96 Stock Rose Portfolio February Review And Transactions Update: Yield 4.6%

Summary

• Portfolio Value was up 2.75% in February and 3.64% Ytd with 7 add on buys, 1 new ETF, 1 trim and 2 sells with all transaction prices revealed.
• Dividend income was up 8.5% from Feb 2020 and up 6.62% from Nov 2020 Q4 from 20 payers with 3 raises and even 2 cuts.
• Dividend yield dipped a bit to 4.6% from 4.7% last month but the goal of increasing defensive sector % income rose slightly and is discussed.
• All 96 stocks are listed by % income, high to low, along with % portfolio value, sector, % dividend yield and S&P credit rating to aide the portfolio goal of quality add on candidates and keeping position size in check.

Source: (Author) Rose’s photo of miniature pink garden roses

The Rose Portfolio

96 stocks currently form the portfolio. It is a conglomerate of 3 brokerage accounts, 2 Roth, 1 taxable trust and 6 separate company stocks thrown into the mix. Very few sales will occur in the taxable account which also receives a yearly RMD, required minimum distribution, from a separate not included IRA. I will reveal the taxable account sales when they occur of which none were done this month. The required 2021 RMD was already done in January as cash and is small or ~ 0.35% in comparison to the total Rose portfolio. All dividends generated are still retained in the portfolio and reinvested at my discretion and included in each month's transactions. A more comprehensive portfolio listing of quality and price was done in the January review article here and reveals some nicely priced winners too, at least at the time.

INCOME

The primary goal for the portfolio is income, as growth has been accomplished satisfactorily now that we are retired. The listing below is therefore from the perspective of %income from high to low for all 96 stocks along with the other metrics and abbreviations that are used as follows:

- S&P Cr R: Standard and Poor credit rating from “FG” Fastgraphs subscription service. The more quality ratings (As and BBB+) are shown in bold.

- 2021 %PV: % portfolio value on February 27^th, 2021.

- E 2021 %PInc: % estimated portfolio income for 2021 as known or shown from FG.

- Sector: there are 11 that I and most brokers use for each security type. Those listed in bold are for the defensive sectors.

– RIC refers to Regulated Investment Company

– Misc RIC refers to 2 types for me; BDC/ Business Development company ( I have 7) or mREIT or mortgage REIT/real estate investment trust (I have 1).

– Real Estate sector holds all eREITs or equity real estate investment trusts.

- Dividend is based on the yearly estimated dividend and the stock price on the same date the portfolio value was established on Feb 26th.

With almost 96 stocks any position with %income > than 1% would be considered the average.

Get ready this is a long list, so it is divided into % income sections for easier viewing, so let’s begin:

Income 2 % or greater- 18 companies

These are all above that 1% average size and probably could be considered completed. However, if a bargain price arises they will always get due consideration as they can be trimmed in the future as well. Nothing ever wrong with buying a great quality stock at a low valuation.

Stock	Stock	S&P	2021	E 2021	Sector	Dividend
Ticker	Name	Cr R	%PV	%PInc	Name	Yield
02/28/21						%
(ABBV)	AbbVie	BBB+	4.83%	5.08%	H-Care	4.8
(ENB)	Enbridge	BBB+	2.32%	3.91%	Energy	7.7
(T)	AT&T	BBB	2.17%	3.53%	Comm-T	7.4
(TGP)	Teekay LNG	no K1	1.90%	3.06%	Energy	7.4
(MO)	Altria	BBB	1.69%	2.93%	Cons S	8.1
(BCE)	BCE	BBB+	2.11%	2.90%	Comm-T	6.3
(IRM)	Iron Mt.	BB-	1.87%	2.85%	Real Estate	7.1
(PM)	Philip Morris	A	2.26%	2.81%	Cons S	5.7
(PFLT)	Pennant Float		1.32%	2.75%	Misc RIC	9.5
(ARCC)	Ares Capital	BBB-	1.37%	2.60%	Misc RIC	8.7
(NMFC)	New Mt. Fin	BBB-	1.18%	2.50%	Misc RIC	9.6
(MRK)	Merck	AA-	3.25%	2.37%	H-Care	3.6
(TGP.PB)	Teekay-b		1.31%	2.35%	Fxd-Pref	8.2
(CGBD)	TCG BDC		0.97%	2.32%	Misc RIC	10.9
(SPG)	Simon P G	A	2.36%	2.28%	Real Estate	4.6
(JNJ)	Johnson &J	AAA	3.78%	2.19%	H-Care	2.6
(DUK)	Duke Energy	A-	2.17%	2.14%	Utility	4.5
(VZ)	Verizon	BBB+	2.15%	2.12%	Comm-T	4.5

Click to enlarge

Abbvie leads the list with 5% of the total income. It just raised the dividend by 10.2%, and the happiness with owning it just keeps growing! The BBB+ credit rating is extremely acceptable to me.

It should be easy to see the energy and Misc RIC category gets represented here easily for their “HY” high yield. A little % of portfolio value can add up quickly with owning them. JNJ is a very quality triple A rated company, but it takes a lot more in value to get equal income. Safety of the dividend and quality are always important metrics I try to use for purchases and to keep size valuations in check. I watch them all and most recently began adding on to Merck for nice valuation and high credit rating of AA-. The most recent purchase price is found in the February transaction section.

