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Portfolio Update

January was a memorable month for the market. Here's an end-of-the-month portfolio update and a review of this week's transactions in my Retirement Income Portfolio.

The major event was an initial purchase of Nucor (NYSE:NUE), which you can read about in this January 29 article: Nucor Has Raised Its Dividend For 43 Consecutive Years. I made the decision to buy NUE on Wednesday, January 27 and on that day I placed a limit order for $35.10. The order filled on Thursday, January 28. I trimmed several positions on January 27 to bring them down to my target allocations. This provided cash for the Nucor purchase:

  • Johnson & Johnson (NYSE:JNJ) @ $102.02
  • Procter & Gamble (NYSE:PG) @ $79.54
  • 3M Company (NYSE:MMM) @ $147.18
  • Genuine Parts (NYSE:GPC) @ $83.03
  • Wal-Mart (NYSE:WMT) @ $64.95
  • AT&T (NYSE:T) @ $35.54
  • Realty Income (NYSE:O) @ $55.24.

Here's the portfolio at the close of trading on Friday, January 29. Yield is the dividend yield as of January 29. Buy is my target price to buy more. Port is the percentage of the market value of the portfolio. Inc is the percentage of the portfolio's income provided by each holding. CCC is the number of consecutive years of dividend increases, as maintained by David Fish. Credit is the company's Standard & Poor's credit rating. (GPC is not rated by S&P, so the Value Line rating is given.)

Company Ticker Price Dividend Yield Buy Port Inc CCC Credit
Johnson & Johnson JNJ 104.44 3.00 2.9 93.75 5.3 3.7 53 AAA
Procter & Gamble PG 81.69 2.65 3.2 72.65 5.2 4.1 59 AA-
3M MMM 151.00 4.10 2.7 134.43 5.1 3.4 57 AA-
Merck MRK 50.67 1.84 3.6 49.07 5.1 4.5 5 AA
Cummins CMI 89.89 3.90 4.3 78.00 5.1 5.4 10 A+
Microsoft MSFT 55.09 1.44 2.6 48.00 4.5 2.8 14 AAA
Wal-Mart WMT 66.36 1.96 3.0 57.01 4.3 3.1 42

AA

Genuine Parts GPC 86.17 2.48 2.9 74.03 4.5 3.1 59 A+
International Business M IBM 124.79 5.20 4.2 115.56 4.5 4.5 20 AA-
CenterPoint Energy CNP 17.87 .99 5.5 15.23 4.4 5.9 10 A-
PepsiCo PEP 99.30 2.81 2.8 86.46 3.5 2.4 43 A
WEC Energy WEC 55.23 1.98 3.6 49.50 3.6 3.1 10 A-
Southern Company SO 48.92 2.17 4.4 41.33 3.7 3.9 15 A-
Emerson EMR 45.98 1.90 4.1 41.17 3.9 3.9 58 A
HCP Inc HCP 35.94 2.26 6.3 33.48 3.8 5.8 30 BBB+
Parker Hannifin PH 97.16 2.52 2.6 84.00 2.1 1.3 59 A
Union Pacific UNP 72.00 2.20 3.1 62.86 2.8 2.1 9 A
AT&T T 36.06 1.92 5.3 32.54 2.8 3.6 31 BBB+
Enterprise Products P EPD 23.91 1.54 6.4 19.49 3.1 4.9 18 BBB+
Realty Income O 55.79 2.38 4.3 47.64 2.7 2.8 22 BBB+
Dover DOV 58.45 1.68 2.9 51.69 2.1 1.5 60 A
Nucor NUE 39.07 1.50 3.8 35.29 1.4 1.2 43 A-
Archer Daniels Mid ADM 35.35 1.12 3.2 29.87 2.1 1.6 40 A
Texas Instruments TXN 52.93 1.52 2.9 46.77 2.1 1.4 12 A+
National Retail Prop NNN 42.94 1.74 4.1 34.80 2.1 2.1 26 BBB+
WP Carey WPC 58.25 3.86 6.6 54.34 1.9 3.1 18 BBB
Main Street Capital MAIN 28.89 2.16 7.5 25.41 2.3 4.2 5 BBB
STAG Industrial STAG 16.93 1.39 8.2 15.88 1.7 3.5 6 BBB
Hannon Armstrong HASI 18.03 1.20 6.7 15.00 1.2 1.9   NR
Enviva Partners EVA 18.40 1.76 9.6 14.08 1.2 2.8   NR
Pattern Energy PEGI 19.72 1.49 7.6 15.68 1.3 2.4   NR
Cash           1.1 0    

With the addition of Nucor, the portfolio now has 31 holdings (one more than the target of 30). The current portfolio yield is 4.1%.

Current sector representation:

Sectors S&P Value Income
Energy (EPD EVA PEGI) 7.3 5.6 10.0
Materials 2.9 1.4 1.2
Industrials (MMM CMI EMR UNP DOV PH NUE) 10.3 21.0 17.5
Consumer (PG WMT PEP ADM) 23.0 19.6 14.4
Healthcare (JNJ MRK) 14.4 10.4 8.2
REITS (HCP O NNN WPC STAG HASI)   13.4 19.1
Financials (NYSE:MAIN) 16.2 2.3 4.2
Technology (MSFT IBM TXN) 2.4 11.0 8.8
Telecommunications 20.4 2.8 3.6
Utilities (CNP WEC SO) 3.1 11.6 12.9
Cash   1.1 0

These are not investment recommendations. Please do your own due diligence.

Disclosure: I am/we are long JNJ, PG, MMM, MRK, CMI, MSFT, WMT, GPC, IBM, CNP, PEP, WEC, SO, EMR, HCP, PH, UNP, T, EPD, O, DOV, NUE, ADM, TXN, NNN. WPC, MAIN, STAG, HASI, EVA, PEGI.