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The Goal For Many Is A $1 Million Dollar Portfolio, These Are The Highest Weighted Stocks ("THE CROWN") Of My Portfolio That Sum Up To $1 Million Dollars.

Summary

It takes 31 of my 405 stocks to sum up to value of $1,015,300.

The yield of those 31 stocks is 2.11%.

Harvested 2018 and 2019 profit from those 31 stocks is $181,054 or 17.83% for last 21 months.

I am not saying that someone should duplicate this portfolio.  I am more inclined to take profit out of these stocks than to add to them although I recently made very small adds to AVGO, V, MA, MSFT, ABBV, FB, AAPL, ADBE, GPN and ABT.  Often I have these stocks in more than one of my three accounts.

$1 Million Dollar CROWN Portfolio Composition

Symbol % Portfolio Yield % Description 2018/2019 Harvested Profit

% Basis Harvested

Sector Industry Group Industry Sub-Industry
MO 1.83% 7.5900 ALTRIA GROUP INC $ 29,407 126.4% Consumer Staples Food Beverage & Tobacco Tobacco Tobacco
BIP 1.39% 4.1500 BROOKFIELD INFRASTRUCTURE  X X Utilities Utilities Multi-Utilities Multi-Utilities
AVGO 1.12% 3.6600 BROADCOM INC $ 4,448 19.3% Information Technology Semiconductors & Semiconductor Equipment Semiconductors & Semiconductor Equipment Semiconductors
V 1.12% 0.5600 VISA INC $ 6,277 31.8% Information Technology Software & Services IT Services Data Processing & Outsourced Services
MA 1.10% 0.4800 MASTERCARD INCORPORATED $ 6,077 29.3% Information Technology Software & Services IT Services Data Processing & Outsourced Services
GOOGL 1.10% 0.0000 ALPHABET INC $ 4,772 15.3% Communication Services Media & Entertainment Interactive Media & Services Interactive Media & Services
AMZN 1.10% 0.0000 AMAZON COM $ 9,973 42.4% Consumer Discretionary Retailing Internet & Direct Marketing Retail Internet & Direct Marketing Retail
HD 0.91% 2.3000 HOME DEPOT INC $ 4,127 53.1% Consumer Discretionary Retailing Specialty Retail Home Improvement Retail
OKE 0.89% 5.1800 ONEOK INC $ 5,731 23.0% Energy Energy Oil, Gas & Consumable Fuels Oil & Gas Storage & Transportation
MSFT 0.89% 1.4600 MICROSOFT CORPORATION X X Information Technology Software & Services Software Systems Software
ABBV 0.88% 5.7000 ABBVIE INC $ 8,256 39.1% Health Care Pharmaceuticals, Biotechnology & Life Sciences Biotechnology Biotechnology
PAYC 0.85% 0.0000 PAYCOM SOFTWARE  $ 14,060 114.6% Information Technology Software & Services Software Application Software
FB 0.85% 0.0000 FACEBOOK INC $ 11,442 45.5% Communication Services Media & Entertainment Interactive Media & Services Interactive Media & Services
BABA 0.83% 0.0000 ALIBABA GROUP  $ 6,901 57.5% Consumer Discretionary Retailing Internet & Direct Marketing Retail Internet & Direct Marketing Retail
JNJ 0.81% 2.7900 JOHNSON AND JOHNSON $ 14,408 81.5% Health Care Pharmaceuticals, Biotechnology & Life Sciences Pharmaceuticals Pharmaceuticals
AAPL 0.81% 1.3100 APPLE INC $ 10,346 70.7% Information Technology Technology Hardware & Equipment Technology Hardware, Storage & Peripherals Technology Hardware, Storage & Peripherals
ADBE 0.79% 0.0000 ADOBE INC $ 5,322 27.1% Information Technology Software & Services Software Application Software
MMP 0.76% 6.2300 MAGELLAN MIDSTREAM  X X Energy Energy Oil, Gas & Consumable Fuels Oil & Gas Storage & Transportation
PYPL 0.75% 0.0000 PAYPAL HOLDINGS  $ 4,727 26.4% Information Technology Software & Services IT Services Data Processing & Outsourced Services
GPN 0.73% 0.0200 GLOBAL PAYMENTS INC $ 1,679 8.5% Information Technology Software & Services IT Services Data Processing & Outsourced Services
MCD 0.73% 2.4200 MCDONALDS CORP $ 5,048 63.5% Consumer Discretionary Consumer Services Hotels, Restaurants & Leisure Restaurants
SQ 0.70% 0.0000 SQUARE INC $ 15,344 86.6% Information Technology Software & Services IT Services Data Processing & Outsourced Services
ABT 0.68% 1.5500 ABBOTT  X X Health Care Health Care Equipment & Services Health Care Equipment & Supplies Health Care Equipment
TEAM 0.68% 0.0000 ATLASSIAN CORPORATION  $ 8,566 76.9% Information Technology Software & Services Software Application Software
ROST 0.67% 0.9000 ROSS STORES INC X X Consumer Discretionary Retailing Specialty Retail Apparel Retail
LLY 0.63% 2.3800 ELI LILLY AND CO X X Health Care Pharmaceuticals, Biotechnology & Life Sciences Pharmaceuticals Pharmaceuticals
JPM 0.59% 2.9900 JP MORGAN  $ 483 3.0% Financials Banks Banks Diversified Banks
AEP 0.57% 2.8800 AMERICAN ELECTRIC POWER  X X Utilities Utilities Electric Utilities Electric Utilities
TJX 0.56% 1.5200 TJX COMPANIES INC X X Consumer Discretionary Retailing Specialty Retail Apparel Retail
NOW 0.56% 0.0000 SERVICE NOW INC $ 3,660 26.4% Information Technology Software & Services Software Systems Software
TSCO 0.55% 1.5100 TRACTOR SUPPLY COMPANY X X Consumer Discretionary Retailing Specialty Retail Specialty Stores

