SHYG - Rose's Income Garden 81 Stock Portfolio November Update: Green Value Of 3.65% And 6% Yield

2023-12-06 11:53:53 ET

Summary

• RIG is beating SPY over the last 2 years since its inception by 11.1% all the while paying income with a 5+% yield.
• Rising valuations for dividend-paying stocks continue, with RIG currently yielding 5-5.6% and has a 6% forward yield.
• In November, 28.4% of RIG's portfolio paid dividends, with no cuts or raises, and the portfolio is up 3.65% YTD without dividends.
• RIG has 81 stocks in various sectors and is considering adding a preferred share sector listing as it owns 8.

RIG

Rose's Income Garden, "RIG", had 81 stocks for November in the main 11 stock market investment sectors, and I am considering creating a preferred share sector, since RIG now owns 8. Last month, this October article addressed 3 major goals of investing in "Quality, Value and Dividend" paying stocks for "RIG" discussing how it works through credit ratings, using earnings values, dividend yield to aid with buying at good value.

Rising valuations for dividend-paying stocks are again emerging along with the market, thankfully. Valuation rising naturally will lower yield, so RIG now is currently at 5-5.6%% yield, but estimates are still for seeing a 6% forward yield, which I will continue to strive to maintain or do even better.

Portfolio Value

RIG is green for value, being up 3.65% YTD without dividends. It has been a slow pace and generally sideways, but collecting income has continued to be the main goal, and forward yield is estimated to be 6%. Value should also rise as the market continues to value dividend-paying stocks more. The preferred shares are also a very important positive for rising value and seem stronger for price heading to year-end.

Staying Defensive with the following listed sectors and the # of companies owned in each is shown in the chart below. It is a positive and stabilizing aspect for RIG and a part of its goals. There are 39 separate companies in the sectors listed and which I consider defensive. As mentioned, I am considering adding in 8 fixed/floating rated high-yield preferred shares to bring that total up to a total of 47 stocks.

The other sectors do offer other attributes that can be defensive, and lately, Energy and MLPs are certainly doing a great job of adding to income.

This is another reason diversity is important for my portfolio and its success.

November Dividend Income

23 of 81 companies or 28.4% of the portfolio paid, with 7 of those being monthly payers along with 1 special payment. There was 1 raise from Verizon to announce and happily no cuts and therefore not much to discuss as everything is relatively straightforward.

November Q4 dividends were almost the same as August Q4, but up 49% from July Q3, which was essentially equal to February Q2. To say it with more accuracy by halves: H2 dividend income was actually up 46.4% over H1 primarily, but not exclusively from adding income-paying companies for unused cash.

There were 5 new stocks and 2 monthly payers that were bought in Q3 to provide some of that rising income. Any transactions and changes were discussed at that time and in this article from Q2.

All payments are listed by date received in the following November dividend chart. RIG currently has ~5.1% yield and will have an estimated 6% forward 2024 yield. All of these November stocks, except the monthly payers, are done paying for 2023.

There are 2 changes in monthly payers. PennantPark Investment ( PNNT ) has started paying monthly changing from quarterly and SLR Investment ( SLRC ) has gone from paying monthly to quarterly starting this December.

Abbreviations used:

Day Rec'd = the month date on the day the payment was received.

$ div/share = US $ dividend per share received for the month.

Div % = % dividend yield using price and yearly dividend shown.

Curr $ Price = Current price in US $.

Summary/Conclusion

The portfolio is up 11.1%, without dividends, over SPY since its November 2021 inception and on December 1st precisely up 3.65% YTD. With dividends, it is up easily ~9%, thankfully and happily retaining value while traveling an income-providing voyage.

RIG Income is flowing with cash earning ~5.5% in 2 ETFs and happily in some HY preferred stocks as well. Portfolio construction with all 11 sectors allows for lower price movement and adds to solid income. The preferred shares are an excellent addition in the current rising rate situation. RIG has a newly added ETF and holds 82 investments to keep the portfolio growing with a 5+% current yield easily beating the SPY yield of 1.5% and estimated to have a forward 2024 yield of 6.0%. Future capital appreciation is expected as value dividend stocks become more attractive. RIG's goal is to continue to earn quality, safe, and steady income now and into the future.

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