Rose 91 Stock Portfolio Bountiful November Dividends Along With Historic Buy Yields + Transactions

Summary

• 22 dividend payments were received for November up 17.76% from 2017 along with a roller coaster portfolio value finishing with a yield of 4.4%.
• Historic yield for value purchases in comparison to current and future will be the focus of this article for all 91 holdings along with revealing all the costs per share.
• Morningstar fair value and buy price are shown for 55 common stocks, as the majority of Regulated Investment Companies “RIC”s are not covered.
• 18 transaction prices are revealed for adding to 13 different holdings,  one trim and 4 sold out of completely.

The Rose Portfolio

It is real and contains 91 investments from 3 combined brokerage accounts including 2 Roth, 1 taxable along with 9 separate stocks held privately at each company. In this last article, I discuss goals and reveal all available S&P credit ratings.

Bountiful dividends are the main priority of the Rose portfolio to generate income, thus historic dividend yield generally is a signal for purchase.

Historic Dividend Yield

When any stock has a higher than normal dividend yield it means a few things for investors:

• The company just raised the dividend beyond comprehension
• The stock price is lower than usual for many reasons.
• Due diligence must be done to determine if the company is experiencing difficulties, but I want to assume that has been done and focus on dividend yield.

Historic dividend yield is the highest yield a stock has had over many years for the dividend provided. It will be the focus of this article to find it for the stocks in this portfolio and then determine a good value price for a purchase.

At fair value most stocks will have a normal dividend yield, which is still an appropriate time to purchase most any investment. The Rose portfolio is established, and thus I have the luxury to add when at a higher or more historic yield yield to obtain a better value price. The portfolio only gets investing income from dividends or options so a good value price is an objective.

The chart below has a focus on just that. Current dividend yield is for the price on 5 December 2018. 2019 yield was used from using values provided from the subscription service Fast Graphs “FG” and using high and low prices for the dividends for the years 2012-2018 for the historic values for those past 5-6 years. Any figure shown is a calculation that I did on my own, so blame Rose for any mistake in values for the historic yield and year shown for it. Let’s be clear, you must be the one to decide using your own plan as to when you buy any investment. I have not always used this method, but I do try to use it now.

The following abbreviations were used:

M* = Morningstar analyst service. It is obtained by me from a free library source.

FV= Fair value from M*

B= Buy value from M*

Div%18 = Dividend yield for current dividend /price on Dec 5^th .

Div%19= Dividend yield using the dividend estimate mostly from FG for 2019 and Dec 5^th price.

Hx Yield = historic dividend yield per my estimates using the data and years mentioned.

Year @ price= the year and the price at which the yield was historic.

My cost/ share = all known current cost per share for the portfolio holdings. Those dripped and at the 9 companies are the ones not shown or remain known.

I also show sectors for each holding.

Note the lists are divided into 55 common stocks first and then the Regulated Investment Companies “RIC”s and fixed yield holdings of 36.

	COMMON				HX	Yr	Price	M*	M*	My cost
Ticker	Stock	Sector	Div Y-18	E-19 DY	Yield	@price	12-5	FV	Buy	/share
(ABBV)	ABBV	Healthcare	4.24%	4.73%	4.6	2016 @50.71	90.55	102	71.4	67.93
(ADP)	ADP	Tech	1.92%	2.20%	3	2015 @64.29	143.61	102	71.4	35
(AMGN)	AMGN	Healthcare	2.67%	2.82%	3.2	2018 @163	197.76	198	138.6	137.85
(AVGO)	AVGO	Tech	3.02%	3.88%	3.5	2018 @$200	232.04	366	210	209.37
(BA)	BA	Industrial	2.00%	2.24%	3.7	2017 @155	342.5	330	198	33.43
(BCE)	BCE	Comm-tele	5.47%	5.63%	5.7	2018 @39.76	43.18	48	33.6	40.8
(BDX)	BDX	Healthcare	1.23%	1.26%	2	2016 @130	244.92	225	157.5	158.8
(BIP)	BIP	Utility	4.82%	5.20%	6.9	2016 @20	39.01			39.54
(CAH)	CAH	Healthcare	3.36%	3.52%	3.9	2018 @48.15	55.07	82	57.4	68.12
(CL)	CL	Cons-D	2.63%	2.79%	2.7	2018 @61.28	63.08	70	56	28.57
(CMI)	CMI	Industrial	3.03%	3.15%	4.4	2016 @80	146.37	159	95.4	119.22
(CSCO)	CSCO	Tech	2.79%	3.06%	3.8	2017 @33	47.35	46	32.2	34.65
(CVA)	CVA	Industrial	6.39%	6.39%	7.7	2017 @13	15.65			13.4
(CVS)	CVS	Cons-D	2.53%	2.53%	3.3	2018 @60.14	78.91	96	67.2	99.58
(CVX)	CVX	Energy	3.82%	4.00%	6.1	2015 @70	117.24	136	95.2	79.1
(D)	D	Utility	4.43%	4.87%	5.4	2018 @61.54	75.32	84	67.2	68.62
(DEO)	DEO	Cons-D	2.46%	2.54%	3.2	2016 @99.5	143.37	139	111.2	101.65
(FTAI)	FTAI	Industrial	8.46%	8.34%	14.6	2016 @9	15.83			18.59
(GIS)	GIS	Cons-D	4.92%	4.92%	4.8	2018@41	40.27	58	46.4	52.65
(GPC)	GPC	Cons-C	2.79%	2.98%	3.4	2016 @76.5	103.24	103	72.1	65.11
(HD)	HD	Cons-C	2.35%	2.76%	2.7	2016 @110	175.3	170	119	141
(HSY)	HSY	Cons-D	2.55%	2.67%	3.1	2018 @89	108.1	117	81.9	105.86
(INTC)	INTC	Tech	2.51%	2.66%	3.8	2014 @23.5	47.75	65	45.5	38.55

