Saturday, October 28, 2017

2017 M* Model Portfolio Update

In 2017 my goal is to invest about $100,000 in Dividend Machine stocks.  My criteria for selection are presented in the table below.





It has been an interesting journey this year.  I keep thinking the market is overpriced and so I wait for opportunities to buy but they have been few.  You have to stick to your strategy and I am trying to get that $100,000 invested.

It is important to notice that I have added to HCI .  This is only the second time I have doubled up on a Dividend Machine.  The first time was in 2015 when I used Caterpillar (CAT) twice.  CAT recently recovered in a big way to reward the 2015 portfolio.  While the business models are totally different, I am hoping HCI will deliver similar returns in the future as CAT has.


My 2017 Dividend Machine portfolio (to date) is presented below.





I measure the income and return on each stock as well as how the portfolio would have done if the money had been invested in two  ETF's designed for income investors, SDY and VIG.

VIG is winning this week with SDY a close second and M* is the laggard.  This has happened before and I end up prevailing with the exception of 2014. 

Until the portfolio is 1 year old, I cannot report on total return.  Total return includes dividends and until we hold each stock or shares of the respective ETF's through one year, it is very difficult to measure total return.  Therefore, you will see only capital gain in 2017. 

M* MoneyMadam

Disclosure:  I am long every stock in this portfolio.
Further disclosure:  I have calls on KSS, CVS, DRI