Friday, August 16, 2013

My Portfolio

Now that I have discussed what my strategy is its time to go over what tools I have to work with to carry them out, i.e. my portfolio.

Most of this should look familiar to longtime readers. My original Model Portfolio was a real time, real money portfolio. I then switched over to a fake demo account for the Effort Portfolio, but I kept on funding and running my Model Portfolio. Sometimes with the same moves as I showed on the Effort Portfolio. Sometimes with things I didn't talk about. Now that I am running a progress blog of my own actions and progress... I am once again sharing a real account. Its not everything I am doing but in this account and the actions I talk about here, its real money.

Dividend growth stocks make up the majority of the positions. They are the solid companies that I expect to give me raises to my income over the coming years.

Business development companies are listed next. BDCs give out loans to small companies. As you can see their yield is quite high. This is a proxy for my small cap exposure. The dividend growth is quite low but they make up for it with a high yield. I plan to simulate income growth by being able to buy more shares quicker than the gains from the dividend growth stocks. I will be discussing more about BDCs in the future.

Real estate investment trusts also have a place in my portfolio. More investors are familiar with REITs then BDCs. They have higher yield than dividend growth stock but lower yield then BDCs. The flip side is they generally have higher growth rates then BDCs but lower than dividend growth companies. They strike a nice balance.

Our world runs on fossil fuels and that mean they have cash flow. Master Limited Partnerships (MLPS), and Royalty Land Trusts provide high yields but there are some nice energy corporations that pay good enough to be in my portfolios too.

Probably surprising to most of you is that I will have a precious metals position in my income portfolio. GLDI sells covered calls on the GLD share it owns. 8.4% yield is pretty juicy and it brings in diversification to help calm down the market highs and lows.

Though most dividend growth investors shy away from bonds, I like them and want them. Though they have no growth they do have diversification. Not only in share price movement but diversification of where their income comes from.

The last section is my real estate portfolio consisting of 1 townhouse. Yes I am a landlord. I will get more into that in the future.

In the next update I will get into future funding and overall basic plans for the portfolio.

Disclaimer: The investments and trades discussed are not recommendations for others. I am not a financial planner, financial advisor, accountant, or tax adviser. The financial actions I talk about are for my own portfolio and money and only suited for my own risk tolerance, strategy, and ideas. Copying another person's financial moves can lead to large losses. Each person needs to do their due diligence in researching and planning their own actions in the financial markets.


  1. I really like BDCs too for the small cap exposure. I have a sizeable position in PSEC and have loved it with the stable share prices and monthly dividends.

    I still like TCAP as well. For some reason I keep purchasing TCAP when it falls below $26 only to sell it when it passes $30, throwing the 15% gains right back into PSEC.. This occurred a couple times this year already.

  2. Are you still dripping stocks

    1. Nope. I reinvest by taking cash and waiting for the money to build up.