Income Portfolio

[Sean K]

Could be a good move nomore4s.

Even if there was a bounce from 4500 ish, there couldn't be too much more general upside.

I'm not sure if we'll see a W shaped recovery here, or new lows as there is tooo much money still floating about in the system and it has to go somewhere eventually. I think if we do crash again significantly, even just to the low 4000s, interest rates will simply be lowered further and more money printed. Hopefully another buying opportunity.

After that, at some stage, inflaton really kicks in, and we're in deep do-do.

 

[nomore4s]

Yeah Kennas I'm also looking at the next leg down to be a major buying opp and will probably re-enter most of these stocks. And I will have $20k more to spend.

Well that's the plan anyway.

 

[nomore4s]

Sorry for the delay but I have been busy with work and a bit lazy as I'm not doing much trading atm.

Here are some stocks I exited on 5/11/09

WOW @ $27.59
MTS @ $4.51
WES @ $25.98

 

[nomore4s]

More trades closed.

NHC @ $4.17
COH @ $61.21
WBC @ $23.20

 

[nomore4s]

The buy criteria for my income portfolio is pretty simple.
- Paying dividends of at least 3%
- Low dividend payout ratio
- Low debt levels
- Good earnings growth potential (IE potential to continually increase dividends year on year (this is the strength of this method)
- Solid company history
The only exceptions I have to this criteria is for the BIG 4 banks, purely because of their solid history of performing and increasing d/e year on year.

My sell criteria is even simpler.
- Company takes on excessive amounts of debt
- Earnings start to shrink
- Dividends are reduced (there are some exceptions to this as there are times a company might reduce dividends for a long term gain - IE share buy backs, reduce debt, expansion without debt)

Now due to not having a price based stop I'm taking on some risk of the share price having declined significantly by the time I sell, that unfortunately is a risk I have to wear but I try to work around it by buying small parcels and then accumulating more as the company grows and also controlling the overall balance of the portfolio.