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The 91 Stock Rose Portfolio January Dividend Yield Is Up To 4.8% With Value Down 0.5%

|About: Bristol-Myers Squibb Company (BMY), LYB, Includes: BZUN, DEO
Summary

The dividends are up 13.8% YoY and up 23% for the same month in Q4 2019.

Portfolio Value was down only 0.5% after hitting a high in Dec 2019 similar to the overall market.

January transactions are all revealed for price, sector and reasoning including 6 new stocks, 4 complete sales and numerous add ons.

Required Minimum Distribution (RMD) from the separate IRA was also taken and revealed.

THE ROSE PORTFOLIO

The very real 91 stock Rose portfolio is a dividend portfolio conglomerate of 3 brokerage ( 2 Roth and a taxable) accounts along with 6 separate company stocks. Dividends are accumulated and used for new purchases or options. In 2019, RMD started from hubby’s IRA and it is the only addition to the taxable account. My accounting skills accommodate this as best I can from overall portfolio value each year. Know it is very minor, but I do mention it and remove the addition from valuation when calculated. The 2020 RMD was partially taken already this month with the addition of shares which are revealed last under transactions.

JANUARY TRANSACTIONS

These are listed as done through out January, with sector, stock name, ticker, price, some dividend yields and a few comments. A “v” after a price means I had more than 2 purchases and the price listed is averaged for the various buys. A “T” after a price means it was done in a taxable account. Option means the transaction was the result of a call or a put and the premium received is included in the price shown.

BUYS

NEW means a brand new addition to the portfolio and there were 6, and in bold print, as well as the defensive sectors. The most recent blog here covered the purchase of LyondellBasell (LYB). Add On is just that, meaning it is already owned and I just added more.  "UV" means Under Valued

January Type or
Buys Sector Stock Name Ticker Price Note $ Comments
Add On RIC- BDC TCG BDC CGBD 13.46 12.2% yield hold great yield
NEW mREIT Two Harbors (TWO) 14.63/ 14.6 10.9% yield income play
NEW Industrial General Dynamics (GD) 179 v Quality defense replace BA
Add On Tech Broadcom AVGO 308 v 4% yield want lower
Add On Retail RE Simon Prop Grp (SPG) 144 v 5.8% yield Quality REIT
Add On Comm-tele Vodafone (VOD) 19.27 ~5% yield UK
Add On RE Correctn CorCivic CXW 16.24/ 15.5 >10% yield speculation
Add On RE Misc Brookfield Prop BPR 18.25 ~7% yield Mngmt Good
NEW Healthcare Walgreens BA (WBA) 55.81 Option undervalued
Add On Healthcare Walgreens BA WBA 51.62 ~3.5% yield undervalued
Add On Energy Alerian MLP Etf AMLP 8.85 8.8% yield done /no K1
Add On Energy RD Shell /B RDS/b 60.25 6.9% yield enough
NEW MATERIAL LyondellBasell NV LYB Ave 85.57 5+% yield safe divi
Add On RE Prisons GEO Group GEO 14.69 Option/12% yld unloved
Add On Energy Chevron CVX 114.4 Rounding up sh enough
Add On Cons-Staple Pepsico PEP 141.53 Rounding up sh want lower
NEW Energy MLP TGP LNG (TGP) 14.67 v 6.4% yield raised divi/ $1
Add On Energy Exxon Mobil XOM 66.19 Rounding up sh enough
Add On Energy Occidental OXY 42.44 7.8% yield didn’t need it, but U V
Add On Healthcare Bristol Myr (BMY) 64.22 want more U V
Add On Healthcare AbbVie (ABBV) 81.58 5.8% yield nice price
Add On Healthcare Merck (MRK) 86.42/ 85.53 want more want lower
NEW Cons Discr Baozun (BZUN) 29.85 Speculation China

Baozun is my latest addition, done just on the 31st as it fell under $30.  It has no dividend and is a price speculation alone and an idea from Wheel of Fortune, to be mentioned again later.

SELL

There were numerous trims and 4 complete Sales shown in the chart below and again, I include some notes and a bit of my reasoning. "OV" means I believe it to be "Over Valued".

