DavidLeshem
RIG = Rose’s Income Garden
Rose’s Income Garden (“RIG”) is a defensive income-quality value-built portfolio with 82 stocks coming from all 11 sectors. RIG contains investment-grade common stock but also has high yield (“HY”) business development companies (“BDCs”) and real estate investments. The goal is to maintain 50% of the income from defensive sectors/ stocks and to keep a minimum dividend income yield of 4% or more which is currently 5.7%.
September
A big red ridiculous month for reduction in stock values that hopefully will not repeat in October which usually tends to be a green month.
RIG Portfolio Income/Splendid September Dividends
September is one of my favorite months for the splendid dividend payments. 46 out of 82 companies/ or 56% of the portfolio paid, of which 4 are monthly and there were 8 raises. The stock ticker is in bold for the raises along with more discussion in the comments.
The chart below uses the following abbreviations:
Date Rec’d = Date payment received
Div/sh = Dividend per share paid.
Yearly $ Div = Current yearly estimated known dividend payment
Div % Yield = dividend yield calculated using the current shown price and yearly known dividend
Curr Price is for the end of the day market price Oct 5th.
| Stock | Stock | 2022 | div/sh | Yearly | Div% | Other Dividend | Oct 5th |
| Ticker | Name | date | $ Div | Yield | Comments | Price | |
| (PFLT) | PennantPark Float | 1 | 0.095 | 1.14 | 11.21% | Monthly Pay | 10.17 |
| (ENB) | Enbridge | 1 | 0.6532 | 2.71 | 6.96% | exchange rate adj. | 38.93 |
| (V) | Visa | 1 | 0.375 | 1.5 | 0.80% | 187.67 | |
| (WEC) | WEC Energy | 1 | 0.7275 | 2.91 | 3.21% | 90.56 | |
| (SLRC) | SLR Investment | 1 | 0.1367 | 1.64 | 12.44% | Monthly Pay | 13.18 |
| (CMI) | Cummins | 1 | 1.57 | 6.28 | 2.80% | Raise from 1.45 | 224.36 |
| (KGC) | Kinross Gold | 1 | 0.03 | 0.12 | 3.05% | 3.93 | |
| (PTMN) | Portman Ridge | 2 | 0.63 | 2.52 | 12.46% | 20.23 | |
| (SO) | Southern Co | 6 | 0.68 | 2.7 | 3.93% | 68.73 | |
| (JNJ) | Johnson & Johnson | 6 | 1.13 | 4.52 | 2.74% | 165.11 | |
| (LYB) | LyondellBasell | 6 | 1.19 | 9.9 | 12.24% | 80.89 | |
| (ZIM) | Zim Integrated Shipping | 8 | 2.85 | 19.85 | 79.18% | varies/25% tax | 25.07 |
| (MAC) | Macerich | 8 | 0.15 | 0.6 | 6.96% | 8.62 | |
| (AMGN) | Amgen | 8 | 1.94 | 7.76 | 3.32% | 233.82 | |
| (SBLK) | Star Bulk Carriers | 8 | 1.65 | 6.6 | 34.02% | 19.4 | |
| (XOM) | Exxon Mobil | 9 | 0.88 | 3.52 | 3.55% | 99.12 | |
| (WBA) | Walgreens BA | 9 | 0.48 | 1.91 | 5.76% | Raise from .4775 | 33.16 |
| (TGT) | Target | 10 | 1.08 | 4.32 | 2.76% | Raise from .90 | 156.41 |
| (DNP) | DNP Select Inc Fund | 12 | 0.065 | 0.78 | 7.52% | Monthly Pay | 10.37 |
| (CVX) | Chevron | 12 | 1.42 | 5.68 | 3.58% | 158.53 | |
| (AZN) | AstraZeneca plc | 12 | 0.465 | 1.49 | 2.63% | ADR pays 2x year | 56.73 |
| (MMM) | 3M | 12 | 1.49 | 5.96 | 5.17% | 115.17 | |
| (MGEE) | MGE Energy | 15 | 0.4075 | 1.63 | 2.43% | Raise from .3875 | 66.96 |
| (HSY) | Hershey | 15 | 1.036 | 4.144 | 1.84% | Raise from .901 | 225.09 |
