Saturday, June 29, 2013

Business Plan and Q1 2013 results

Around Christmas of 2012, I decided I needed a business plan.  This would include my goals, as well as my stock selection requirements, and some rules to live by.  Simply put, my plan's goal was to achieve 10% total return and 10% income increases year over year, and end up with greater than $2.5M in dividend paying businesses in 30 years.  I started 2013 with $68,437 and would contribute $400/mo, investing in a minimum of $1k increments.

My portfolio is broken into 3 pieces - dividend growth stocks, growth stocks, and speculative stocks.  The allocation split at this point in my life is 75% dividend growth names and 25% growth/speculative (spec names are limited to 5%).  The dividend companies I buy must meet certain criteria, including an S&P rating of BBB or higher, minimum yields (eg. 4% for telecoms/utilities), consecutive positive annual returns and a chowder ratio of 10% annually.  The growth portion requires P/E's less than 25, min expected growth rates, and potential to be expand growth globally.  Speculative names simply require a catalyst that could double or triple the stock in 2-3 years.  There are selling rules as well which include dividend cuts or dividend growth declines below a certain % for dividend stocks.  For growth stocks, I sell if a stock is overbought/bubbled, or my thesis doesn't play out and I cut losses.

Now lets begin with my portfolio at the start of the year.  I owned the following dividend names coming into 2013: T, BUD, CSX, CVX, MAT, MCD, MFA, PFE, PM, VOD and WMT.  I also held the following growth stocks: AAPL and ATRS, as well as spec names: ACTC, AMRN and PSTI.  

Trades for Q1 2013:
1/1   - sold 8 PSTI covered calls           - 80 premium (these expired in March)
1/23 - bought 5 AAPL shs @ 453        - cost 2275 (added to dividend growth portfolio)
2/1   - bought 1100 ATRS shs @ 3.75 - cost 4125 (added to existing holding, target 20% of portfolio)
2/12 - sold 72.5 NLY shs @ 14.95       - amt 1074 (sold to 0, dividend cut below min requirement)
2/15 - bought 400 ATRS shs @ 3.55   - cost 1430 (added to existing holding, target 20% of portfolio)
2/19 - sold 30 T shs @ 35.45                - amt 1053 (trimmed position to 4% target weight)
2/20 - bought 20 OXY shs @ 85.40     - cost 1718 (added new position to div growth portfolio)

Performance for Q1 2013:

 Total Monthly YTD Port vs. Port vs.
Month End  Value Units Port. NAV  Perf  Port. Perf SPX Mnth SPX YTD
Jan-13 70,630.65 530.50 133.14 2.61% 2.61% -2.44% -2.44%
Feb-13 72,742.97 551.91 131.80 -1.00% 1.58% -2.12% -4.64%
Mar-13 75,411.23 554.94 135.89 3.10% 4.73% -0.50% -5.32%

Port Divs Income % Inc
Yield Paid Change Inc/Dec.
0.56%  422.86  35.15 9.07%

401K     401K Total       Total
Balance     Perf. Retirement       Perf.
101,087 5.68%  171,717 4.65%
101,538 0.45%  174,281 1.49%
103,613 2.04%  179,025 2.72%

Notes:  my performance in my dividend growth names was sound, but the growth/spec piece was dragged down by AAPL being down 17% in January, as well as AMRN being dragged down because of the lack of a buyout or NCE status.

That's it for Q1.  I'll list the Q2 trades and performance in the next few days after my dividend income numbers for June are available.

No comments:

Post a Comment