Portfolio Update January 2015

The time has come for my monthly portfolio update. At the end of every month, I will update my portfolio and comment on any changes. I do that for accountability and also so you may glean some ideas on how I allocate my capital. You have the opportunity to learn from what I do well, so you can do the same, as well as what I do poorly, so you will not have to repeat my mistakes.

My Current Portfolio Holdings, as of February 2, 2015:

Ticker	$ Current Price	$ Cost Per Share	Shares Held	$ Market Value	% Weight	% Dividend Yield TTM
VWO	40.65	40.93	578.82	23,529.03	5.38	2.84
BDX	139.52	83.46	147.55	20,586.18	4.71	1.62
EXC	36.05	30.47	400.52	14,438.75	3.30	3.44
AFL	58.17	50.28	211.35	12,294.23	2.81	2.63
XOM	89.58	89.47	136.49	12,226.77	2.80	3.09
AZN	70.61	43.48	167.82	11,849.77	2.71	3.94
EMR	58.97	58.4	150.97	8,902.70	2.04	3.09
LMT	189.33	105.78	44.56	8,436.54	1.93	2.91
HPQ	36.47	18.63	220.13	8,028.14	1.84	1.73
MHFI	90.3	50.21	85.69	7,737.81	1.77	1.34
DV	44.01	22.12	167.07	7,352.75	1.68	0.83
BRK.B	146.73	106.78	49.76	7,301.28	1.67	0
NSC	104.03	76.6	63.16	6,570.53	1.50	2.18
BMTC	29.95	24.45	217.44	6,512.33	1.49	2.57
SAN	6.76	6.83	894.97	6,050.00	1.38	8.98
INTC	33.65	24.86	173.31	5,831.88	1.33	2.72
MOCO	17.25	14.78	335.9	5,794.28	1.33	2.59
PG	85.12	68.51	65.07	5,538.76	1.27	3.05
T	33.56	32.64	162.63	5,457.86	1.25	5.62
CHL	67.18	47.62	78.03	5,242.06	1.20	2.8
VALE	7.46	12.21	700.22	5,223.64	1.19	1.88
CVX	106.06	105.81	49	5,196.94	1.19	4.11
SON	44.43	35.69	113.85	5,058.36	1.16	2.87
PEG	42.61	34.19	116.91	4,981.54	1.14	3.47
VEA	38.65	31.26	126.04	4,871.45	1.11	3.65
WMT	85.71	69.52	56.28	4,823.76	1.10	2.26
VIG	79.48	59.94	60.37	4,798.21	1.10	2.02
APOL	25.56	19.08	187	4,779.72	1.09	0
UL	43.88	41.39	108.72	4,770.63	1.09	3.39
NUE	44.21	43.78	107	4,730.47	1.08	3.4
CINF	51.44	51.48	91	4,681.04	1.07	3.48
HCP	47.18	47.32	99	4,670.82	1.07	4.61
ED	69.46	69.92	67	4,653.82	1.06	3.64
MAT	27.91	33.01	166.72	4,653.16	1.06	5.65
ABBV	60.7	61.64	76	4,613.20	1.05	2.9
OGZPY	4.09	6.64	1,123.75	4,596.14	1.05	7.92
PEP	95.33	76.4	47.45	4,523.41	1.03	2.7
ESLT	62.39	36.52	70.54	4,400.99	1.01	2.04
MSFT	41.28	34.05	100.13	4,133.37	0.95	2.85
LUKOY	40.62	49.35	89.4	3,631.43	0.83	6.09
BAMM	2.6	3.53	1,396.15	3,629.99	0.83	0
CSX	33.68	20.93	107.76	3,629.36	0.83	1.89
YORW	23.58	19.83	153.58	3,621.42	0.83	2.44
MCD	92.51	95.95	39.08	3,615.29	0.83	3.55
HIMX	8.55	2.54	421.22	3,601.43	0.82	3.15
BCR	170.07	99.57	20.43	3,474.53	0.79	0.51