Click to enlarge

(JNJ)	JNJ	Healthcare	2.47%	2.59%	3	2018 @111	146.03	130	104	89.05
(KHC)	KHC	Cons-D	5.12%	5.34%	4.9	2018 @51	49.98	60	42
(KMB)	KMB	Cons-D	3.56%	3.70%	4.1	2018 @97	112.51	113	79.1	97.12
(KO)	KO	Cons-D	3.17%	3.35%	3.7	2017 @40.22	49.58	49	39.2	31.87
(LMT)	LMT	Industrial	2.86%	3.15%	3.8	2014 @ 145	286.73	329	230.3	274.89
(LNT)	LNT	Utility	2.90%	3.08%	4.1	2014 @25	46.17	40	32	21.88
(MA)	MA	Financial	0.50%	0.56%	1	2016 @78.52	200.49	165	115.2	82.98
(MCD)	MCD	Cons-C	2.26%	2.51%	3.7	2015 @87.5	185.04	190	133	78.71
(MDLZ)	MDLZ	Cons-D	2.05%	2.34%	2.5	2018 @ 37.42	44.47	52	36.4
(MET)	MET	Financial	3.91%	4.10%	3.8	2018 @ 43.1	42.42	52	31.2
(MGEE)	MGEE	Utility	2.01%	2.09%	3.2	2015 @ 36.5	64.68
(MMM)	MMM	Industrial	2.69%	2.88%	3.3	2016 @135	202.2	193	154.4	163.19
(MO)	MO	Cons-D	5.33%	6.12%	5.9	2018 @54	54.4	64	51.2
(OXY)	OXY	Energy	4.42%	4.51%	4.4	2018 @70	69.67	67	40.2	84.03
(PEP)	PEP	Cons-D	3.05%	3.31%	3.3	2017 @ 96	117.8	122	97.6
(PFE)	PFE	Healthcare	3.01%	3.19%	4.2	2016 @ 28.25	45.14	46	36.8	32.33
(PG)	PG	Cons-D	3.08%	3.12%	3.9	2018 @ 71	93.31	97	77.6	60.61
(PM)	PM	Cons-D	5.34%	5.51%	5.9	2018 @ 76	85.43	102	81.6
(RDS-B)	RDS.B	Energy	6.01%	6.01%	8.6	2015 @43.5	62.53	83	58.1	54.17
(SJM)	SJM	Cons-D	3.19%	3.33%	3.25	2018 @96	102.24	126	88.2	111.3
(SO)	SO	Utility	5.04%	5.21%	5.6	2018 @42.4	47.24	50	40	39.38
(T)	T	Comm-tele	6.51%	6.64%	6.7	2018 @30	30.73	37	25.9	30.42
(TGT)	TGT	Cons-D	3.69%	3.82%	5	2017 @48.6	69.31	71	49.7	61.73
(UNP)	UNP	Industrial	2.00%	2.20%	3.3	2016 @ 67	153.03	148	103.6	88.36
(V)	V	Financial	0.63%	0.72%	1	2015 @ 49	138.64	129	90	62.06

Click to enlarge

(VLO)	VLO	Energy	4.02%	4.40%	5.1	2016 @ 47	79.51	106	63.6	56.48
(VZ)	VZ	Comm-tele	4.08%	4.20%	5.4	2017 @42.8	58.09	58	40.6	45.22
(WEC)	WEC	Utility	3.02%	3.19%	3.9	2014 @ 40.16	73.28	64	51.2	45.39
(XEL)	XEL	Utility	2.84%	3.05%	4.4	2014 @ 27.27	52.83
(XOM)	XOM	Energy	4.07%	4.24%	4.5	2018 @ 72.16	79.43	90	72	88.78
(CELG)	CELG	Healthcare					72.47	116	81.2	95.06
(OTCPK:TCEHY)	TCEHY	Tech					40.6	64	38.4	38.04

Click to enlarge

The following is part 2 of the list or the 36 RICs, which mostly are not covered by M*

Ticker	Stock	Sector	Curr Yield				price
(AJX)	AJX	Fin-mREIT	9.31%	9.76%	10	2018 @12.27	13.11			13.93
(AMLP)	AMLP	Energy-ETF	8.47%	7.95%			9.56			12.35
(AMZA)	AMZA	Energy-ETF	21.64%	15.74%			6.1			9.2
(ARCC)	ARCC	Fin-BDC	9.10%	9.22%	13.8	2015 @11	16.92			15.9
(BXMT)	BXMT	Fin-mREIT	7.09%	7.09%	11.2	2016 @22.13	34.97			30.75
(CBL.PD)	CBL-d	Pref-RE	13.07%	13.07%			14.08			18.56
(CHMI)	CHMI	Fin-BDC	10.43%	10.43%	15.7	2015 @12.82	18.79			18.02
(CIM.PB)	CIM-b	Pref-Fin-mR	7.84%	7.84%			25.5			25.58
(CORR)	CORR	RE-Misc	8.34%	8.34%	9.5	2017 @ 31.5	35.98			34.65
(DCUD)	DCUD	Ute bond	7.00%	7.00%			48.15			47.48
(DLR)	DLR	RE-Data	3.49%	3.70%	6.8	2014 @ 48.85	113.6	3*		22.1
(DNP)	DNP	CEF-Utility	7.08%	7.08%			11.01	5*		10
(EPR)	EPR	RE-nnn	6.20%	6.39%	7.1	2014 @ 48.38	69.66			58.29
(FSIC)	FSIC	Fin-BDC	12.44%	12.77%	13	2018 @6	6.11			7.58
(IRM)	IRM	RE-storage	6.93%	7.19%	8.5	2016 @ 23.64	33.92	36.5	25.5	32.71
(KIM)	KIM	RE-retail	6.91%	6.91%	8.5	2018 @13.16	16.21	17.7	12.4	19.01
(KRG)	KRG	RE-nnn-retl	7.91%	8.10%	8.9	2018 @13.87	16.05			15.57
(MRCC)	MRCC	Fin-BDC	12.40%	12.40%	14	2016 @ 10	11.29			14
(NGL.PB)	NGL-b	Pref-Energy	9.88%	9.88%			22.78			24.11
(NRZ)	NRZ	Fin-mREIT	11.72%	11.72%	16.9	2015 @ 10.35	17.07			14.76
(NS.PB)	NS-b	Pref-Energy	9.84%	9.84%			19.41			20.86

