My current portfolio value is sitting around $48,464, which means that 7% of that is cash. While I don't love that money making no money, I also am still nervous to invest. Especially looking at my portfolio and seeing some nice unrealized returns since May of 2015:
| Ticker | Gain/Loss | Pct |
| OKE | $1,025.63 | 102.6% |
| DLR | $534.60 | 71.8% |
| MMM | $611.38 | 45.3% |
| O | $285.14 | 38.3% |
| ADM | $170.63 | 34.8% |
| MCD | $239.01 | 30.6% |
| FLO | $133.44 | 29.7% |
| CAT | $287.78 | 26.4% |
| UTX | $258.62 | 25.4% |
| EMR | $246.71 | 24.7% |
| PM | $168.79 | 21.6% |
| RY | $245.90 | 20.9% |
| UNP | $362.30 | 20.8% |
| DPS | $246.84 | 20.4% |
| CVX | $156.28 | 20.0% |
| JNJ | $243.14 | 19.0% |
| HSY | $134.67 | 18.1% |
| DE | $130.22 | 17.5% |
| AAPL | $110.90 | 12.3% |
| WFC | $110.30 | 11.0% |
| TROW | $136.56 | 10.8% |
| KO | $50.90 | 6.5% |
| IBM | $47.95 | 6.1% |
| TRV | $16.99 | 3.4% |
| DIS | $61.75 | 3.0% |
| RA | $26.90 | 1.8% |
| OHI | $7.56 | 1.0% |
| CSCO | -$35.72 | -2.7% |
| PFE | -$15.18 | -3.0% |
| CMP | -$34.57 | -3.2% |
| WPC | -$54.19 | -3.4% |
| RDS.B | -$47.50 | -4.4% |
| HTR | -$72.73 | -4.7% |
| HCP | -$83.50 | -5.2% |
| F | -$111.65 | -8.3% |
| TGT | -$284.59 | -12.7% |
| KMI | -$336.29 | -43.1% |
The one idea I am considering is to invest more in my low gainers (0-10% gain). I am obviously going to do the research into them, but if they are roughly at the same price I bought them initially, and these truly are dividend growth stocks, it would seem that the dividend is even higher than when I initially chose to invest. Therefore, it seems these would be a good place to start looking.
Overall, I am not feeling the itch to buy and am happy sitting on cash in case the market ever does pull back. We just celebrated the birth of our 3rd child, so my hands are more than full. :)
Would love to hear your thoughts on what is a good area to buy or are you holding and waiting?
Disclaimer: I am not a licensed investment professional. I am not liable for any losses suffered by any parties. Any information on this site is my opinion only and should not be used for investments of any kind.
I'm in a similar situation with a pile of cash(14% of my portfolio). Equity prices have risen on most of my holdings creating lower yields but not improved dividend growth rates, There are a few exceptions (or temptations) like QCOM which got hammered today and if I buy more I risk being over-weight in that position.
ReplyDeleteIn the past having a pile of money not making money used to make me impatient and pull a buy order way too early (I did this with CMI last year). But now I have a decent size and well diversified portfolio where I find myself in no hurry to invest until I find investments that meet 100% of my criteria. Not sure when or why my attitude changed but I like it and I feel like I'm more in control of my investments.
Ken, Thanks for your thoughts. I am quite content sitting on cash as well for the time being. I have a small urge to buy, but I dont want to rush it.
DeleteBTW congrats on baby number 3
ReplyDeleteThanks Ken!
DeleteBest wishes to your family for #3!!! I can imagine you have very, very busy days. I would look to average down on some of my positions if I still believed in their longer term prospects. You have some decent names that might warrant some of that $3k. Thanks for the update.
ReplyDeleteHi Keith, Thanks for the wishes. Its quite a journey! Thanks for your input. I agree, that seems like a good place to start looking.
DeleteStill buying here, and will continue to add if the market tanks or continues upwards. Personally I would put that money to work for me, if not in the stock market then elsewhere where I can earn a return. Good work.
ReplyDeleteHi Captain! I applaud your commitment and devotion. I think its a winning strategy and it does trouble me that its not earning ANYTHING just sitting in a money market. However, I also havent done the research to invest in anything yet so I would just be spinning the wheel.
DeleteI also have some cash waiting for a buy. I am looking at the stocks that have gone into the negative in my portfolio to see if presents with a good buy opportunity.
ReplyDeleteHi Morrigan! Thanks for your thoughts. I think a lot of us are having the same internal conversation these days. I would love to erase some of my negative holdings, or average down at least!
DeleteI would throw the 3k at QCOM and TGT, both are getting hammered and are solid companies. They will recover.
ReplyDeleteHi D4F! Thanks for your input. I have been looking at TGT as well. We love target and I think they will be ok short term.
DeleteHello,
ReplyDeletetake a look at VFC. Nice PER 15 and dividend yield 3,3%.
Paul
Hi Paul, I do like VFC and wouldn't mind owning it in my portfolio. I will give it a look. Thanks for the comment!
Delete