For our 'Sleeping Soundly Portfolio,' a relatively restful year | The Rational Investor
The year 2022 was a nightmare for investors. When they review their annual brokerage statements, they may see their U.S. stock portfolios down about 18% in line with the S&P 500 (including reinvested dividends). The performance of my “Sleeping Soundly Portfolio” was significantly better due to its core of high-quality dividend-paying stocks.
The $120,000, 12-stock equally dollar weighted portfolio was designed to have both lower volatility and total returns (capital appreciation plus non-reinvested dividends) that are in line but may slightly lag the S&P 500 when it rises but perhaps outperform it when it falls significantly.
I track this portfolio on a quarterly basis assuming no reinvestment of dividends and no voluntary changes. The stocks were “purchased” at their 2021 closing prices. Caveat: Investors should do their own due diligence before selecting any security.
For 2022, the portfolio was down 12.3% to $105,200. This included $2,706 of non-reinvested dividends.
The portfolio:
• American Tower (AMT) is a real estate investment trust in the communications area. Its 2021 closing price was $292.50 and its 2022’s was $211.86. Its indicated dividend is $6.24.
• Apple (AAPL) is a company that manufactures electronics and provides services. Its 2021 closing price was $177.57 and its 2022’s was $129.33. Its indicated dividend is $0.67.
• Blackrock (BLK) is an investment manager. Its 2021 closing price was $915.56 and its 2022’s was $708.63. It’s indicated dividend is $19.52.
• Caterpillar (CAT) sells construction and mining equipment. Its 2021 closing price was $206.74 and its 2022’s was $239.56. Its indicated dividend is $4.80.
• Cisco Systems (CSCO) designs and sell internet networking systems. Its 2021 closing price was $63.37 and its 2022’s was $47.64. Its indicated dividend is $1.52.
• General Dynamics (GD) is an aerospace and defense company. Its 2021 closing price was $208.47 and its 2022’s was $248.11. Its indicated dividend is $5.04.
• Intel (INTC) develops and manufactures computer chips and related technologies. Its 2021 closing price was $51.50 and its 2022’s was $26.43. Its indicated dividend is $1.46
• JPMorgan Chase (JPM) is a worldwide financial services company. Its 2021 closing price was $158.35 and its 2022’s was $134.10. Its indicated dividend is $4.00.
• Packaging Corporation of America (PKG) makes container products. Its 2021 closing price was $136.15 and its 2022’s was $127.91. Its indicated dividend is $5.00.
• Penske Automotive Group (PAG) is a diversified transportation services company. Its 2021 closing price was $107.22 and its 2022’s was $114.93. It’s indicated dividend is $2.28.
• Pfizer (PFE) is in the biopharmaceutical business. Its 2021 closing price was $59.05 and its 2022’s was $51.24. Its indicated dividend is $1.64.
• Williams Sonoma (WSM) is a retailer in the specialty home business. Its 2021 closing price was $169.13 and its 2022’s was $114.93. Its indicated dividend is $3.12.
(Disclosure: My family owns AAPL, AMT, BLK.)
Note to Readers: I will be presenting a free interactive workshop hosted by Dow Wealth Management, titled “Explanation of Investment Strategy,” at the Sarasota Yacht Club on Feb. 1 from 1:30-3:30 p.m. For reservations call 800-734-7171.
All data and forecasts are for illustrative purposes only and not an inducement to buy or sell any security. Past performance is not indicative of future results. If you have a financial issue that you would like to see discussed in this column or have other comments or questions, Robert Stepleman can be reached c/o Dow Wealth Management, 8205 Nature’s Way, Lakewood Ranch, FL 34202 or at rsstepl@tampabay.rr.com. He offers advisory services through Bolton Global Asset Management, an SEC-registered investment adviser and is associated Dow Wealth Management, LLC.
This article originally appeared on Sarasota Herald-Tribune: ROBERT STEPLEMAN: My 'Sleeping Soundly' stocks do their job in 2022