Tuesday, October 12, 2010

RSY XI: Update, Dividend NGPC

The Rock Solid Yields portfolio is recording a dividend from NGPC paid on last Friday, October 8. The model portfolio held 500 shares at 17 cents per share which figures at $85 deposit to the account. Let us look at a few tables to see how the RSY portfolio is doing. The first is a summary of transactions in account and running balance of account {assuming $100,000 to start with}. (Click on tables for clearer images.)

The next table is a summation as of close of markets today of RSY portfolio holdings as a broker might display.

Even though the market was up overall today, RSY had a loss for the day. Still it's looking good at over $2150 in total gains. The last table below provides us with average returns and profits per position in the RSY portfolio since inception.

The Lubrizol Corporation {LZ} is a large-cap stock in the Chemical Manufacturing industry and has a strongbuy recommendation from Sabrient Systems. There is a lot of good things to say about the company and the purchase would allow the RSY portfolio to diversify more. But with such a low dividend yield at 1.29% and volatile prices then it may be best to hold off for now on this selection. The day's price range was over $3 and dividend payouts have been 36 cents per-quarter. This goes to show that even good dividend paying stocks need to be cautious about entry and exit points. It would take over two years in dividends to pay for a single day's swing in prices. For now RSY will add LZ to its watch list.

Misc. Links:
These Dividends Are Bigger Than You Think

Your Best Shot at a Home Run Dividend Stock

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