Income 1% or greater- 20 companies

Stock	Sector	S&P	2021	E 2021	Sector	Dividend
Ticker	Stk Name	Cr R	%PV	%PInc		Yield
(LYB)	LyondellB	BBB+	2.15%	1.91%	Material	4.1
(SO)	Southern Co	A-	1.86%	1.88%	Utility	4.5
(FSK)	FS KKR Cap	BBB-	0.69%	1.87%	Misc RIC	12.5
(WPC)	W. P. Carey	BBB	1.43%	1.78%	Real Estate	6.1
(TCPC)	Blkrock TCP	BBB-	0.77%	1.56%	Misc RIC	9.3
(XEL)	Xcel	A-	2.27%	1.52%	Utility	3.1
(ARDC)	Ares Bond Fund		0.88%	1.52%	Fin/Funds	7.9
(WBA)	Walgreens BA	BBB	1.72%	1.48%	H-Care	3.9
(VLO)	Valero	BBB	1.26%	1.40%	Energy	5.1
(KMB)	Kimberly Clk	A	1.72%	1.31%	Cons S	3.5
(GD)	Gnrl Dynamics	A+	2.00%	1.30%	Industrial	2.9
(VOD)	Vodafone	BBB	0.97%	1.29%	Comm-T	6.1
(LMT)	Lockheed M	BBB+	1.82%	1.25%	Industrial	3.2
(DNP)	Duff N Phelps		0.71%	1.17%	Utility/Cef	7.5
(BMY)	Bristol Myrs	A+	1.65%	1.15%	H-Care	3.2
(XOM)	Exxon M	AA	0.81%	1.13%	Energy	6.4
(KO)	Coca Cola	A+	1.46%	1.09%	Cons S	3.4
(MMM)	3M	A+	1.44%	1.06%	Industrial	3.4
(D)	Dominion	BBB+	1.33%	1.06%	Utility	3.6
(AVGO)	Broadcom	BBB-	1.54%	1.03%	Tech	3.1

Click to enlarge

WP Carey is the newest addition here and I have gotten it to a very nice % income. With being a "HY" eREIT a credit rating of BBB is very acceptable to me.

A small amount of LMT was also added this month, I like it over 3.2% yield and now I am aiming for 3.3%, as you can see it is not a priority, but I do believe it has defensive by nature qualities.

BMY is A+ credit rating and now 3.2% yield, I have sold puts to obtain some in March for a strike of $62.50, hope I get them. The Fortune Teller also has suggested puts for it in his service “WoF” , but I admit to doing it my way again, but at least we are still looking to obtain the same stock. No ones way is best but trying and succeeding is always the goal to get shares cheaper.

Income 0.5% or greater- 22 companies

Stock	Sector	S&P	2021	E 2021	Sector	Dividend
Ticker	Stk Name	Cr R	%PV	%PInc		Yield
(AMGN)	Amgen	A-	1.34%	0.92%	H-Care	3.1
(PEP)	PepisCo	A +	1.25%	0.89%	Cons S	3.2
(CSCO)	Cisco	AA-	1.21%	0.86%	Tech	3.3
(HMLP)	Hoegh LNG	no K1	0.35%	0.86%	Energy	11.4
(KNOP)	Knot Offshor	no K1	0.30%	0.81%	Energy	12.5
(MGEE)	Madison GE	A-	1.54%	0.79%	Utility	2.4
(CVS)	CVS	BBB	1.22%	0.78%	H-Care	2.9
STWD Bd	Starwood	Ba3	0.75%	0.77%	Fxd-Bond	4.7
(TWO)	Two Harbors		0.38%	0.77%	Misc RIC	9.4
(HD)	Home Depot	A	1.35%	0.75%	Cons-D	2.5
(NEM)	Newmont Mng	BBB	0.84%	0.74%	Material	4
(CVX)	Chevron	AA	0.60%	0.68%	Energy	5.2
(CLNY-G)	Colony-G Prf		0.37%	0.61%	Fxd-Pref	7.5
(VTR)	Ventas	BBB+	0.79%	0.59%	Real Estate	3.4
(GEO)	Geo Grp	BB-	0.19%	0.59%	Real Estate	13.8
(AMLP)	Alerian ETF		0.25%	0.55%	Energy	10
(CEQP-)	Crestwd LP-Pf	K1	0.23%	0.55%	Fxd-Pref	10.7
(RDS.B)	RD Shell.B	AA-	0.70%	0.52%	Energy	3.4
(BPYU)	Brookfield PR	BBB	0.31%	0.52%	Real Estate	7.6
(IFN)	India CE Fund		0.25%	0.52%	Fin/Funds	9.7
(PFE)	Pfizer	AA-	0.47%	0.51%	H-Care	4.7
(MCD)	McDonald's	BBB+	0.92%	0.50%	Cons-D	2.5

Click to enlarge

All of these should and could be considered for adding on to. I have done so just last year with the top 3, PEP, AMGN and CSCO, but wouldn't mind more. I continue to watch them as they are even the best value priced candidates right now and 2 are in defensive sectors that I wish to expand. Many of the others are just too expensive or over loved at the moment, other than perhaps PFE, which I am not sure I want over perhaps BMY, so I wait.