I have owned MO for a long time and have already sold more than half that position and will continue to slowly do so because too much risk on it.  

Some people think that I have too many stocks.  How many stocks in your $1M portfolio?

DIVIDEND INCOME

This $1,015,300 portfolio, yielding 2.11%, produces about $21,423 of dividend income per year.  The yield is fine for me because I want some growth to the portfolio, after all it is growth that produced the portfolio value.

I understand that others may want more dividend income and if I want it I can produce it in one day.  I will show that in an example.

The example I am going to use is a SA blogger who started working for Coke say back in the 1970's and advanced I think to a VP level of an Coke operation and invested in KO for all these years in his 401K or IRA.  His KO position is about $1.1M in value. For this comparative example I will use a value of $1,015,300.  With current KO yield of 2.92% it produces after dividend compounding since the 1970's dividend income annually of about $29,647.  This is a difference of  $29,647 -  $21,423  = $8,224.  I can duplicate his $29,647 of income in just on day by making 32 trades.  Assuming an IRA investment first sell all 31 stocks and then buy all KO.  That has the exact same outcome in one day as investing in KO for 40 years.  The ending argument is that he thinks that he paid less for the KO because his cost basis is about $2 per share.  What is lost here is the time value of money and that he has no idea what I paid for my investments.

My buying all KO just to match a 2.92% yield would be very inefficient.  I could easily get far more yield than 2.92%.  About 31% of this portfolio's positions do not even have a dividend.

Additionally it would be very easy to just sell $8,224 of stock each year to make up the income difference.  For the last two years I have shown in my blogs where the entire portfolio has averaged annually $500,000 of trimmed income or $1M.  That is like an income banking of $1,000,000/$8,224 = 121 or 121 years of already banked income.  This is why I also show what was harvested profit during the last 21 months in the table.  A quick look at the table shows where $8,224 could have come from.

RETIREMENT INCOME

Selling out this mini-portfolio right now would be good for $50,000 of purchasing power income per year for the next 20 years age 66 to 86.  Adding pensions and Social Security to that $50,000 would be very good and safe (rock solid) retirement income. 

