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.