Structure

The structure of my portfolio is:

Anchors – the three companies (one per quarter) that anchor the portfolio.  The target weighting is 6% for each.

Core –  these holdings are the meat and potatoes of the portfolio.  These ten companies have a target of 3% each.  The Core when combined with the Anchors result in weekly dividend payments.

Satellites – are thirteen companies with a target weighting of 1.5% each.  With few exceptions, throughout each quarter a weekly payment is received.

Penalty Box – companies that have earned questions regarding earnings, dilution, etc.  Although I haven’t sold (yet) , I am no longer adding to – and may reduce – my positions until trust has been re-established.

All companies are acquired as market conditions warrant generally as long as they’re under or equal weight their target.  I also annually review the portfolio to determine if structural changes are required, in particular with holdings on the cusp of being promoted to Satellite.

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