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5%+ Dividend Yield Portfolio: Defensive Positioning Paying Off (Sep 2019 Review)

Published Fri, 04 Oct 2019 14:44:09 -0400 on Seeking Alpha

Musings
September was full of mixed signals. On one hand, the S&P 500 retested its all-time high (and I had a killer +4.5% month). On the other hand, the wall of worry for this long economic expansion has never seemed more daunting (trade wars, impeachment, earnings recession, etc).
As a pleasant change for those of us in the value/dividend space, September 2019 was the first time (in a long time) that value stocks really soared.

Source: S&P Dow Jones Indices
Personally, I expect defensive position outperformance to continue through this next phase of the market, which is why I have spent the summer pruning my portfolio to be more defensive. The market is always in a tentative position, but I feel that fear is starting to replace greed as the primary motivator of market participants. However, I do not expect total doom and gloom (at least not immediately) - so I am staying 80%+ invested (albeit in more defensive positions).
September 2019 Review
September 2019 was a solid one in the markets (despite swirling political headlines). For the month, the S&P 500 posted a 1.8% result which I crushed with a 4.5% gain. YTD, I am up 10.0% vs the 20.5% gains for the index (before dividends are considered). However, my 5.8% forward dividend yield on invested capital keeps crushing the less than 1.8% yield of the index.
As for cash yield, September 2019 rewarded me with realized dividends of $1,450 (versus $1,097 in 2018 - a meaty 32% increase - and... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
NEW RESIDENTIAL INVESTMENT 14.98   18.0 0.83 2.00 13.28
TRANSOCEAN 5.65   0.0 -1.98 0.00 10.34
TANGER FACTORY OUTLET CENTERS 16.50   21.4 0.77 1.42 8.35
SABRA HEALTHCARE REIT 22.49   204.4 0.11 1.80 8.28
IRON MOUNTAIN 34.14   28.4 1.20 2.44 7.29
BLACKSTONE MORTGAGE TRUST 36.16   14.5 2.49 2.48 6.94
OCCIDENTAL PETROLEUM 45.40   9.0 5.05 3.16 6.81
PACWEST BANCORP 38.27   9.9 3.86 2.40 6.49
BP 37.67   14.3 2.64 2.44 6.45
ABBVIE 70.83   26.0 2.72 4.28 6.28
AT&T 38.38   16.1 2.38 2.04 5.43
KINDER MORGAN 20.42   20.6 0.99 1.00 4.94
LYONDELLBASELL INDUSTRIES 83.78   8.8 9.53 4.20 4.94
PEOPLE'S UNITED FINANCIAL 16.06   12.3 1.31 0.71 4.52
CANON 27.08   17.7 1.53 1.20 4.51
GLAXOSMITHKLINE 41.03   18.4 2.23 1.83 4.47
IBM 143.62   14.8 9.68 6.48 4.47
ING GROEP 10.64   7.8 1.36 0.44 4.12
CARDINAL HEALTH 48.48   10.8 4.51 1.92 4.01
PFIZER 37.28   17.0 2.19 1.44 3.85
GILEAD SCIENCES 66.36   14.4 4.61 2.52 3.76
ISHARES DOW JONES INTERNATIONAL SELECT DIVIDEND INDEX FUND 31.06   0.0 0.00 0.00 0.00