Year 2009 – First Quarter Update

My dividend portfolio consists of stocks, exchange traded funds, and closed-end funds. Since all of them are dividend focused and provide cash flow, I look at this together (and not standalone).

In general, companies are showing reduced earning, paring down growth plans and expenditure, and slashing and suspending dividends. Not only that many companies are not able to look forward and predict their own earning expectations. To me, not able to put an expectation is a sign that management is either not able to plan (clueless?) or not sharing the true state of their business. This recession wind is clearly separating chaff from wheat. Against all the sky is falling scenarios, I am continuing to invest in some really good companies at bargain prices.

Year 2009 Quartely Update

Year 2009 Quartely Update

The status or update is as follows:

  1. Dividend cash flow was $1380 per year.
  2. Yield on my original investments (YOC) is 5.07%.
  3. Year-to-Date the portfolio lost 1.6% of the value (relative to loss of -4.90% in SPY); and
  4. At present, I hold 22 stocks.

Following is the summary of changes made

  • Initiated starter positions (i.e. new purchases) in UL, PG, PEP, PAYX, TEG
  • Reduced number of shares in GE. After dividend cut, moved to value/opportunity portfolio.
  • Added to existing position in BAC and WFC, move them to value/opportunity portfolio.
  • Exited from PFE and WL due to dividend cuts
  • Added to existing position in DUK and O. Continuing to monitor in dividend portfolio.

In addition to these tangible targets, I had few other intangible areas of portfolio management that I needed to work on. These are:

  1. Manage asset allocation and diversification from risk-to-dividend viewpoint: I have started using risk management using 5% max limit and invest only in medium-to-low risk dividend.
  2. Invest in international dividend paying companies: I have started investing in stocks for international dividends. Buying stock of Unilever is an example.

In the next post, I will present the quarterly results of my risk analysis for my dividend portfolio.


5 Responses to “Year 2009 – First Quarter Update”

  1. Nice blog! We are the on the same niche and I also provide updates in my portfolio to know my developments.

    The difference is: I am from the country Philippines.

    Hope you can also visit my blog too. 🙂

  2. Tom Murphy says:

    I have also been looking at international stocks, took a large position in Royal Bank of Canada (RY) over the winter , the Canadian banks seem to have avoided most of the pitfalls that hurt the US banks. I also took a small position in Nestle, if it gets back to the 30 level I will add aggressively. Interested in your thoughts on Nestle vs. Unilever. As always, enjoy and appreciate the blog.

    • Dividend Tree says:

      Hello Tom,

      RY is an interesting choice. I have it on my watch list (on hold) because my financial sector is fully allocated. I do like Nestle, and hence I am reading about Nestle. I have investments in Unilever. Suffice to say I like both. Shortly, I will present my Nestle analysis.

      Glad to know you enjoy your visits here.

      Best Wishes,

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