Click to enlarge

(OHI)	OHI	RE-Hcare	6.98%	6.98%	10.6	2018 @24.9	37.84			33.35
(OXLC)	OXLC	Fin-CEF	16.31%	16.31%			9.93			10.56
(PMT.PB)	PMT-b	Pref-Fin-mR	8.19%	8.19%			24.43			24.82
(RA)	RA	Fin-CEF	11.90%	11.90%			20.09			23.34
(RC)	RC	Fin-mREIT	10.70%	10.96%			14.96			14.82
(SKT)	SKT	RE-Retail	6.08%	6.16%	7	2018 @ 19.86	23.37			29.38
(SPG)	SPG	RE-Retail	4.32%	4.50%	5.4	2018 @ 146	185.03	187	131	168.02
(STAG)	STAG	RE-Industrl	5.44%	5.52%	9	2016 @ 15	26.27			17.38
(TCPC)	TCPC	Fin-BDC	10.04%	10.04%	12	2016 @ 12	14.34			14.12
(TGP.PB)	TGP-b	Pref-Energy	9.08%	9.08%			23.4			23.89
(TPVG)	TPVG	Fin-BDC	11.99%	11.99%	16.3	2016 @8.83	12.01			12.88
(UNIT)	UNIT	RE-Misc	12.41%	12.41%	17.4	2017 @ 13.81	19.34			15.6
(VTR)	VTR	RE-Hcare	5.00%	5.08%	6.6	2016 @ 46.87	63.16	63	44	57.33
(WPC)	WPC	RE-nnn-Intrl	5.96%	6.07%	7.7	2017 @51.12	68.34			64.24
(WPG.ph)	WPG-h	Pref-RE	9.89%	9.89%			19			20.83

Click to enlarge

Some of the entries are in bold that show winners of beating their historic yield, again on the date Dec 5^th. Those are ABBV, AVGO, BCE, CL, GIS, HD, KHC, MET, MO, OXY, SJM, and T.

The market is headed lower again today and thus might show many more to come in the future. There are also a few that beat the M* buy price and are also in bold, those being CAH, CELG and GIS. Those and numerous others have already gone below or remain near to the M* FV and could be considered for due diligence purchases.

Some others in bold are just lower than my cost/sh and I should or could be adding on, just an interesting fact.

Portfolio Value

The portfolio value “PV” was up 3.48% from October and only up 3.19% less the dividends removed. It was even in value compared to September. The end of the year and December report will be an interesting one for sure. As portfolio value is not my main focus lately, none the less I do try to remain defensive with the sector holdings which I will discuss next.

Staying Defensive by Sectors remains at Goal levels

The defensive sectors of Consumer staples, Healthcare, Communication and Utilities remain at 50% of PV even with numerous sells and buys this month, which will be revealed shortly.

Common	Defensive	PV	PInc		E19 Inc
	Consumer S	18.52%	15.48%		14.92%
	Health-care	11.44%	7.12%		7.86%
	Communctn	7.55%	7.41%		8.12%
	Utility	12.72%	10.00%		10.17%
Total		50.23%	40.01%		41.07%

Click to enlarge

The next chart shows the whole portfolio divided by sectors and the RIC divisions. 55 stocks are common and compose 74.6% of PV total and provide 55% of the income. A little goes a long way with buying RICs or high yield “HY” and 25.6% PV gives ~ 41% of the income. Please see the results below:

55	Sector	PV	PInc
	Consumer S	18.52%	15.48%
	Consumer D	4.15%	2.32%
	Energy	4.84%	6.09%
	Finance	3.71%	0.54%
	Health-care	11.44%	7.12%
	Industrial	7.82%	4.26%
	Tech	3.85%	1.83%
	Comm-tele	7.55%	7.41%
	Utility	12.72%	10.00%
TOTAL		74.60%	55.06%
36 Ric+F		25.40%	41.39%
RIC-RE	Real Estate	12.30%	14.91%
RIC-Misc	ETF-energy	0.80%	4.48%
	m-Reit	3.55%	7.49%
	Cef	1.13%	2.61%
	BDC	2.91%	5.76%
FIXED	Fixed	4.71%	6.13%
	Pref-Energy	1.74%	2.20%
	Pref-RE	1.00%	0.97%
	bond/cef	1.31%	1.96%
	Pref-financial	0.66%	1.01%
Sold		x	3.55%

Click to enlarge

The following shows the stocks that provide the most PV and portfolio Income "PInc" by % total values:

There are 40 that are close or near 1% of PV with 22 of them being in defensive sectors. 14 of those are >2% of value with 10 being in defensive sectors. I did include the sectors the stocks are in in the first chart in this article to aide you in determining those tickers.

There are 36 that provide the top level of income with only 16 in defensive sectors and only 8 of those that are >2% or more.

Part of my intent is to get more income from defensive names, but it is not an easy task.