Income 0.1% or greater – 23 companies

Stock	Sector	S&P	2021	E 2021	Sector	Dividend
Ticker	Stk Name	Cr R	%PV	%PInc		Yield
(GPC)	Genuine Parts	A+	0.71%	0.47%	Cons-D	3.1
(NNN)	Nat Retail Prop	BBB+	0.46%	0.47%	Real Estate	4.7
(CAH)	Cardinal Health	BBB	0.46%	0.39%	H-Care	3.9
(CMI)	Cummins	A+	0.76%	0.35%	Industrial	2.1
(NYCB)	NY Comm BC	BB+	0.27%	0.33%	Fin/Funds	5.6
(VIAC)	ViacomCBS	BBB	0.96%	0.32%	Comm-T	1.5
(MDLZ)	Mondelez	BBB	0.62%	0.32%	Cons S	2.4
(PTMN)	Portman Ridge		0.12%	0.31%	Misc RIC	11.8
(GIS)	General Mills	BBB	0.33%	0.27%	Cons S	3.7
(MAC)	Macerich		0.27%	0.27%	Real Estate	4.5
(WEC)	Wis Energy	A-	0.36%	0.26%	Utility	3.4
(UNP)	Union Pacific	A-	0.61%	0.25%	Industrial	1.8
(SJM)	J. M. Smucker	BBB	0.33%	0.23%	Cons S	3.2
(VEDL)	Vedanta Ltd		0.17%	0.23%	Material	6.4
(AEM)	Agnico Egl M		0.38%	0.20%	Material	2.5
(TGT)	Target	A	0.55%	0.18%	Cons S	1.5
(INTC)	Intel	A+	0.36%	0.18%	Tech	2.3
(NGL.PB)	NGL-B	K1	0.13%	0.18%	Fxd-Pref	4.8?
(MA)	Mastercard	A+	1.58%	0.17%	Tech	0.5
(V)	Visa	AA-	1.27%	0.17%	Tech	0.6
(HSY)	Hershey	A	0.33%	0.16%	Cons S	2.2
(KHC)	Kraft/Heinz	BB+	0.13%	0.12%	Cons S	4.4
(SLVP)	ETF Silvr Mnrs	5*	0.19%	0.11%	Material	2.6

Click to enlarge

For many reasons these remain low in income value:

- growth quality stock with low income such as Visa and MA

- core position that is over valued: CMI, UNP , WEC, TGT, HSY all are on hold

- building a position- the price rises faster than I can complete it, but still happy to own: NNN

- exiting slowly maybe: KHC

- happy with a small amount and watch to add if price cooperates.

- owning with hope that it will rise up one day: MAC

- speculation buys

Many of the above reasons also apply to the following

INCOME 0% to 0.1%- 13 companies

Stock	Sector	S&P	2021	E 2021	Sector	Dividend
Ticker	Stk Name	Cr R	%PV	%PInc		Yield
(CVA)	Covanta	BB-	0.21%	0.10%	Industrial	2.3
(GOLD)	Barrick Gold	BBB	0.22%	0.09%	Material	1.9
(VTRS)	Viatris	new	0.18%	0.09%	H-Care	2.2
(MET)	Metlife	A-	0.13%	0.09%	Fin/Funds	3.3
(EWT)	Taiwan ETF		0.17%	0.07%	Fin/Funds	1.75
(SILJ)	ETF Jr Silv Mnr		0.14%	0.04%	Material	1.3
(OXY)	Occidental	BBB	0.16%	0.01%	Energy	0.1
(VNM)	Vietnam ETF		0.08%	0.01%	Fin/Funds	0.7
(TAP)	Molson Coors	BBB-	1.06%	0.00%	Cons S	susp
(CLNY)	Colony		0.49%	0.00%	Real Estate	susp
(TEVA)	Teva	BB	0.32%	0.00%	H-Care	0
(EPR)	EPR	BB+	0.13%	0.00%	Real Estate	susp
(CXW)	CoreCivic	BB	0.06%	0.00%	Real Estate	0

Click to enlarge

Some of these will rise up in income as I wait for a suspended dividend to reinstate: TAP, CLNY and TEVA

I am not sure what to do with it as yet : MET, but in taxable and I don’t care if it stays there forever.

I am exiting OXY, EPR, VIAC and CXW through call options to get a higher price, at least at the time they were done. EPR price has risen beyond imagination, I might need to roll my option and just sell it, but there is time. It still has no dividend but has huge backing of some sort pushing the price higher.

DIVIDEND INCOME for February

I love collecting dividends and the income was up 8.57% from Feb 2020 and 6.62% from the comparable 2^nd month of Q4 or Nov 2020. It gives the portfolio a 4.6% yield compared to 4.7% for January; all due to rising valuations (smiling).

The following chart shows the dividends collected from 20 companies with 3, possibly 4 raises and 2 cuts. I have trouble with Vodafone, but I think it was a raise, as they give 2x per year dividends and in varying amounts, but it seems to be a bit higher. The next dividend will be different so it is always a guessing game for me. Date of arrival starts the list and then dividend per share and yearly amount (hard to determine with VOD). Miscellaneous pertinent information is in the last column.

