The Rose 93-Stock Portfolio: 4.7% Dividend Yield, 5 Sales, 4 New Buys

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Includes: BMY, CXW, TAP
by: RoseNose
Summary

All 93 stocks are reported showing Rose cost per share, current price, dividend yield, % portfolio value and income, with all known S&P credit ratings.

Portfolio value does remain stable up 14.7% for the year, but down 0.25% from June; I offer what I think is an interesting evaluation of value to income for each sector.

The 37 dividends received are shown by amount per share; with 2 companies giving meager raises. July income is up Y/Y 26.5% but only 3.63% from comparable April Q2.

July/August option activity is shown along with methodology for the July position changes and transactions while keeping with the portfolio defensive sector goal.

The Rose Portfolio

I, Rose, a retired-in-2010 pharmacist, am real, and so is my name and the portfolio. It consists of 3 brokerage accounts, 2 Roth and 1 taxable, along with 6 companies combined together, and “managed” by me for us. The "us" includes my husband of 49 years, who enjoys having me do the managing. It is old in some regards and not so much in others, as it was and still is being arranged from ETFs and IRAs to Roths and individual stocks. I still put new dividend money to work, have made nice investment goals and continue to learn quality and rewards go together. I admit to some misadventures as well. The portfolio has grown nicely over the years, is a success and I wish to keep it that way. I also want to share what I have done while I continue to learn and keep it on a successful path. I hope you will also share and join on my journey to even more success.

93 Equities or Holdings

The holdings consist of 59 common stocks, 8 preferred shares and 1 newly purchased bond. Next is 13 in the real estate sector or eREITs called RIC (regulated investment company) and 12 miscellaneous HY RICs to be shown in the chart to follow. 10 sectors are represented, with nothing in materials.

The chart to follow shows each company by descending portfolio value in each category as on July 31st.

Abbreviations used are:

S&P CR = Standard & Poor’s Credit Rating as given by Fastgraphs “FG” a paid subscription service.

7-31 $ Price is the price per share at the market close that date.

% PV = % of total portfolio market value on the aforementioned date

Est % P Inc = % of total portfolio income as estimated by me and “FG”.

Dividend Yield = % estimated from current price and estimated dividend on the aforementioned date.

Rose C/sh = Rose Cost per share. An * asterisk after any cost means I just determined the value or it is still being identified.

RIC Misc types:

mREIT = mortgage REIT or real estate investment trust

CEF = Closed End Fund

BDC = Business Development Company

Shown at the end is % in cash/ put options along with % sold income already received.

