New Yield-Centric Portfolio
Last fall, I introduced a yield-centric portfolio. Historically low interest rates have forced income investors to explore other avenues for yield. That chase is coming with increased risk, though, as some investors have forsaken instruments they know well for the equity playing field. My approach for the spring portfolio is a bit different from the one I positioned in the fall. There is nothing wrong with first portfolio, as it has done quite well and looks to be ready for some profit-taking. There was only one dividend cut in that group, which came from Transocean (RIG) after I was stopped out of the name. Overall, I've been pleased with that portfolio, but I am taking a different approach here, even though you may see a familiar name or two.
This portfolio is not quite as diverse in terms of cap size or asset classes. There are no bond holdings, and large-cap companies hold more weighting than previously. Since I have a lack of bonds here, I went a bit more large-cap, focusing on some companies that are considered defensive. In addition to the slight shift in style, I included two other features with this portfolio, looking to enhance income as well as provide some defensive measures. First, I have included closed-end funds. Second, I am adding the strategy of selling covered calls against most of the holdings....667 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.
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