K	66.47	56.6	49.73	3,305.55	0.76	2.9
JNJ	100.83	62.31	32.67	3,294.12	0.75	2.76
GIS	53.07	43.65	60.99	3,236.74	0.74	3.13
SKM	28.6	13.14	110.61	3,163.45	0.72	3.48
DGS	44.1	45.22	67.87	2,993.07	0.68	3.13
RBCAA	23.32	21.06	118.05	2,752.93	0.63	3.23
AGNC	21.45	20.23	127.73	2,739.81	0.63	13.13
WBA	74.89	37.19	33.43	2,503.57	0.57	1.77
BBL	45.07	50.43	52.85	2,381.95	0.54	5.54
FNDE	23.46	25.57	100.85	2,365.94	0.54	1.38
CEO	136.22	150.98	17.28	2,353.88	0.54	4.97
BVN	11.35	10.25	205.5	2,332.43	0.53	0.3
BUD	123.2	108.41	18.91	2,329.71	0.53	2.67
VFC	69.3	64.94	33.11	2,294.52	0.52	1.6
PPL	35.9	30.67	63.52	2,280.37	0.52	4.2
BP	39.86	38.99	56.69	2,259.66	0.52	6.03
TOT	53.76	52.17	40.7	2,188.03	0.50	6.16
RDS.A	62.94	63.78	33.73	2,122.97	0.49	6.05
KO	41.59	41.49	50.61	2,104.87	0.48	2.96
LLY	71.69	36.64	28.7	2,057.50	0.47	2.72
NKE	91.92	86.04	21.51	1,977.20	0.45	1.08
SC	18.63	17.53	105	1,956.15	0.45	0.84
DO	32.86	34.19	59.2	1,945.31	0.44	1.59
TLSYY	25.72	14.9	72.99	1,877.30	0.43	5.03
TESS	22.21	12.05	83.76	1,860.31	0.43	3.53
PBR	6.41	8.98	285.38	1,829.29	0.42	0
PDLI	7.3	6.03	250.15	1,826.10	0.42	8.23
RYAM	17.02	27.12	106.33	1,809.74	0.41	0.82
PAYX	45.96	37.2	37.77	1,735.91	0.40	3.29
ESI	7.04	7.76	245	1,724.80	0.39	0
SGTZY	4.63	6.45	371	1,717.73	0.39	3.66
POT	36.96	29.1	43.49	1,607.39	0.37	3.83
TLK	44.07	32.17	36.14	1,592.69	0.36	3.16
HCBK	9.16	9.55	153.3	1,404.23	0.32	1.78
OIBR	2.03	4.41	682.3	1,385.07	0.32	0
HCN	81.95	61.93	16.56	1,357.09	0.31	3.88
SBRCY	3.86	6.18	346	1,335.56	0.31	8.05
CRC	5.21	4.94	255	1,328.55	0.30	0
CIG.C	4.57	5.08	278.66	1,273.48	0.29	8.52
OGS	44.89	36.09	27.93	1,253.78	0.29	1.9
PKX	58.36	65.75	21.12	1,232.56	0.28	3.28
MPC	93.94	21.91	12.96	1,217.46	0.28	1.99
MBT	8.34	10.74	142	1,184.28	0.27	15.02
PTR	110.9	105.41	10.3	1,142.27	0.26	4.31
SB	3.61	7.2	312.94	1,129.71	0.26	6.13
BCMXY	21	16.07	52	1,092.00	0.25	4.22
EZPW	10	9.15	109	1,090.00	0.25	0
STRA	68.11	48	16	1,089.76	0.25	0
PT	0.76	1.71	1,416.00	1,076.16	0.25	18.86
MRK	60.88	34.67	17.24	1,049.57	0.24	2.94
CTL	38.22	38.93	27.06	1,034.23	0.24	5.81
FTD	33.77	32.25	30	1,013.10	0.23	0
MDLZ	35.76	17.81	27.29	975.89	0.22	1.65
OAOFY	25.43	28.59	38	966.34	0.22	4.96
IBM	154.66	159.91	6.02	931.05	0.21	2.77
SBS	4.89	5.38	187	914.43	0.21	5.83
DTEGY	17.62	12.51	50.94	897.56	0.21	3.88
OJSCY	3.78	4.7	236	892.08	0.20	6.66
TLKGY	24.03	19.59	36.34	873.25	0.20	0
CIG	4.65	5.2	184.44	857.65	0.20
NAT	10.26	19.77	80.92	830.24	0.19	7.02
FSBK	8.19	4.52	100.29	821.38	0.19	1.25
