30 Sep, 2021

Low Yield Portfolio sector rebalance

It’s time for me to do a little rebalancing of my Low Yield Portfolio. