Saturday, February 5, 2011

The Twenty Year Millionaire

The Twenty Year Millionaire

My Current DIV Portfolio

Lately I have been having trouble identifying companies that have attractive long term entry points. I still don’t believe that this market is going to run forever- I think we are due for a major pull back within the next six months. This is when I plan on jumping back in on individual stocks. But what if I’m wrong? What if we continue to rally through the elections, QE2, and then the holiday season? I would hate to have money collecting dust under my mattress.

I decided to invest 20k into broad based high paying Dividend paying ETFS. I figure this will be a good solid base for my portfolio.

Currently I am invested in:
Symbol
Description
Yield
Average Yield
INGBX
ING GLOBAL BOND A
6.31

PGF
POWERSHARES FINANCIAL PREFERRED
7.16

PFF
ISHARES S&P US PREFERRED STOCK INDEX
7.37

JNK
SPDR BARCLAYS CAPITAL HIGH YIELD BOND
9.82

IDV
ISHARES DOW JONES EPAC SELECT DIVIDEND
4.33

IAU
ISHARES COMEX GOLD TRUST
0

DVY
ISHARES DOW JONES SELECT DIVIDEND
3.53




5.50


This portfolio gives me broad exposure to equities, preferred shares and bonds from across the globe with an average yield of 5.5%. I included a small position in gold in the portfolio as I view the commodity as hedge against both inflation and deflation (go figure). I think any portfolio in this market should have some exposure to this commodity.

Depending on how my financial situation shapes up in the next few months, I will hold onto these ETFS and add single equities as opportunities arise.

On a separate note, you will rarely see me buy growth stocks outright. I would rather spend my money on long term investments with little beta that appreciate over time. This allows me to play the momentum stocks with options- as it allows me to control a greater amount of shares with less exposure. Stocks that have momentum are great trades, but are not great investments.

All the best,

CM

Wikio

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