MYTAY	6.54	13.18	124	810.96	0.19	0
GSH	24.76	18.91	31.59	782.17	0.18	2.18
MRO	27.9	18.81	27.04	754.42	0.17	3.01
MWE	60.51	20.51	12.08	730.96	0.17	5.94
SWRAY	13.56	11.44	53.32	723.02	0.17	3.2
CPLP	9.44	8.51	73.91	697.71	0.16	10.15
DYN	27.45	31.84	24	658.80	0.15	0
PNY	40.06	36.99	16.39	656.58	0.15	3.21
TSCDY	10.35	8	63	652.05	0.15	5.37
ITYBY	93.5	61.64	6.96	650.76	0.15	4.44
IDCBY	14.31	12.18	45	643.95	0.15	5.03
KRFT	66.21	32.58	9.58	634.29	0.15	3.29
AEO	13.96	12.14	45.3	632.39	0.14	3.56
BACHY	13.9	11	45	625.50	0.14	4.82
DRI	60.02	45.1	10.22	613.40	0.14	3.58
ISH	16.68	21.62	36.43	607.65	0.14	5.97
NGLS	47.12	16.44	12.28	578.63	0.13	6.99
PNW	70.25	43.27	8.19	575.35	0.13	3.31
CICHY	15.95	14	36	574.20	0.13	5.24
CLD	6.89	12.11	82	564.98	0.13	0
CRC	5.21	5.68	106	552.26	0.13	0
ABEV	6.5	6.01	84.6	549.90	0.13	3.34
TPUB	21	19	26	546.00	0.12	0.83
PB	47.84	45.43	11	526.24	0.12	2.17
NUS	43.09	40.5	12	517.08	0.12	3.37
SCL	39.42	38.46	13	512.46	0.12	1.8
HNNMY	8.09	6.55	61.56	498.02	0.11	2.7
EVEP	15.42	21.88	31.8	490.36	0.11	22.04
PM	81.63	82.25	6	489.78	0.11	4.84
VIAB	65.13	73.34	7.5	488.48	0.11	2
BFR	14.39	11.1	33.32	479.47	0.11	0.14
RAVN	21.72	22.6	22	477.84	0.11	2.33
APA	66.23	67.7	7	463.61	0.11	1.6
E	34.63	39.88	13	450.19	0.10	6.61
ICE	208.41	85.23	2.03	423.07	0.10	1.26
CQP	31.96	17.07	12.76	407.81	0.09	5.36
IAG	2.67	1.69	150	400.50	0.09	0
CACQ	7.68	10.5	48	368.64	0.08	0
POM	27.43	16.01	12.14	333.00	0.08	3.93
NTT	29.8	22.34	11.12	331.38	0.08	2.76
OPTI	0.55	2.32	600	330.00	0.08	0
LINC	2.54	13.34	119.13	302.59	0.07	6.92
IEMG	47.81	50.63	6.25	298.81	0.07	2.28
LGCY	10.54	15.14	27.98	294.91	0.07	24.95
LYG	4.42	3.24	50	221.00	0.05	0
ELNK	4.28	8.15	45.36	194.14	0.04	4.74
LC	19.26	15	10	192.60	0.04	0
QCCO	1.68	3.62	113.87	191.30	0.04	0
TGT	74.25	58.27	2.57	190.82	0.04	2.58
BND	84.08	79.73	2.22	186.66	0.04	2.46
KSS	61.44	54.67	2.74	168.35	0.04	2.61
AMC	28.28	18	5.56	157.24	0.04	2.13
BCS	14.27	14.83	11	156.97	0.04	2.96
WPG	17.51	17.59	7	122.57	0.03	4.41
CEL	5.01	27.86	23.13	115.88	0.03	0
MVC	9.47	9.03	11.69	110.70	0.03	5.7
VMI	121.24	119.8	0.84	101.84	0.02	1.14
ZA	0.51	1.7	118	60.18	0.01	0
BK	36.67	25.18	1.08	39.60	0.01	1.89
LPHI	0.21	6.69	130.1	27.32	0.01	95.19
HSY	104.06	96.49	0.26	27.06	0.01	2
GOOGL	532.2	544.78	0.05	26.61	0.01	0
BKS	23.81	8.7	1	23.81	0.01	0
ALN	1.09	2.11	15	16.35	0.00	0
BBEP	7.69	13.74	1.46	11.23	0.00	29.27
BPI	9.8	17.85	1	9.80	0.00	0
NUOT	0.3	0.5	10	3.00	0.00	0
				437,270.65	100.00	3.16

