Luck_Club
Full time employment: Posting here.
- Joined
- Dec 5, 2016
- Messages
- 733
First of all thanks for helping...Below is the beginning of my written investment strategy for a primarily dividend producing portfolio. I have no interest in total market return type investments. Think of me like Cuba Gooding speaking to Jerry McGuire "show me the money". So this means individual bonds, treasuries/CD's, and dividend producing stocks, MLP's and REITS.
I've come to realize I'm fairly risk adverse or conservative in my investing philosophy. In theory I'm ok with the value going down, in practice, I 'd rather avoid large losses of principle. I feel more comfortable monitoring and analyzing balance sheets and ratios of individual companies verses blindly buying the total market or sector.
So if you can contribute to my what to look for and what to avoid list it would be greatly appreciated.
1) At all times maintain a minimum of 10 investments and no more than 20
2) Ideally diversified across industrial sectors
3) Need to provide cash flow
4) No negative equity
5) Avoid total market investments
When to buy1) The company has a good dividend yield at least 2 times 10 year treasuries rate
2) The dividend payout ratio is under 50% of Total Cash Flow From Operating Activities (yahoo income statement)
3) Positive equity with a low PE and price to book
2) Price appreciates 30% or more take that percentage off the table
3) Yield drops below 10 year treasuries hopefully from price appreciation
4) Tangible Equity becomes negative (goodwill backed out)
2) Dividend payout ratio is still acceptable
3) No negative equity
I've come to realize I'm fairly risk adverse or conservative in my investing philosophy. In theory I'm ok with the value going down, in practice, I 'd rather avoid large losses of principle. I feel more comfortable monitoring and analyzing balance sheets and ratios of individual companies verses blindly buying the total market or sector.
So if you can contribute to my what to look for and what to avoid list it would be greatly appreciated.
Investment strategy & Plan for portfolio Management
1) At all times maintain a minimum of 10 investments and no more than 20
2) Ideally diversified across industrial sectors
3) Need to provide cash flow
4) No negative equity
5) Avoid total market investments
When to buy
2) The dividend payout ratio is under 50% of Total Cash Flow From Operating Activities (yahoo income statement)
3) Positive equity with a low PE and price to book
When to sell/reduce exposure
1) Long term prospects diminish2) Price appreciates 30% or more take that percentage off the table
3) Yield drops below 10 year treasuries hopefully from price appreciation
4) Tangible Equity becomes negative (goodwill backed out)
When to hold
1) Dividend yield is between 2X and 1X 10 year Treasuries2) Dividend payout ratio is still acceptable
3) No negative equity