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Feedback on my income/growth portfolio
Old 07-10-2006, 05:41 PM   #1
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Feedback on my income/growth portfolio

I posted this on Morningstar but thought I would post here also to get feedback. Any help is welcome!

I am trying to create a portfolio that creates over $200,000 of annual after-tax income and also grows the income stream over time. I have about $5 million to invest. Most ($4M+) is in a taxable account with $700,000 in an IRA. I have put together a paper portfolio in M* that creates about a 5.8% yield, has past dividend growth of about 15% and solid capital appr. potential. I will put the ordinary income producers in my IRA and reserve my taxable account for qualified dividends and a few other mostly tax favorable income producers like MMA.

I am still working on this paper portfolio and am investing about $100,000 in each investment. I am willing to take some additional risk for some additional income (ADVDX, VWEIX, PWI) but also want a core of 'safer' investments like GE, C. It is a bit heavy outside of US with some Canadian Trusts and some larger European dividend producers.

What do you think? I have used M*'s tools to look at holdings, risk, etc. I am still creating this (on paper first). Will keep cash in Vanguard tax exempt MM (because of my tax situation). I am 48 and want to able to retire very soon (I live in high cost area right now) on this portfolio.

Ticker
ABN
ADVDX
AIB
ALD
APU
BAC
BCS
BP
C
CHC
CMP
CVX
DEO
DT
ED
EN
EON
FDG
FGP
GE
HBC
HPF
ING
KMI
KMP
KO
LLY
MMA
PBT
PCU
PFE
PGH
PWI
RDS.A
RYN
SO
TCLP
UN
UU
VGSLX
VOD
VWEAX
WB
WFC
WM
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Re: Feedback on my income/growth portfolio
Old 07-10-2006, 06:51 PM   #2
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Re: Feedback on my income/growth portfolio

Hmmm

My first impression is - way too many positions. Then I remembered - I'm the guy who evacuated Katrina with 40+ DRIP plans in file cabinets.

So - plan wise - if you have no problem with this many - what's the management plan - take the dividends, let your winners run, maybe harvest a few tax losses along the way as the years roll by?

BTY - I'm in the core and explore school - 75% Target Retirement and I got Drips whipped down to 20+ with more positions to close out - I ran handgrenade roughly 40/60 - 40% divs/60% non cola pension first ten yrs - now in my 60's starting to tap IRA.

So - if you feel up to following that many positons - go for it.

One caution - be prepared for the interest cycle sensitive ones to give you some mental angst from time to time.

Party on.

heh heh heh
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Re: Feedback on my income/growth portfolio
Old 07-10-2006, 07:02 PM   #3
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Re: Feedback on my income/growth portfolio

No more dividend investing forum for you!.. You are probably going to get the same reaction here.

Honestly, I doubt your going to pull >4% annually forever safely. Now you could easily get 150k a year by simply taking the top 20% dividend payers of the S&P 500..

Also, you could get around 4% by doing a Siegel portofio of the top 10 dividend paying S&P 500 stocks that have raised dividends every year for 10 years. Doing this would include many of the stocks you already have listed: BAC WM C T CVX PFE ect.. (notice the high financial side)

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Re: Feedback on my income/growth portfolio
Old 07-10-2006, 07:44 PM   #4
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Re: Feedback on my income/growth portfolio

KMI is going private so you'll have one less name to worry about.
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Re: Feedback on my income/growth portfolio
Old 07-10-2006, 08:00 PM   #5
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Re: Feedback on my income/growth portfolio

Since most is in a taxable account, for a multimillion dollar portfolio, I would (and have) concentrated more on long term capital gains (the tax-deferred unrealized type) and not on dividends.

I didn't look up all your symbols, but are you thinking about market capitalization (micro, small, mid, large, humongous) and international/domestic and not just dividends?
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