BIG SHAKE UP IN MY PORTFOLIO

About two weeks ago, I stated I was going to sell Answorth Mortgage Asset Corporation (ANH) after they handed my the 4th  dividend cut in the past 2 years. 

So I did.  They're FIRED.

My whole investment strategy is to buy companies that have a record of raising their dividend, not cut them.  So I did what I had to do.

I knew it was a matter of time.  I bought them (and a few other REITs) because of the huge dividend payout (upwards of 10%). but in the long run, it will only dwindle down the tubes.

Plus their price had sunk to where I did not see a recovery.  ANH was down 27% this year alone.  a price drop did not mean they were a bargain since the dividend was also falling. Better to cut ties and invest in solid companies with a track record I can trust.

My mind and my heart was not in favor of REITs like this anymore.  IMO, REITs are a tease.  I still have shares in Realty Income (O), but at least they are keeping up with maintaining their dividend (and increasing it by tiny amounts every so often)

So I sold 3 REITs today that only brought frustration.   I got rid of ANH, Annaly Capital Management (NLY), and AGNC.   All three cut their dividends more than once recently and nothing is showing that that pattern will change.  I hate selling , but I feel relieved in a case like this.

Yes, I did have quite a return, and my Year To Year dividends will take a hit, but in the long run, I will gain more.

So here are my trades for September:

Ticker	Date	QTY	Price	total	DIV INC / Yr
EAT	9/3	30	$30.098	$1177.910	$45.60
CSCO	9/11	13	$49.999	$649.990	$18.20
RTN	9/20	4	$196.380	$785.520	$15.08
ANH (SOLD)	9/30	1137	$3.350	-$3808.870	-$454.80
AGNC (SOLD)	9/30	200	$15.965	-$3192.910	-$384.00
NLY (SOLD)	9/30	400	$8.705	-$3481.880	-$400.00
SYY	9/30	24	$79.039	$1901.890	$37.44
CSCO	9/30	37	$49.485	$1835.900	$51.80
MCD	9/30	9	$214.91	$1934.19	$41.76
RTN	9/30	4	197.815	$788.74	$15.08
BAC	9/30	17	29.255	$497.34	$12.24
DAL	9/30	68	58.203	$3957.86	$109.48
				$3045.68	-$892.12

As you can see, I am taking a $892 hit for the year in dividends.  I had already lost over $150 a year in dividends with the cuts from the REITs.  If they had kept up this pattern, I would be down $900 a year in 6 years If I did not sell. 

Now, in 6 years, I should be up a few hundred at the least.   I am on much more solid footing with purchases from the likes of Raytheon, Delta Air Lines, and Bank of America.
Six years from now, I will be very glad I did this.

Thoughts?

UPDATED MY WATCH LIST

I've gone through my watch list over the past couple weeks and made quite the update to it.

Check it out ...  WATCH LIST

My watch list is always comprised of companies that I currently do not own.   I also have a large amount of companies on this list that are in the running.

SYMBOL	Yield	PAYOUT RATIO (under 60%)	5 YEAR DIV INC %	1YR. P/E (under S&P 22.02)
AGM	3.41%	32%	37.97%	9.31
AMP	2.63%	29%	1083%	10.85
ASB	3.35%	34%	13.56%	10.24
BBT	3.37%	45%	13.4%	12.22
BEN	3.63%	39%	16.72%	11.64
BG	3.54%	56%	10.76%	16.02
BMO	5.59%	44%	5.72%	7.77
BOH	3.03%	47%	7.63%	15.69
C	2.94%	28%	119.5%	9.7
CNQ	5.70%	62%	10.76%	6.8
DAL	2.76%	24%	46.33	8.75
DE	1.83%	29%	6.23%	15.98
DK	3.19%	18%	13.3%	5.8
EDUC	3.38%	26%	4.56%	7.54
EWBC	2.53%	24%	8.85%	10.12
GNE	4.41%	38%	8.45%	12.71
HBAN	4.18%	48%	24.57%	10.61
HVT	3.95%	55%	17.61%	15.43
IPG	4.39%	57%	19.86%	13.11
LMT	2.27%	43%	10.25%	19.17
LYB	4.74%	44%	8.45%	7.98
MCBC	2.69%	32%	28.47%	11.61
MDC	2.84%	37%	8%	13.06
MERC	4.55%	23%	61.54%	5.25
MS	3.27%	31%	28.47%	9.59
OMF	2.74%	21%		7.8
RCL	2.92%	32%	22.87%	12.58
RHI	2.27%	33%	11.49%	14.34
SNA	2.45%	31%	30.84%	12.59
STBA	2.93%	35%	9.69%	11.89
UNP	2.38%	46%	16.35%	20.61
USB	3.03%	35%	11.38%	13.04
WU	3.47%	29%	9.86%	7.93

When I go shopping for some shares, I see what is a good deal at the time.  Many times, I ended up buying more shares of a currently owned company instead of one on the watch list.

I am on track to make a purchase on Monday I believe.   I'l let you know what I did.

cheers!,
John

It's Martini Time!