S&P 7-31 Sector %PV Est Sector
TICKER Name C R $ Price Value %P Inc Est Inc Div Rose
# SECTOR 16.0% 12.9% Yield C/sh
14 Consumer (KMB) Kimb Clk A 135.65 3.2% 2.1% 3.0% 106.63
Staples (KO) Coca Cola A+ 52.63 2.2% 1.4% 3.0% 32.2
(NYSE:PM) Philip Mor A 83.61 2.1% 2.4% 5.6% 31.61*
(TGT) Target A 86.4 1.5% 1.0% 3.1% 62.98
(GIS) Gen Mills BBB 53.11 1.5% 1.4% 3.7% 51.97
(MO) Altria BBB 47.07 1.3% 1.9% 7.1% 39.83
(PEP) Pepisco A + 127.81 1.0% 0.7% 3.0% 77.63*
(MDLZ) Mondelez BBB 53.49 0.7% 0.3% 1.9% *
(CVS) CVS BBB 55.87 0.6% 0.5% 3.6% 85.54
(DEO) Diageo A- 166.88 0.6% 0.3% 2.2% 104.9
(HSY) Hershey A 151.74 0.5% 0.3% 2.0% 103.25
(SJM) JM Smuker BBB 111.19 0.4% 0.5% 3.1% 105.05
(TAP) Molson Cbc BBB- 53.99 0.4% 0.2% 4.2% 54.56
(KHC) Kraft/Hnz BBB 32.01 0.1% 0.1% 5.0% *
3 Consumer 4.1% 2.3%
Discretnry (HD) Home Depot A 213.69 1.6% 0.9% 2.6% 141
(MCD) McDonalds BBB+ 210.72 1.4% 0.7% 2.2% 90.57
(GPC) Gen Parts A+ 97.12 1.0% 0.7% 3.1% 71.77
7 Energy 8.4% 8.0%
(ENB) Enbridge BBB+ 33.39 1.8% 1.7% 6.6% 35.45
(XOM) Exxon M AA+ 74.36 1.7% 1.6% 4.6% 81.61
(VLO) Valero BBB 85.25 1.3% 1.0% 4.2% 76.28
(RDS.B) RD Shell.B AA- 63.47 1.1% 1.4% 5.9% 57.07
(OXY) Occidental A 51.36 1.0% 0.9% 6.1% 67.77
(TRGP) Targa BB 38.91 0.9% 0.9% 9.4% 39.63
(CVX) Chevron AA 123.11 0.6% 0.5% 3.9% 66.83
3 Finance 4.3% 0.6%
(MA) Mastercard A+ 272.27 2.8% 0.3% 0.5% 82.98
(V) Visa AA- 178 1.4% 0.2% 0.6% 65.84
(MET) Metlife A- 49.42 0.1% 0.1% 3.5% 49*
8 Healthcare 10.4% 8.4%
(JNJ) Johnson &J AAA 130.22 3.0% 1.9% 2.9% 89.05
(ABBV) Abbvie A- 66.62 3.0% 3.5% 6.4% 68.73
(PFE) Pfizer AA 38.84 1.7% 1.3% 3.7% 155.39
(AMGN) Amgen A 186.58 1.1% 0.6% 3.1% 62.6
(CAH) Cardinal Hlth BBB+ 45.73 0.9% 1.1% 4.2% 31.81
(CELG) Celgene BBB+ 91.86 0.3% 0.0% 0.0% 45.91
(BMY) Bristol Myrs A+ 44.41 0.2% 0.1% 3.7% 91.44
(TEVA) Teva BB 7.93 0.1% 0.0% 0.0% 18.32
7 Industrial 7.9% 5.2%
(BA) Boeing A 341.18 2.0% 1.1% 2.4% 128.73
(LMT) Lockheed M BBB+ 362.17 1.9% 1.0% 2.5% 277.54
(CMI) Cummins A+ 164 1.4% 1.0% 2.8% 110.98
(MMM) 3M AA- 174.72 1.2% 0.8% 3.3% 168.84
(UNP) Union Pacific A- 179.95 0.6% 0.3% 2.1% 75.04
(FTAI) Fortress B/ K1 14.96 0.4% 0.7% 8.8% 18.3
(CVA) Covanta BB- 17.22 0.3% 0.4% 5.8% 13.73
5 Technology 3.5% 1.9%
(CSCO) Cisco AA- 55.4 1.4% 0.8% 2.5% 28.91
(AVGO) Broadcom BBB- 289.99 0.6% 0.6% 3.7% 212.17
(ADP) Autom DataP AA 166.52 0.6% 0.2% 1.9% 20.01
(INTC) Intel A+ 50.55 0.5% 0.3% 2.5% 38.01
(OTCPK:TCEHY) Tencent A+ 46.5 0.4% 0.0% 0.2% 38.04
