Rose's Income Garden Portfolio Value Up 3.07% YTD: Dividend Yield 5.17%

Aug. 03, 2022 4:10 PM ETKEN, PFLT, PNNT, GPC, KO, SLRC, KMB, FSK, MRK, DNP, MO, MPW, MDLZ, WPC, PM, CGBD, MTBCP, BCE, STOR, XEL, FMC, CSCO, RC, ABBV, BMY, JNJ, ENB, DUK, GD, LMT, ARDC50 Comments

Summary

  • July income beats July 2021 by 48% and April Q2 by 45.1% because of the Kenon special dividend.
  • Portfolio value YTD is up 3.07% and is outperforming SPY by 15.71%, which is down 12.64%.
  • Dividend yield is 5.17% with 25 companies paying 2 specials and included 1 raise; all are listed by date received, yearly payment, price, yield and comments.
  • Transactions were 1 add-on to keep portfolio size at 89 stocks and cash at 4.37%.
  • The Top 21 stocks are revealed by credit rating, sector and value position.
  • Looking for a portfolio of ideas like this one? Members of Macro Trading Factory get exclusive access to our model portfolio. Learn More »

Success business chart with green arrow up and USA dollars background. Profit and money. Financial and business graph. Stock market growth 3d illustration.

JuSun

RIG = Rose's Income Garden

Rose's Income Garden ("RIG") is a defensive income-quality value-built portfolio with 89 stocks residing in all 11 sectors. It is a part of the service the Macro Trading Factory, a macro-driven service, led by The Macro Teller and RoseNose. The service offers two portfolios: "Funds Macro Portfolio," "FMP" and "Rose's Income Garden;" both aim to outperform the SPY on a risk-adjusted basis, in a relaxed manner.

RIG contains mostly investment-grade 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/ stocks and to keep a minimum dividend income yield of 4%.

JULY

July was a very positive month for the market and the major indexes as follows:

NASDAQ up ~12%

S&P up 9.14%

DOW up ~6.6%

with RIG following up 2.78%....

Year To Date

YTD, however, the indexes are still down as follows:

NASDAQ -20%

DOW -9.6%

S&P -12.64%

with RIG, however, up and I do love mentioning that RIG is up 3.07%.

…and the FMP from The Macro Teller is up 2.2%.

RIG Portfolio Income

July dividends were a Jubilee, with 1 company, Kenon Holdings Ltd. (KEN), providing a huge unexpected jackpot-type payment. This I know is a 1x event and will not continue. Without KEN, the income would have been almost exactly the same.

25 companies paid, of which 5 pay monthly, and there were 2 extra special payments. The raises or special payments have the stock ticker in bold along with discussion in the comments.

The chart below reveals the payments by date received with abbreviations used as follows:

Div/ sh = Dividend per share paid.

Yearly $ Div = Current yearly estimated known dividend payment

Div % Yield = dividend yield calculated using the current shown price and yearly suggested dividend

Current $ Price is for the end of the day market price Aug 2nd.

2022 div/sh $ Yearly Div % Other Dividend Current
Ticker date Dividend Yield Comments Price
(PFLT) 1 0.095 1.14 8.76% Monthly Pay 13.02
(PNNT) 1 0.145 0.58 8.80% 6.59
(GPC) 1 0.895 3.58 2.37% 150.76
(KO) 1 0.44 1.76 2.77% 63.64
(SLRC) 5 0.1367 1.64 11.48% Monthly Pay 14.29
(KMB) 5 1.16 4.64 3.49% 133
(FSK) 5 0.68 2.4 11.08% 5c Raise from .63 21.66
(KEN) 5 10.25 13.75 31.92% Raise /Special 43.08
(MRK) 8 0.69 2.76 3.15% 87.61
(DNP) 11 0.065 0.78 6.87% Monthly Pay 11.35
(MO) 11 0.9 3.6 8.21% Raise due next 43.83
(MPW) 14 0.29 1.16 6.86% 16.9
(MDLZ) 14 0.35 1.43 2.21% 64.76
(WPC) 15 1.059 4.24 4.90% Raise from 1.057 86.48
(SEAL-b) 15 0.5313 2.125 8.32% fixed preferred 25.55
(PM) 15 1.25 5 5.07% Raise due next 98.65
(CGBD) 15 0.32 1.51 11.12% regular payment 13.58
15 0.08 8c special pay
(MTBCP) 15 0.2292 2.75 10.35% Monthly Pay 26.58
(BCE) 15 0.7133 2.87 5.77% Canada exch rate 49.78
(STOR) 15 0.385 1.54 5.37% 28.69
(XEL) 20 0.4875 1.95 2.65% 73.45
(FMC) 21 0.53 2.12 1.97% 107.5
(CSCO) 27 0.38 1.52 3.38% 44.92
(ARDC) 29 0.0975 1.17 8.92% Monthly Pay 13.11
(RC) 29 0.42 1.68 12.45% 13.49