2021		Dividend	Yearly
FEB	STOCK	per share	Amount	Yield and other Info
1	BMY	0.49	1.96	Raise from 45c yield 3.2%
1	CVS	0.5	2	No raises Yield 2.85%
1	GEO	0.25	1	cut from 34c Yield now 13+%
1	GIS	0.51	1.04	Yield 3.7%
1	T	0.52	1.08	No raise yet Yield 7.2%
1	VZ	0.6275	2.51	4.6% yield
2	PFLT	0.095	1.14	monthly pay yield 9.5%
5	VOD	0.5459	1.09	Record date Dec 18 Yield 6.3%
5	GD	1.1	4.4	raise due next yield 2.7%
9	MA	0.44	1.76	raise from 40c yield 0.5%
10	DNP	0.065	0.78	Monthly pay yield 7.5%
12	CEQP	0.2111	0.8444	K1 tax- Fix pref yield 10.8%
12	HMLP	0.44	1.76	Yield 11.4%
12	TGP	0.25	1	Yield 7.4%/ raise next
13	KNOP	0.52	2.08	Yield 12.5%
16	ABBV	1.3	5.2	raise from 1.18/ yield 4.8%
16	NNN	0.52	2.08	Yield 4.7%
16	NYCB	0.17	0.68	Yield 5.6%
18	AMLP	0.71	2.84	cut from 75c/ yield 10%
26	ARDC	0.0975	1.17	monthly pay/ yield 7.9%

Click to enlarge

- GEO cut again to 25c and with $17.54/ share the yield or YOC is 5.7%. I am struggling to exit and should make up my mind soon.

- AMLP cut the dividend surprisingly by only 4c and still has a yield of 10%; okay for me for now.

- T might give a raise next time, and I am still waiting for CVS to do so perhaps by the end of this year.

- GD will raise next time, and I believe TGP will do so as well.

- VOD date of record was Dec 18th 2020 and they paid it this month.

PORTFOLIO VALUE is UP

The portfolio value is up nicely by 2.75% for February and 3.64% Ytd with a yield of 4.6%. In comparison, The S&P 500 index (^SPX) was up 2.6% and 1.4% Ytd with a yield of 1.57%. The Fastgraph “FG” Chart below from the paid subscriber service by Chuck Carnevale shows the following:

-black line is the price = 3829

-blue line the normal P/E ratio of 20.97

-orange line an average comparison P/E of 15

-white line represents dividend level and pay out within the dark green area of earnings

The estimated future representation with dotted lines shows the S&P price is a bit ahead of itself and priced already at the 2022 normal P/E with suggested earnings of 199.

Interesting and historically the S&P and most stocks will tend to revise back to the normal P/E blue line. When it will happen is anyone’s guess, just know some stocks are trading in high valuations and should be bought with that mind.

FEBRUARY TRANSACTIONS

Numerous add on buys, 1 new ETF , 1 trim and 2 complete sales highlight the list. The 2 sales and 1 minor trim provided most of the cash for add on buys as February was not a huge month for dividends. I love March much better when 50% of the portfolio pays.

February Type or 2021 Sector Stock Name Ticker Price Misc Notes and Comments $ Trim only Energy NGL Pref B NGL-B 10.95 .5625/Q= 2.25=20% poss div suspension SELL Energy Gas Log Pref / A GLOP-A 21.2 21.06 Cost GLOG buying GLOP SELL Energy Gas Log Pref / C GLOP-C 20.33 21 Cost poss div suspension Add On Industrial Lockheed Martin LMT 334.7 Div 10.4 = 3.1% Add On health care Viatris VTRS 15.77 .11/Q = 2.8% yld new div starts Q2 Add On health care Merck MRK 75.11 Div 2.60 = 3.5% yld Averaging down Add On Material Agnico Eagle Miner AEM 66.2 Div 1.4 = 2.1% Averaging down Add On Material Newmont Mining NEM 56.82 Div 2.2 = 3.9% Averaging down Add On Material Barrick Gold GOLD 20.26 Div .36= 1.8% yld Averaging down Add On Emerg Mrkt India Fund IFN 21.14 Div 2 = 9.5% yld replacing income NEW Material ETF Silver Miners ETF SILJ 15.61 Div .2 = 1.3% WOF Click to enlarge

Click to enlarge

SOLD

GLOP-A and C preferred shares

These were original ideas a few years ago from The Fortune Teller “TFT” and the service Wheel of Fortune “WoF”. They have yearly distributions of $2.16/2.13 and offered ~10% distribution that will be missed. They had been trading extremely low late last year and made a huge comeback which allowed me and others finally to sell. The patience needed to wait for the right exit time for the proper price was provided at WoF. I was tempted many times to exit much earlier, but owe getting near cost to the constant encouragement from TFT to wait. A huge reason to exit these was there was a buyout offer for GLOG shares or GLOP parent and the future for the preferred shares distribution could be uncertain or even abandoned. Therefore it was sold to reduce risk, pure and simple. Both were sold for almost break even cost and Rose is smiling.

NGL has suspended the dividend on the common shares and it is believed the preferred shares and payments will also follow if not already. I only trimmed by 25% to reduce risk of owning it for now.

