The KISS Portfolio

The KISS portfolio (Keep It Simple, Stupid) is a portfolio which has been in existence since 2012. It is a real portfolio with real money, which has been managed by PTI in order to demonstrate how a dividend growth portfolio can be successfully managed. Every transaction, and the reasons behind the transactions, have been documented in articles published quarterly on Seeking Alpha under the username The Part-Time Investor.

Over the life of the portfolio the KISS portfolio has increased its dividend income from about $22,000 per year to over $53,000 per year. Eventually it is expected to produce over $100,000 in dividends alone. On a total return basis, the KISS portfolio has beaten the market (as represented by SPY) by a little over 1% annually.

Returns

(As of 10/1/19)

3 monthsYTD1-Yr5-yrSince 1/1/2013
5.37%22.85%24.63%12.10%14.60%

Notes

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Full Portfolio

Company Name
Symbol
Shares
Cost Basis
Last Price
Market Value
Div / Share
Div Yield
Apple Inc.AAPL170110.88264.0244,883.400.771.17%
Aflac IncorporatedAFL49022.1154.0926,504.100.272.00%
Amgen Inc.AMGN162155.27220.4635,714.521.452.63%
Ameriprise Financial, Inc.AMP274103.19158.7543,497.500.972.44%
Air Products and Chemicals, Inc.APD11989.09237.2828,236.321.161.96%
Avista CorporationAVA62723.946.9929,462.730.38753.30%
The Boeing CompanyBA19989.13363.7172,378.292.0552.26%
Becton, Dickinson and CompanyBDX13783.31245.533,633.500.771.25%
BlackRock, Inc.BLK51381.33485.7524,773.253.32.72%
Cracker Barrel Old Country Store, Inc.CBRL22577.96162.4536,551.251.33.20%
Cincinnati Financial CorporationCINF39642.64108.4642,950.160.562.07%
Cummins Inc.CMI23494.84180.3742,206.581.3112.91%
CSX CorporationCSX70921.8171.9851,033.820.241.33%
CVS Health CorporationCVS29480.472.8921,429.660.52.74%
Chevron CorporationCVX173116.75122.3221,161.361.193.89%
Dominion Energy, Inc.D33552.6780.8527,084.750.91754.54%
Deere & CompanyDE19377.79174.6133,699.730.761.74%
Digital Realty Trust, Inc.DLR29159.03116.633,930.601.083.70%
Darden Restaurants, Inc.DRI36548.4611240,880.000.883.14%
Eastman Chemical CompanyEMN25478.880.1620,360.640.623.09%
Emerson Electric Co.EMR33749.9473.524,769.500.52.72%
The First of Long Island CorporationFLIC13642124.1532,940.600.182.98%
General Dynamics CorporationGD21583.82184.8339,738.451.022.21%
Hasbro, Inc.HAS38649.1994.0536,303.300.682.89%
International Business Machines CorporationIBM134159.98134.317,996.201.624.83%
Illinois Tool Works Inc.ITW20472.07173.6335,420.521.072.47%
Johnson & JohnsonJNJ19869.99131.0125,939.980.952.90%
JPMorgan Chase & Co.JPM20097.22128.325,660.000.92.81%
L3Harris Technologies, Inc.LHX273.8-89.22199.454,595.720.751.50%
Lockheed Martin CorporationLMT154105.38388.8459,881.362.42.47%
Lincoln National CorporationLNC32861.5959.7319,591.440.42.68%
McDonald's CorporationMCD17377.38194.5633,658.881.252.57%
Microsoft CorporationMSFT4209.42147.0261,748.400.511.39%
National Health Investors, Inc.NHI27162.6779.3821,511.981.055.29%
Norfolk Southern CorporationNSC17466.92191.3233,289.680.941.97%
Nu Skin Enterprises, Inc.NUS39444.2439.5415,578.760.373.74%
Realty Income CorporationO38637.177.0529,741.300.2273.54%
ONEOK, Inc.OKE40566.970.7328,645.650.9155.17%
Omnicom Group Inc.OMC31470.1378.0224,498.280.653.33%
Paychex, Inc.PAYX43831.0683.4236,537.960.622.97%
PepsiCo, Inc.PEP18672.69133.2624,786.360.9552.87%
Principal Financial Group, Inc.PFG38552.154.6621,044.100.554.02%
The Procter & Gamble CompanyPG16661.98120.9420,076.040.74592.47%
Prudential Financial, Inc.PRU125110.7992.7911,598.7514.31%
PIMCO Corporate & Income Opportunity FundPTY138918.4918.4325,599.270.138.46%
QUALCOMM IncorporatedQCOM42554.8590.4238,428.500.622.74%
Raytheon CompanyRTN21565.56216.5246,551.800.94251.74%
Tanger Factory Outlet Centers, Inc.SKT89124.9416.0114,264.910.3558.87%
The Southern CompanySO34143.9661.9421,121.540.624.00%
Simon Property Group, Inc.SPG105181.7115516,275.002.15.42%
State Street CorporationSTT29567.4872.6621,434.700.522.86%
Sysco CorporationSYY37231.1880.9230,102.240.391.93%
Target CorporationTGT38461.23108.7541,760.000.662.43%
T. Rowe Price Group, Inc.TROW34470.28120.1441,328.160.762.53%
UGI CorporationUGI61827.9242.7626,425.680.3253.04%
United Technologies CorporationUTX10878.96148.216,005.600.7351.98%
Walgreens Boots Alliance, Inc.WBA37949.2362.2423,588.960.45752.94%
WEC Energy Group, Inc.WEC33640.0887.7129,470.560.592.69%
Walmart Inc.WMT18469.87120.5722,184.880.531.76%
W. P. Carey Inc.WPC29484.3284.8424,942.961.0364.88%