Raises and Specials

- FSK

FS KKR Capital, a BDC, has a basic 60c normal payment. Lately it has been issuing a special payment along with the regular one. Prior specials were smaller, and this last one of 8c was amazing and not expected to continue at this level next quarter.

- KEN

Kenon Holdings is just that, a holding company from Israel that is based in Singapore under the name Ansonia holdings. It has no K1 tax form, does not remove any foreign tax and pays irregularly. Its largest holding is the utility, Israel OPC and also has a smaller position in ZIM shipping. Pay day was July 5th for that $10.25 huge distribution and the price has now more than compensated for the payment. I expect it will rally back up again. It, along with other shipping companies, has been punished and offer reasonable current valuations.

-WPC

WP Carey is a triple net real estate investment trust headquartered in NY, but operates worldwide. It raises the dividend sparsely every quarter quite reliably, but in annoying partial cent increments. It currently has a 4.75% yield.

-CGBD

Carlyle Secured Lending is a BDC and it also has been providing normal and special payments.

Its basic payment has been 32c or $1.28 per year.

-BCE

BCE is a Canadian company and the dividend may rise, but after the foreign exchange with the US dollar makes it somewhat difficult to evaluate. I have no concerns, as it offers a nice yield and regular dividend.

Monthly Payers

I have 5 for some time and they are discussed in my June article here.

July Transaction

Yes, really; only 1 stock was added to and it was a preferred share.

NRZ-D or New Residential Investment Company preferred shares pay $1.75 per year and pay 4x per year 43.75c in February, May, August and November. They just had a name change to Rithm Capital and the new ticker is RITM-D, (RITM.PD). The price is ~ 22.50 and therefore a yield of 7.8%.

The Top 10 Holdings in RIG

The list below shows the top 10 holdings by % portfolio value with the largest position on down. Quality is important, thus I also show the S&P credit rating.

Ticker

Name

Credit Rating

Sector

Company

Company

S&P

Healthcare

(ABBV)

AbbVie

BBB+

Healthcare

(MRK)

Merck

A+

Healthcare

(BMY)

Bristol Myers

A+

Healthcare

(JNJ)

Johnson & Johnson

AAA

Energy

(ENB)

Enbridge- CDN

BBB+

Utility

(DUK)

Duke

BBB+

Industrial

(GD)

General Dynamics

A-

Cons Staple

(PM)

Philip Morris

A

Utility

(XEL)

Xcel Energy

A-

Industrial

(LMT)

Lockheed Martin

A-

The next chart reveals the sector representation of the Top 10.

These represent 29.35% of "PV" portfolio value with the 4 healthcare providing 15% of it.

#

Sector

stocks

Healthcare

4

Energy

1

Utility

2

Industrial

2

Consumer Staple

1

The 2 industrial stocks are defensive by nature and therefore 9 out of 10 stocks are defensive income providers. The portfolio goal is to achieve 50% income from defense with all of these showing quality as well.

The Next 11 RIG Positions

These represent 18.3% PV. Added to the "top 10" they offer 47.65% PV and show RIG sector diversification.

Abbreviations used:

RE = real estate

Tele-Comm = communication / telecom

RE-HC = real estate healthcare, a defensive sector

Fin-BDC = Financial-business development company

Ticker

Name

Credit Rating

Sector

Company

Company

S&P

Utility

SO

Southern Company

A-

Healthcare

AMGN

Amgen

A-

Tele-Comm

BCE

BCE

BBB+

RE-HC

OHI

Omega health

BBB-

RE

WPC

WP Carey

BBB

Cons Staple

KMB

Kimberly Clark

A

RE

SPG

Simon Prop Group

A-

Cons Staple

MO

Altria

BBB

Tech

AVGO

Broadcom

BBB-

Material

LYB

LyondellBasell

BBB-

Fin-BDC

ARCC

Ares

BBB-

10 sectors are now fully represented from these next top level 11 stocks along with adding a few more defensive stocks. All are S&P credit worthy quality investments. Note that ARCC is a financial sector BDC with one of the highest credit rating grades found for those.

