Rose's Income Garden Stays Green: Value Up 4.2% YTD, Dividend Yield 4.8%
Summary
- April dividend yield increased a bit to 4.8%, with income down a bit by 0.6% from 2021 and down 2.6% from Jan 2022 Q1.
- RIG value is green, up 4.2% YTD and holds the advantage by 17.5% over the S&P 500 which was down 8.8% for April and 13.3% YTD.
- Transactions were 1 sell, 1 buy and getting the spin off from ATT to have 87 investments in RIG.
- 23 Companies paid with 8 raises along with 1 special payment; all information is listed and some discussed.
- Looking for a portfolio of ideas like this one? Members of Macro Trading Factory get exclusive access to our model portfolio. Learn More »
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RIG
Rose's Income Garden "RIG" is a defensive income-quality value-built portfolio with now 87 stocks. It contains mostly common stock, but also has high yield (“HY”) business development companies ("BDCs") and real estate investments. The goal is to maintain 50% of the income from defensive sectors or stocks and have a minimum dividend income yield of 4%, which is 4.8% for April 2022.
The most recent RIG changes are revealed and discussed under the April transactions section. The complete RIG portfolio is listed and found at The Macro Trading Factory ("MTF") along with a trade section, performance charts, dividend “ex” and payment dates, and a newly added “WTB” /Want To Buy listing for all of RIG and a quality “Non-RIG” watch list. MTF also has macro "FMP" and "SOP" portfolios run by The Macro Teller which are very much outperforming the market through primarily fund investing and offer an easy, laid-back non-intensive successful investing method.
Portfolio Value
RIG was up 4.4% in value for April. It was a tough month for any investor to maintain value, with the last week being a blood bath with the most major indexes down as follows:
YTD = Year To Date (from Jan 1st).
Index | April | YTD |
Dow 30 | -4.90% | -9.25 |
S&P 500 | -8.80% | -13.3 |
Nasdaq Composite | -13.26% | -21.2 |
Russel 2000 | -9.95% | -17 |
RIG | -2.70% | 4.4 |
RIG had a less-bad April than the indexes. It ended the month and year with a positive green value result, as mentioned and shown at the end in the above chart. Note: it beats those indexes easily by 17.7% for the S&P, 13.6% for DOW, and 25.6% YTD compared to the Nasdaq, and I am extremely pleased.
Portfolio Income
Dividend income for April was essentially very close to January Q1, but down 2.6%. In January, RIG received a substantial $3.50 dividend payment from Kenon Holdings (KEN), but not in April, and that was a good reason for it to be down and just a bit lower by 0.6% from 2021. KEN has, however, announced it will be making another quite even larger payment later this year, which I look forward to receiving.
Abbreviation Divi = Dividend.
There were 8 companies with raises with the divi/share for those noted in bold print.
Current $ Price was for April 30th.
Stock | Date | divi/ | Divi $ | Divi % | Other Dividend | Current |
Ticker | paid | Share | Yearly | Yield | Comments | $ Price |
(SLRC) | 1 | 0.41 | 1.64 | 9.96% | going to monthly | 16.47 |
(PFLT) | 1 | 0.095 | 1.14 | 8.58% | Monthly Pay | 13.28 |
(PNNT) | 1 | 0.14 | 0.56 | 7.62% | Raise from 12c | 7.35 |
(GPC) | 1 | 0.895 | 3.5 | 2.65% | Raise from 0.815 | 131.89 |
(KO) | 1 | 0.44 | 1.76 | 2.75% | 64.04 | |
(KMB) | 4 | 1.16 | 4.56 | 3.31% | Raise from 1.14 | 137.57 |
(FSK) | 4 | 0.63 | 2.4 | 11.54% | 1c Raise from 62c | 20.8 |
(IRM) | 6 | 0.6185 | 2.47 | 4.68% | last payment/ sold | 52.8 |
(MRK) | 7 | 0.69 | 2.76 | 3.13% | 88.27 | |
(PM) | 10 | 1.25 | 5 | 5.02% | 99.68 | |
(DNP) | 10 | 0.065 | 0.78 | 6.65% | Monthly Pay | 11.73 |
(MPW) | 13 | 0.29 | 1.16 | 6.32% | 1c Raise from 28c | 18.34 |
(MDLZ) | 14 | 0.35 | 1.4 | 2.16% | 64.76 | |
(VTR) | 19 | 0.45 | 1.8 | 3.21% | last payment/ sold | 56.09 |
(WPC) | 14 | 1.057 | 4.22 | 5.21% | Raise from 1.055 | 80.94 |
(SEAL.PB) | 18 | 0.5313 | 2.125 | 8.48% | was TGP-b | 25.05 |
(CGBD) | 18 | 0.32 | 1.28 | 9.08% | regular payment | 14.09 |
CGBD/S | 18 | 0.08 | 8c special pay | |||
(MTBCP) | 15 | 0.2292 | 2.75 | 10.32% | Monthly Pay | 26.66 |
(BCE) | 18 | 0.7285 | 2.91 | 5.48% | Canada exch rate | 53.14 |
(XEL) | 20 | 0.4875 | 1.83 | 2.48% | Raise from 0.4575 | 73.65 |
(FMC) | 20 | 0.53 | 2.12 | 1.60% | 132.58 | |
(CSCO) | 26 | 0.38 | 1.48 | 2.97% | 1c Raise from 37c | 49.79 |
(RC) | 29 | 0.42 | 1.64 | 11.18% | 14.67 | |
(MO) | 29 | 0.9 | 3.6 | 6.42% | 56.11 |
- SLRC is moving from quarterly payments to monthly starting in May.
