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:
Company | Symbol | Shares | Yield | Income From Dividends |
CVX | 146 | 3.20% | $264 | |
COP | 147 | 2.22% | $183 | |
FNM | 142 | 1.79% | $148 | |
NCC | 244 | 4.14% | $342 | |
F | 798 | 3.87% | $319 | |
CB | 96 | 2.01% | $166 | |
XL | 110 | 2.68% | $221 | |
PD | 91 | 1.11% | $92 | |
MBI | 146 | 1.99% | $165 | |
CMI | 115 | 1.68% | $139 | |
LPX | 344 | 2.09% | $173 | |
CTB | 430 | 2.19% | $181 | |
Total Expected Dividends for Portfolio | 2.39% | $2,391 |