4 Communictn 7.4% 7.9%
Tele (VZ) Verizon BBB+ 55.27 3.4% 3.2% 4.4% 45.44
(T) ATT BBB 34.05 2.6% 3.3% 6.0% 30.42
(BCE) BCE BBB+ 45.11 1.1% 1.3% 5.4% 40.78
(VOD) Vodafone BBB+ 18.12 0.3% 0.1% 6.0% 17
8 Utility 13.8% 11.2%
(D) Dominion BBB+ 74.29 2.7% 2.8% 4.9% 68.61
(SO) Southern Co A- 56.2 2.7% 2.5% 4.4% 34.64
(XEL) Xcel A- 59.61 2.6% 1.5% 2.7% 21.92*
(MGEE) Madison GE A- 74.15 2.1% 0.8% 1.8% 18.75*
(WEC) Wis Energy A- 85.46 1.8% 1.0% 2.8% 48.01
(DNP) Duff N Phelp Fund 12.08 1.0% 1.3% 6.5% 9.96*
(BIP) Brookfield BBB+ 44.28 0.8% 0.7% 4.5% 39.24
(DCUD) D bond BBB+ 50.1 0.3% 0.5% 6.7% 47.48
8 Pref-Fixed 6.2% 11.1%
(CIM.PB) Chimera-B Fin 26.18 1.1% 1.7% 7.6% 25.52
(NYMTN) NY Mortg-N Fin 24.59 1.3% 1.6% 8.1% 22.91
(PMT.PB) PennyMac-b Fin 26.54 0.6% 0.9% 7.5% 25.04
(WPG.ph) WashPrm-H RE 20.58 0.8% 1.3% 9.1% 18.06
(CBL.PD) CBL-d RE 7.6 0.3% 1.8% 24.2% 18.56
(TGP.PB) Teekay-b mlp 24.67 1.0% 1.7% 8.6% 23.73
(NGL.PB) NGL-B mlp/K1 24.86 0.8% 1.4% 9.1% 24.09
(NS.PB) Nu Star-b mlp/K1 21.35 0.4% 0.7% 9.0% 20.79
1 Bond 0.3% 0.2%
GEO B1 85.5 0.3% 0.2% 5.9% 83.8
13 Real Estate 9.2% 10.9%
(NYSE:VTR) Ventas BBB+ 67.29 1.8% 1.9% 4.7% 55.51
(WPC) WP Carey BBB 86.54 1.8% 2.1% 4.8% 64.34
(IRM) Iron Mt BBB- 29.41 1.0% 1.3% 8.3% 32.06
(SPG) Simon P G A 162.2 1.1% 1.0% 5.1% 164.28
(STAG) Stag BBB 29.72 0.7% 0.7% 4.9% 18.86
(DLR) Digital R BBB 114.36 0.6% 0.5% 3.7% 66.51
(KIM) Kimco BBB+ 19.21 0.5% 0.8% 5.8% 18.21
(CORR) CorEnergy 40.47 0.4% 0.7% 7.4% 34.65
(GEO) Geo Grp BB- 17.81 0.4% 0.6% 11.0% 18.48
(MAC) Macerich 33.05 0.3% 0.4% 9.1% 43.27
(KRG) Kite R BBB- 15.91 0.3% 0.5% 8.2% 15.57
(EPR) EPR BBB- 74.43 0.3% 0.4% 6.0% 57.27
(CXW) CorCivic BB 16.97 0.2% 0.1% 10.4% 17.99
12 RIC Misc 6.9% 16.1%
mREIT (CHMI) Cherry Hill 15.49 0.3% 2.0% 13.6% 18.02
mREIT (AJX) Great Ajax 13.91 0.7% 1.5% 9.6% 13.93
mREIT (BXMT) Blackstone 35.52 0.4% 0.6% 7.0% 30.75
Finance-CEF (RA) Brkfld Real fin 21.9 0.7% 1.6% 10.9% 23.2
Finance-bonds (ARDC) Ares Fund fin 15.3 0.4% 0.6% 8.4% 14.93
BDC (PFLT) Pennant Float 11.72 0.9% 1.5% 9.7% 12.16
BDC (TPVG) Triple Pt 14.9 0.8% 1.7% 9.7% 12.82
BDC (ARCC) Ares Capital BBB- 18.57 0.8% 1.6% 9.1% 15.6
BDC (TCPC) Blkrock TCP BBB- 14.07 0.6% 1.3% 10.2% 14.06
BDC (CGBD) TCP BDC 15.12 0.5% 1.2% 11.1% 13.56
BDC (FSK) FS KKR Cap BBB- 5.73 0.2% 0.6% 13.3% 7.58
Etf/mlp (AMZA) Infracap MLP 5.39 0.5% 2.1% 17.8% 9.2
93 98.2% 96.6%
CASH/Optns 1.8%
Sold Income 3.4%
Total 100.0% 100.0%