| (AEM) | Agnico Eagle Mines | 15 | 0.4 | 1.6 | 3.60% | 44.43 | |
| (TAP) | Molson Coors | 15 | 0.38 | 1.52 | 3.14% | 48.46 | |
| (GOLD) | Barrick Gold | 15 | 0.1 | 0.6 | 3.77% | last was 20c | 15.9 |
| (HD) | Home Depot | 15 | 1.9 | 7.6 | 2.62% | 289.85 | |
| STWD bond | Starwood bond | 15 | 2.375 | 4.75 | 4.75% | fixed pay 2x/yr | 100 |
| (VTRS) | Viatris | 16 | 0.12 | 0.48 | 5.23% | 9.18 | |
| (DUK) | Duke | 16 | 1.005 | 4.02 | 4.28% | Raise from 0.985 | 94.02 |
| (MCD) | McDonald’s | 16 | 1.38 | 5.52 | 2.31% | Raise next Q | 239.09 |
| (D) | Dominion Energy | 20 | 0.6675 | 2.67 | 3.87% | 69.01 | |
| (SHEL) | Shell plc | 20 | 0.5 | 1.98 | 3.67% | 54.02 | |
| (NEM) | Newmont Mining | 22 | 0.55 | 2.2 | 5.01% | 43.9 | |
| (TRTN) | Triton | 22 | 0.65 | 2.6 | 4.52% | 57.57 | |
| (KHC) | Kraft Heinz Co | 23 | 0.4 | 1.6 | 4.72% | 33.89 | |
| (LMT) | Lockheed Martin | 23 | 2.8 | 11.2 | 2.78% | Raise next to $3 announce | 402.51 |
| (ARCC) | Ares Capital | 30 | 0.43 | 1.8 | 9.98% | Raise from 0.42 | 18.04 |
| ARCC/S | Special Ares Capital | 30 | 0.03 | 3c Spec = 46c total | |||
| (AVGO) | Broadcom | 30 | 4.1 | 16.4 | 3.38% | 484.8 | |
| (UNP) | Union Pacific | 30 | 1.3 | 5.2 | 2.59% | 200.62 | |
| (TCPC) | Blackrock TCP Cap | 30 | 0.3 | 1.2 | 10.47% | 11.46 | |
| (SPG) | Simon Prop Group | 30 | 1.75 | 7 | 7.31% | Raise from 1.70 | 95.77 |
| (PEP) | PepsiCo | 30 | 1.15 | 4.6 | 2.77% | 166 | |
| (NMFC) | New Mountain Finance | 30 | 0.3 | 1.2 | 10.04% | 11.95 | |
| (ARDC) | Ares Dynamic Fund ETF | 30 | 0.1025 | 1.23 | 10.18% | Raise from .0975 | 12.08 |
| monthly payer |
Dividends were actually up 10.4% from June Q2 if the huge LYB $5.20 special dividend paid then is subtracted.
CareCloud (MTBCP), a monthly payer and as mentioned in the August Update article was sold. That sale made the total less and took RIG down to now 4 monthly payers.
On the plus side, STWD bond and AZN that only pay 2x each year contributed this month.
8 companies paid on the 30th which helped end the month of September on a nice $ green note.
Raises- 9
Cummins
– 8.27% raise. With a yield of 2.8% it passes the inflation test this year, at least for me.
– S&P credit rating of A + in the industrial sector, along with a 7% 5yr. DGR.
Walgreens BA
– 0.5% dividend raise says quite a lot about this consumer staple company. It – BBB credit rating, but most definitely is struggling.
– 5.7% yield on a very much lower price keep me from selling it.
Target
– 20% raise from a retail consumer staple company is amazing and totally accepted. However its earnings will struggle into 2023, so its price is getting very attractive with a yield of 2.8% rises.
– S&P credit rating of A.
Madison Gas & Electric
The name above is as I remember it and first started owning it. It’s now called MGE Energy.
– 5.16% raise is extremely welcome from this quite small electric utility operator in the state of WI. No credit rating, but has a solid 4.7% 5 yr DGR.
Hershey
– Chocolate consumer staple company with 1.8% dividend yield.
