Rose’s Income Garden 4.75% Dividend Yield And Value Up 6.8%

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RIG

Rose’s Income Garden “RIG” is a defensive income quality value built portfolio that currently has 85 stocks. The February update article lists, at the time, 89 companies by dividend payment months. The most recent stocks sold are revealed and discussed under the March Transactions section.

Portfolio Value

Value and income both are the highest they have ever been for RIG.

RIG complete listings, want to buy prices and statistics is found at The Macro Trading Factory along with The Macro Teller’s very successful Macro fund portfolio called “FMP”.

The following is a Q1 metrics review of those portfolios along with the one found at Wheel of Fortune called “SOP” or Single Opportunities Portfolio.

With S&P down 5.2% and RIG up 6.8% = 12% return thus far for RIG.

The list below is an amazing success story for RIG and all of the below:

FMP¹ RIG² SOP³
Type of securities held [M=Mainly, O=Only] Funds [O] Stocks [M] Stocks [O]
Max. No. of positions 50 100 24
Current, Actual, No. of positions 24 85 19
Weighted Average TTM Dividend Yield 2.45% 4.23% 3.43%
Featured on (Service) WoF, MTF MTF WoF
Inception Date Dec 31, ’20 Nov 19, ’21 Dec 31, ’21
YTD correlation between portfolio to SPY 0.5108 0.7122 0.8802
Portfolio YTD Return 13.25% 7.97% 1.08%
SPY YTD Return (4.35%) (4.35%) (4.35%)
Over/Under-performance YTD Return 17.60% 12.32% 5.43%
Portfolio YTD SD 1.12% 0.71% 1.19%
SPY YTD Return 1.34% 1.34% 1.34%
Over/Under-performance YTD SD (0.22%) (0.63%) (0.15%)

¹ Up to 50 ETFs a/o CEFs (only funds!). Predominantly Long. Short possible.

² Up to 100 single securities (stocks, preferred shares, bonds). Long only.

³ Up to 24 single securities (stocks). Long only.

⁴ Negative number = SPY more risky

YTD, all three portfolios have delivered better returns and been less volatile than the SPY, resulting in a significant risk-adjusted out performance across the board.

I never project value, but always have hope picking quality good earnings value stocks will bring success in all regards. RIG certainly is doing exactly that thus far in 2022.

Portfolio Income

I was projecting a 22% raise in income from 2021. March pretty much blew that away with income rising over 50% to give Q1 a 15% jump to make a 29% increase for Q1 from 2021. I thought the 22% was a lot and definitely was exceedingly pleased to beat expectations. Anything can happen during such a volatile investing environment, but I will happily hold with that 22% for now.

There were 13 dividend raises that are listed under the March dividend section.

March Transactions

Sell- 3

– Paramount Global (PARA)

The old name and ticker was Viacom CBS/ (VIAC). I bought it in 2020 rather cheaply for ~$22 as a great idea at the Wheel of Fortune. The dividend is 96c and yield 2.7% with no growth for earnings or the dividend to be seen, however it could be a buyout candidate somehow. I saw opportunity to cash out and move on with some profit.

– Iron Mountain (IRM)

I really am sad to say it was time to part with this one, as I have owned it for many years and bought it near $25 and yield humongous 8-9%. The recent price rise has been amazing and over done with no dividend growth because of lots of debt, which it wants to reduce. Yield is down at the current price to ~4.4%. It also has a high % of option short selling, which is also convincing me it is overpriced. This again was just a matter of taking profit and putting money in something else. It is headed in the right direction for converting to data collection storage and is one to watch.

Ventas (VTR)

This healthcare REIT cut its dividend in 2020 and it’s inexplicable to me the high valuation for it. The now under 3% yield is not attractive to me, but some folks are sure liking it. I agree it is on a positive trend for better earnings and possibly a dividend raise, but have lost all enthusiasm for it.

The FASTgraph shows its price as the black line and how overvalued it has become:

FG from subscriber service Ventas

Ventas FASTgraph (Fastgraphs.com)

I see less upside than downside for VTR price into the future.

Add On-6

This is a quick and easy list of the purchases I made for healthcare, telecom, and HY income that needed replacement. Included is current dividend and yield.

– Medical Properties Trust (MPW)- healthcare sector REIT – dividend $1.16 = 5.6% yield

– Viatris (VTRS)- healthcare sector generic company- dividend 48c dividend = 4.8% yield

– SLR Investments (SLRC)- BDC with 9% yield at a dividend of $1.64

– Vodafone (VOD)- telecom company from the UK with a dividend ~ $1 = 6.3% yield

– Care Cloud preferred (MTBCP) – telecom preferred -dividend 22.92c monthly = 10.7% yield with an early possible call date.

– Kinross Gold (KGC)- gold miner with some Russian exposure, so somewhat speculative and cheap and only 12c dividend.

SPECIAL Speculation- 1

Dynagas LNG preferred-A (DLNG-A) Bought as an idea at the WoF and decided on my own to sell it quickly for profit in a Roth. The $3 per share rise in ~14 days was very hard to resist taking. Thank you to The Fortune Teller for the idea. It is probably still a good one to own with a dividend of $2.25 = 9% yield. I watch for a nose dive in price again to add it back, but love the nice quick profit it provided.

March Dividends

45 payments and 13 raises

The 13 raises are listed in the comment column and also with the ticker in bold.