All income is current for the year and includes all transactions of July with sold income included.

Also, the new bond income is deceiving as I will only get 50% this year of what I will receive next year in 2020, and that will also be the same for other newer investments.

Quick wrap up of the holdings in the chart above shows the following:

%PV %P Inc
68 Com/Fx 81.4% 69.6%
25 RIC 16.2% 27.0%
Cash/Opt 2.4%
Sold Inc 3.4%
93 TOTAL 100.0% 100.0%

The 68 common fixed equities are ~82% of PV with 69.7% of the income, 25 RICs are ~16% PV and 27% income, Cash/Options are 2.4% PV and Sold income is 3.4% for a total of 100% for each.

Below is a summary chart of the portfolio showing my chosen defensive sectors in bold print and again off to the side in separate column entries. It is shown as a total on the bottom with 55.9%PV defensive and providing 54.9% of total income. My goal is to keep the portfolio in at least 50% for each of these, which is being achieved.

2019 Sector Sector Defensive Defensive
# SECTOR Value Est Inc % P Value %P income
14 CONS-Staple 16.0% 12.9% 16.0% 12.9%
3 Cons-Discr 4.1% 2.3%
7 Energy 8.5% 8.2%
3 Finance 4.3% 0.6%
8 Health-Care 9.6% 8.2% 9.6% 8.2%
7 Industrial 7.8% 5.2%
5 Tech 3.4% 1.9%
4 COM-tele 7.4% 7.9% 7.4% 7.9%
8 UTILITY 14.0% 11.2% 14.0% 11.2%
1 Bond 0.3% 0.2% 0.3% 0.2%
8 Pref-Fixed 6.2% 11.1% 6.2% 11.1%
13 Real Estate 9.3% 10.9%
12 Misc RIC 6.9% 16.1%
Cash/Opt 2.4% 2.4%
Sold Income 3.4% 3.4%
93 Investments 100% 100%
Defensive Total 55.9% 54.9%

VALUE/INCOME YIELD Ratio

A growth stock has low or no yield and resides primarily in almost any sector, with the most I own being in finance, consumer discretionary or tech.

The Value/Yld Ratio is something I created. I took the %PV of the sector and divided by the % Pinc to give me the income return for that sector for each $dollar spent in value. I removed the bond section as I only have 1 and its new, so will not give a true representation. This might be something intuitive for most investors, but this ratio shows shows it very nicely by sector or category of investment.

I am just having some fun with numbers here and don’t even know if this is a valid comparison, but I will just do it and show you anyway.

The next chart will show it in descending order and give you a better idea of how my portfolio money provides income $ per $. Remember this is for my portfolio alone. I do show the number of holdings in each sector in that one as well and that seemingly gives a nicer broader view of what my returns are from each sector investment for income.

Value/Yld
Ratio Sector
124% CONS-Staple
177% Cons-Discr
103% Energy
775% Finance
117% Health-Care
150% Industrial
174% Tech
95% COM-tele
125% UTILITY
56% Pref-Fixed
86% Real Estate
43% Misc RIC
128% Common Ave
117% Com/Fxd
60% RIC/ all

The chart below shows these results in descending ratio %. The higher the yield ratio the less income per $ it provides with the closer to 100% meaning $1 value = $1 income. Lower or under 100% means more “bang” in income for each $.

Value/Yld
Ratio Sector #
775% Finance 3
177% Cons-Discr 3
174% Tech 5
150% Industrial 7
128% Common Ave 59
125% UTILITY 8
124% CONS-Staple 14
117% Health-Care 8
117% Com/Fxd 68
103% Energy 7
95% COM-tele 4
86% Real Estate 13
60% RIC/ all 25
56% Pref-Fixed 8
43% Misc RIC 12

775% WOW, that sure says a lot. The finance sector of mine holds MA and V as 2 of the 3 in it. The 775% valuation shows how over valued to income those stocks have become. No matter where you put those they have growth and sure are doing it exceedingly well lately. Glad to own them both, but wonder how high can it go? I have sold some calls on the shares at what I believe to be a fair selling price, but won’t know until Jan that answer. You can compare each stock individually and see I have 2.8% PV in MA and only get 0.3% income from it. If you want capital gains over income it is currently the place to be, Visa as well.