Type or
Sell Sector Stock Name Ticker Price Note

All gone

mREIT Blkstone Mortg Trst BXMT 37.06 31.53 cost Yld < 7% O V
Trim Fixed HY NGL-preferred B NGL-b 26.12 23.5 cost/ K1 hold remainder
Trim Industrial Boeing BA 329.1 T $97 cost- LT G trouble
All gone Industrial Boeing BA 309.97 T too much trouble
Trim Industrial Cummins CMI 172.43 cyclical would buy lower again
Trim Industrial 3M MMM 177.69 cyclical add on lower if desire
Trim Fin-tech Mastercard MA 260 Option oops/ OV
Trim Comm-tele ATT T 40.14 Option nice price to trim
Trim Energy Infracap MLP Etf AMZA 4.69 exit slowly getting OUT
All gone Cons-Staple Diageo (DEO) 151.16 Option OV / low yield
Trim Taxble Energy Occidental OXY 44.68 T small gain had too much
All gone Healthcare Cardinal Health CAH 53.48 misc G/L difficult times

NGL Preferred B shares (NGL.PB)

Trim ONLY ! The preferred I have owned a decent amount of time and I would not be selling the NGL-b if not for the K1 tax form, which I decided to move away from. There really is no other reason other than that for its trim, and trim only, and my idea alone.

All Gone Sales

-Boeing (BA)

Boeing is just too overvalued for its current troubles and issues.  I would get it again if and when much of that is resolved.  It has new management and that will take time to correct issues.  You will note I bought General Dynamics (GD) as a replacement in the chart above, an idea from Wheel of Fortune/ WoF and mentioned in a previous blog.

-Cummins (CMI)

Also The Fortune Teller/ TFT in his service WoF suggested trimming/ selling CMI as being easily over valued now. I hesitated, but still had to agree and trimmed only.  That also looked to be true of 3M.  I really like both of these and will keep them as core holdings.  It is very difficult to trim a stock that has performed so well, but that is a reason I appreciate the skills of TFT, as he is not afraid to say SELL!

-Diageo (DEO)

Consumer staple Diageo is still OV and the dividend barely moves up. Time to say goodbye.  I did use options a number of times and got extra cash along the way to selling it.  It had been even higher in price, and I hope others took advantage of that and sold sooner than I did.  It might stay right where it is for some time and provide mediocre returns into the future, I can just do better.

-Cardinal Health (CAH)

How ironic I would sell this just when Chuck Carnevale has an excellent article about how it is undervalued.  I must agree and do believe it has potential.  I thought it was so a long time ago when I first purchased it.  It has been struggling and in now caught for what seems forever in the opioid controversy.  I decided to exit in the taxable when I could get some gains, but did sell in the Roths for a loss. I put the cash to work buying other healthcare I like more and that seem to have little or no exposure to the controversy.  I still own (JNJ) which also is involved, so that's good enough for me.

IRA RMD Transfer

My hubby is of the age to take a Required Minimum Distribution “RMD” from his IRA, he started in 2019 and did not make the deadline for the new rules to postpone it. Actually I like moving it slowly to the taxable account and picked shares as a partial transaction for the year. Many of the other holdings offer high yield and I can buy what I want from those dividends easily and like looking for value with the cash, as the gains are not taxed in the IRA.

IRA RMD Transfer Stock Name Ticker Price Note
Add On Technology Cisco CSCO 48.85 to taxable Quality 3%yld
Add On Industrial General Dynamics GD 185.7 to taxable Quality

The broker had already calculated how much I needed in value for the total 2020 distribution, making the internal transfer quite easy. However, I did find this particular transaction took almost 4 days to be completed, which certainly is not like fast trading in my other accounts. The price of the shares on transfer is also the new cost value and they notify when it is completed. I ended up with a higher cost than anticipated, but that could be considered advantageous as I will need less cash or alternatives for any future transactions. Also, if I ever decide to sell the gains will be less with a higher price.  I always like to see the bright side of things and learn something as well along the way.

On Monday this week I sent through a request to send some BMY shares internally to the taxable account as a further partial RMD, still not completed by the broker, I wait for the actual new cost. I have until the end of this year to determine the remainder of shares or cash I might need to finish the RMD, no hurry.

