Last night I posed the question on what I should do with cash going forward. Obviously one part of answer is to always have a decent sized chunk of cash for unexpected opportunities. But for the bigger part of my question, I think I will re-visit an idea I had a few months ago: a mash-up of dividend/mfi. I have stated many times that dividend paying MFI stocks have done very well. So my idea is to start a tranche of dividend/MFI stocks. I will track them in aggregate in my dividend portfolio. The intent will be to hold at least a year and to buy and sell them as a portfolio.
I did play around with a first cut: PBI, RFIL, NOC, INTX, PETS and EBIX. That would yield about 4.3%. I am just screwing around a bit with the idea. My intent would be to wait for a material pullback. The cash is not burning a hole in my pocket, so I want to be opportunistic about my entry point.
MFI Tracking Look Ahead
I have mentioned several times recently how well my MFI portfolios are doing. I thought it might be fun to take a sneak-peek at the September 28th 2012 MFI tracking portfolio. It is a breakaway! That portfolio is up 39% versus about 24% for the R3K. So all of us MFI investors do have a nice tailwind right now. I do not think it is about stock picking.
Otherwise, Happy Friday everyone. I am in Pennsylvania today, but head back home this evening.
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