Being diversified and holding 68 in the common fixed together shows 117% with energy coming close to being even at 103%. The fixed preferred alone is 56% so it is helping the common mightily. With RICs at 60%, and I think the bond will also be close to that, all is good for income with the Rose portfolio.

I may or may not be inventing a new portfolio methodology, so let me know what you think. If nothing else if was an interesting and revealing procedure for me and the portfolio.

Dividend income is my primary focus but I do enjoy total return and capital gains, who would not want them. June Jubilee as discussed in that article last month, was a terrific month for income, but July is doing joyously as well.

July Dividend Income

37 company payments were received in July as shown in the chart below, shown by the company ticker, week, date and amount received per share.

2 were raises, but rather meager and are shown after this chart.

37 pays JULY STOCK div/sh date STOCK div/sh
Week 1 date Ticker week 3 Ticker
1 PFLT 0.095 15 EPR 0.36
1 KO 0.4 STAG 0.118
1 ADP 0.79 BXMT 0.62
1 CBL-d 0.46 CAH 0.481
1 GPC 0.7625 KIM 0.28
2 IRM 0.611 OXY 0.78
2 AVGO 2.65 WPC 1.034
2 FSK 0.19 NGL-b 0.5625
2 KMB 1.03 NYMTN 0.5
Week 2 TPG-b 0.5313
10 DNP 0.065 BCE .594 US
10 PM 1.14 WPG-h 0.47
10 MO 0.8 MDLZ 0.26
12 CVA 0.25 16 CGBD 0.37
12 VTR 0.7925 week 4
22 XEL 0.405
24 CSCO 0.35
25 RA 0.199
26 GEO 0.48
26 NRZ 0.5
Week 5
30 AMZA 0.08
30 CHMI 0.49
31 RC 0.4
31 ARDC 0.1075
Old New Change
Changes
WP Carey WPC 1.032 1.034 0.20%
Cardinal H CAH 0.476 0.4811 1.10%

To be completely honest the raise by WPC was only a quarterly raise, but still is lower than normally received. The old raises had been .005 and now it is only .002c each time.

Cardinal health, a drug and medical distributor, gave a raise, which was appreciated as they are having a difficult time in this current healthcare environment.

Announcements for next payments

-Occidental is giving a 1c raise for next quarter, not much, but sill appreciated.

-Mondelez raised 9.62% to 28.5c.

Most of my income is from having new holdings and many of them RICs and preferred shares.

Portfolio Dividend/Distribution Income

This next chart shows the % portfolio income distribution by descending value between the common, RIC and preferred shares.

Type Common RIC Preferred/Fixed
Income Ticker Ticker Ticker
3.5% ABBV
3.3% T
3.2% VZ
2.8% D
2.5% SO
2.4% PM
2.1% KMB WPC, AMZA
2.0%

CHMI

1.9% MO, JNJ VTR
1.8% ENB CBL-d
1.7% TPVG, RA CIM-b, TGP-b
1.6% XOM ARCC NYMTN
1.5% XEL PFLT, AJX
1.4% RDS.B, KO, GIS NGL-B
1.3% DNP, BCE TCPC, IRM, CGBD WPG-h
1.2% PFE SPG
1.1% CAH, BA
1.0% WEC, LMT, TGT, VLO, CMI
0.9% TRGP, OXY, HD KIM PMT-b
0.8% CSCO, MGEE, MMM STAG
0.7% BIP, GPC, FTAI, MCD, PEP CORR, BXMT NS-b
0.6% AMGN, AVGO GEO, ARDC, FSK, DLR
0.5% CVX, DCUD, CVS, SJM KRG, MAC
0.4% CVA EPR
0.3% MDLZ, INTC, HSY, MA, UNP, DEO
0.2% ADP, TAP, V GEO Bond
0.1% BMY, KHC, VOD, MET CXW
0.0% TCEHY, CELG, TEVA

This chart also aides me and points to where the focus my efforts for trimming or buying income, which is the main goal for this portfolio.

