Retire In Peace (RIP) Portfolio Update
This is another post in a continuing series as I evolve towards Bruce Millerís Income-Only portfolio that I call RIP (Retire In Peace). The strategy was adapted in an attempt to control trading induced by frequent trading posts here & elsewhere. The RIP portfolio is part of a larger strategy which includes real estate (the physical kind) and a separate account dedicated to TAA (not discussed in this post).
See my last post to pick up the Bruce Miller thread: (https://www.valueforum.com/forums/show.mpl?keywords=1470265998.83.56&so=201608).
Go to this link (https://www.valueforum.com/forums/show.mpl?keywords=1462315789.9.686&so=201605) to see a summary of Millerís methodology. This post covers my own RIP portfolio. Separate posts cover the screening methodology and results (the first link above shows the results of the tech income group screen results).
The holdings image has been modified to better fit a standard computer screen, and to emphasize exactly where our current positions lie within Millerís Income Groups (top of the table) and to also show legacy, speculative and trading positions (bottom of table) which are in the accounts, but not part of Millerís strategy. Holdings are spread between 2 taxable and 2 Roth accounts, which explains why you may see a ticker more than once:
Since my last holdings report we closed out several short put contracts at a profit and added:
AMZA (0.3%) a relatively new MLP/Infrastructure managed ETF with what seems to be a managed distribution policy. The actual long term yield will probably be in the 8-9% range. Iím not anxious to add more until I see more history from them. I suspect they will have to reduce the dividend at some point.
DLNGpA (1.3%) - better late to the party than never
FLO (1.9%) - doesnít pay very well, but has a long and very impressive track record of dividend growth. This is an ideal fit for Millerís strategy and I will add more opportunistically.
NRZ (1.8%) - a property REIT that does not fit Millerís criteria very well (revenue, NetOpCF, shareholder equity all growing nicely, PE reasonable & div yield high - but safety score is only 12.5 because interest to NetOpCF is a little high and dividend to NetOpCF too high) - but it has a compelling story and niche and I felt it was a good bargain to try for a while. I may only hold it for a while and sell, depending on the next quarter results.
SSW-PH (1.3%) bought on grey market below par. This is a little risky, especially in view of the Hanjin counterparty bankruptcy disclosed after my purchase. I will not add more. Analysts do not seem to think SSW will be affected much, whatever that is worth. The preferred seems pretty safe for now.
CYS+B - a few shares added on a stink bid that tripped.
DOW short puts in an attempt to get some shares below $50. This is another good fit for Millerís strategy. I am trying to buy in at a lower price using short put contracts.
We remain overweight in the MLPMid Group because I expect this sector to gradually grow as energy markets stabilize. This is only because most holdings were purchased long ago and would not meet Millerís inclusion criteria, but I plan to hold them because they continue to pay distributions and are reasonably healthy, albeit not very profitable. (In other words, I overpaid and timed purchases badly)
Trades are exactly that. I was pretty proud of my options performance until I ran a YTD report & remembered some earlier losses on SFL options. Ooops. As it turns out Iím about even on option trades for the year. The current options look pretty good, however.
We have 26.1% cash and are adding as opportunities arise, which isnít very often lately. I plan to run some Telecom screens to see what may be available in those Income Groups and will post the results in a week or two.