December Portfolio Analysis - Bullish March Higher

Jan. 2, 2020:


First, here is the portfolio's VALUE BREAKDOWN, with:

1. Total Capital Invested (not including reinvested dividends);

2. Total Dividends Received; and

3. Capital Gain (from price appreciation)



I added $391.32 of raw capital to the portfolio on December as the market kept making new highs almost every day. Raw invested capital is $5,718.87


November and December were very bullish; it's tough to say when we may see a correction, but the market is getting overvalued. 


I will continue to buy fairly valued or undervalued stocks during January, while also building my cash position to at least 15-20% of my portfolio.

Either way, I'm satisfied with my performance. I have an annualized return over 28% by today (Jan. 2nd)! I don't expect this to be the norm however.

BUYS AND SELLS -

I sold my position in Ladder Capital (LADR) and New Residential (NRZ), as the dividend payout ratio for both companies have gotten higher recently and they may eventually become yield traps. I have to admit the yields really got to me when I first invested in them, and I had started positions in them at prices I eventually didn't feel too comfortable with.


So I sold both at technically breakeven, but the dividends throughout 2019 left me with a positive total return. One great thing to add is that I was able to sell both stocks after their ex-dividend dates, so I'll still receive their dividends later this January.

All my December buys were new additions to the portfolio:

McKesson (MCK)

LTC Properties (LTC)

J.M. Smuckers (SJM)

Etsy (ETSY)

Etsy, being a growth stock and relatively new IPO, does not pay a dividend.

BENCHMARKING against the S&P500 shows that I'm leading the index by 0.54%


Let's take a look at the SECTOR distribution and performance in my portfolio. 

Healthcare is now​ my largest sector holding, from my buys of McKesson, the largest wholesale drugs distributor in the U.S.

The average performance of stocks based on their DIVIDEND STATUS:


The INDIVIDUAL PERFORMANCE of every stock in the Solid Dividend portfolio:

I own 45 stocks currently after the moves made in December. I'm positive on 39 of them. Including my sold positions, I have a stock picking accuracy of 89%. Famed investor Peter Lynch once said that a 60% success rate is more than enough to beat the market in the long run


My best performing stock is KLA-Tencor (KLAC).

The SOLID DIVIDEND Snapshot (1/2/20)



Annualized Return

As of Jan. 2, 2020, my portfolio has an annualized (or internal rate of) return of 28.53%, which accounts for the different time periods I invest capital. If I continue picking good businesses at appropriate valuations and I'm patient for moderate (or severe) market pullbacks, I expect an annualized return above market average, which on the long-term is 9.8%.

As an investor, I'm excited by what lies ahead!


Valuations of Current Holdings

The portfolio is about fairly valued, with still some undervalued stocks that I'm looking to add to in January, mainly:

Eastman Chemical (EMN),

Abbvie (ABBV),

McKesson (MCK),

JM Smuckers (SJM),

General Dynamics (GD), and

Broadcom (AVGO). 


Waterfall Chart

Monthly Dividends Chart

Stay tuned for more stock analysis, buy updates, and monthly analytics.


Check below for past months' analytics and dividend updates. Stay Solid!

19 views