Wednesday, June 15, 2016

More changes to my DSP/loyal3 investment plan

Hardly has a few days been past, and I am already making more changes on top of changes I made recently (see this post). Specifically, I bemoaned the paucity of healthcare stock exposure and went searching for additional stocks in which I could invest a fixed dollar amount without fees. I was not disappointed to find this website which offered two high quality healthcare stocks, Novartis (NVS) and Sanofi (SNY), as no-fee DSPs. So I initiated $200 in NVS and $100 in SNY monthly. Due to these additions, I could also increase investment in KO to $200/month, without the Staples sector exceeding 20% of total portfolio. KO is the highest rated stock in my plan and, without a doubt, deserves investment at the highest rate possible. Below is my current, updated DSP/loyal3 investment plan:

TickerRatingDGIDiscount?Shiller P/EYieldMonthly InvestSectorSector TotalSector Percent
NVSA1DN16.093.54%$200.00Healthcare
$400.00
11.43%
SNYA2DN19.714.36%$100.00Healthcare
BDXB+2AN32.001.56%$100.00Healthcare
WMTA1AN15.892.82%$200.00Staples
$700.00
20.00%
KOA+1AN25.303.11%$200.00Staples
BUDA+2CN24.613.28%$100.00Staples
PEPA1AN25.742.92%$100.00Staples
ULA2DN22.453.30%$100.00Staples
XOMB+1AN12.203.32%$200.00Energy$200.005.71%
BRK.BA+2DN22.860.00%$200.00Financial
$500.00
14.29%
AFLB3AN13.642.40%$200.00Financial
NNNDAY31.123.67%$100.00Financial
INTCA2DN17.703.24%$100.00Tech
$300.00
8.57%
MSFTA2BN23.002.89%$100.00Tech
MOCODDN22.323.09%$100.00Tech
EMRA2AN17.043.65%$200.00Industrial
$500.00
14.29%
NSCA2BN16.552.85%$150.00Industrial
VMIDBN21.441.13%$150.00Industrial
SJIDBY21.223.50%$150.00Utility
$350.00
10.00%
EXCB2DN10.563.76%$100.00Utility
YORWDBY39.682.04%$100.00Utility
VFCA+2AN30.802.39%$150.00Discretionary
$450.00
12.86%
NKEA+2BN42.271.18%$150.00Discretionary
MCDA2AN26.412.91%$150.00Discretionary
SONC2AN22.213.14%$100.00Material$100.002.86%
Total20.672.74%$3,500.00$3,500.00100.00%
Rating$%DGI$%
A$2,20063%A$1,70049%
B$60017%B$80023%
C$1003%C$1003%
D$60017%D$90026%
Total$3,500100%$3,500100%

Overall, I think this is a significant improvement over the old plan, for several reasons:
1. Monthly investment is now at $3500 a month, a 13% increase to the old level of $3100.
2. Quality has improved. Weighted percentages in rating A:B:C:D is now 63:17:3:17. Old allocation was 50:27:3:19.
3. Dividend champions is now 49%, almost half, of portfolio.
4. Exposure to Healthcare sector, a high growth and defensive sector, is increased.
5. Yield is unchanged, while Shiller P/E decreased.

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