– Dividend growth is normally around 7.3%, but this last raise was 15%.
– Probably a bit very overvalued, but a small core position for RIG.
– S&P credit rating of A
Duke Energy
– 2% raise was rather meager, but probably in line from the 5yr DGR of 3%.
– S&P credit rating of BBB+
– 4.1% yield keeps it in the portfolio. It was quite overpriced for some time but it and many of the utilities are falling in price and rising in yield.
Ares Capital Corp
– Business Development Co/ BDC with a quality S&P credit rating of BBB-.
– 2.3% raise is always welcome from a HY 9%+ company. Note it is also paying a special dividend and has done so each quarter this year and plans on doing so in Dec as well.
Simon Property Group
– Real estate retail trust that is slowly raising its dividend. This is the second raise this year giving it a HY of 7+%.
– S&P credit rating of A-
Ares Dynamic Allocation Fund
– CEF/ closed end fund investing in fixed income markets of mostly Europe. It also invests in high yield mostly short duration lower investment grade loans making it somewhat risky.
– Pays monthly
– Raise was .005c = 5.1% raise, a positive sign to me. Caution is still advised with owning this high yield 10% payer.
September Transactions
Sales -6
Silver and gold valuations have been awfully disappointing and don’t seem to improve. This was a difficult decision, but I decided to add to the cash position for the portfolio, taking losses by selling the following:
– KGC / Kinross Gold
– AEM / Agnico Eagle Miner
– SILJ/ Junior Miner Fund ETF
I am retaining 2 gold miners as yet.
STOR / Store
This triple net real estate trust is one I just bought this year and gave a trading alert to buy in The Macro Trading Factory service. But, it announced a buy out at $32.25. The price rose to that almost immediately, so I sold and collected nice gains while so many other stocks are falling in price. It is now selling for less, but folks can collect the last dividend that equals the price where I sold. Bye bye Store, I am sad it gone as it showed nice potential.
AZN / AstraZeneca plc
This is another sad story in a way, as it is foreign held and pays only 2x per year. The ADR structure taught me a lesson in that I misunderstood the dividend pay amounts. It does have some capital gain potential. However, it was sold after the dividend ex-date this past month. Nothing happens with dividend payments again until next year. The cash was added to RIG stash.
MMM / 3M
Yes, 3M. Wow, I even say that to myself. I was extremely slow to realize how much it was struggling and should have known when it only raised the dividend by a measly 1c/q for this year. It has 2 separate product lawsuits that are weighing heavily on it and me too. I do believe one day it might be a good one to own again. The yield at its horribly low price is a historic 5.4%, with earnings that look to be flat for some time. More cash added to RIG.
Add On- 1
ARDC
Ares Dynamic Allocation Fund, a CEF/ closed end fund got added to when it announced its raise. More information is found in the raise section of this article.
Summary and Conclusion
The goal of RIG is first and foremost income, but retaining value is also important.
It also is important to know when an investing strategy has failed and to bail out to retain cash and to move to better lucrative investing positions.
The Rose portfolio/ RIG continues to outperform SPY by double digits, has a 5.7% dividend income yield along with 9.8%+ cash.
RIG contains quality low debt/high credit rated companies which is a primary goal along with safe rising income. The search continues for more dividend growers with a “WTB” /want to buy list of Non-RIG stocks is available for subscribers to follow. Buy under prices and a deep value buy price is provided for those and all 82 stocks in RIG.
The goals and specifics for candidate RIG stocks include the following:
– quality rated dividend-paying stock.
– undervalued, but can be at fair value if extra quality such as a wide moat.
– low debt/great investment grade credit rating.
– pay out and cash flows to easily cover the dividend along with a rising dividend growth rate.
– defensive in nature with products or services I understand and can easily follow.
The market is still too volatile and weak to consider adding new positions currently, however the WTB list will always be waiting for when the right time comes. Cash should be king and therefore my actions are very much in line with preserving it and collecting dividends, currently at ~9.3% in RIG. With an established quality dividend portfolio like RIG, I am confident it will ride the valuation roller coaster while the dividends/income continue to flow in as expected using the quality expectations and goal/s mentioned.
Happy Investing to all.
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