New Buy

SILJ is an ETF of junior silver miners with a higher capitalization than the SLVP senior miners, which is also owned and this will offer some more silver mining diversification. The current top holdings in the ETF as listed by Yahoo Finance source March 1^st is shown below. They are mostly Canada and Mexico jurisdictions which are considered to be safer mining locations.

The fund contains (HL) Hecla, which is one of the few silver miners actually in headquartered in the good ole USA in the state of Idaho. It has holdings in Alaska, Canada and Mexico as well. As a speculation I bought it alone and a small amount of shares for $5.41 and rode it up to $6.70 in 2 weeks time. I sold 50%, making 22+% and still hold the remainder. WoF offered some $6 strike puts to buy more at a lower price which I will get in June if successful. If that happens I will relate the full story at that time. Right now, I own a small amount, but wanted to share the trade and what the future might bring. It is not shown in the transaction chart, but worth the mention.

Add Ons

These adds were mostly miners as I believe just as TFT suggests that inflation will be upon us in the future with commodities being a valuable hold for it. I personally also like LMT and its defensive nature and added a bit more. VTRS started a dividend and it seemed like a nice time to add more and will do so if the price continues to fall. It is also a choice at WoF and options have been suggested for it as well. Merck a very quality healthcare defensive name is showing price weakness, so I added more with its now 3.5% dividend yield.

OPTIONS

There were no successful options completed in February. March hopefully will have some, as I have sold puts to own more BMY and another put in June. Here they are so you can follow along with me.

- BMY $62.50 strike Put for Mar 19^th; premium of $4.10 that would give shares at $58.40.

- BMY $65 strike Put for June 18^th ; premium of $5.70 that would give shares at $59.30.

The premiums have been received and are already included in portfolio value, so now waiting is the hard part. These and other successful options done will be revealed in the transaction section each month. Follow along and cross your fingers for getting successfully some more BMY.

INCOME YIELD and DEFENSIVE GOAL

Income yield of 4% is the general portfolio goal which has been met easily with being 4.6%. I also have the desire to bring income to 50% from defensive sectors. Owning defensive names in other sectors, such as LMT will just have to be a bonus. The tech sector is considered often to be defensive, but for now I have not included it.

The list below shows:

- # of companies in each sector

- % portfolio value

- % portfolio income

There are 35 companies and 1 fixed company bond in 5 defensive sector holdings with their statistics shown in bold print in the chart below.

96	Sector	Sector	Sector
Co	/Type	%Value	Est Inc
12	Cons Staple	11.74%	10.32%
11	H-Care	19.22%	14.94%
5	Comm-Tele	8.36%	10.16%
7	Utility	10.24%	8.81%
5	Tech	5.96%	2.41%
3	Cons-D	2.98%	1.73%
6	Industrial	6.84%	4.32%
7	Material	4.08%	3.33%
6	Fin/Funds	1.78%	2.55%
10	Energy	8.64%	12.93%
1	Fxd-Bond	0.75%	0.75%
4	Fxd-Pref	2.05%	3.70%
11	Real Estate	8.37%	9.35%
8	Misc RIC	6.79%	14.69%
36	Defensive	50.31%	44.98%

Click to enlarge

The 36 defensive names provide 50.31% by value, but only ~45% of the income. I will continue to try to raise that income to 50%, with that goal in mind for all transactions.

There are 72 common stocks that provide ~ 80% of the value and 71.5% income.

72	Common	79.85%	71.49%
5	Fixed Inc	2.80%	4.45%
19	RIC	15.16%	24.04%
	Cash/Opt	2.20%

Click to enlarge

The 19 RIC includes real estate have the “HY” high yield major components, as being 15% value and yet 24% income and the really fun exciting part of the portfolio and also need the most monitoring/ watching.

With energy in focus and valuations rising recently, I am showing the components of those 10 holdings separately in the chart below.

10	Energy
5	IOC/Ref	3.53%	3.74%
	Valero	1.26%	1.40%
	Exxon M	0.83%	1.13%
	RD Shell.B	0.68%	0.52%
	Chevron	0.60%	0.68%
	Occidental	0.16%	0.01%
5	Mlp/Etf	5.12%	9.19%
	Enbridge	2.32%	3.91%
	Teekay LNG	1.89%	3.06%
	Hoegh LNG	0.35%	0.86%
	Knot Offshor	0.30%	0.81%
	Alerian ETF	0.26%	0.55%

Click to enlarge

The IOCs or Integrated Oil Companies have HY, but less than MLPs. Major Limited Partnerships, which easily provide almost double the income for value right now. None of these have K1 tax forms.

SUMMARY/CONCLUSION

The income lists reveal the real commitment to the more valued quality core stocks. Most are established with some more speculative HY stocks playing a fun interesting exciting part in the total portfolio with a few solid growth stocks for diversification. The BDCs/RICs bring more dividend excitement, but the core lower yield reliable dividend payers give a steady and basic solid foundation for the portfolio. More recently commodities and emerging markets stocks have been added as well for an even more diversified total portfolio. I also like that many pay dividends, if even small-ish.

March is a favorite quarterly dividend collection month and I will be building reserves of cash with always hopes of future bargains for any or all of these quality stocks/investments.

Happy Investing to you all!

