Wednesday, August 15, 2012

Testing The Water

Back Into Using MFI

As I mentioned earlier today, after a year hiatus, I am re-starting Magic Formula Investing with a clean slate.  My approach will be 5 stocks to be bought a quarter, hold for a year, then rinse and repeat.  I promise not to meddle and my focus (this time) will be on stocks at least 500m in market cap... I fell in love too much last time trying to hit home runs.  I will also stay with my dividend portfolio, which has worked very well.

Here I am after day 1












Stock Start Current Dividend Pct Gain R3K Gain
DLB $34.43 $34.54 $0.00 0.3% 0.0%
KFY $13.98 $14.14 $0.00 1.1% 0.0%
MSFT $30.19 $30.20 $0.00 0.0% 0.0%
NSU $3.62 $3.58 $0.00 -1.0% 0.0%
UIS $19.96 $20.47 $0.00 2.5% 0.0%
Totals $20.43 $20.58 $0.00 0.6% 0.0%

Always nice to be off to a good start!

Dividend News

Tomorrow, two of my stocks go x-dividend:  CPL and PRE.  I jut noticed CPL as it was mentioned in this article (The Best Dividends On August 16, 2012).  The CPL dividend is a drop from 2011... probably explains the stock price decline. Still, I think having a foreign utility that pays a decent dividend (6.5%) in a growing economy is a good part of diversification.  I have no trouble buying some additional shares with my re-purchase at a lower price.

CSCO Skyrockets

 CSCO is the third biggest holding in my entire portfolio (slightly behind PRE and ENH).  I had added some shares this quarter as they sold off after a so-so quarter in May. So it is safe to say I was thrilled after the closing bell this evening to read they had solid earnings AND are increasing annual dividend from 32 cents to 56 cents (a 75% increase, 2nd increase of the year and a 3.2% yield) in their press release (Cisco Dividend Boost Signals Maturing Player; Profit Rises).  They were trading up over 5% during happy hour this evening.  We'll see what happens tomorrow, but I may be drinking some champagne.

Even without tomorrows hopeful CSCO pop, my divvy portfolio is doing quite nicely thank you, up over 16% ytd and has a 14% annual internal rate of return since I started tracking in Dec 2010.


Stock Shares Avg Cost Current Price Dividends Received Pct Change R3K Change Diff
BHK          3,009      12.60        14.74         2,667 24.0% 4.5% 19.4%
CPL          1,530      22.61        23.65            877 7.1% 15.7% -8.5%
CSCO          4,230      17.19        17.35            825 2.1% 5.0% -2.9%
CSQ          5,330        8.23        10.06         3,739 30.8% 20.2% 10.6%
ENH          2,000      34.80        36.90              -   6.0% 2.8% 3.2%
FCX          1,021      37.55        34.76            749 -5.5% 9.0% -14.5%
FSC          2,702        9.78        10.44         1,011 10.5% 3.0% 7.5%
HFC          1,069      33.80        39.92         1,117 21.2% 1.7% 19.5%
INTC          1,302      19.74        26.27         1,559 39.1% 22.1% 17.1%
JPM          1,661      35.18        37.07            494 6.2% 4.9% 1.3%
JQC          4,751        8.87         9.42         4,052 15.9% 7.0% 8.8%
KMF          1,817      21.86        27.89         2,847 34.7% 16.6% 18.2%
KSS             629      48.15        51.03            199 6.6% 3.3% 3.3%
KSW        13,673        3.78         3.85         6,633 14.7% 19.6% -4.9%
LNC          2,442      24.30        23.60            789 -1.6% 14.7% -16.3%
MPC             579      43.89        49.72            343 14.6% 2.6% 12.1%
MSFT             966      26.83        30.20         1,267 17.5% 14.0% 3.5%
O             548      19.01        40.60         7,048 181.2% 66.8% 114.4%
OIBAX          3,837        4.90         6.44         6,273 64.9% 66.7% -1.8%
PGR          2,000      20.48        19.88              -   -2.9% 3.4% -6.3%
PRE          1,023      61.86        74.24         1,552 22.5% 9.2% 13.3%
PVD             417      64.11        88.10         2,737 47.7% 16.8% 30.9%
SAI          3,925      13.06        12.05            821 -6.1% -0.6% -5.5%
STO          1,040      23.82        25.14         1,121 10.1% 18.5% -8.4%
TROX          2,023      24.12        24.90            500 4.2% 3.1% 1.2%
VIVHY          2,296      16.70        19.21         3,749 24.8% 2.0% 22.8%
WBK             508    105.89      124.84         6,166 29.4% 14.5% 14.9%
XOM             224      52.79        88.00         1,211 76.9% 20.6% 56.4%








Total Open

       60,346 16.5% 10.5% 6.0%
Closed



8.3% 4.6% 3.7%
Combined


11.6% 7.0% 4.6%
IRR Since 12/31/10


13.9%

2012 Gain


16.4%

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