Sunday, July 16, 2017

2017 Portfolio Update

Every year about this time, I get very worried about my picks.  There seems to always be a ringer and this year it is Kohl's, symbol KSS.  For the first few months SDY and VIG, the ETF's I use as benchmarks, always seem to outperform my developing portfolio.   I am somewhat encouraged that we are keeping pace. 

I have invested about $42,000 of the $100,000 I have to invest in 2017.  The $100,000 came from liquidating the 2016 portfolio and the cash created from stocks in the other portfolios that were bought out for cash.  Note that I do not reinvest dividends.   My strategy concentrates on creating income that I can live on and that grows over time.  Like I always say read this blog to retire on income that grows.

In 2016, I changed my reporting and used selected stocks on which I sold covered calls.  This was a successful venture but too difficult to track and report on in this blog.  When the last call expired, I placed a sell on close order for all positions.  Total return for the 2016 portfolio was 13.92%; not bad.

That portfolio is in this first table.

The results of the 2017 portfolio to date are  presented in the table below.

2017 M* Dividend Machine Holdings

Each of the previous portfolios had similar ups and downs as the 2017 portfolio and they are doing pretty well against benchmarks.  2014 holdings have performed the worst against my benchmarks but even the 2014 portfolio is in positive territory.  A summary of all portfolios is presented below.

M* Portfolio Comparisons

I still believe in a disciplined strategy.  Overall, selecting dividend stocks where EPS (earnings per share) are greater than dividends paid out; yield beats the 10 year U.S. Treasury, dividends have consistently increased more than inflation, and D/E ratio is 1 or less or within industry standard, has proved to be a good technique.  I think I will stick with it.

M* MoneyMadam