The Rose 93 Stock July Portfolio Update: Delightful Spicy Dividends Up 60.2% From 2017

by: RoseNose

93 investments provide a dividend yield of 4.58%, with July bringing in 60.2% more in dividends than 2017 from 32 different companies.

3 new stocks purchased, 3 are gone; along with 12 other adjustments with prices and some reasoning discussion revealed.

Portfolio value end of July was a bit higher than January high by 0.78% due partly to income of dividends and options premiums along with a recording error I found.

Portfolio value compared to December 2017 is up 5.47% but pretty much even with income removed.

I received 60.2% more income in this past July than I did in 2017. It is up hugely secondary to adding Regulated Investment Companies (RICs) and some preferred income with high yield from numerous sectors. They are spicy yummy income providers.

Dividends/distributions or income for the portfolio is now the desired main outcome to continue with a happy retirement.

RICs add Spicy Income

These type of investments should be evaluated and invested in differently than common stock. Generally they have distributions and not dividends as they are required to distribute 90%+ of their taxable pass-through income and are rarely found on any type of rising continuous dividend payer list.

The lack of dividend continuity and commensurate risk in price volatility is rewarded to the investor through a higher “spicy” yield.

I can also attribute some of that to dividend growth. However, as Jethro on the old TV show from the 1960s "The Beverly Hillbillies" would say, let me take a few hours to do the “ciphering”.

I will not take the time, but hope you understand it would be more complex than my mind wants to consider. The list presented below shows the current 93 holdings in the Rose Portfolio alphabetically by stock ticker:

I have included some credit ratings as well, as I believe in knowing the quality of my investments. If there is no rating, it most likely is a RIC and is not followed or even rated by most analysts. The following are the abbreviations in the chart:

SPGMI = Designation by TD Ameritrade's CFRA. It starts with A+ rating as the best, with B+ an average rating and B- below average.

S&P Cr = S&P Credit rating which I get from F.A.S.T. Graphs “FG”, a paid subscriber service from Chuck Carnevale.

Cost/sh = My current average cost per share through 3 accounts: 1 taxable and 2 Roth.

Div 18 = Current dividend as found on FG or Nasdaq.

8/2 pr = The cost per share at the close of market on August 2nd, 2018.

DivYield = Div 18 divided by the 8/2 price per share.

D/sh = Dividend or distribution received in July per share.

So please know I like owning them all and I can easily manage them all.

I also show 2 stocks at the end that were sold, but I received income from them for July. I had 83 holdings in April 2017 and this past article shows the 83 holdings if a comparison is desired as there have been numerous changes and additions.