More income from those sitting at the top is not needed and will add to those further down in the chart. In many ways I have been wanting to do just that but I also keep value as a priority for each investment. BMY and CVS are probably the best values for it right now and I might just be buying more of those next/ and or other quality stocks as their prices decline. I see the market adjusting many values just recently and I might have opportunity knocking on many of others soon. Next, I wish to reveal July transactions.

July Transactions

This revised chart reveals a better view of my goals or intent. Shown is the sector, company name, ticker, action and miscellaneous comments, sold prices and intent is in the last column. A “T” after a price is in a taxable account and some of the movement is from a Roth account to a taxable.

In the first list provided in the article is the Rose cost per share, which should help to guide how I am doing with the transactions.

I have been adding to BMY and CVS already and therefore as I accumulate through outright buys or selling puts, the bottom line and my intent is to accumulate at a lower price, which I am definitely averaging down on CVS. BMY is a new position and I am accumulating it and some others as indicated.

JULY 2019 T = taxable Comments/
Sector Name Ticker Action misc Intent
Healthcare Bristol Myr BMY add all accumulate+CELG
H-c CVS Health CVS add accumulate while cheap
H-c AbbVie ABBV add nice yield unloved and cheap
H-c Bectn Diksn BDX SOLD 255.28 T over valued/taking gain
H-c Amgen AMGN Sold Roth 185.84 buy cheapr
H-c Amgen AMGN add 174.96 T Accumulate <170 now
Cons-S Altria MO add T rounding shares/ hold
Cons-S Phillip Morris PM add T rounding shares/ hold
Cons-S Molson CBC TAP New dividend incr good value/ spec buy
Comm-tele Vodafone VOD Add-option accumulate as price dips
Fxd/Pref Teekay-pref TGP-b add no k-1 fixed pref mlp
Tech Broadcom AVGO trim 300.3 get when cheap/take gains
Utility Alliant LNT SOLD 47/49 c22 100%+ gain/ add lower ?
Energy Alerian ETF AMLP SOLD 10.08 get indiv mlps/still in IRA
Energy R D Shell.b RDS.b add- partial replacemt add back if price dips more
Energy Enbridge ENB add all averaging down/watch now
Energy Targa R TRGP New nice yield accumulate lower
RE GEO Group GEO add nice yield Hold/ bought bond
RE Iron Mt IRM add nice yield should do well/cheap
RE CorCivic CXW New nice yield should do well/cheap
RE Simon P Grp SPG add all Quality retail Hold
RE Kimco KIM Trim 18.53/19.08 Put into SPG
RIC-BDC Pennant Flt PFLT add done now/ enough I think
RIC-mREIT Ready Cap RC SOLD 14.9 selling most mREITs
RIC-mREIT New Res Biz NRZ SOLD 15.27 Sell most mREITs
RIC-mREIT Cherry Hill CHMI Trim 15.99 prob should have sold all
Bond GEO Group GEO Bond New 5.875% Cpn Discount pr = 7% yield

The following is some enlightenment about the sold entities and the new holdings.

5 Sold

1: AMLP

Alerian MLP was improving and I could leave it with breaking even on price. My intent was to purchase individual names, which I did and continue to report in these updates, with the most recent being TRGP. Information does follow in the buy section.

2,3: RC, NRZ

Ready Capital and New Business are mREITs, of which I believed I owned too much in value and they provided too much of the income. Thus the intent is to limit exposure to mREITs as I agreed with The Fortune Teller and his service The Wheel of Fortune when he offered the suggestion that the weaker mREITs will most likely be less successful in this lower interest rate environment.