#

Sector

stocks

Healthcare

1

Energy

0

Utility

1

Industrial

0

Cons Staple

2

Tele-Comm

1

RE-HC

1

RE

2

Tech

1

Material

1

Fin-BDC

1

Summary and Conclusion

The top 21 shown above contains 15 of the 43 defensive names held in RIG of the 89 stocks total. The 50% income goal from defensive sectors and stocks continues to be met.

I look for quality low debt/high credit rated companies and review those in RIG often and now provide a nice "WTB," or want to buy, price list for all of the 89 stocks along with a Non-RIG list for subscribers to follow.

The search is always ongoing for RIG candidates 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 services I understand and can easily follow.

The market is still too volatile and weak to consider adding new positions currently, but my list will always be waiting for the right time. Cash should be king and therefore my actions are very much in line with preserving it, currently at ~4.37% in RIG. 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 using the quality expectations and goal/s mentioned.

Happy Investing to all.

Macro Trading Factory is a macro-driven service, run by a team of experienced investment managers.

The service offers two portfolios: “Funds Macro Portfolio” & “Rose's Income Garden”; both aim to outperform the SPY on a risk-adjusted basis, in a relaxed manner.

Suitable for those who either have little time/knowledge/desire to manage a portfolio on their own, and/or wish to get exposed to the market in a simple, though more risk-oriented (less volatile), way.

Each of our portfolios, spanning across all sectors, offers you a hassle-free, easy to understand and execute, solution.

Macro Trading Factory for an Upward Trajectory!

This article was written by

RoseNose profile picture
13.84K Followers
Looking to outperform the SPY on a risk-adjusted basis, in a relaxed manner
Retired Pharmacist 2010. My name is Rose and I "Nose or Knows" growing dividends on quality dividend paying stocks will keep portfolio income strong with a primary goal of a minimum solid 4+% yield.  Currently it sits at 5.3%.  Solid total return just happens to follow when buying great quality companies with rising earnings and a margin of safety in price. The Rose Income Garden "RIG" portfolio is diversified in all sectors and currently holds 87 stocks/ investments. Note: Dividend yield changes with value, but is 5.3% on the updated date.

I am a Promoting and Contributing author for Macro Trading Factory run by The Macro Teller / The Fortune Teller.  The following list shows the # of stocks in each sector along with the % portfolio value and % income coming from the largest holding. All stocks listings and statistics are presented at The Macro Trading Factory service alphabetically with sector, credit ratings, current and forward dividend information, yield, x-dates, pay dates, charts and more. I also check chat daily for questions and present in real time my smaller trades in the chat.  All bigger portfolio changes, major sells and buys get a larger Trading Alert and article.  Smaller buys or changes to an existing position will get an alert only.

Goals:

- Quality, low debt companies with great credit ratings and selling at a fair or better price and with a safe and rising dividend.

- To keep defensive stocks/sectors at 50% Portfolio Income.

- Also needed is continued patience watching and waiting for it to happen. Doing nothing when others panic makes for success! 

Update: Sept 4th, 2022.

How to join Macro Trading Factory: explained here: https://seekingalpha.com/author/the-macro-teller/research.

Sectors and holdings are as suggested by Bloomberg.  Some positions are large and some small ; The service has it all.

The largest holding is listed for each sector :

Consumer Staples (13 stocks): PM

Healthcare (9) : ABBV

Communications- tele (5)BCE - Canada

Utility (8): XEL 

Consumer Discretionary (2): HD

Energy (6): DUK

Tech/ "fin-tech" : (5): AVGO

Industrial- Defensive (2): LMT / GD: almost the same for value

Industrial (8): SBLK

Material (6) : LYB

Financial: (13):  (9) BDCs/ ARCC, (1) bank, (1) ETF Fund , (1) BDC preferred and (1) mREIT

-Fixed Bond (1):  STWD


REAL ESTATE (Healthcare REITs): (3) : OHI

REAL ESTATE Misc (6): WPC

Cash is ~5.5%

I am a Promoting and Contributing author for Macro Trading Factory run by The Macro Trader.  I also belong to the service Wheel of Fortune run by his alter ego The Fortune Teller.  
Happy Investing to ALL !!!  Rose :))

Disclosure: I/we have a beneficial long position in the shares of ABBV 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.

Additional disclosure: Rose's Income Garden holds all 89 stocks with ABBV being the largest position by Portfolio value.

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