly dividends: $1,098.12

Portfolio yield: 4.69%

Apple (AAPL)

I did not want to own Apple for a long time because I myself didn’t like or use the products. I have since come to term with the fact that other people seem to like Apple products and I expect a continued dividend growth in the company for many years. It feels a bit pricey at this time but one have to remember that this has been the case with Apple for a long time. I myself bought at all-time high at $127,73.

Advanced Micro Devices (AMD)

I bought AMD because I think there’s a potential for the stock price to double or triple within a few years. I know that I should have bought the stock at $2-3 but I hadn’t noticed it by then. I was too busy chasing yield at the point in time and wasn’t looking at any stocks not paying a hefty dividend.

Boeing (BA)

Boeing was caught on my radar due to the dividend growth. I was also in search of an industrial stock to further diversify my portfolio and this made Boeing the perfect match. In hind sight I regret not buy a lot more.

Chimera Investment (CIM)

CIM is one of the few companies remaining from my yield chasing phase. I stumbled on an analysis here on SA which argued that CIM was extremely undervalued and that the dividend was absolutely safe. The author seemed to have a valid point and so I bought some shares and it has really paid off so far.

Physicians Realty Trust (DOC)

I owned DOC a bit over a year ago but sold it when I sold all my other REITs when there was concern over rising interest rates. I recently rebought a small position since I think the company will continue to grow and a clear sign of this is their first dividend hike earlier this year.

Facebook (FB)

At last I joined the Facebook train. I simply couldn’t find arguments for not owning the stock anymore. I simultaneously bought Facebook, Alphabet and AMD as a non-dividend part of my portfolio, expanding the tech sector.

Gamestop (GME)

I was enticed by the very large dividend and relatively low payout ratio. I’m continuously going back and forth if I should sell or buy more.

Alphabet (GOOG)

I think owning Alphabet will turn out to be a good investment in a few years. It has been an extraordinary investment historically but I will settle with good.

Helmerich and Payne (HP)

I wanted more exposure to the energy market and since I already owned stocks in Shell I wanted something different than a producer.

Hormel Foods (HRL)

People need to eat. I like the dividend growth and I think it’s trading at a cheap level at the moment.

Iron Mountain (IRM)

I bought Iron Mountain after reading an analysis by Brad Thomas. Seems like a stable company, nice dividend and cheap valuation.

Johnson & Johnson (JNJ)

It doesn’t get any more blue-chip than JNJ. Although I would have liked to buy it at a much lower level (obviously) I’m still happy with my purchase.

Kroger (KR)

I bought a small position as a gamble. The stock took a massive beating after cutting earnings estimates and then took another one when Amazon bought Whole Foods. It has dropped further since I bought it and I feel that the low price isn’t warranted. I might expand my position a bit during the coming months.

Main Street Capital (MAIN)

I have been keeping an eye on this one for about a year and the price have only gone up. So when it fell a few percentage points a couple of months ago I seized the moment and bought a few.

New Residential Investment (NRZ)

I was hesitant to buy this one due to previous experience with high yielding stocks but after reading as much as I could find about the company I decided to buy some shares anyway as an addition to CIM.

Realty Income (O)

I love this stock. I sold my entire position at $70 and rebought a larger position at $55 and now I’m getting paid every month again.

Omega Healthcare (OHI)

Again, I think an article by Brad Thomas got me in to OHI. It has a very nice track record of raising the dividend and I’ll gladly ride along.

Pfizer (PFE)

This was my second pharmaceutical company to buy and I chose between PFE and JNJ. I bought PFE due to the higher yield and was seemed like a low price. I now have both companies.

Qualcomm (QCOM)

This is a very big company which pays a nice, increasing dividend. My position is well in the red due to all the legal hazards the company is currently in but I think it will pull through. If they do, my position won’t be in the red for long.

Royal Dutch Shell (RDS.A)

When oil dipped below $30 I scanned the largest oil companies and in the end decided to buy stocks in Shell. I felt it was a safer bet than BP and a much better dividend than Exxon or Chevron.

Starbucks (SBUX)

To be completely honest, I didn’t do any research before buying Starbucks. I just picked it off the top of my head as one of the giants in the industry. My first entry point at $62 isn’t great but with time and increasing dividends I think I’ll make up for the initial losses.

New Senior Investment Group (SNR)

Stock promoted as a viable M&A target by Brad Thomas. I made a small bet in the company and receive a 10% yield on my money while I wait.

Uniti Group (UNIT)

This is my most recent buy. I first looked at the company after reading an article by Brad Thomas. Brad is often right about quality stock but even he cannot time the market. So I put it on my watch list as a possible future position and when it recently dropped in price due to concern about WIN I bought some shares with what money I had. They might cut the dividend but I feel comfortable taking the risk with such a small position.

Closed positions

International Paper (IP)

I took home some profit in IP mainly because I wanted the money to invest in other stock. I bought IP at 5% yield and sold it at 3%. I felt there were a lot of safer investments to be made with a 3% yield.

Orchids Paper Products (TIS)

I bought it because of the yield. I sold it because I didn’t know much of the company and didn’t feel comfortable with the investment. In hindsight I was really lucky since the stock price plummeted not long after I sold my position.

GlaxoSmithKline (GSK)

Not much to say, bought cause of high yield in a familiar brand and then I sold because I got spooked by Brexit.

BHP Billiton (BBL)

Bought this one because I thought it was really cheap and being one of the world’s largest producer of iron and copper. Sold because I had a nice profit and the company still hadn’t raised its dividend after the cut. They then quickly raised the dividend after I’d sold.

Care Capital Properties (CCP)

I bought it because of an article by Brad Thomas, my REIT guru. I then sold when they announced the merger with SBRA because I didn’t feel comfortable owning SBRA.

Cummins (CMI)

Bought because of the DGR and I wanted more industrials. I closed the position because I wanted to take home profit and invest elsewhere. One of my not-so-great decisions.

AT&T (T)

Bought because of the dividend yield and sold it when I started being more focused on dividend growth because 2% average growth doesn’t cut it for me.

Summary

To conclude this article: I’ve been lucky with some trades and too trigger-happy with others. I try to look at it all as gaining experience. I’m starting to feel comfortable about managing my own portfolio and I’m having fun doing so.

My portfolio is still a bit light with industrials so that's where I'm looking to add right now. I also have MasterCard (MA) and VISA (V) on my watch list to possible add to the portfolio.

In my next article I will also talk about the downside about being a non-U.S. investor on the U.S. market, the dollar and the effect it’s had on my portfolio performance in Swedish Crowns (SEK).

Disclosure: I am/we are long AAPL, AMD, AMZN, BA, CIM, DOC, FB, GME, GOOG, HP, HRL, IRM, JNJ, KR, MAIN, NRZ, O, OHI, PFE, QCOM, RDS.A, SBUX, SNR, UNIT.

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.