Source: (Author photo) Cactus Roses in Rose’s garden bloom for 1 week only each spring

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

I am long all 96 positions in the charts. The article is for information purposes only in regards to my dividend portfolio structure and goals. Happy Investing to all!

Comments

[RoseNose]

IFN : India Fund just raised the dividend for March to 58c from 50c. With the price near $21, the yield with the raise if it holds is ~11% E -WoW-Za !

[rado403]

@RoseNose TY for turning me on to it

[RoseNose]

@rado403 - I believe it will continue... let's hope so, good luck to us all!

[montrachet]

@RoseNose
The 58c distribution (not dividend) is 100% a return of capital so far...
3 different levels to be exact (short, long) based on the Aberdeen announcement.
I wish everybody the best with IFN

[Gordon.G]

I was doing a little bit of research on TGP. I noticed that they reduced their dividend by about 80% back in 2015. Since then it has doubled. What is the story behind the dividend cut? Thank you.

[RoseNose]

@Gordon.G - I have only owned it about 2 years when it was a suggestion at Wheel of Fortune back when it looked to be gaining its "mojo" again. Revenues were poor 2015 through 2017 and they cut the dividend a few times, which is normal to do when revenues dip. Lots of the oil majors and mlps were suffering alike, so it does not surprise me. I look at the estimations on Fastgraphs for the future and it seems it can hang on where it is for now, but I would not chase it nor expect anything too much better for some time. I listen to The Fortune Teller when he says to sell and so far so good, no expectations for selling just now.... Hope that helps. Rose :))

[rado403]

Ah Rose -- a rose is a rose till you sit on it--- Cactus Rose--ouch

[jdlgsm]

Congratulations on a good performance in February! We are seeing some major changes in the market. I am trying to understand where that leads, and am puzzled by some of the price changes.

Interest rates on 10-year treasuries are headed higher, presumably because we are coming out of the COVID recession and people expect businesses to open up, meaning more borrowing, which puts upward pressure on interest rates.

Higher 10-year rates would partially undo the fall in rates experienced last year. Easy money allowed internet stocks to soar. So perhaps one effect would be a rotation from growth to income stocks.

It is difficult to achieve a yield of 4.6% in today's market. You have worked hard to find the best options and your list of 18 top contributors to income gives a start on where to find safe high-dividend stocks.

Energy soared last month, and although the US has tried to shift away from fossil fuels, a look at the energy usage in the US from 1990-2019 (available at mea.org) shows that solar still contributes little. The major change has been coal is replaced with natural gas.

Thus natural gas is a good thing to consider as energy prices begin to rise as the COVID recession ends. Your choice ENB and TGP are ideally suited for that. I'm looking at WMB which is also natural gas pipelines but with a larger cap than TGP.

Also your list brought my attention to IRM. This is one of the last of the REIT's left standing after the COVID carnage. It's price is recovering nicely.

I expect other REIT's like SPG to recover also, although perhaps not quite as much. COVID may have produced a permanent shift away from malls.

I suspect that dividend stocks will do better this year than last. I appreciate you doing the hard work to locate some of the best choices.

[jdlgsm]

@jdlgsm
Correction: I mistyped the web address---it should be iea.org. There you will find usage of the various types of fuel to produce energy for all of the major countries in the world. That's a useful first step for researching which energy companies in which countries are likely to grow.

[RoseNose]

@jdlgsm -Much appreciated comment with a good grasp of my goals and your own goals for quality investing. Interest rates jumped and with the S&P yield now matching the 10yr T - stocks are not looking as interesting. 2% yield or more is important to stay ahead, more if one adds in inflation which is building rapidly. The growth stocks have done their job and now is probably time to take some profits home with those. Energy is in revival mode, thankfully. Happy with what I currently own, even the IOCs will do well. Nice yields thus far, except for RDS/b, it is slower.
IRM is now in favor by many, as they are seen moving to data storage and not just paper storage. The yield is very attractive, however without much growth in it. SPG will survive with its great locations and better clients in the malls. Now, they, the management, hopefully, should pay all 4 dividends this year and not skip one as they did in 2020 along with that cut.
I was extremely disappointed at the sneaky way they left a payment out of 2020. I am still long SPG.
Good Luck to us all!

[rado403]

@jdlgsm The natural gas promise is being diminshed by California -- one city - do not remember which one-- is banning natural gas appliances-- has to be all electric-- classic California get electricity from some other zip code-- natural gas is dirty not as much if you have cleaned out a nat gas fireplace

[jbadilla23]

Congrats on February.
Looking forward to reading March.

[RoseNose]

@jbadilla23 - Thanks and I will provide a Q1 update and then decide my future writing updates, maybe something else about investing....just thinking , or over thinking again.

[mm13cbr600f2]

I am surprised you hold GEO. Is it on the list of holdings to be reduced?

[RoseNose]

@mm13cbr600f2 -
I just did let it go on Friday....Hurt like hell! Held way too long, should a listened to The Fortune Teller last year. BUT, its gone and I replaced the income with PMTN @ $2.03 and 11.8% yield, for now.... it might get sold, but it will be my speculation position (as GEO was) from now on. Thanks for reading and the ? Rose :))

[richjoy403]

Hi Rose -- Thanks for sharing.

I continue to be amazed by the breadth of holdings you manage, and fully expect you'll reach and exceed triple-digit holdings.

