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|
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.