My Income Portfolio YTD to June 2, 2017
Portfolio +7.83%
Current Portfolio-7 Positions
Recent Sales-NRZ-LMRK
Recent additions to UTF-MPLX
Average annual portfolio yield currently 7.51%
Income received in 2016 was 92% tax deferred
Portfolio Income received Year to date +36.7% over 2016 YTD (Partially due to Sale of ACAS in May 2016 with no dividend and purchase of ARCC with dividend and the rest to increased dividends) -ACAS and ARCC had announced a merger that finalized on Jan 3 2017- I opted to sell ACAS on the announcement and buy ARCC immediately for the dividends, instead of waiting
ARCC–15.8%
UTF–1.4%
ETE–12.0%
EVA–6.2%
GAB–21.7%
HASI–22.0%
MPLX–19.2%
Cash 1.7%
I live entirely off my portfolio (with minimal SS and no pension) and have been retired for almost 14 years. I’ve been fortunate so far, that the income has grown a lot faster than my expenses. The Portfolio growth comes from excess income generated above all my expenses which also include FED and STATE taxes-Gifts- Charitable Contributions
good luck to all
b&w
20 Likes
Hi buyandwin,
Could you explain the thought process behind your sales and buys? Why did you decide to sell what you did and buy what you did.
Thank you,
Andy
Hi Andy:
Could you explain the thought process behind your sales and buys? Why did you decide to sell what you did and buy what you did.
I had bought NRZ a few months ago, for the oversized income and the cheap price. In the interim time frame I did get a dividend increase and some share price appreciation but couldn’t get comfortable with it to add to my position even though I had been dripping the dividends. So I sold
I recently bought LMRK- Liked the business and the distribution-Dripped the increased distribution I received. Bought additional units. Then Management declared they were planning to do a restructuring
https://seekingalpha.com/filing/3574208?app=1&uprof=46
They issued the proxy on May 31. I read all 37 pages of it, and I sold it all on June 2. Basically they wanted to get an approval to put in a poison pill to limit the unitholders rights and also limit unitholders with trust accounts. --So I sold
UTF is a CEF (Closed end fund) pays dividends monthly. I hold it in an IRA and drip the monthly dividends into additional shares. It is an Infrastructure fund and has been doing well and I would add even more, but have no cash available in the IRA to do so at the present time
MPLX is an MLP This is an outgrowth from an original position in MWP in 2003 which was merged into MWE somewhere in 2007 and then merged in 2015 into MPLX. And I have been living off the income from this MWP-MWE-MPLX all these years. And I have bee buying additional units all these years. MPLX is selling at $33.04 and raising the tax deferred distribution every quarter since they went public in 2012. Value Line projects a selling price in 3 to 5 years of $70. In a bullish market I believe it could sell for more. MPC (Marathon Petroleum Corp) is the General partner and they are in the considering merging with MPLX- When that happens the opportunity exists for a repeat of the MWP-MWE bonanza that occurred 10 years ago.
I am also dripping the Dividends/distributions of my 3 other largest positions-ARCC-GAB-HASI all three of them have declared regular dividends/distributions and are expected be paid in Mid June to Mid July.
good luck
b&w
3 Likes
Hi b&w,
I’m one of the few who have encouraged you to continue to post on this board even though Saul has rightly suggested that there other more appropriate boards for your posts.
But I do wish, if you elect to continue to post here that you provide company names rather than just tickers. I don’t know any of the tickers you posted, don’t know what they do, have not a clue why you think these are any better than any others, have no idea what motivates your transactions.
In other words, your posts are pretty cryptic to the uninitiated. I’m sure I’m not the only one who is interested in your strategy and methodology, but you are not terribly forthcoming in describing it.
14 Likes
Thanks Buyandwin,
I like to see your thought process. Appreciate it.
Andy
Hi Brittlerock:
But I do wish, if you elect to continue to post here that you provide company names rather than just tickers.
In other words, your posts are pretty cryptic to the uninitiated. I’m sure I’m not the only one who is interested in your strategy and methodology, but you are not terribly forthcoming in describing it.
You ask for my strategy and methodology and I have discussed this many times.
My portfolio has evolved over the years to where it is now, by taking the hodge podge of what I had years ago and relentlessly upgrading it. That means selling underperforming stocks in the portfolio and adding to the winning stocks in the portfolio. And be willing to add to large positions for larger gains. Yes, mistakes will sometimes be made, but by eliminating the losers the portfolio will increase in value. What my portfolio was then and what it is now, is last years news and won’t help anyone make more money in the future. What has made me money and I believe could make you money is the “strategy and methodology” outlined in this paragraph. I will repeat it one more time ----My strategy and methodology is IMHO simple. To get better results I upgrade my portfolio, and to make it easy I sell losing stocks currently in my portfolio and add to winning stocks currently in my portfolio.
What you appear to be missing–Is that my portfolio is “No Big Deal”-I never said anyone should sell their portfolio and buy mine. I did say that to increase your own portfolio the easiest and best way IMHO is to sell losers and add to winners -In Your Own portfolio with your own stocks that you know
I don’t know any of the tickers you posted, don’t know what they do, have not a clue why you think these are any better than any others, have no idea what motivates your transactions.
I can give you the Tickers again. I can give you the names again. I can tell you what they do again–And I can tell you again my stocks are no better than what are probably sitting in your own portfolio. If you are satisfied with your results—Do nothing–If you aren’t. then you probably should think about upgrading your portfolio.
I can also tell you what motivates my transactions—Fear and Greed
Look at your own portfolio for underperformers and pick the worst and sell it–Use the proceeds of the sale to add to your best security you currently own in your portfolio. Having the courage to think outside the box like that and doing it, will immediately improve your portfolio’s performance. If you have no losers then you are doing fine. Obviously there are other refinements–But the Number 1 basic step is upgrading.
b&w
15 Likes
Thanks for sharing the contents of your portfolio. Doesn’t the YTD movement in MPLX cause you any concern being such a sizeable element in your portfolio and the energy industry pricing power being what it is?
You can find other posts by Buy and Win by simply opening a current post and clicking on his name and you will get a list of his prior posts (same with any other author). He has put the information you are asking for on several boards on several different occasions. Not hard to find…it’s much easier than using the search box.
Hi Fireblade:
Thanks for showing an interest in my portfolio.
Doesn’t the YTD movement in MPLX cause you any concern being such a sizeable element in your portfolio and the energy industry pricing power being what it is?
No. In fact I just bought a few more units on May 31 at $33.31. MPLX LP (Name-MPLX Symbol) came to me as the result of two previous mergers–I started buying MWP (MarkWest Hydrocarbons)in 2004 and kept buying until it was merged into MWE (MarkWest Energy) in 2007 and bought through the the 2009 energy meltdown as they continued to pay the distributions which had reached the 40+% level and they continued paying and when the world didn’t end in 2009 the price rose and the distributions resumed increasing. In 2014 when the energy crisis hit MWE merged with MPLX who is the MLP of Marathon Petroleum Corp (MPC) About 15% of the merger was paid in cash triggering a large tax bill (That’s why I hate Capital Gains) and the 85% balance was a tax free exchange(I love tax free exchanges)
The following is the link to the MPLX Press Release distribution increase announced on April 26, 2017. If you read it through you will notice that it is the 17th consecutive distribution increase which dates back to their IPO In October 2012. IMHO this is the backbone of wealth creation. Nobody sees it and nobody cares and you can buy all you want at dirt cheap prices with tax deferred distributions because nobody wants it
Sorry-They will not permit the link to be included in the message
To answer your question–
Who should I believe–Management who knows all the inside doings of MPLX that just raised the distribution for the 17th quarter in a row, or my fellow unitholders that are selling MPLX into the trash bin because they believe the world is ending----again—This is the 4th time the world is ending since 2000.
Another important, but unknown piece of information— In 2015 MPLX had been increasing the distribution rate at a $0.03 per quarter rate when the financial meltdown hit. They were in the middle of the merger with MWE and both were in the middle of building out about $5B worth of infrastructure growing their businesses. That’s why MWE merged with MPLX who is sponsored by Marathon Petroleum corp (Deep Pockets) MPLX continued increasing the distribution but at only at a $0.005 per quarter rate instead of $0.03 per quarter. That caused the collapse in price in early 2015. The April 16 PR announced a $0.02 quarterly increase up from $0.005 per quarter in the past year. In 2016 they paid a total of $2.05 and the current guidance they gave is for a 12% to 15% increase for 2017 (12% is $2.296) and a double digit increase in 2018 (10% would be $2.525) So management is increasing the distribution at double digit rates and my fellow unitholders are selling cheaper and cheaper. Right now I tend to vote in favor of management’s outlook
Value Line’s long term price projection to 2020-2022 is $70
P.S. If you have a concentrated portfolio you would tend to have a sizeable size position in stocks. I have found that gives me more time to study the few I do have to get to know more of what I own to feel more confident in the positions I take.
Thanks for the question-I hope I answered it to your satisfaction
Best regards
b&w
2 Likes
Thanks for the elaborate response. It also served to substantiate your strong conviction. Much appreciated
1 Like