You're a worthy inspiration to all SDI's.

Rich-untrack:12hrs

[RoseNose]

@richjoy403 - Hi there my friend. I am so glad to know you still reading my articles and around on SA. I so enjoy your insightful thinking.
I don't worry about the # of holdings, ever, its what they represent they keeps me interested! Best to you and hope spring is coming our way soon! Rose :))

[montrachet]

Thank you for your update and congratulations on the February results.
I added one company to my DG portfolio in February: APD.
A tiny position that I bought at the recent lows just after the earnings release (lucky). A fantastic DG company that I always wanted to own and that I will increase over time depending on the price or multiples.
This current correction might provide a great entrance point to a lot of DG companies I am following.
Good March investing!

[RoseNose]

@montrachet - Thank you for the comment. APD has always been a quality company, but I have trouble finding a good entry point. I like you have it and hope it continues to please you! Best, Rose :))

[Bucknfl]

🌹 I always enjoy your educational posts. I sold several stocks last year that cut their dividends. I am still holding EPR & FUN even w div cuts. It may take a year but I think both will recover nicely as the markets look forward. I averaged down with STWD & NYCB which has worked out. HD & MSFT have been monsters. All the best.

[RoseNose]

@Bucknfl - Thanks for reading and sharing your investment moves. EPR certainly has been rising up in price, but I do not really see it reinstating the dividend for quite some time. I will exit perhaps in April if I don't roll the call I have on the shares. NYCB is a new one for me and an idea from WoF and is the STWD bond: amazing upward moving picks. HD is drifting lower in price and should be; I remain long. No MSFT :( for me, but, glad for you :)) Rose

[Humble Student]

Hi Rose and thanks for these updates. I always try to read your work and the comments as thoroughly as I can. We share many holdings. Why are you considering exiting KHC. I have been adding over the last year and hold 150 shares and am in the green and due a divi at end of month. Am I missing something?

[RoseNose]

@Humble Student - You are very lucky to have gotten it at its low... Mine were a spin off from Kft and that came from MO/PM. I have owned it for what seems like my whole investing life. The dividend was cut over that time and then was frozen now at a very nice yield. I think it might be time for me to consider moving along. Its not a real important task for me, just a consideration. It sold off its cheese division and now something else. I hope that brings in better profits, but I have no idea in what direction it really is headed.... so I watch mostly. Not a big holding, just a VERY strange one for me and most. I am being VERY patient. Good Luck to us all!

[Donggle]

@RoseNose what is the strategy on taking the 21 Rmd in Jan?

[RoseNose]

@Donggle - I had the cash and could send it to the taxable account .... I thought MRK was a good buy and got some of it there @$80. Its cheaper now, but one never knows the future. I also was however able to get some NNN at $34 or so... that was cheap, wish I gotten more, but it is what it is. It all works out to get what you want at the time for portfolio goals. I take the RMD when its attractive to do so, not at the last minute when I must.... very happy the RMD income is not needed as yet. Hope that helps. Rose :))

[pappyJack]

Hi Rose,
Thank you for another interesting insight into investing. I have followed you and learned a lot about being a retired investor. Not stock picks etc but just good old common sense on handling an investment. Please keep it up and i will await your next article. Stay safe and healthy.

[RoseNose]

@pappyJack -Your comment is extremely welcome and appreciated. Best to you as well ! Rose :))

[Tigertom73]

Hi Rose, I hope you and your family are doing well. I always enjoy reading your articles. Currently I am looking to add several stocks yielding 4 percent or better to my income portfolio. I recently purchased 100 shares of $PPL. Your current article has given me some stock ideas that I need to research. Regards Tom

[RoseNose]

@Tigertom73 - Thank you for sharing $PPL, I like utilities very much and prefer them with a higher yield as they rarely grow up much in price. If there is dividend growth it always helps with those for sure. Thanks for reading and the comment. Rose :))

[angryprez]

@Tigertom73 @RoseNose I'd be cautious with PPL - nice dividend, but they have stated their intent to sell their UK operations, and that represents a large chunk of the company. Some question as to whether they will cut the dividend, and if I recall correctly management has not been forthcoming on what they will do with the proceeds except to say that it won't go to shareholders.

I was in and then out back in the fall, exited with a modest short-term gain.

This is not a comment on the company or industry, I have a couple of utilities myself. But if you're looking to $PPL for dividend security you might want to wait until the dust settles on the sale.

I just find it peculiar that management has not done more to reassure investors.

GLTA.

[RoseNose]

@angryprez - Very much appreciated information. I personally was not going to get it, as I like the utes I already have... But I do enjoy shopping..lol

[capemd1994]

Rose,
Excellent summary. I really look forward to your monthly updates. What strikes me the most is your discipline and patience in shaping your portfolio. I also added LMT and the miners are looking very enticing. AWK is also on my radar.
Thanks again

[RoseNose]

@capemd1994 - Thanks for the nice comment and sharing your investing. I have always thought water stocks would be nice to own, but never found them priced to perfection (or at least 3% yield). Good Luck... and LMT should do well for us. Best :)) Rose

[dividendhigh]

Rose- Today's idea that I got from you is NEM, as it does look attractive with a 4% div. Years ago, I owned several precious metals stocks, including NEM, and although I made a modest profit, it was a bad move because I should have been investing in AAPL, etc. where the real money was to made. Maybe now, with the market being so expensive, NEM may be profitable. I also have been adding WPC, which I like at a 6% yield. I have also recently bought a bunch of RQI, which I like because of the yield, good management, and a good exposure to AMT and CCI. I will keep my eye on NEM. I also may try to buy some TGP which also looks attractive.