93 Investments + 2 sold at the end

Name Ticker SPGMI Cost/sh S&P-Cr Div18 8/2 pr DivYield D /sh
AbbVie (ABBV) B 64.51 A- 3.84 95.12 4.04%
Arbor Realty (ABR) 8.62 0.96 11.38 8.44%
Automatic Data Processing (ADP) A 10 AA 2.76 133.15 2.07% 0.69
Great Ajax (AJX) 13.93 1.22 13.48 9.05%
Amgen (AMGN) B+ 137.85 A 5.28 196.38 2.69%
ALPS Alerian MLP ETF (AMLP) 12.35 na 0.83 11.16 7.44%
InfraCap MLP ETF (AMZA) 9.2 na 1.32 7.95 16.60% 0.11
Ares (ARCC) 15.9 BBB- 1.52 17.24 8.82%
Broadcom (AVGO) 210.02 BBB- 7 216.35 3.24%
Boeing (BA) A+ 33.43 A 6.84 349.73 1.96%
BCE (BCE) B+ 41.98 BBB+ 2.36 41.65 5.67% 0.58
Becton Dickinson (BDX) A 156.8 BBB 3.18 245.1 1.30%
Brookfield Infrastructure (BIP) 40.1 BBB+ 1.88 40.84 4.60%
Anheuser (BUD) 106.64 A- 4.27 100.43 4.25%
Blackstone Mortgage (BXMT) 30.75 2.48 33.3 7.45% 0.62
Cardinal Health (CAH) B+ 70.48 BBB+ 1.85 49.98 3.70% 0.476
CBL Pfd (CBL.PD) 18.85 1.84 18.85 9.76% 0.46
Cherry Hill (CHMI) 18.02 1.96 18.31 10.70% 0.49
Chimera-pB (CIM.PB) 25.58 2 25.93 7.71%
Colgate (CL) A- 28.57 AA - 1.68 67.24 2.50%
Cummins (CMI) B+ 117.84 A+ 4.44 139.79 3.18%
CorEnergy (CORR) 34.65 3 38.61 7.77%
Cisco (CSCO) B+ 28.9 AA- 1.32 42.53 3.10% 0.33
Covanta (CVA) 13.4 BB- 1 17.35 5.76% 0.25
CVS (CVS) B- 99.58 BBB 2 63.78 3.14%
Chevron (CVX) B 79.1 AA - 4.48 123.76 3.62%
Dominion (D) B 68.59 BBB+ 3.34 71.14 4.69%
Dominion p (DCUD) 47.48 BBB+ 3.37 47.67 7.07%
Diageo (DEO) 101.65 A- 3.43 146.63 2.34%
Digital Realty (DLR) A- 22.1 BBB 4.04 121.04 3.34%
DNP Select Income Fund (DNP) unk silver 0.78 10.85 7.19% 0.065
EPR (EPR) A- 58.29 BBB- 4.32 68.04 6.35% 0.36
Fortress (FTAI) 18.67 B 1.32 18.54 7.12%
General Mills (GIS) A 53.44 BBB 1.98 45.74 4.33%
Genuine Parts (GPC) A 65.11 A+ 2.88 97.83 2.94% 0.72
Home Depot (HD) A+ 141 A 4.12 195.66 2.11%
Hershey (HSY) A 103.23 A 2.76 97.54 2.83%
Intel (INTC) B+ 39.24 A+ 1.2 49.48 2.43%
Iron Mountain (IRM) B 33.13 BB- 2.35 35.58 6.60% 0.587
Johnson & Johnson (JNJ) A 89.05 AAA 3.6 131.25 2.74%
Kraft Heinz (KHC) unk BBB 2.6 59.4 4.38%
Kimco (KIM) B+ 19.01 BBB+ 1.12 16.73 6.69% 0.28
Kimberly-Clark (KMB) A 97.12 A 4 115.37 3.47% 1
Coca-Cola (KO) B+ 31.87 A+ 1.66 46.18 3.59% 0.39
Kite Realty (KRG) B- 14.86 BBB- 1.27 16.86 7.53% 0.317
Lockheed Martin (LMT) A 266.16 BBB+ 8.2 322.02 2.55%
Alliant (LNT) A- 21.88 A- 1.34 42.47 3.16%
Matercard (MA) A- 82.98 A 1 202.01 0.50%
McDonald's (MCD) A 78.71 BBB+ 4.1 155.41 2.64%
Mondelez (MDLZ) B unk BBB 0.92 43.16 2.13% 0.22
MetLife (MET) B+ Unk 49 A- 1.66 46.19 3.59%
MGE Energy (MGEE) A- unk A-vl 1.3 64.25 2.02%
3M (MMM) A+ 163.19 AA- 5.44 205.53 2.65%
Altria (MO) A- unk A- 2.92 58.83 4.96% 0.7
Monroe Capital (MRCC) 14.17 1.4 13.25 10.57%
NGL-pb (NGL.PB) 24.23 2.25 24.5 9.18% 0.5625
Nike (NKE) A- 59.51 AA- 0.8 78.65 1.02% 0.2
New Residential (NRZ) 14.76 B+ 2 18.02 11.10% 0.5
NuStar LP (NS.PB) 20.99 1.91 22.33 8.55%
Omega Healthcare (OHI) B 33.35 BBB- 2.64 29.8 8.86%
Oxford Lane (OXLC) 10.55 1.62 11.25 14.40% 0.135
Occidental (OXY) B- 84.03 A 3.08 82.24 3.75% 0.78
PepsiCo (PEP) A- unk A + 3.71 114.69 3.23% 0.9275
Pfizer (PFE) B+ 32.33 AA 1.36 39.65 3.43%
Procter & Gamble (PG) A 65.43 AA- 2.87 82 3.50%
Philip Morris (PM) B unk A 4.56 86 5.30% 1.14
PennyMac-pb (PMT.PB) 24.81 2 25.25 7.92%
Brookfield Real Assets (RA) 23.42 2.39 23.24 10.28% 0.199
RD Shell-B (NYSE:RDS.B) 54.17 A+ 3.76 68.51 5.49%
Sabra Healthcare (SBRA) 19.64 BB+ 1.8 21.63 8.32%
SCANA (SCG) A- 41.79 BBB 1.68 41.34 4.06% 0.124
J.M. Smucker (SJM) A- 111.8 BBB 3.26 112.32 2.90%
Tanger (SKT) B+ 29.38 BBB+ 1.42 23.96 5.93%
Sutherland (SLD) 14.82 1.6 16.7 9.58% 0.4
Southern Co. (SO) B+ 39.38 A- 2.4 48.47 4.95%
Simon Property (SPG) A- 168.02 A 7.91 176.26 4.49%
STAG (STAG) 17.38 BBB 1.43 27.72 5.16% 0.118
AT&T (T) B 30.46 BBB 2 31.85 6.28%
Teekay pb (TGP.PB) 23.98 2.125 24.24 8.77% 0.53125
Target (TGT) B+ 60.73 A 2.56 80.76 3.17%
TriplePoint (TPVG) 12.86 1.44 13.77 10.46%
Uniti (UNIT) 15.6 B - 2.4 17.86 13.44% 0.6
Union Pacific (UNP) A 88.36 A- 2.96 149.94 1.97%
Visa (V) B+ 62.06 A+ 0.84 138.92 0.60%
Valero (VLO) B+ 57.51 BBB 3.2 115.33 2.77%
Ventas (VTR) B+ 57.33 BBB+ 3.16 56.49 5.59% 0.79
Verizon (VZ) B 45.22 BBB+ 2.36 51.98 4.54%
WEC Energy (WEC) A 45.39 A- 2.21 65.67 3.37%
W.P. Carey (WPC) B+ 64.24 BBB 4.09 65.59 6.24% 1.02
Washington Prime Pfd H (NYSE:WPG.PH) 21.28 1.87 23.31 8.02% 0.47
Xcel (XEL) A- unk A- 1.52 46.6 3.26% 0.38
Exxon (XOM) B+ 88.78 AA+ 3.28 79.91 4.10%
Celgene (CELG) B+ 95.06 BBB+ 0 90.55 0.00%
SOLD Income
Medtronic (MDT) 0.5
Medical Properties (MPW) 0.25