Recent Changes

When reinvesting I put my available cash not back into the stocks that paid the dividend but instead into more shares of my most undervalued positions. This is where my “Percent Above Average Yield” (PAAY) system comes in.  As of the end of 2018, my PAAY investments had returned 15.47% as compared to the S&P which would have returned 14.27%. Please note that I use PAAY only to rank the companies already in my portfolio for purposes of reinvesting my dividends, not for new purchases. (It would be too difficult to calculate the PAAY for all stocks under consideration for purchase.)

Here are the stocks, in the KISS portfolio, with the highest PAAY as of 10/1/19

StockLast PriceLatest DividendYield1 Year Average Yield1 Year PAAYRank
Nu Skin Enterprises (NUS)42.210.3703.51%2.76%26.96%1
Tanger Factory Outlet Centers (SKT)15.610.3559.10%7.45%22.10%2
UGI Corporation (UGI)50.450.3252.58%2.12%21.39%3
State Street Corporation (STT)59.800.5203.48%2.96%17.50%4
Walgreens Boots Alliance (WBA)54.410.4583.36%2.88%16.88%5
Simon Property Group (SPG)157.962.1005.32%4.80%10.83%6
Darden Restaurants (DRI)116.360.8803.03%2.73%10.79%7
Johnson & Johnson (JNJ)128.600.9502.95%2.72%8.79%8
Norfolk Southern Corporation (NSC)180.870.9402.08%1.91%8.77%9
Prudential Financial (PRU)90.161.0004.44%4.11%7.83%10

 

When I looked up these ten stocks in Simply Safe Dividends NUS and SKT had safety scores lower than 60.  Although I will hold stocks with safety scores between 40 and 60, I will only buy more shares of stocks with scores of 60 and above.  Therefore, I chose not to reinvest in NUS and SKT.  Instead, I moved on to the two stocks with the next highest PAAY, and they were CMI and CSX.  Both had safety scores over 60.

 

These were the

next two stocks

on the list as of

10/1/19

StockLast PriceLatest DividendYield1 Year Average Yield1 Year PAAYRank
Cummins Inc. (CMI)161.301.3113.25%3.03%7.17%11
CSX Corporation (CSX)68.910.2401.39%1.30%6.99%12

Therefore, I made the following purchases with the dividends that had accumulated over the past 3 months.

Stock# of SharesPriceTotal CostCommission
CSX Corporation (CSX)1668.43$1,095.280.48
Cummins Inc. (CMI)7161.95$1,133,850.21
Darden Restaurants (DRI)9117.15$1,054.620.27
Johnson & Johnson (JNJ)8130.32$1,042.800.24
Norfolk Southern Corporation (NSC)6178.52$1,071.310.18
Prudential Financial (PRU)1289.23$1,071.120.36
Simon Property Group (SPG)7152.91$1,070.610.21
State Street Corporation (STT)1858.44$1,052.460.54
UGI Corporation (UGI)2249.75$1,095.050.66
Walgreens Boots Alliance (WBA)2054.75$1,095.600.60