As of February 2, 2015 my portfolio contains 175 stocks, valued at $437,270.65. This is an increase of $112.47, or 0.03%, over portfolio value a month ago. 

My transactions in January are listed as follows:

Stock	Action	Cost	Price per share	Impact
STRA	Sell	(12,841.31)	69.04	-2.94%
LO	Sell	(6,523.96)	65.90	-1.49%
AGNC	Sell	(6,210.04)	21.79	-1.42%
RWEOY	Sell	(5,223.32)	26.65	-1.19%
EXC	Sell	(4,366.70)	37.64	-1.00%
TSCDY	Sell	(3,072.89)	10.67	-0.70%
PGN	Sell	(1,820.46)	2.25	-0.42%
EONGY	Sell	(1,108.12)	15.18	-0.25%
HSBC	Sell	(975.85)	46.47	-0.22%
PEO	Sell	(824.98)	23.57	-0.19%
TAXI	Sell	(382.94)	9.34	-0.09%
IAG	Sell	(278.99)	2.79	-0.06%
CVX	Buy	5,184.53	105.81	1.19%
XOM	Buy	4,888.32	90.19	1.12%
EMR	Buy	4,784.70	59.29	1.09%
CINF	Buy	4,684.68	51.48	1.07%
HCP	Buy	4,684.68	47.32	1.07%
ABBV	Buy	4,684.64	61.64	1.07%
ED	Buy	4,684.64	69.92	1.07%
NUE	Buy	4,684.46	43.78	1.07%
T	Buy	4,682.61	33.21	1.07%
SBS	Buy	1,006.38	5.38	0.23%
CRC	Buy	657.88	4.42	0.15%
IBM	Buy	600.00	150.00	0.14%
PKX	Buy	500.00	62.50	0.11%
SCL	Buy	499.98	38.46	0.11%
PBR	Buy	499.80	5.95	0.11%
PB	Buy	499.73	45.43	0.11%
RAVN	Buy	497.20	22.60	0.11%
CIGC	Buy	491.68	4.39	0.11%
OIBR	Buy	490.63	3.01	0.11%
AFL	Buy	200.00	59.17	0.05%
BDX	Buy	187.33	142.98	0.04%
FNDE	Buy	162.61	23.23	0.04%
BMTC	Buy	150.00	29.15	0.03%
YORW	Buy	123.34	23.37	0.03%
PNY	Buy	104.41	39.90	0.02%
MOCO	Buy	100.00	17.05	0.02%
NSC	Buy	100.00	106.50	0.02%
PEG	Buy	100.00	43.65	0.02%
VMI	Buy	100.00	119.76	0.02%
DGS	Buy	85.66	42.83	0.02%
LUKOY	Buy	66.28	43.19	0.02%
HPQ	Buy	35.01	40.12	0.01%
AGNC	Buy	27.81	21.83	0.01%
TOT	Buy	25.60	49.31	0.01%
PPL	Buy	23.42	36.31	0.01%
RBCAA	Buy	21.90	23.90	0.01%
PEP	Buy	16.87	95.56	0.00%
WMT	Buy	10.40	86.67	0.00%
MRK	Buy	7.70	62.60	0.00%
KRFT	Buy	5.23	65.95	0.00%
MDLZ	Buy	4.08	36.76	0.00%
ABEV	Buy	3.49	6.63	0.00%
POM	Buy	3.25	27.08	0.00%
ELNK	Buy	2.24	4.11	0.00%
PGN	Buy	1.86	4.51	0.00%
MVC	Buy	1.56	10.06	0.00%
ICE	Buy	1.32	220.00	0.00%
BBEP	Buy	0.12	4.80	0.00%
	Total:	6,748.47	Turnover:	11.52%

Net cash inflow was $6748.47 during this period. Factoring out the cash inflow, my portfolio lost 1.52% in January.

Turnover was extraordinarily high, as I decided to undertake a complete makeover of my IRA portfolio, as I sold most of my old holdings in stocks of dubious quality, such as Strayer (STRA), in favor of high yielding dividend aristocrats like Exxon Mobil (XOM). Although some of the stocks I sold have lower prices relative to earnings and assets compared to the replacements I bought, quality trumps quantity for me. I sleep better at night holding stocks with great business models and managements and that which I can comfortably hold for 10-20 years or longer. Thus, for my IRA, I now use a strategy to buy the dogs of the dividend aristocrats, the ten highest yielding stocks in the S&P 500 that have raised dividends every year for at least 25 consecutive years. I plan to do this once a year, making it low maintenance, giving me more time to do other stuff. 

The other purchases are in three categories: 

1. My monthly direct share purchase plans, currently in 13 stocks, as follows:

Stock	Monthly Investment
AFL	200
BDX	100
BMTC	150
EMR	100
EXC	200
MOCO	100
NSC	100
PEG	100
PNY	100
SON	100
VMI	100
XOM	200
YORW	100
Total	1650

2. Dividend reinvestment. I automatically reinvest all my dividends, to deploy my cash immediately and effortlessly, and also to maintain the same stake in each company I own, as a high dividend stock has less cash available for reinvestment compared to low or no dividend stock. The recordkeeping is a pain, but tolerable for now. If it ever gets too cumbersome, I will switch to have dividends paid in cash instead.

3. Random opportunistic buys. I focus on low P/E, low P/B value stocks, such as CRC, PKX. In addition, I am also beginning to focus more on high quality low dividend yielding stocks, preferably those with at least 10 years of annually increasing dividends. Stepan Co. (SCL) with a 1.8% yield and 47 consecutive years of increasing dividends is a good example. Low yielders help reduce my tax bill and hopefully can grow faster.

What do you think about my portfolio? Thanks for reading.