If there is a low cost per share, it is using my accounting method and it is an average of 3 accounts. I have trimmed and sold many of the stocks over the years and have a low price because of that. If there is no cost price, I have been dripping those and do not really know the cost.

July Activity

The following is my buy and sell activity for July which was also included in the statistics of the previous listing.

The biggest change is the sale of 3 stocks completely and the purchase of 3 new ones.

Buy Price/sh = The buy price per share with all lots having a separate listing and includes fees.

For sells/trim, I use the following abbreviations:

Cost/sh = Cost per share.

G/L % = Gain or loss % for the transaction on the price only and not with total return with dividends.

Name Ticker Buy Price/sh
AT&T T 31.74 30.56
CBL pref d CBL-d 19.29
International Business Machines IBM 140.89
Cummins CMI 132.53 137.07 138.2
Lockheed Martin LMT 300.5
Anheuser Busch BUD 103.79 101.4
Cardinal Health CAH 49.9
Brookfield Infrastructure BIP 40.3 39.71
3M MMM 199.08 201.4 193.7
Broadcom AVGO 203.75 222.55
Kimco KIM 15.56 options
Fortress Transportation FTAI 18.76 18.5
SELL/ Trim
Name Ticker sell price/sh cost/sh G/L %
Occidental OXY 85.29 85.76 86.83 -1.5
Newtek NEWT 20.92 13.96 49.9
International Business Machines IBM 147.93 147.46 0.3
Medtronic MDT 88.71 74.28 19.4

3 New Holding Buys

1 - Broadcom

Technology sector global semiconductor chip maker Broadcom went on sale and was hard to pass by.

The Wheel of Fortune, TWoF, subscriber service by The Fortune Teller, link here, came out with a trading tip to buy AVGO bright and early on July 12th.

It was @ $200 and 3.5% yield, as the news of them acquiring CA was not well received and the stock price took a huge dip. It was a very “hot” tip to buy. I was even sitting on some cash and could partake on the great suggestion for a quality Tech growth dividend paying stock. It was an exact fit for me and I got what I could at the time, averaging around $204 /share, as the price rose quickly through out that day. However, I could not purchase enough and had to pay up a bit for some more shares a few days later. The $7 current dividend and my average share price now of $210 gives ~3.3% dividend yield. It still is a fantastic buy opportunity even now. So you have a hot tip now from me!

Broadcom has been raising the dividend at a rapid pace and the 5-year DGR is 52% and hard to ignore.

The FG chart above shows Broadcom has fantastic looking growth of earnings or the dark green area and even pays a well covered dividend (the white line). It also offers some estimated earnings growth of 25% for this year and another 3% for 2019. I am pleased with owning it. Thank you, Fortune Teller.

2 - Fortress Transportation

This is a miscellaneous type industrial sector company which has multifaceted distribution and rentals for infrastructure needs. It provides airplanes, energy terminals, along with Maine and Quebec railway needs. It is somewhat of a speculation and a very fascinating and interesting company.