Gosh, it was hard to sell these and especially NRZ, a long time favorite and CHMI was also a sell suggestion. This sell was even harder because at the same time other authors were writing buy suggestions for them and still are. I sold 66% of the CHMI position and hold the remainder to just see what happens. I got a lot of income from all of these this year and will have less, much less from CHMI in 2020. Looking at it today, I probably should have sold all of CHMI, but I can be stubborn and slow and held on to some which is ~0.3% of PV, maybe less today. I did break even on the price for RC and had great total return from it in a short time, whereas I owned NRZ much much longer. It did give excellent income for those many years and thus provided a nice total return, even though I did lose some on price in the end. I still have 2 other mREITs, retaining BXMT with a huge margin of price safety along with owning AJX which is actually holding up okay, but I could still have a rodeo ride coming with it.

4: LNT

Alliant Energy was a rather minor quality player in the portfolio and was over valued with a 2.8% yield. It does have nice earnings growth for a utility. I consolidated a bit with selling it and will still have enough in this sector, as I will be getting more Dominion when the DCUD bond converts to it at the end of August. I will consider LNT again some day when the price is more of a value and I also watch NEE as a new investment. It and most utilities today are over loved, I watch them all and will always search out the best quality.

5: BDX

Becton Dickinson is a quality healthcare medical supplier that was at 1.25% yield and only gave a 2.7% last dividend raise which was too low for my liking. I sold the remainder of what was owned for ~ $255 as a 55% long gain on these last remaining shares for this year.

4 NEW BUYS

Bristol Myers Squibb was mentioned in the June report article and was added in my total at that time. I am still hoping to get more lower. It is very much undervalued as I showed last month with a Fastgraph. I also own CELG and thus will get more BMY shares with the completion of that acquisition. Each share of CELG gives 1 share of BMY + $50 and a future coupon worth about $9 if the 3 drugs in the pipeline are taken to market in 2020. I am not expecting that to happen, but like the $50 part of the deal. I am tempted to buy more CELG as a nice arbitrage play, but they pretty much trade in tandem and I am not seeing a real dip to cause me to take action on either as yet.

1: CXW

CorCivic is a private detention/corrections eREIT purchased along with more GEO Group with the recent price decline in that sector type. They both offer excellent 10+% yields and are truly unloved because of the current political environment of misunderstanding and are being maligned unfairly as they do not operate concentration camps at the border. In the case of GEO, it also operates outside of the USA. CXW just had a nice earnings report and I am pleased I did buy what I did. Yes, it also was an idea at The Wheel of Fortune.

2: GEO Bond

This is also a maligned debt offering from GEO Group. It has a 5.875% coupon that pays in April and October. The price was and is at a nice discount and thus offered a 7% buy in yield at the time of purchase. The bond gets called Oct 2024 and will give a 9.9% end yield due to price appreciation up to $100 par value. It was another suggestion of The Wheel of Fortuneand a link to a quick discount offer from the service this week or soon.

3: TRGP

Targa Resources is a midstream MLP and marketing company for oil and NGL components. It does not have a K-1 tax form and is getting back to profitability and thus right now is a speculative idea. It comes from The Wheel of Fortune service a bit after the fact. I got my starter position just recently and at a bit higher price than when suggested, but it should still have a long term future and price appreciation. The +9.5% yield in the mean time is appealing while I wait.

4: TAP

Molson Coors Brewing Company is headquartered in Colorado and markets its products worldwide. It is another suggestion from The Wheel of Fortune service which I admit I rely on for many of these purchases. TAP did just raise its dividend by 39% to over 4.2% yield. It also is showing slow progress and basically is an undervalued speculation with a nice dividend to keep it interesting while I wait. I have a small starting position and will expand it if I see more price dips and better earnings reports, which should happen. I also have DEO optioned for sale and this would make a nice replacement. I discuss that option next for my July ending options.

July/August OPTIONS and a peek at September

I did some rolling of the July 19th options during that week. Here is the chart and and I explain the action after it.

