OVERALL VIEW (As of end of July, 2008)
Two real-money portfolios are tracked here. They are not hypothetical or model
portfolios. They include the effects of commissions and other transaction costs.
_________________________________________________________________
PORTFOLIO #1 (CAPITAL GAINS PORTFOLIO) REPORT CARD
Since inception, this Portfolio has risen more than three times as much as the
S&P 500
Begun in 2001, the Capital Gains Portfolio focuses mainly on stocks with potential for
strong price growth.
Performance since inception:
Stocks held in Capital Gains Portfolio at end July, 2008:
The portfolio contains about 95% cash. The large cash position results from my
current risk assessment of the market per my Timing Outlook. I have been using a
high level of caution about reinvesting the portfolio's cash.
Special Offer: To learn more about the Timing Outlook, use the button to the right to
sign up for my free bi-weekly newsletter. A new Timing Outlook is published in each
newsletter. It's free.
_________________________________________________________________
PORTFOLIO #2 (DIVIDEND PORTFOLIO) REPORT CARD
As stated above, this portfolio (originally begun in 2002 with $40,000) has been re-
built using the precepts of THE TOP 40 DIVIDEND STOCKS FOR 2008: How (and
Why) to Build a Cash Machine of Dividend Stocks. For measurement purposes, I
re-set the inception date to 1/1/08 and the inception value to $51,168, which was the
portfolio's value as of the new inception date.
This portfolio has been hit hard by the bear market, but it has caught and passed the
S&P 500. Currently (year to date and since re-inception), this Portfolio is ( -13%) to
the S&P 500's (-14%).
Performance since re-inception:
Dividend generation / Income stream:
As dividend increases are announced, the last two figures should rise steadily,
because they are based on a fixed initial investment amount. This is something which
a "fixed income" investment (such as a bond) cannot do. A bond pays a set amount
each month, and at the end of its term, your original investment is returned to you.
Stocks held in Dividend Portfolio at the end of May, 2008 (also showing
current yield):
Portfolio contains about 1% cash.
Special note: My e-book, THE TOP 40 DIVIDEND STOCKS FOR 2008: How
(and Why) to Build a Cash Machine of Dividend Stocks, is now available. To
learn more about it, click here.
Two real-money portfolios are tracked here. They are not hypothetical or model
portfolios. They include the effects of commissions and other transaction costs.
- Portfolio #1--the Capital Gains Portfolio--has risen three times as much
as the S&P 500 since its inception in 2001.
- Portfolio #2--the Dividend Portfolio--has caught up with the S&P 500
since being restructured earlier this year. It is delivering dividends at a
4.6% current rate. In July, the Dividend Portfolio gained 6.6% vs. the
S&P 500's loss of 1%.
- Beginning in January, 2008, I began clearing the Dividend Portfolio of
stocks that were not going to appear in my new publication, THE TOP 40
DIVIDEND STOCKS FOR 2008: How (and Why) to Build a Cash
Machine of Dividend Stocks. The portfolio largely remained in cash for
the next couple months as I completed that special study. Since then, I
have rebuilt the Dividend Portfolio using the precepts and Top-40 list of
stocks from the new e-book.
- Therefore, for performance-tracking, I reset the Dividend Portfolio with a
new inception date of January 1, 2008. (For the record, through the end of
2007, the portfolio was exactly tied with the S&P 500 since its original
inception in 2002. Both were up 28%.)
_________________________________________________________________
PORTFOLIO #1 (CAPITAL GAINS PORTFOLIO) REPORT CARD
Since inception, this Portfolio has risen more than three times as much as the
S&P 500
- It has gained 30% vs. the S&P 500's 9%.
Begun in 2001, the Capital Gains Portfolio focuses mainly on stocks with potential for
strong price growth.
Performance since inception:
- Portfolio begun April 1, 2001 with $50,000
- S&P 500 at beginning date: 1160
- Current value of portfolio (7/31/08): $65,049 (+30%)
- Current value of S&P 500: 1267 (+9%)
- Portfolio vs. S&P 500: +233%
Stocks held in Capital Gains Portfolio at end July, 2008:
- McDonalds (MCD)
The portfolio contains about 95% cash. The large cash position results from my
current risk assessment of the market per my Timing Outlook. I have been using a
high level of caution about reinvesting the portfolio's cash.
Special Offer: To learn more about the Timing Outlook, use the button to the right to
sign up for my free bi-weekly newsletter. A new Timing Outlook is published in each
newsletter. It's free.
_________________________________________________________________
PORTFOLIO #2 (DIVIDEND PORTFOLIO) REPORT CARD
As stated above, this portfolio (originally begun in 2002 with $40,000) has been re-
built using the precepts of THE TOP 40 DIVIDEND STOCKS FOR 2008: How (and
Why) to Build a Cash Machine of Dividend Stocks. For measurement purposes, I
re-set the inception date to 1/1/08 and the inception value to $51,168, which was the
portfolio's value as of the new inception date.
This portfolio has been hit hard by the bear market, but it has caught and passed the
S&P 500. Currently (year to date and since re-inception), this Portfolio is ( -13%) to
the S&P 500's (-14%).
Performance since re-inception:
- Re-inception January 1, 2008 with $51,168
- S&P 500 at re-inception date: 1468
- Current value of portfolio (7/31/08): $44,472 (-13%)
- Current value of S&P 500: 1267 (-14%)
Dividend generation / Income stream:
- Dividends received so far in 2008: $1321
- Dividends expected over next 12 months (minimum): $2039
- Actual dividends should be higher, because E*Trade's "Income
Estimator" does not include dividend increases until announced by each
company. Therefore, dividend increases to be announced later in 2008 or
in early 2009 are not included yet.
- Based on $2039 expected dividends over the next 12 months...
- Yield based on present value of portfolio ($44,472): 4.6%
- Yield based on re-inception value of portfolio ($51,168): 4.0%
- Yield based on original value of portfolio ($40,000): 5.1%
As dividend increases are announced, the last two figures should rise steadily,
because they are based on a fixed initial investment amount. This is something which
a "fixed income" investment (such as a bond) cannot do. A bond pays a set amount
each month, and at the end of its term, your original investment is returned to you.
Stocks held in Dividend Portfolio at the end of May, 2008 (also showing
current yield):
- Bank of America (BAC) 7.8%
- Barclays (BCS) 10.0%
- Chevron (CVX) 2.8%
- Emerson Electric (EMR) 2.4%
- General Electric (GE) 4.3%
- Kinder Morgan Energy Partners (KMP) 6.6%
- McDonalds (MCD) 3.8%
- Realty Income (O) 6.5%
- Pepsico (PEP) 2.3%
- Royal Bank of Canada (RY) 4.5%
- Sherwin Williams (SHW) 2.5%
- Telefonica (TEF) 4.3%
Portfolio contains about 1% cash.
Special note: My e-book, THE TOP 40 DIVIDEND STOCKS FOR 2008: How
(and Why) to Build a Cash Machine of Dividend Stocks, is now available. To
learn more about it, click here.
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| August, 2008 Portfolios Update |
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