%PV	Ticker	%Pinc
>4%		AMZA
>3.6%	VZ, JNJ	OHI
>3%	ABBV	VZ, T, WPC
>2.5%	KMB, D, T, OHI	SO, D, PM
>2.2 %	XEL, SO, KO	NRZ, CHMI
	MA, WPC, BA, PM
>2%		MRCC, ABBV,KMB,TPVG, JNJ.
>1.75%	MGEE,XOM, PFE, VTR	MO, RDS.B, XOM, VTR
>1.59%	GIS, WEC, DEO, CMI, LMT	KO, GIS, RA
>1.4%	MO, CSCO, HD, CAH	XEL, OXY, AJX, DNP
>1.3%	MCD, GPC, V
>1.2%	RDS.B, MMM	PFE
>1 %	BCE, PEP, CHMI, SJM, NRZ	WEC
1.00%		BA, OXLC
>0.9%	MRCC, AMGN, DNP	TGP-b, DEO,NGL-b, CSCO,KIM, CAH

Click to enlarge

I have started already to work towards more defensive nature for the holdings and have already calculated estimated income for 2019 with AMZA along with OHI both becoming less in income production. AMZA, most likely will cut the distribution and I will be to selling some OHI. I will not replace those. T is really down in value and in 2019 I believe it will predominate even more for that and might even increase its dividend as expected if the merger with TWX is allowed.

Many investments are not shown and I will look for quality stocks among them and try to give them a stronger role for quality defensive income in the future. PFE is one I do already have my sights set on increasing in that role. I am also building BIP as a utility and might look for another healthcare stock.

All in all the portfolio is still performing well and providing reliable income.

Dividend Income

The November income was up 17.76% from 2017 but is the weakest quarterly group of stocks to produce income for the portfolio. It was as expected.

The following are the stocks that provided income and the amounts per share along with % total received for the month:

	Div /Share	Ticker	% total
NOV	0.66	OHI	15.61%
	0.603	VZ	14.25%
	0.5	T	13.80%
	0.96	ABBV	9.46%
	0.49	GIS	7.08%
	0.32	AJX	6.31%
	0.11	AMZA	4.27%
	0.717	PG	3.30%
	2	SPG	3.29%
	0.35	SKT	3.22%
	0.75	CORR	2.96%
	0.33	FTAI	2.60%
	0.8425	DCUD	2.22%
	0.199	RA	2.16%
	0.135	OXLC	1.77%
	0.335	LNT	1.76%
	0.5	CVS	1.31%
	0.118	STAG	1.09%
	0.19	AMLP	1.01%
	0.25	MA	0.99%
	0.42	CL	0.83%
	0.36	EPR	0.71%

Click to enlarge

AMZA, RA, OXLC, STAG, and EPR pay monthly, so the contribution actually represents more yearly than shown here for just the month. To be complete, I will mention, I haven’t shown DNP which pays 0.065 per share and also pays monthly. It is one I don’t let accumulate in the portfolio and that income goes directly to the checking account. It represents about 1.9% of the total for this month. It is a CEF, or closed end fund and has a frozen distribution.

The portfolio dividend yield at the November ending value is 4.4%, but each month is different, but it does take a lot to move this portfolio value. Lately the whipsaw action has been getting old and I find it best to stick to the objective of bountiful dividends each month.

Transactions for November

18 different stocks were involved as :

13 add ons, 1 trim and 4 sold out of completely.

Price /sh = the price paid with fees included per share. Note that more than one purchase may be shown which could be on different days or in different accounts but all belong in the Rose portfolio of 91.

C/sh = the original cost per share including any fees

net/sh = Net gain per share

1^st owned =when the investment was purchased

November
BUY/Add	Stock	Ticker	Price/sh
	Brookfield LP	BIP	38.24	38.64
	Dominion	D	69.55
	Blackrk TCP	TCPC	13.96	13.9	13.97
	Iron Mt	IRM	31.86
	Cardinal Hlth	CAH	53.44
	Monroe Cap	MRCC	11.95
	Pen Mac prf	PMT.b	24.95
	Teekay-Prf b	TGP-b	23.28
	Lockheed M	LMT	309.31	291.9
	Wash Pr-Prf h	WPG-h	19.89	19.91
	Fortress	FTAI	option	18.13
	Nustar-pref b	NGL-b	23.16
	Oxford Lane	OXLC	10.06
TRIM	Smucker	SJM	109.8
SOLD				c/sh	net/sh	1st owned
all	Sabra	SBRA	20.86	19.64	1.24	2017
all	Scana	SCG	41.02	41.03	0.01	2017
all	Arbor	ABR	10.98	8.62	2.36	2017
all	Alibaba	BABA	157.37	145.87	11.5	6 wks 2018

Click to enlarge

I trimmed out SJM from a Roth for a small gain and should be announcing in December it was purchased in the taxable account for near or at $100 per share + fees, which is my goal price for close to a historic yield.

Conclusion/Summary

November was a bountiful good month and I give thanks for many wonderful increasing dividends and distributions for the portfolio.

I am using historic yield for purchases and continuing with defensive sectors for building positions representing no real changes in my plan. I continue on with happiness as I continue to follow many instructive writers on SA for maintaining my RIC positions, BDCs and real estate REITs. The Wheel of Fortune is the service I enjoy learning in and recommend it highly for real time investing, learning and a supermarket of ideas. I do what works best for me while others find success in options or trading. I am having fun and learning something new almost every day.

I smile when others might not, as I collect dividends for the well sought out income bought at value using due diligence and now historic yields and it works for me.

Happy Investing!

Analyst’s Disclosure: I am/we are long SJM. 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.

+ 91 stocks in my profile and in the charts

Comments

[He-man]

Hi RoseNose, thanks for your articles. After Oct & Nov, (and Dec doesn't turn out to be any better), I really think I need to get better at trimming and selling stocks. Any advice? Perhaps how to monitor and make decisions to trim/sell could be a future topic? =) Merry Christmas to you and your family!