This is also a suggestion of The Wheel of Fortune, TWoF, which made it an idea at a lower price level earlier this year. I purchased my shares this month and only have my slow action to account for not getting the shares lower, but I remain pleased even at this price entry level with a 7% yield. It announced the same dividend of 33c for the next payment, even with a rather disappointing yet positive earnings report. This one might take time to blossom. It is one I would not have chosen on my own, so again, and maybe too soon, I thank The Fortune Teller.

3 - Brookfield Infrastructure Partners

This is a defensive utility suggestion from TWoF with a nice yield of ~4.8% and good value that I placed in the Roth. It could have a K-1 form, but I can ignore it in the Roth and will. I also do that with the preferred MLP shares I own. I hate K-1 forms and will not own any stocks that generate one in the taxable account, just me. I will not describe it more than this and that I bought some, as many others on SA have already done a terrific job.

3 Sales

1 - International Business Machines (NYSE:IBM)

With now owning the quality tech stock of Broadcom, I was able to divest myself of IBM when its price rallied with a positive earnings report on the 17th. I could exit with no loss of capital as I had just averaged down a bit on some shares earlier in the month. This was rather hard to exit, but I have been in and out of it many times as tech is not a strong suit for me. My husband understands computers and helps me considerably, but he even liked AVGO more than IBM. I am sure IBM with its current dividend is a real steady quality investment, but I do not see much price appreciation in the near future nor earnings jump from what I see in FG. Below you can see the last 10-year FG chart: not too exciting is it? However, it has a well covered dividend.

IBM's projected earnings are also disappointing and pretty flat. I sold the small holding of shares, breaking mostly even on cost. I did receive nice dividends while I owned it.

2 - Newtek Business (NEWT)

Sad to say goodbye, and maybe it was too soon. However, I cashed in with almost 50% gain on the share price for the almost 2 years I owned it. I also collected excellent income from it. The current yield is now around 8% and I purchased it at ~12% in 2016 when it was recommended by The Fortune Teller. TWoF service also suggested a sale now for the lower yield and not much upside to the share price. Not a necessary sale, but the cash will be put into something else. I have happily gathered in my gains in a Roth account and have no need to pay taxes on it.

3 - Medtronic

The above FG is for the last 5 years and gives estimates for 2019. It is a steady grower of the dividend and is all round quality for a company with an S&P credit rating of A. I saw it as somewhat overpriced around $88.70 when I sold and the yield is very low at 2.2%. It was in a taxable account and I will be paying capital gains. The 19.4% profit from 2 years is really pretty good. I did already put some of the healthcare company gains back into currently owned healthcare stock ABBV and CAH as both are nice values now. In the case of CAH, it is very much underpriced. Both of these have higher current yields ~4% and 3+%, respectively.


This was purely and simply just a trim in the taxable account to offset some of the capital gains from selling MDT. I have been watching it for years to appreciate in price and even adding to it as time went by averaging down. I did have too much, and with an almost break even price, it was time to trim.

Dividends or distribution income

I received income from 38 different companies as follows:



SCG had an expected dividend cut, but will be acquired by Dominion hopefully this year and I will get D shares for it.

The amount of each distribution is posted in the last column of the list of 93.

This is an average of one payment per day for July..

Income for this portfolio also comes from options, but I will not include these in this report. I hopefully should and will do an article about those soon.

Portfolio Value (“PV”)

The PV for end of July was greater now than I remembered it for the January high value. This was a clue to me I had something wrong somewhere as I did not have it that way in my logs. I did make an accounting error in the monthly report for January.

I am very embarrassed about it, but as I am not an accountant, I will brush this mistake away. The mistake was I counted my husband's IRA account in the total portfolio value for January. The good news is I did not do it after that. So most of the figures for not doing very well for many months pretty much need to be ignored. Just know I was doing better than I showed, but not by much. I will leave it at that as it really is old news and didn’t really change things a lot.

Sorry everyone and I hope you can trust me from now on.

The month of July showed a portfolio value better than the January high by 0.78%, but that includes dividend accumulation, cash and options values. If those are deducted, the portfolio value is now down about – 1.8%. It is only down -0.19% from December 2017. I call that close to even. PV is up 2.4% from December with income included. In the same time period, SPY is up 2.5%, if anyone cares. I generally do not compare, but did find that interesting.

Just know the dividends in this portfolio are amazing and pleasing and yield 4.58% on its value today.

July was a great month and I am still maintaining 50% of the investments in defensive sectors. My next article will show a new structure for the portfolio, where I will divide out the RIC and Fixed Income from the core common stock holdings. It is an interesting review and I almost have it completed and hope to submit it soon.

Happy investing to all and a wonderful rest of the summer too!

Disclosure: I am/we are long AVGO. 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.

Additional disclosure: and all 93 stocks in the chart