Newspaper article Sarasota Herald Tribune

Sleeping Soundly Portfolio Is Flat

Newspaper article Sarasota Herald Tribune

Sleeping Soundly Portfolio Is Flat

Article excerpt

the RATIONAL INVESTOR

Many investors will likely be disappointed when they review their first-half brokerage account statements. Those holding well- diversified U.S. equity portfolios will likely see gains in line with the S&P 500s index's .2 percent, or 1.2 percent with reinvested dividends. Followers of my 2014 "Sleeping Soundly Portfolio" may feel the same way as it was essentially unchanged for the first half.

The $120,000, 12-stock, equally-dollar-weighted portfolio was designed to have both lower volatility and total returns (capital appreciation, plus dividends) in line but may slightly lag the S&P 500 when it rises but outperform when it falls. This doesn't mean when the stock market declines the portfolio won't decline, only that it shouldn't decline as much as the stock market.

This year's portfolio has been focused more than in previous years on "high-quality" stocks -- those rated A- or better by Standard & Poor's.

I track this portfolio quarterly, assuming no reinvestment of dividends and no voluntary changes. The stocks were "purchased" at their 2014 closing prices.

It's important to understand that no portfolio is right for all investors. Investors should do their own due diligence before considering any stock.

For the first half of 2014, the portfolio was essentially unchanged in value, falling a bit more than a half percent. This included $2,241 of non-reinvested dividends.

The portfolio consists of:

- Accenture (ACN) provides worldwide management consulting services. Its indicated dividend is $2.04. Its 2014 closing price was $89.31 and its first-half closing price was $96.78.

- AGL Resources (GAS) is a holding company that distributes natural gas. Its indicated dividend is $2.04. Its 2014 closing price was $54.51 and its first-half closing price was $46.56.

- BCE (BCE) is a Canadian telecommunications company. Its indicated dividend is $2.60 (Canadian). Its 2014 closing price was $45.86 and its first-half closing price was $42.50.

- HCC Insurance Holdings (HCC) is a worldwide underwriter of specialty insurance products. Its indicated dividend is $1.18. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.