[RoseNose]

Thanks @He-man !
I am pleased that I did get some cash for selling some calls. It seems scary sometimes and I still have to wait until Jan 18th for the final decision on many. I did just get some OHI called away on Friday and just snuck out my cost on it. I am pleased and have some cash now for some cheap stuff. Strange how OHI was one of the few that got really over priced and it is now descending like many others.
No hurry at all to replace OHI.
I get what you are saying about overvaluation.
It could be a topic and I will consider it.
Merry Christmas !!

[Engineer@56]

Rose, Ditto He-man’s request advise when to trim.

Thanks

[RoseNose]

Thanks @Engineer@56 for the vote,
I guess trimming or even selling for most is difficult.
I mostly look at historical yield and Fast Graphs.
Obvious to me from FG when something is over valued, but difficult to decide when the momentum will end.
MSFT is one, that should come down, but who knows when,
COST is showing some weakness.
I can try to write about it , but not easy.

[MtBudmoreView]

RoseNose, my sister and I appreciate your articles, please have a great Christmas and be careful on the ice and snow. all the best!

[RoseNose]

@MtBudmoreView and sister,
Thank you very much. Its always great to know they are appreciated. Here's to you and yours having a marvelous safe Merry Christmas too.....

[RoseNose]

@jdlgsm -
Thanks for reading and the ?s.
RICs are many types:
1-Equity REITs for Real Estate sector also have about 11 + types.
The triple net is where O resides- it is mainly USA
Also WPC is one and has international exposure. I own it for that reason and its better yield.
O is the darling of funds and investors and is over valued right now and yes a lower yield because of that. Is it safer, many say yes, but the margin of safety comes with the price.
For risk alone, I desire a higher yield than what some are giving now especially the cell towers and apts...etc.
Retail REIT SPG is interesting with its "A" credit rating. I just trimmed some shares near $184 lowering my cost down to $164 or so. My other retail REITs were bought stupidly before I understood how important that margin of safety in price was for them, however, I am collecting nice dividends that do continue to rise a bit....The ? is at price should we buy income and how long will we keep it.?
As to healthcare REITs:
I had hopes to keep OHI forever, but not so. I was naive perhaps. In January 2019 my position in OHI will probably be exercised away through the use of options. Fine with me.
I already sold SBRA. VTR, probably the best one, just showed signs of weakness with a very small dividend raise, and I have optioned most of those shares as well, but it will take a longer time, no hurry.
IRM when it sells under $32 is a buy pure and simple. It is progressing from a paper storage to data center REIT and more...Probably a bit speculative, but get it cheap and all should be well. I sold a put to get some for $32.50 and the premium gets me almost to $30. If I don't get the shares, I get a hefty 33% yield on the cash used. (just another way to collect or invest).
2-
mortgage REITs sit in Financial and there are different types of those- mainly agency like NLY, AGNC and others.
Mortgage commercial REITs is where I have my investments currently.
There are also hybrid lenders such as NRZ.
MBS loans and first lien are what these do, or they lend out high and borrow low, so the bigger the spread the more money they can make.
Knowing how and why these companies make the money is important and if management is internal, external and what type of compensation they get for doing it.
3-BDCs- of Business Development companies are not bond substitutes, none of these are.
With bonds you rarely put your investment stash at risk, but also never get raises. You get a fixed amount of return and at the end of the investment period, bet your initial cash investment back. A BDC can have its book value change Q to Q and the price vary with it.
Many folks don't even try to invest in these. Price is important and even I don't always get it just right. This is where my participation in a service is helpful to me, and even reading numerous other authors. Perhaps you would enjoy High Yield Investor ! He runs only BDCs against mREITs in his portfolio which seems to be doing exactly what he bought it to do.
4- CEFs
These should be bought at a discount to NAV and once that is understood, all should be okay. Many authors on SA for these as well.
5- MLPs and LPs
These offer K-1 tax forms over 1099s. I try to stay away, but they are tempting.
Many own them and let their accountants handle it.
If I own them and I have and do now, I put them in a Roth IRA. BIP is one example.
Important with a K-1 is the amount of UBTI to stay under $1000 per holding and nothing really matters with them, until perhaps you sell. I do not own a lot of any MLP or LP.
There are also ETFs and Mutual Funds to consider....
So,
Lots to think about and so get one type you understand and try it, see if you have issues.Good Luck
Hope I did not confuse. Rose :)) Happy Investing.

[jdlgsm]

Thanks for your outline of the RIC's.

I remember from decades ago the recommended investments for old geezers like me: 60% bonds and 40% stocks.

But low interest rates have changed the game. Even with recent Fed rate increases the yields on bonds are still low. After subtracting inflation and taxes they barely keep even. So people have abandoned them in favor of high dividend stocks, like T and GIS and the utilities.

But now stocks are looking overpriced and we may be confronting a bear market. So the stock portion of my portfolio might fall in value.

So I look at the RIC's in your portfolio and wonder can I achieve any protection through diversification in this direction?

I have already invested in O, WPC, MAIN and ARRC. I also have small positions in VCLT and VCIT. But I feel vulnerable to a bear stock market and wonder about the other RIC's, in particular the mortgage REIT's and the CEF's.

(I will probably not invest in MLP's with their K-1's.)

So I appreciate your comments, particularly on the reasons for purchases and sales. Thanks for sharing.

[RoseNose]

Thank you for your insights and thoughts...good to be defensive always.

[jdlgsm]

A few more days have gone by, and the market has tanked.

Bonds seem to have kept their value. Most everything else has dropped. It was be interesting to analyze which stocks have dropped the least.

I suspect of the RIC's the REIT's have done better than the overall market. So these seem to provide some protection, although they have fallen some.

Additional cash which comes into my portfolio will likely go to bonds, say VCIT.

The reasoning is that if markets continue to fall, the Fed will stop raising interest rates and intermediate term bonds will rise modestly in value. But not much.

