Saturday, June 11, 2005

 

The Prudent Portfolio

The Prudent Portfolio is a value portfolio. I screened for stocks with high dividend yields, low price/earnings ratios, and other such measures used in detecting "value." I used the Standard & Poors 500 Index as my universe. I set up the Prudent Portfolio blog to track the performance of the Prudent Portfolio. I have used this method for stock selection in the past with pretty good success. A $100,000 invested in this strategy in July 2002 would now be worth over $152,000 for an average annual return of 14.98%. But, that's history and for the Prudent Porfolio, I want to start fresh. So, I'll be investing $100,000 using the Folio Advisor platform. I chose the stocks last night and set up a folio with folioFN. Although the chart lists the number of shares the final numbers will be available sometime Monday, as I am trying to make this as realistic as possible. In that vain, the results will be adjusted quarterly for fees, which will be .40% annually for folioFN and .65% annually to P Financial Planning. Now it's time for an important NOTE: This portfolio is not a recommendation. If you follow these stocks and invest your own money, you accept responsibility for any losses that might occur. This is a hypothetical portfolio. I don't own any of these stocks except Chevron. Now, here's the list:
CompanySymbolSharesYieldIncome From Dividends

Chevron

CVX

146

3.20%

$264

ConocoPhillips

COP

147

2.22%

$183

Fannie Mae

FNM

142

1.79%

$148

National City Corp.

NCC

244

4.14%

$342

Ford Motor Co.

F

798

3.87%

$319

Chubb

CB

96

2.01%

$166

XL Capital Ltd.

XL

110

2.68%

$221

Phelps Dodge

PD

91

1.11%

$92

MBIA

MBI

146

1.99%

$165

Cummins

CMI

115

1.68%

$139

Louisiana Pacific

LPX

344

2.09%

$173

Cooper Tire

CTB

430

2.19%

$181

Total Expected Dividends for Portfolio

2.39%

$2,391




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