As of 9/18/2012

  Yield Shares Cost Current
T 5.86 100 2,779.00 3,740.00
ABT 3.45 90 4,797.00 6,205.50
EMR 3.08 100 4,725.00 5,044.00
IVR 21.59 300 4,605.00 6,270.00
STB 8.00 1000 6,920.00 6,860.00
JE 9.65 440 5,552.80 4,888.40
AT 8.05 500 7,015.00 7,345.00
HSKA 3.34 430 5,117.00 3,809.80
SYY 3.89 200 5,500.00 6,136.00
DOW 4.36 200 5,880.00 6,212.00
SPLS 3.45 400 5,128.00 4,768.00
      58,018.80 61,278.70

We both have 401(k)s through our work, that are not self managed, that is sometimes frustrating.  Just for reference and to be completely open about our finances.

N-     401K         148,000.00 (this is up from 126K at then end of 2011)

B-     401K            25,000.00 (haven’t checked B’s statements lately)

ING Emergency Fund    10,000.00

Other Reserves (possibly to add to portfolio)  60,000.00 – up from Bonus’ and house sale

7 responses to “Portfolio

  1. The Stoic Investor

    Nice job on your 401k balance! If you don’t mind my asking, how long have you been contributing to it and do you max it out each year? Mine is closer to B’s balance.

    • I have been contributing since I graduated college in 1997, usually between 10-15%, then if I’d get a bonus and hadn’t maxed it out, I would throw the bonus in (since I hadn’t planned on the extra money, I didn’t miss it). Then as my earnings increased, my 15% comes close to maxing it out. B recently raised his contribution to 15% also.

  2. Be very, very, very careful and don’t just chase yield otherwise this strategy will come back to bite you.

    AT pays out more in dividends that it generates in free cash flow and the company is unprofitable. In addition, take a look at the rates it pays on its debt. The lenders are charging those rates because of the level of risk they are assuming. Don’t be surprised if you see a dividend reduction in the next 12 – 18 months.

    As far as STB goes, also look at the rates it pays on its debt. This is another company which can ill afford to continue to maintain its dividend payout level for long unless the company’s performance improves. Its quick and current ratios and long term debt/equity and total debt/equity have all deteriorated over the past few years.

    I have not analyzed IVR other than to look at the dividend yield which is around 20%. That is enough to convince me NOT to purchase IVR. Good solid companies generally have dividend payout ratios under 5%.

    Same applies to JE where the current dividend yield is around 9.2%!!

    I suggest you not throw caution to the wind. We have been in a bull market for quite some time and valuations are getting rich. If you want to put your head on the pillow and to sleep well when the market turns (and it will at some point), I urge you to stick with good solid companies such as T, ABT, and EMR. There are several good solid companies out there. Don’t buy into companies just because of their dividend yield.

    Good luck….from someone who has been investing since 1980 and has benefited from a few economic downturns!

    • Charles, Thanks for your comment. I am new to dividend investing, and was getting frustrated holding everything with yields below 5%. I admit I do have more to learn about analysis. I appreciate your input, I am not a professional by any means and don’t advise anyone to follow my choices. I do learn a lot from others and will continue to adjust as the market changes and I research and learn from the more experienced. Thanks again.

  3. Highyieldsoldier

    Just wanted to concur with Charles about being careful with some of those yields. Very good advice he gave, imo. 4-5% yielders with solid balance sheets are probably better choices. Mix in a few shares of companies with fatter yields but dont overdo it. Actually, since you make good money, and have a nice stash already, I would suggest leaning toward protecting your principal first and foremost. Chasing big returns isnt as necessary when you are already saving chunks of money every year.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s