Of course, I hope for a recovery, and pe's have fallen. The yield on my portfolio is now above 4%, a first since I do have some growth stocks.

My enthusiasm for bonds is limited by the realization that in the steady state bonds will barely keep up with inflation, particularly in a taxable account.

We tell ourselves little white lies. And we are gullible when government agencies say that the inflation rate is only 2%.

In fact, God did not provide economists with a pronouncement on stone tablets---this is how you measure inflation.

In fact the measures of inflation are subject to political influence. Yes, the economists would like to tell you that they take a constant market basket of goods and measure its increase in cost in nominal dollars. But there is no constant market basket. We have I-phones instead of land lines and some fruits and vegetables that were once plentiful become less so as population grows. So we set up commissions like the Boskin Commission of 1986 which change the way inflation is measured.

The old measure would give current readings closer to 3% than 2%. By the old measure, 30-year treasuries might barely keep even, yet the insult is that you pay taxes on the nominal interest rate.

Even with corporate bonds, which give about 4.5% at the long end barely keep ahead of inflation after taxes. And of course they would be wiped out by inflation.

Sorry for being so wordy. I'm just trying to explain why I find the old-fashioned portfolio of 60% bonds, 40% stocks unappealing.

But stocks may NEVER recover their recent highs. Look at Japan's market.

I wanted to live a quiet retirement. But our penchant for telling and believing little white lies makes us all gamblers, even those who would normally avoid the casino.

[jdlgsm]

Thanks for sharing the changes to your portfolio.

I am looking to achieve a bit less risk, so I need ideas for high income with low risk.

My question concerns the RIC's. These are a mixed bag with quite different mechanisms used to achieve high yield.

I feel confident about some of the REIT's. I understand the business model. But a look at the 10 REIT's with highest market cap reveals many with yields in 2-3% range, the ones you have selected are smaller caps with higher yield. SPG is an exception with a yield of 4.29% but will shopping centers be phased out as Amazon and other mail order firms expand?

WY looks like an interesting possibility with a 5.5% yield for now. O also looks strong. You have WPC which I like and has a yield near 6%. Others like OHI carry additional risk, because home nursing might lose funding in the future depending on politics of medicare. I don't know how to evaluate IRM.

When it comes to equity REIT's I am reluctant to invest because of memories of the housing crisis and Great Recession of 2008. Many of the big banks were accused of fraud because of complicated derivatives they sold to unsuspecting managers of retirement funds. Do the equity REIT's contain such derivatives? If not, how do they make their high yields?

I have a couple of BDC's in my own portfolio and look at them as similar to high yield bond substitutes. Is that the right way to look at them? If so, a small component looks reasonable, but ordinary bonds are presumably far safer.

Regarding the other CEF's and so forth, I am worried about not understanding the fine print. I'm not really sure what it would convince me that these are safe investments. And I don't want to spend lots of time with complicated tax forms.

I appreciate your sharing your insights. Investing is complex and information is often costly and it comes from advisers who may have conflicts of interest.

[Surinder]

Rose thanks for sharing your updates. I like your portfolio and the way you are organized. As you know we share many same stocks. You are always working on your portfolio and make it more efficient and sharing with all of us.
Lately I have not made much change to my portfolio. I am from India and visited towice there this year. Came back from there last week. I was able to visit Pakistan last month also. Been out a lot but I love to read your work. Yesterday added to my Nrz position. Today I added few more shares of Jnj.
Thanks for all you do to help us and happy holidays to you and yours
Surinder

[RoseNose]

@Surinder !
I am pleased to know you are having fun traveling and also reading my articles. JNJ got hit bad today and made lots of red in my portfolio.
Much better price to buy some as I think it was an over done reaction.
NRZ is doing fine, but it might also suffer some with all the other BDCs for awhile, so don't get over excited and watch them all carefully.
Here's to a delightful weekend to you and yours and Happy Holidays as well.
Rose :))

[GerryDiv]

Rose,
Have you thought of UNH United Health Care for a health care related investment?
On the REIT side how about O ?
What are your thoughts on those?
I have both and have enjoyed the gains in UNH and the divs in O.

[RoseNose]

@GerryDiv !
You have picked quality companies.
UNH is a growth stock with low yield and I really at this time in my investing life don't want those types.
O is over priced now and I look for income elsewhere, even MAIN would be better and I think it is over priced too....so I like ARCC and some others that are represented in my portfolio.
Just me.
thank you for the ?

[clothesline]

Thank you for letting us know about that, Rose! I hope the price starts to improve as well.

[RoseNose]

The special was 9c I think, I said 10c for FSIC...every penny matters...lol

[RoseNose]

Hi dear @The Fortune Teller !
Wish I could read the future better and I did sell SCG way too soon, I seem to get ahead of you for some reason, I need to learn that...oops and I do admit it. So you caught me and I really know it had a good future, but "jumped the gun". My patience slips sometimes and that is also why BABA is gone. I wanted more AVGO, so something had to go, ...I am hoping the China issues will keep it low for a bit and I perhaps will go back to it, if not, I have TCEHY, another excellent pick from you ....thanks for making me wait, in case you don't remember, I asked about it and even BABA when they were a lot more expensive. You said "wait" and I will let you and everyone else know....I did and you did tell us when to buy...WELL Done like most always from you and thank you. It is good for me to clarify, you were not the one to say other than hang on to BABA and you have a much higher PT on it. Me and only me is to blame for it being gone in this case.
Thank you as always for your wonderful friendship and support always .
Happy Investing with you and to you and God Bless you and yours.
PS. FSIC special 10c already received for December ....smile, smile :))

[The Fortune Teller]

Note that now that shareholders have approved the merger, $FSIC is soon to become the largest BDC (under a new ticker: $FSK):
www.fsinvestmentcorp.com/...

If this won't help them start improving the results - nothing will!