End date Name/Tkr Action Call Strike $Pr Premium Net R’cd Pr ATW Date Written
July- 19th EPR open 1 75 1.1 104.34 69.77 1-16
7-18 closed 0.31 Pd 35.47
to Jan 2020 rolled out 1 75 3.02 297.52 74.xx 07/17/19
July- 19th Kimb-Clk open 1 130 2.11 205.33 118.83 2-12
7-16 closed 8.72 Pd 876.47
to Jan 2020 rolled up/out 1 135 9.1 905.51
July- 19th Diageo open 1 150 2.85 279.34 142.45 1-24
7-15 closed 20.6 Pd.2065
to Jan 2020 rolled 21.86 2186
July- 19th Alliant open 2 45 1.73 339.62 44.6 2-7
called away sold 45 8983 49.xx Net 46.61/sh

JULY

DEO

On the 15th I bought back the Diageo option paying $2065 (premium 20.60) and sold another one for the same strike for Jan 2020. I received $2186 (premium 21.86) for a net gain of $166. Yes, they had huge premiums but it gives the option more time which allows me hopefully to collect the next dividend just announced of $2.11. The record date is Aug 8th for it and is paid in October. Yes, October. They have one crazy span between announcements and actual payments which is another reason I really don’t enjoy owning it. $3.46 is the total dividend amount for 2019 and gives it a yield of 2.1%. DEO is extremely over loved but the price is falling. I have no idea what the future will bring in that regard, just know I am totally ready to sell it this time. If not, it's more option fun for me.

KMB

On the 16th I bought back this option paying a net of $876.47 (the premium was 8.72). I rolled it out to Jan 2020 and also raised the strike from $130 to $135. I still received $905.51 (premium 9.10) for a net gain of $29.04. It might not seem like enough to fool around for, but I will get $5 more if I do sell it. I am happy no matter what and that is what matters to me.

EPR

On the 17th I bought back this option paying a net of $35.47 (premium $0.31). I rolled it out to Jan 2020 and received $297.52 (premium 3.02).

LNT

This I allowed to be sold and received $8983 for the 2 options. With the previous received premium of $339.62 my per share total was $46.61. The shares were selling higher at time for about $49, so I sold all my other shares for that price exiting the position totally with no regrets. I do wonder how how can it go, but it is over priced and I totally had great gains in the Roth with an original share price of about $22.

August and September

End date Name/Tkr Action Call Strike $Pr Premium Net R’cd Pr ATW Date Written
Aug 16th Coca-Cola KO 2 49 1.55 303.62 47.23 1-14
AutomDP ADP 1 165 2.23 217.33 145.91 2-8
Sept-20 Teva open 1 19 2.31 225.33 18.64 2-11
Stag open 6 30 0.9 ave 513.9 29.45 Mar/Apr

August still has open options.

I have calls at $49 for KO and I will let those sell, as I have plenty. The end price would be ~ $50.50. ADP moves up and down and today was mostly down and below the strike price. Anything can happen, but I am fully prepared to let it sell if the strike hits. That end price would be ~$167.20.

September is interesting but not much is happening.

The Teva call will most likely expire, which is fine. Teve is hurting and currently is trading near $8.

Stag is the wild card and I will most likely let it go. I can change my mind, but feel it is fully valued and has low growth prospects and slow rising dividend. I have had a good run with it and can and will move on if it sells. My cost per share is about $18.

Conclusion

I love how the portfolio is performing and reacting to the market pressures. The defensive nature is very helpful and the preferred shares bought some time ago are aiding in that as well. I thank The Fortune Teller for bringing that investing knowledge to his service and me for listening and buying some.

It's a wonderful interesting investing world. We each have our own ideas and methods on how to do it. I am just one of many with my own portfolio which I am grateful to have partaken in a rising bull market. I have now learned to become a bit more defensive with choices and even using options to guard portfolio value. It's easy to look at gains on paper, but they are not truly earned until taken and that goes for losses as well. I am not afraid to do either as I know there is opportunity somewhere and maybe just on another day. The market gives and it takes, so 5 steps forward sometimes means 1 step back and to start anew and refreshed with each new day. I stress know what you want for your portfolio and only speculate with what you really don’t need for every day living. I also thank everyone that has given me a big step forward with learning on SA, and there are too many to name. We all come and go, I like to share what little knowledge I have and the mistakes I have made too. Know that knowledge can live on, so get some, enjoy it, share it and then have happy investing with it.

Disclosure: I am/we are long CXW. 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 93 stocks shown in the chart