JANUARY DIVIDENDS

32 different companies paid with 1 paying a special distribution, so it is listed twice. The date paid is in the Jan 2020 column and some other notes are in the first column regarding dividends, previous if I believe it to be frozen. AMZA paid twice in January after missing the December payment in 2019. 8c was received in early Jan, similar to the last, but lowered the next payment to 6c for the end of the month. The next distribution is still “tba”/ to be announced and is usually the day or so before the payment date at the end of the month. I am slowly exiting it with any price rise each month, but it took a real dip thus far, I still have hopes, so I watch with that as my plan. I did add to AMLP this last time but now will just stay away from MLP funds and stick with single companies (without K1 tax forms).

The % January income and defensive names are shown in bold along with the sectors in the last columns. Received was 52.9% income from those defense sector companies. Preferred shares I include as defensive as the distributions stay fixed.  I mention again I got these ideas from The Fortune Teller and WoF service. His and his team knowledge of the debt and credit markets makes finding the best for me and many there very easy.

 

They also suggested many of the RICs and BDCs I own and when to transition to other better investments from time to time.  I probably would not have gotten many of them with out TFT and WoF suggestions.

2020 div/sh next January Defensive
Comment JAN STOCK Dividend % Income Sector Sector or Div Yld
no Dec div 9 /29 AMZA 0.08 /.06 tba 2.42% Energy MLP
monthly 31 ARDC 0.1075 0.1075 1.53% CEF-loans 8.3% yield
monthly 15 EPR 0.375 0.375 0.27% RE/triple net
monthly 2 PFLT 0.095 0.095 2.36% BDC 9.4% yield
monthly 15 STAG 0.118 0.12 0.25% RE/Industrl
7 PEP 0.955 March 1.62% Cons S
Was .79 2 ADP 0.91 0.65% Cons-Discr
Was .579 15 BCE 0.6019 3.07% Comm-tele 5.3% yld
15 CLNY 0.11 1.95% RE Misc 9.4% yld
15 CXW 0.44 raise next? 1.56%

RE/prisons

11% yield

2 GPC 0.7625 raise next? 1.63% Cons-Discr
3 FSK 0.19 6.08%

BDC 12.5% yld

3 KMB 1.03 1.07 5.13% Cons S
frozen 3 CVA 0.25 0.89%

Industrial

6.7% yield

Was .55 8 MRK 0.61 0.43% Healthcare
17 CGBD 0.18 1x special 3.20% BDC         
17 CGBD 0.37 6.58% BDC    11% yield
13 VTR 0.7925 raise due? 2.82% RE/H-care
frozen 15 BXMT 0.62 1.76% RIC/mReit
15 CAH 0.4811 2.05% Healthcare
15 OXY 0.79 6.46%

Energy 8% yield

22 CSCO 0.35 raise next? 1.87% Tech
frozen 15 NGLpB 0.5625 fixed 3.60% Preferred 8.9% yld
frozen 15 NYMTN 0.5 fixed 6.04% Preferred 7.7% yield
frozen 15 TGPpB 0.5313 fixed 4.53% Preferred 8.3% yld
frozen 15 NYMTM 0.4925 fixed 3.72% Preferred 7.7% yld
Was .6111 2 IRM 0.6185 4.84% RE/ Storage
frozen 15 WPG-h 0.47 fixed 3.67% Preferred 9.4% yld
10 MO 0.84 5.97% Cons S
10 PM 1.17 7.49% Cons S
18 XEL 0.405 raise next? 3.73% Utility
15 MDLZ 0.285 0.80% Cons S
frozen 10 DNP 0.065 same 1.06% Utility-cef
Total Div 100.00%
52.90% 47.10%

Dividend Yield

End of January was not nice for portfolio value and as mentioned it declined, but with that the dividend yield went up to 4.79%. What goes up goes down and I rarely worry about such insignificant moves by the market or the yield.

I see things are moving back up as I write this, so I am glad I already did add to some names including SPG, WBA and LYB. Hard to ignore all of those, at least for me. 

That’s All and Happy Investing :)) Rose

Disclosure: I am/we are long LYB.

Additional disclosure: and 91 total investments