So let's see how this turns out.
Imagine we're attracted to JRT, but want some diversification. After all, we're investing a cool mil, don't want to take much risk.
So we pick five high income stocks:
CSE JRT NRF RAS RHY
Average yield, a cool 20%. We're gonna drag in $200k over the next year on our portfolio.
Portfolio holds $200k of each stock, based on Friday closing price. 20618 shares of JRT. Dividends will not be reinvested, need that $200k to maintain lifestyle in retirement.
I'll be reporting on the progress.
Take it as the bottom, or a sign of things to come.
RHY, the big loser of the portfolio at -33%, actually rises for the day.
RAS collapses at almost -10% on the day.
JRT about half that bad.
Portfolio down 4.36% on the day. Down 8.17% since it was purchased on 2 Nov. Looked cheap.
NRF is the only one in the money, +3.26 overall.
JRT just below even.
>Take it as the bottom, or a sign of things to come.
That turned out to be a sign of things to come.
Overall, $1M portfolio is down almost 25% since purchase in early November.
CSE 12.24 $152,241.12 Down 23.88%
JRT 8.24 $169,892.30 Down 15.05%
NRF 7.39 $178,719.76 Down 10.64%
RAS 5.64 $150,198.80 Down 24.90%
RHY 2.99 $103,104.17 Down 48.45%
- - - -
Total: $754,156.21 Down 24.58%
Don't look now, but the "diversified" portfolio went underwater yesterday, and lost more today.
Mostly due to continued weakness in RHY, down 22% since 2 Nov last year.
JRT and RAS are down, a bit.
CSE finally shows leadership. Up 6%, with NRF up 4%.
$1M on 2 Nov now worth $972,609.95
Not counting dividends, which probably make things about even.
RAS dividend (paid Friday) would have been $12250.00, which takes you halfway. The others would have more than made up the remaining difference, so the dividend is, in fact, our friend here.
You haven't reported in a while, so I thought I would. The portfolio is down a bit in the wake of RAS' ex-div fall, but JRT and others have picked up some of the slack such that we are still considerably in the green, at $1,104,045.73, a 10.41% return since Nov 2 and a 60+% annualized return.
CSE is up over $2.00 a share in that time. JRT is up nearly $3.00 a share over the same interval. NRF is up 74 cents a share at $9.37. RAS is up $1.52 to $9.03. Only RHY is currently showing a loss, down $1.16 since the model portfolio was created.
Cool. I was going to keep reporting, but on a slower basis.
By my calculation, it's even better (a tad).
The portfolio was created over a weekend, using closing prices from Friday. NRF went ex on Monday, meaning that they were already ex on the weekend. Thus, their price in the portfolio is reduced by .36, to $8.27 (24,184 shares).
JRT, up a whopping 31%, leads.
RAS, +20%, NRF, +13%, and CSE, +13% in the middle.
RHY, -20%, lags.
Overall: +11.35%, in less than two months.
I've made real money. I hope y'all have too.
+5.75% on Thursday.
RAS goes from $9 to $10.
Happy Days are Here Again.
Well, we have to ignore the fact that two positions remain underwater (RHY and JRT). But the whole portfolio is well on track: $1,125,287.29, or up 12.5% in just over a month.
Portfolio now back in the green, up $43,028.11 on the day.
NRF and RAS in a dead heat for leadership, up 9.5% over November.
JRT nearly flat, while the "relatively safe" CSE remains down 3.75% even after being up 6.8% on the day.
+2.59%. All green.
Short session is anything but listless for the distressed income stock portfolio.
All green all over. Portfolio nearly back to unch overall.
NRF up nearly 5% on the day, takes over portfolio leadership.
-2.44%. Six days in a row down.
RHY again leads downward, -4.9%, despite a 25%+ yield.
NRF was actually up 1.8% on the day.
RAS surrenders well over half of the gain it held yesterday.
Portfolio value: $959,532.58
In fairness, many real portfolios have done far worse. Perhaps most.
Well off of intra-day lows.
The race tightens up, with RAS giving up nearly half of its gains.
RHY continues to move upward, although still nearly 5% below purchase price.
-2.36%. Overall now red.
While creating the portfolio, I added CSE as a "balance" RHY, it appeared relatively strong while RHY seemed relatively week.
Today CSE slipped into last place in the portfolio (although JRT held that spot intra-day).
Portfolio value: $996,271.68