May 2016 Update

May was generally favorable for the markets with the big weakness being retail – and this was a mixed bag.  Earnings reports presented some surprises although the trend of beating analysts’ expectations while presenting lower year over year results continued.  Financials were modestly positive on indications the Fed may raise rates in May or June.  Peltz announced he was exiting his PEP position without the hoopla associated with Icahn’s exit from Apple so the market treated it as a non-event.  Finally, Apple ended a see-saw month with Warren Buffet initiating a position.  So the month for the S&P ended up 1.63%.

My portfolio value managed a 3.22% gain with the weaknesses (SBUX and AAPL) being offset by M&A activity (LSBG being acquired by BHB and WSBC acquiring YCB).

Blog Updates

  • Updated the Blog Directory
  • Updated Goals

Portfolio Updates

  • BUSE entered the portfolio with the completion of the PULB merger.
  • Added to LBAI.
  • Opened a new position HRNNF (H.TO).
  • Added to AAPL
  • Added to LB
  • Added to YUM.
  • Added to BXLT after merger vote – yeah I know – I changed my mind.  I realized that I bought Baxter 11 months ago, so the only hope of avoiding short term tax treatment is to convert to Shire.  So I bought more to get the $18 per share.


  • May delivered an increase of 52.5% over May 2015.  This was due primarily to two dividends being paid in May instead of June.  With these two excluded, the Y/Y increase would have been 32.8%.
  • May was also up from last quarter by 12.6%.
  • Announced dividend increases currently average 9.85% with 52.7% of my portfolio having at least one raise so far this year.
  • Through May, dividends received were equal to 47.55% of all 2015 dividends, keeping me on pace to exceed last year’s total on around October (as compared to 2015 being Sept. 9th).

2 thoughts on “May 2016 Update

  1. Thanks! I’m still doing some research on your comment last month but it appears my significant returns are fueled by merger premiums. About 10% of my companies are involved in mergers (or rumors of) with an average premium paid of 12%. Since I reinvest paid premiums (along with dividends, dividend increases, and minimal new cash) into other holdings, it boosts my results (beating the S&P by 10% YTD). Sustainable? Not likely, just enjoying it while it lasts. 🙂


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