[RoseNose]

Oh My :))
Breaking News !!!!
FSIC will be FSK.
Gosh I do hope it helps the price.
Let us know when to add on.....as I am hanging on now with caution.
Pleased and thank you @The Fortune Teller for revealing the news !
I see it closes Dec 19 or so...and was announced actually last week with no rating changes and it still sits with BBB- by S&P.

[The Fortune Teller]

Dear @RoseNose
Thanks for the fantastic update.
Few observations:
1. Dividend income +17.76% Y/Y is insane. Means your portfolio truly stands to its DGI purpose. well done!
2. Pity you sold $SCG, just before it skyrocketed It was a roller=coaster indeed and should you have sold early in 2018 - I could understand.
3. Why did you get out of $BABA? This is a company worth way more than the price you sold it for.
4. $AVGO with 50% increase and $TPVG special dividend (10c) in December are surely going to make December looks nice from an income perspective.
Good luck and thanks for offering the SA community a terrific portfolio that many should simply copy and paste.

[Emerald]

Rose, thanks for the update. I have a similar sized portfolio (82), and own 38 of your listed stocks. I have chosen a slightly different investing path, as I have never owned any BDC's or mREITs. My focus is on dividend growth and also hold a number of low growth, higher yielders (T, RDS-B, VZ, BMY, GSK, EMR).

I agree you must manage to your own risks and plan accordingly. I have followed you, Chowder, Bob Wells, Dave Crosetti, David Van Knapp and a few others since changing my strategy in 2010. I am looking to stay very defensive over the next five years with an emphasis of investment grade dividend growers paying my bills in retirement.

-In the last six months, I have added to AVGO (this last week), RDS-B, D, KMB, QCOM and ENB.

-I believe Consumer Staples will remain solid and may increase in value as the overall market weakens. I took a flyer and added to my very small position in General Mills (GIS), even with a frozen dividend. The yield was attractive.

-I have a large exposure in Energy via Enterprise (EPD) and will reduce when price nears $30. I have owned as many as eight energy MLP's at one time, but believe these are not attractive investments going froward. Depending on your tax bracket, you need to reserve 25% of every distribution for eventual taxes on sale and recapture. Currently holding energy stocks: EPD, SEP, CVX, XOM, KIM, ENB, RDS-B.

- I want to hold investment grade tech stocks that pay a decent dividend. Long: AVGO, MSFT, QCOM, AAPL, CSCO, INTC. A tiny position in IBM. Fin-tech stocks ADP, PAYX. Also, two chip manufacturers in low yielding AMAT and LRCX.

-As you have high yielders in BDC's and mREITs, I hold VTR, EQR, SPG, MAC, DOC and O in eREITs. One mortgage CEF in PCI (PIMCO Dividend & Mortgage Fund), paying +8%.

-In the 'throw it against the wall" category for potential large gains, I hold small exposures in JD, AABA, BABA, TCEHY, and CVE all purchased in 2018. I sold some BABA in a child's portfolio for some tax loss harvesting and hope to repurchase in January '19. May add to Tencent.

-I also hold two demonstration ETF's for comparison: IDV (International Dividends) and SCHD (Schwab U.S. Dividend). Both yield around 3.5% on my cost, but IDV has not done well on a total return basis over the last decade and is now underwater. SCHD has averaged an 8.74% annual dividend increase over the last three years.

Currently, I have 62% in common stocks, 23% in insured bank deposits or Treasury-only money market funds (2% yield), and 15% in social security/muni bonds. 67% of my annual cash flow comes from my stock portfolio. Enjoy the holidays!

[RoseNose]

Hi @Emerald !
My goodness, thank you for the excellent post about your investments.
I have always thought you very wise and have made great comments to me and others. I may have goofed with selling BABA, but will keep TECHY.
DGI is smart and being defensive with some fixed investments is also becoming more of my focus as well. I stay away for MLPs with K-1s and now wonder if I made a mistake with owning BIP, I will learn this next year when the K-1 one cometh. It might not last long in the portfolio if I have trouble.
Merry Christmas and Happy Investing :)) Rose

[Emerald]

@RoseNose, I still have some BABA at $165 and will hold it. I never had much trouble with K-1's, it was more the incentive distribution rights, management challenges, i.e Ricard Kinder getting over leveraged at KMP and the Energy Transfer mess (ETP). Yes, I got "kindered", but kept the new stock (KIMI) and am now getting rolled up on Spectra Energy (SEP) which will add to my Enbridge (ENB) holdings. Live and learn.

As an aside, i recently joined up with The Fortune Teller's service, as you have been such a big fan. Bought some Cenovus (CVE) on his advice and concurrently bought more Broadcom (AVGO). I guess I will be visiting with you on the comment board. Cheers

[RoseNose]

@Emerald !
Glad to have you join...I think you will add a lot to discussions with numerous other investors that offer and know remarkable insights into MLPs, Canadian stocks, and so much more. Also great humor and some even teach and write guest articles.... an amazing place and now with your addition, it just continues.....
Good Luck. The November update was also just recently published, that is my job today to study it.
Enjoy it all !
Rose :))

[HGERRING1]

Hi Rose,

Nice update it seems your portfolio is managing the volatility. I only see more of it beyond the Holidays and am looking for defensive stocks and opportunities as well. Those on my watchlist LYB, PFG, D, MET, T. This year I want to sell a percentage of my winners which I have not done at all over the 10 years investing. Example being GE which I purchased in 2009 @ $10.91 and did not sell any which now is below $8, ugh, lesson learned. Also I am considering to stop reinvesting dividends in my Roth and taxable accounts and let them accumulate to help fund new purchases. Thanks for the update, may the Holidays bring you joy and happiness.