ADDING TO THIS PORTFOLIO

Most of these stocks are over valued. MO, AVGO, ABBV, FB, LLY, AAPL, JPM, MMP, PYPL, NOW and BABA are fair value. I might add to my AAPL (small add, like 2 shares) and BABA.  Tempting to add to  AVGO, ABBV, and FB.  This decision is based on my cost basis and stock valuation. I like to avoid cost basis over $15,000 and these positions have already exceeded that amount:

MO
BIP
AVGO
V
MA
GOOGL
AMZN
OKE
MSFT
ABBV
FB
JNJ
ADBE
MMP
PYPL
GPN
SQ
JPM

THE $1M CROWN

Since I am going to break down the portfolio into a couple of $1M chunks I will call these 31 stocks "The CROWN".  As positions increase in size or reduce in size some positions will be removed from "The CROWN".  The next portfolio that I present will be "The DOUBLE CROWN".

* More money is more better than less money.

* More dividends or income is more better than fewer dividends or income.

* More dividends or income, more often, is more better.

* More stocks for a passive portfolio is more better than fewer stocks.

SECTOR REPRESENTATION

There are 9 sectors represented in the 31 stocks.

31 STOCK PORTFOLIO SORTED ALPHABETICALLY BY SECTORS

Symbol Yield % Sector Industry Group Industry Sub-Industry
GOOGL 0.0000 Communication Services Media & Entertainment Interactive Media & Services Interactive Media & Services
FB 0.0000 Communication Services Media & Entertainment Interactive Media & Services Interactive Media & Services
MCD 2.4200 Consumer Discretionary Consumer Services Hotels, Restaurants & Leisure Restaurants
AMZN 0.0000 Consumer Discretionary Retailing Internet & Direct Marketing Retail Internet & Direct Marketing Retail
HD 2.3000 Consumer Discretionary Retailing Specialty Retail Home Improvement Retail
BABA 0.0000 Consumer Discretionary Retailing Internet & Direct Marketing Retail Internet & Direct Marketing Retail
ROST 0.9000 Consumer Discretionary Retailing Specialty Retail Apparel Retail
TJX 1.5200 Consumer Discretionary Retailing Specialty Retail Apparel Retail
TSCO 1.5100 Consumer Discretionary Retailing Specialty Retail Specialty Stores
MO 7.5900 Consumer Staples Food Beverage & Tobacco Tobacco Tobacco
OKE 5.1800 Energy Energy Oil, Gas & Consumable Fuels Oil & Gas Storage & Transportation
MMP 6.2300 Energy Energy Oil, Gas & Consumable Fuels Oil & Gas Storage & Transportation
JPM 2.9900 Financials Banks Banks Diversified Banks
ABBV 5.7000 Health Care Pharmaceuticals, Biotechnology & Life Sciences Biotechnology Biotechnology
JNJ 2.7900 Health Care Pharmaceuticals, Biotechnology & Life Sciences Pharmaceuticals Pharmaceuticals
ABT 1.5500 Health Care Health Care Equipment & Services Health Care Equipment & Supplies Health Care Equipment
LLY 2.3800 Health Care Pharmaceuticals, Biotechnology & Life Sciences Pharmaceuticals Pharmaceuticals
AVGO 3.6600 Information Technology Semiconductors & Semiconductor Equipment Semiconductors & Semiconductor Equipment Semiconductors
V 0.5600 Information Technology Software & Services IT Services Data Processing & Outsourced Services
MA 0.4800 Information Technology Software & Services IT Services Data Processing & Outsourced Services
PYPL 0.0000 Information Technology Software & Services IT Services Data Processing & Outsourced Services
GPN 0.0200 Information Technology Software & Services IT Services Data Processing & Outsourced Services
SQ 0.0000 Information Technology Software & Services IT Services Data Processing & Outsourced Services
MSFT 1.4600 Information Technology Software & Services Software Systems Software
PAYC 0.0000 Information Technology Software & Services Software Application Software
ADBE 0.0000 Information Technology Software & Services Software Application Software
TEAM 0.0000 Information Technology Software & Services Software Application Software
NOW 0.0000 Information Technology Software & Services Software Systems Software
AAPL 1.3100 Information Technology Technology Hardware & Equipment Technology Hardware, Storage & Peripherals Technology Hardware, Storage & Peripherals
BIP 4.1500 Utilities Utilities Multi-Utilities Multi-Utilities
AEP 2.8800 Utilities Utilities Electric Utilities Electric Utilities

Disclosure: I am/we are long all stocks listed.