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February 2018 Portfolio Update: Out Of The Clouds

Mar. 05, 2018 10:20 AM ETPEP, WPC3 Comments


  • The longstanding string of positive months for markets finally ended as volatility has returned.
  • February was a roller coaster ride, but my DGI portfolio is strapped in for the long run.
  • A look at purchases, sales, and dividends collected in February, as well as what's ahead in March.

The old saying goes "What goes up must come down," and after nearly two years of month after month in the green, Mr. Market finally reminded us that things can't stay positive forever. Despite the relatively positive corporate earnings period, investors' attention has instead turned to other macroeconomic factors, such as the schedule of interest rate hikes and its potential effect on Treasury yields. It seems the public can't quite make heads or tails of competing statements from different members of the Fed, and that seems to have thrown the markets as a whole off guard.

In fact, all three major indexes were briefly in correction mode after falling just over 10% from their highs during the period from Jan 29 to Feb. 8, though things recovered somewhat as the month went on. The S&P finished the month down nearly 4%, while the tech-focused Nasdaq 100 rebounded more quickly and lost under 1%.

The New Div on the Block portfolio came up short again this month, posting a 4.1% decline, and leaving me with a YTD total return of -3.4%. The good news, as always, is that unrealized return is not a positive or a negative until one actually sells securities, which I have no plans to do. In fact, I see this as an excellent buying opportunity to pick up shares of quality companies at discounted prices. More on that in a moment, but first, let's take a look at where things stood at month's end.

Portfolio Snapshot

Company Sector Shares % Portfolio % Income Sector Weight Global BMI
Staples 12.4% 7.8%
CVS Health (CVS) 21.669 4.03% 3.81%
Archer Daniels Midland (ADM) 25.7606 2.94% 3.04%
Kroger (KR) 35.366 2.63% 1.55%
Altria Group (MO) 16.1497 2.79% 3.75%
Materials 2.8% 5.9%
Eastman Chem (

This article was written by

Relative newcomer (23) to the world of Mr. Market, hoping to slowly but surely build a sustainable, diversified, and dividend-growth focused portfolio. Looking to share ideas with fellow contributors and take advice of those more experienced in investing.

Analyst’s Disclosure: I am/we are long MGA, TROW, ADM, GM, CVS, BNS, T, LUV, TD, QCOM, VLO, ABBV, PFE, EMN, JNJ, O, SKT, WSM, KR, UNP, D, MO, CMCSA, FB. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (3)

Seeing how relatively small your portfolio is, there is absolutely no need to diversify so much, especially for the sake of diversification. Your selections seem to be OK, so when you buy, buy into 2-3 stocks only. Only when has your portfolio grown to a suitable size can you diversify (but try to keep it under 20).
Dividend Ace profile picture
I bought more PEP last week due to my interest in their global growth opportunities like you mentioned. Great analysis for the article as a whole
I have basically been adding to REITs and BDCs that I already own and believe in. Mostly high yield monthly paid dividends. My list of late buys are GOOD, GAIN, GLAD, WSR, PSEC, STAG, CLDT, APLE, and GNL. Great time to add in my opinion.
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