- CGBD looks to have changed its name from TCG to Carlyle Secured Lending Inc. It gave a special payment of 8c on top of the normal.
- MTCBP is also a monthly payer and only has 1 more payment announced. Beware it could announce more along with another partial call for the shares.
- SEAL.PB paid its distribution a week late to my broker, but it arrived and I was relieved. It did change its name change from TGP-B which perhaps caused problems.
- BCE is Canadian with the actual dividend seeing some foreign exchange $ issues; and I record whatever lands in the account.
- RC, an mREIT, is new to the account and should be a regular payer for this month.
Dividend income is shown from 2 companies that were sold from RIG in March and these are the last of those payments. My last article published in April explains the sale of Iron Mountain (IRM), Ventas (VTR) along with Paramount (PARA) in the transaction section. I recommend you read it to understand the reasoning involved in those sales.
April Transactions
Sold-1
(SLVP) MSCI Global Silver/ Metals Miners ETF. With owning 2 miners ETFs, I decided to part with this senior miners one and keep the junior miners (SILJ). The price was up where I could book at very tiny profit and move out, so I did. Silver is still a good commodity, but I wonder if it is as good as gold (pun intended).
Buy -1
Store Capital Co (STOR) is a real estate triple net with mostly single tenant operations with longer leases. It has over 2500 profit centers in the US and has beat earnings the last 2 quarters. With a current price of ~ $28 and a dividend of $1.54 it has a yield of 5.5%. It has a 5 year dividend growth rate of 5.9% and the last 2 years were 4.7% with 7 years of rising payments. The suggested FFO growth of 5-7% makes it a solid BBB credit rated company that I wanted to own.
Spinoff from T
AT&T spun off its Discovery assets and created Warner Bros Discovery (WBD). It definitely has seen its price fall, as many are selling off a non dividend payer. I received 0.24 shares of WBD for each share of T owned and have kept them, as I believe in its potential and even perhaps a dividend.
Add-Ons
I added on to 2 current positions:
- (NYCB) / New York Community Bancorp. Too cheap to ignore under $10. It just announced the same dividend of 17c per quarter = 68c. Current price of $9.30 = 7.3% yield.
- (DLNG.PA) the preferred shares- Dynagas LNG. I had sold it and decided to add it back. It has a $2.25 fixed payment and at $24.50 = 9.2% yield. This was a great idea at WoF and I also issued a trading alert for it again in MTF.
Summary and Conclusion
The 50% income goal from defensive sectors and stocks continues to be met. Surprisingly those defensive investments comprise 43 stocks or ~ 50% of the portfolio. The remainder or 44 stocks consist of the non-defensive sectors including tech, of which I never have owned many. Currently with MA and Visa, my 4 stock tech sector has Broadcom/ AVGO being the largest by value holding, provides great income and I consider it as somewhat defensive itself, but don’t count it as such just yet. I look for quality low debt / high credit rated companies and review those in RIG often and now provide a nice “WTB” want to buy price list for all of the 87 stocks along with a Non-RIG list for subscribers to follow.
The search is always on going and the goals and specifics I want include the following:
- quality rated dividend paying stock
- undervalued, but can be at fair value for extra quality ratings.
- low debt / great high credit rating.
- pay out and cash flows to easily cover the dividend along with a rising dividend growth rate
- defensive in nature with products or service I understand and can easily follow.
The market is showing weakness and I hope to preserve cash, currently at ~ 4%, as we head into the summer and mid term elections. With an established quality dividend portfolio like RIG, I am confident it will ride the valuation roller coaster while the dividends / income continue to flow in as expected and at the goal desired.
Happy Investing to all.
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This article was written by
Rosenose is a retired healthcare professional and she has been managing her own investments for nearly 2 decades. She writes about stocks with growing dividends targeting a yield of 4+%.
She is a contributing author to the investing group Learn more .Analyst’s Disclosure: I/we have a beneficial long position in the shares of STOR either through stock ownership, options, or other derivatives. 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.
Own all the 87 stocks in Rose's Income Garden "RIG"
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
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Comments (66)
Here's another one from Carlyle (new name) CGBD :
seekingalpha.com/...
Hold indeed. At least let the dust settle before taking action.
Either way, keep up the great work and thanks for sharing!
Great article, as always.
Any change in your opinion of MPW?
The most recent negative GDP report should not be surprising and its not going up anytime soon. Interest rates rising, groceries up, rents up, real wages not so much... and Congress wants to tax more... EEK! Midterms will hopefully bring some change to those spenders, but they all seem to like it. The market will struggle to rise from here, so trim growth, stick with the reliable dividend and earnings growers. Even HY should benefit with rising rates, not much else will do that... Good Luck and happy investing. Rose :))
I am up 1.9% YTD but I can never beat your numbers and
I do enjoy watching you run the RIG. There are times I feel like one of the old men in the balcony of the Muppet show... LOL...
But I must admit I can not comprehend all the movements in your style.....but as you " It's Just You" :)