Abbreviations used:

div/sh = dividend paid per share

Yearly $ Dividend = yearly amount as known

Divi % Yield = Dividend yield using the dividend shown and current price shown.

Other Dividend Comments = anything involving the stock and its dividend.

2022 div/sh Yearly Divi % Other Dividend Current
Ticker $ Divi Yield Comments Price
(PFLT) 1 0.095 1.14 8.29% Monthly Pay 13.75
(ENB) 1 0.676 2.7 5.82% 46.4
(V) 1 0.375 1.5 0.66% 226.36
(WEC) 1 0.7275 2.91 2.88% Raise from .6775 101.13
(CMI) 3 1.45 5.8 2.89% 201.03
(MAC) 3 0.15 0.6 3.84% 15.64
(SO) 7 0.66 2.7 3.64% 74.12
(JNJ) 8 1.06 4.24 2.38% 178.19
(AMGN) 8 1.94 7.76 3.19% Raise from 1.76 243.12
(CVX) 10 1.42 5.68 3.46% Raise from 1.34 164.22
(TGT) 10 0.9 3.6 1.71% 210.54
(XOM) 10 0.88 3.52 4.23% 83.12
(DNP) 10 0.065 0.78 6.57% Monthly Pay 11.87
(WBA) 11 0.4775 1.93 4.40% 43.86
(MMM) 14 1.49 5.96 3.98% Raise from 1.48 149.69
(LYB) 14 1.13 4.52 4.37% 103.34
(MGEE) 15 0.3875 1.6 1.97% 81.42
(HSY) 15 0.901 3.61 1.65% 218.77
(MCD) 15 1.38 5.56 2.23% 249.25
(SBLK) 15 2 8 26.35% Raise from $1.25 30.36
(AEM) 15 0.4 1.6 2.53% Raise from 35c 63.28
STWD-b 15 23.75 47.5 4.75% Fixed income bond 1000
(MTBCP) 15 0.2292 2.75 10.48% Monthly Pay 26.25
(GOLD) 15 10c 0.4 1.60% Raise from 9c 24.94
(VTRS) 16 0.12 0.48 4.44% Raise from .11 10.82
(DUK) 16 0.985 4.01 3.55% 112.82
(TAP) 18 0.38 1.52 2.90% Raise from 34c 52.42
(D) 21 0.6675 2.67 3.09% Raise from .63 86.33
(HD) 24 1.9 7.6 2.52% Raise from 1.65 301.89
(NEM) 24 0.55 2.2 2.66% 82.78
(KGC) 24 0.03 0.12 1.99% 6.02
(KHC) 25 0.4 1.6 4.01% 39.93
(TRTN) 25 0.65 2.6 3.69% 70.5
(LMT) 25 2.8 11.2 2.51% 445.98
(SHEL) 28 0.48 1.92 3.45% 55.72
(AZN) 28 0.985 1.98 2.96% ADR 66.81
(PTMN) 30 0.63 2.4 10.03% Raise from 62c 23.93
(ARCC) 31 0.42 1.8 8.43% Raise from .41 21.35
Spec 31 0.03 3c = 45c total
(AVGO) 31 4.1 16.4 2.62% 626.98
(NMFC) 31 0.3 1.2 8.63% 13.91
(UNP) 31 1.18 4.72 1.82% 259.96
(TCPC) 31 0.3 1.2 8.36% 14.36
(SPG) 31 1.65 6.6 4.96% 133
(PEP) 31 1.075 4.53 2.67% 169.76

The smallest raise came from 3M being 1c, which was very sad and awful; the price is down and it has a 4% yield. The largest raise came from Star Bulk Carriers of 75c, from $1.25 to $2 to equal a 60% raise. SBLK even with its price rising still has a 26% yield. This is an idea from The Fortune Teller and the Wheel of Fortune and I also made it the first trading alert for RIG at The Macro Trading Factory Service in 2021 when it was ~ $19 and a lower dividend. It’s been a stellar out performer.

Summary/Conclusion

The goal of 50% income from defensive sectors and stocks has been reached, the HY stocks income is somewhat over taking the defensive names. It actually is a huge blessing to have such amazing dividend raises and income rushing into the portfolio. I continue to look for dividend growth in the lower yielding defensive names.

The list below shows the # of stocks owned in each sector, with the defensive sectors and stock types listed first and in bold. They represent 50% of the income from those 40 companies.

Def

#Co

13

Cons-Staples

9

Healthcare

4

Comm-T

8

Utility

1

Fixed bond

2

Industrial-Def

3

RE-Hc-Def

4

Tech

2

Cons-Discretionary

8

Industrial

8

Material

11

Financial /BDC

5

Energy

5

RE-eReit

2

Fixed-Preferred

Total

85

An unmentioned goal is to start a want to buy list of non RIG stocks for MTF subscribers to follow with me. No promises, but I have found a few with the market correcting recently. This is not exactly an easy task, but good news is I have goals and specifics for what I want.

The search is for:

– quality dividend paying stocks

undervalued, but fair value for extra quality stocks.

– low debt / good credit rating

– pay out and cash flows to easily cover the dividend

– defensive in nature with products or service I can understand

The market correction has made valuation a somewhat easier task, which makes the rest a bit easier. I love the search.

Happy Investing to all.

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