Monday, January 23, 2012

Following old friends

I like to think that I make my investments only after giving the whole matter some careful thought. Once something is part of my portfolio, its very presence gives it a certain glow of value in my mind. This is not always earned, I make mistakes, but it does seem to be a good approach that works for me.

This year is unfolding very nicely so far. Oh, I think there will be a correction, there's always a correction in the future. But, the gains made today will give my portfolio room to crash without suffering too much damage in the fall.

Not being good at timing the market, unless I see one of my buddies falter, offering an impossible to resist buying opportunity, I am holding pat. I'm just going to sit and let the dividends accumulate.

Stuff in my portfolio that I'm watching:

  • EWH (iShares MSCI Hong Kong Index) - This has taken a kicking lately and is now clawing its way back. It is still down 6.23 percent from when I bought in. Yield is 2.43%.
  • PWT (Penn West Petroleum) -  This is down big time from when I bought it years ago as an Income Trust. Ouch! But it is up nicely when compared to my most recent entry points. Many analysts see PWT heading higher, reaching prices that will offer me an opportunity to get out with all my money. While I wait, PWT pays a nice dividend that looks safe. Yield is 5.0%.
  • PEY (Powershares ETF High Yield Equity Dividend Archievers Portfolio) - This one is the only one of my personal investments in the U.S. market that is still recovering from the big crash of 2008/2009. It is still down today 17.58 percent. Other U.S. investments, like SDY, are up. For instance SDY is up 2 percent. While I wait, PEY pays a monthly dividend. Yield is 3.7%.
  • PRQ (Progress Energy) - This would be a big drag on my portfolio performance if it were not for the fact that I have less than two percent of my money invested in this natural gas producer. As the prices have come down, I have averaged down, and I believe an exit point will open up near the end of this year or sometime next year. I may be down thousands but I'm not worried over the long term and it pays enough of a dividend to ease the pain while I wait. If it declines in value anymore, I may buy a few hundred more shares. Yield is 3.6%.
  • DRW (WisdomTree Trust Global Ex U.S. Real Estate Fund - I bought this for the dividend and I hold it because I own it. At this time, the dividend, as far as I am concerned, is only about six percent. DRW missed paying its December dividend. This has resulted in the expected yield being cut by about 50 percent. Unfortunately, this ETF is down too far to make me feel comfortable dumping it while it still is kicking out a six percent yield. Yet, I am no longer enamored with DRW. It is living on borrowed time in my portfolio unless it is able to deliver all four dividends this years. If it does, I will rethink my feelings about DRW.

And there you have. Everything else in my portfolio is tickey-boo, thank you very much. I'm still loving:


  • IPL.UN - up 124.82 percent since I bought it and paying a wonderful dividend to boot. It's a hold. Yield is 5.8%
  • CPG -  up 102.09 percent and the dividends just keep rolling in. I won't part with this one. Yield is 5.9%.
  • BNS - up 89.71 percent and the dividend has been increased since I bought in. I'm smiling. Yield is 3.8%.

Those are my big wins but my also rans are up in value, nicely cushioned in preparation for the next big dip, and these also rans are all paying dividends that help pay the bills. I'm thinking of:

  • XRE with a yield of 4.69%.
  • ZUT with a yield of 5.26%.
  • RY with a yield of 3.9%.
  • and my two last mutual funds CIB512 and TDB622, two monthly income funds.


The rest of my portfolio is delivering but not doing anything that makes the stuff standout. Here I'm talking about stuff like XMD, XIC, CPD, SDY, AUSE, PGJ, REM and EWS. REM's yield of 10.76% is worth noting.


Cheers,
And good investing!

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