A long time, self taught investor with a primary focus on long term dividend investing who has made his share of mistakes over the years. While technically in the distribution phase, there are months when I remain an accumulator of assets.
My stock holdings are segmented into four categories, of which two fit the DGI category, and are generally aligned with their intended purpose. These are:
- Custodial – holdings held in trust for my heirs. Current holdings include: GIS, HSY, DIS, PG, WMT, WGL, UNP, KHC and TXN
- Options – I incorporate a covered call strategy to increase income. As contracts can only be written in 100 share increments, this category currently includes: T, CPB, SBUX and GE
- Slush Fund – contains companies under the 100 share minimum which are slated ro be sold first if the need arises. These currently include: AAPL, MMM, UTX and KIM
- Primary Portfolio – which is the only portfolio tracked by this blog. Weighted by dividend value to the portfolio, I allocate by relative importance (Anchor, Core and Satellite) with about 30% being in speculative or strategic holdings. One example of strategic is my Regional Bank M&A plan.
I attempt to minimize duplicate holdings across categories but occasionally fail – notably SBUX. My ultimate goal is a 3% holding, so as a contract is executed on the option side, I purchase a little on the DGI side. Other redundant holdings are DIS, AAPL, GE, MMM and KIM.
The primary reason why I publish percentages rather than actual value (other than the obvious privacy related one) is the belief that a visible 3% portfolio allocation is more tangible – and more readily attainable by anyone. A percentage can be the same across portfolios of various sizes, whether a beginner or veteran.
Last updated: 8 May 2016