[RoseNose]

@dividendhigh - Thanks for the interesting investing history. You seem to have a new grasp of the characteristics of your investing types and there are many kinds. Yield, growth and just plain bond like attributes, as well as the ying and yang, or what can be called bar bells types. Diversification is always good, but value and quality will always save a portfolio....Go slow and learn. TGP is raising the dividend and just did as expected : up to .288 for the next payment, bringing the yield to 8%. which to me is just fine, but my goals could be different. You must be the happy investor with your choices... Best ! Rose :))

[Shaine]

Thanks!

[RoseNose]

@Shaine - Thank you for reading and the comment !

[44Cadillac]

Hi Rose,
I like your thoughts on RDS-B, just letting it ride after disaster 2020.
I did triple down on XOM and am now back in the black. No divvy cut and GS cheerleading helped a lot.
PFE is my head scratcher. Holding but add more?
BCE has turned out well. Holding. Saw it first here so thanks.
VNO was a good trade. WPC is back on my list.
Thanks for sharing.
Michael

[RoseNose]

@8210021 - Thanks for the nice list of your investing thoughts... We all have them and need to work it out for out own needs and happiness.
PFE is indeed odd and I have a few calls on my shares to sell >40. It has gone south, but does move generally between 32 and 41. The 4% yield is what is keeping most into it. However the last raise was only 1c, but they did spin off VTRS. Time will tell how that works out, but many are discouraged by the .44 dividend for it. ...it needs time to be successful, I should think. If it dips below 32, its a buy or even selling some OTM puts to get it even cheaper, maybe. Lots to think about.
BCE is doing well.
WPC could fall more and it also is like a 6% bond.
It's yield is better than PFE for sure, I should move some... Hmmm... Thanks for the idea....(Its not defensive exactly, but I like it).
Good Luck ! Rose :))

[44Cadillac]

@RoseNose PFE had a great morning so I sold it at 34.95 and made a little $$ plus the div. Now what? Get back in at a better price, <34?

BCE and WPC are my focus as xdiv approaches. Cheers!

[RoseNose]

@8210021 -PFE has a nice yield ~4.5% already and is what keeps folks with it. If you sell a put here and now (I have not looked), but that would be the method I would consider first. If not, then try to get near $32 or so. 5% yield is 31.25... but that would be ideal. ... Good Luck !

[TRigell]

Hi Rose, Another great review! We share many of the same names so I always look forward to your reviews. I’ve been doing more options lately, mainly suggestions from the Wheel of Fortune...a great place to learn and make money! Like you, I also have a couple of BMY puts expiring in April and a couple of HL puts expiring in a couple of months. This morning I added a few more shares of VTRS and VZ, and yesterday some LMT. Have fun with your March dividends. My plan is to add to defensive names, but those WOF TA’s are always tempting me away from my plans. The cactus roses are pretty!  
Thanks again for another great update! Teresa

[RoseNose]

@TRigell - We agree on all the same great ideas ! ... and there are more I just can not do without the March dividends. VTRS is tempting today for sure under $14. Kudos! Thank you for sharing and the nice comment. Rose :)) God Bless.

[Gordon.G]

@RoseNose Hi Rose. I am thinking that a percentage of cash should be kept for versatility in as part of a defense and the ability to jump on a good opportunity. Your thoughts?

[The Fortune Teller]

Hi Teresa @TRigell
"My plan is to add to defensive names, but those WOF TA’s are always tempting me away from my plans."
Perhaps we should switch chairs/hats...🤔

"The cactus roses are pretty!"
So true...

[labman106]

Rose, thank you for your portfolio update. Any defensive plays if Wall street tanks (corrects) later in the year?

[RoseNose]

@labman106 - Being in defensive sectors will generally mean less down or lower beta moves. Nothing is safe from a down market that I am aware of. Thanks for reading and the ? Best, Rose :))

[graovsko]

Rose--Thank you for your generosity in providing these terrific updates. I am wondering what you are thinking about RDS.B in your portfolio (forgive me if you addressed this in previous articles). I would like to get out because of the dividend cut but am down 30% from my cost basis at this point even with the price rise for the last few months. Are you holding hoping for the price to recover so you can sell? Or is it a long-term hold for you?

[RoseNose]

@graovsko - Well, RDS-B is rather annoying for sure, as it is recovering slower than CVX and XOM. It should be on the track up, but sure is moving slow. I hold and wait for all of them, there is lots of room to go up as yet. If you don't mind the dividend 3.4% is not as good as the others, but still better than lots of other stocks and it actually was just raised a bit. I don't dwell on it much and could possibly sell some call for more income, but love how CVX is recovering, so I will not. Patience with it should be okay unless you have a better replacement and then get out and move on if you desire as you are the only one that needs to be happy. Good Luck :)) Rose