Tuesday, November 11, 2014

Latest portfolio showing promise

It is too early to tell, but my most recent foray into the world of imaginary portfolios appears to be  a winning allocation but one that may benefit from a little tweaking.

Only opened at the start of the month, two stocks have already been dropped. Both brought in a small profit but both seemed poor choices for a retirement portfolio. One, Norbord, has too many questions swirling about it. Will it cut its dividend? Will the price drop with such a cut? Will housing rebound in the States in 2015. The other, Tech Resources, is a mining operation which is now enduring a strike at a South American mine.

I have added one company to my portfolio with some of the free cash: Precision Drilling. The dividend yield is a little low at 3.1 percent, but the payout ratio is also low. I get worried when the payout ratio climbs above 100 percent. No concern here.

A solid company, in my estimation, it has been on my radar for a long time. The price now is depressed compared to historic values. It may drop farther but it still seemed like a fair time to add a little exposure. I've done well with drillers in the past and this one looks better than some of those others that I owned.

Read more about this latest portfolio and its allocation: Stepping Up to the Imaginary Plate.

Keeping up with the TSX but with less volatility. I'll keep fine tuning.
The present portfolio mix is as follows:

Stocks (about 1.8 or 1.9 percent in each):

  • Ag Growth International Inc (AFN)
  • Baytex Energy Corp (BTE)
  • Dream Office REIT (D.UN)
  • Glentel Inc (GLN)
  • Mullen Group Ltd (MTL)
  • Northland Power Inc (NPI)
  • PHX Energy Services Corporation (PHX)
  • Precision Drilling (PD)
  • Rogers Sugar Inc (RSI)
  • Savanna Energy Services Corp (SVY)
  • Whitecap Resources Inc (WCP)
  • iShares International Select Dividend ETF (IDV) -- 7.5 percent
  • First Trust Morningstar Dividend Leaders Index Fund (FDL) -- 7.5 percent
  • iShares Select Dividend ETF (DVY) -- 7.5 percent
  • iShares Mortgage Real Estate Capped ETF (REM) -- 1.8 percent
  • UBS ETRACS Monthly Pay 2xLeveraged Mortgage REIT ETN (MORL) [Actually, an Exchanged Traded Note: an ETN.] -- half a percent
Mutual Funds (balance divided between two funds for a four percent annual yield):
  • TD Monthly Income fund (TDB622)
  • CIBC Monthly Income fund (CIB512)
The cash balance is presently $2012.52. The goal is to have enough free cash in a year that one could safely make a withdrawal in retirement and not affect the actual investment holdings themselves.

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