[RoseNose]

Hi @HGERRING1 -
Happy Holidays to you as well and sorry about GE.
Saving dividends and funding new purchases especially if you have enough of most is actually fun and rewarding. I also have LUB on my want list /watch list. Good Luck and thanks for reading and the comment.
Rose :))

[OleSchulDad]

Rose, I have to say your one of the few writers on SA that truly inspire me when it comes to dividend investing. Like the others I greatly appreciate the updates you give of your portfolio but also of your strategies.
One question I had though was with so many holdings what do you use to keep track of everything? I have 38 holdings now but would like to continue to expand my holdings but I have to say it can be a task at times trying to keep up with everything. Is there a spreadsheet or something in particular you use and if so is it something your able to share?
Thanks for everything, wishing you and your family and a happy holidays and god bless....

[RoseNose]

Hi @OleSchulDad !
I use Google sheets, love it! and its free, just set up an email address with it, its free and off you go.
I use the normal cell instructions and import googlefinance prices with those....Fun !
also Libre office the free version.
If you know Microsoft office you should be able to do almost anything.
Let me know if you have a problem getting started, I am not the expert for sure, but might be able to lead to someone better.
God Bless and Merry Christmas.
Happy investing too :))
Rose :))

[5ofDiamonds]

Thanks OleSchulDad for the question, and RoseNose for the reply.

It made me google about =GOOGLEFINANCE function.

support.google.com/...

Very helpful to consolidate positions across accounts.

Well, someday....

Thanks again.

[RoseNose]

@5ofDiamonds !
Perfect link and it contains about everything needed to create some neat sheets.
Appreciate you reading and adding your consultation. :) Rose

[onlyfree]

Thank you for the " Christmas present " article. Have a wonderful Christmas and a Happy New Year....

[RoseNose]

THanks @onlyfree !
You give me a smile and Merry Christmas to you :))

[Sleepless in the Alps]

Hi Rose!

As usual your reasoned and methodical approach wins out while many around you are losing their heads (and their money!)

And of course, you trounce the very misplaced notion that "professional" money managers are any better than a smart woman with a clear eye for investing.

But you knew that already!

Heidi, Helga, Clarissa, Desiree and the Bratwurst King

[RoseNose]

Hi my friends Heidi, Helga, Clarissa, Desiree and very cute little sausage King... @Sleepless in the Alps !
Appreciate you reading and always being supportive.
I hope your holidays are very merry and bright !
Rose :))

[Jaberstein]

Hi Rose
Very good detailed article.
Just wondering if you were planning on letting DCUD convert to Dominion Resources shares, or sell before the mandatory conversion, considering you already own Dominion Resources.

[RoseNose]

My intent is to let them convert.
Thank you for reading and the nice comment along with the ?

[broker555]

Rose, I very much enjoyed your article & the details about your own portfolio. Looks like your best performer by far is BA, a stock in which you have a 10-bagger if I'm understanding your chart correctly. I share investments with you in CELG, NRZ, UNIT, & IRM. Until recently I also had WPC.

[RoseNose]

@broker555 -
Thank you for the kind comment and I agree about BA. I had more and sold some, so that is the Rose accounting method and not the brokers that determined my cost on that one. It is truly more by them and I just looked and see they have it at $127. I just had averaged in some shares I trimmed ....only 3x ...

I like NRZ and IRM, hope they stay with me a while as yet.
CELG will be fine and it has cash and earnings to be pleased about.
As to UNIT, my position is tiny and if it goes low again, I might add on with a put sell.
Long WPC, it has international flavor I like for a triple net.
it also is seeing good times and should be a slow FFO grower for 2019, but a steady provider with a decent yield.
Good luck and Happy Investing.

[Daleem]

Thanks for all your thoughtful sharing as it is really a gift to all.
Saw that you sold SBRA and I understand that the skilled nursing sector is taking a hit. But, you still hold OHI and as I have seen, they have sold off the troublesome operators and are looking good again. From what I can see is that SBRA is selling off the troublesome operators and trying to clean up it's portfolio. I own both, but would enjoy your thoughts on SBRA.
Merry Christmas to you and family.

[RoseNose]

@Daleem -
Thank you for reading and the ?
I did not hold SBRA very long, but really was not exactly sure about it.
I got weak knees when I saw the trouble SNA is experiencing and its last earnings report was not a glowing example and recommendation for it.
So "trouble some operators" seems to be the key, and now LTC just announced it has some going bk - and will be hurting as well.
Not happy times for healthcare in SNAs.
I also will be most likely out of OHI by Jan 18th when my options expire on it and I do expect them to be exercised, maybe even before that.
I do have 1 expiring Dec 15th, but the rest are 2019.
VTR seems to be doing better and even that one might see some difficulty, but it is more diversified.
I have concerns for it as well. Nothing lasts forever it seems except perhaps JNJ.
Merry Christmas to you and God Bless.

[User 43034176]

I adore your work @RoseNose
it is always a great day when you update us on your portfolio :-)

Cheers!

[RoseNose]

You are such a delight @Blury8 -
A positive force on SA , thanks for reading and sharing your thoughts.
Rose :))

[Nate the Great]

RoseNose - I thank you....along with everyone else! So many good ideas and relevant information from you and your fans. I picked out four excellent opportunities from all of you this time....so your effort is a wonderful plus for me. Your articles represent the best of SA....great discussions and NO TROLLS. :-)

[RoseNose]

Hi @Nate the Great !
You are very kind and I appreciate your comment as well.
The best is pretty high and I am honored you would say so, I have others I would give that definition to, but it is nice to read it none the less.
I have had trolls, but pretty much not very much very often now, as good investing is all I want to discuss.
Merry Christmas.

[Moneytrax]

Brilliant, thanks, Merry Christmas!

[RoseNose]

Thanx @Moneytrax !
Hardly brilliant, but it does shine brightly and reveal my holdings.
Best and happy investing :)) Rose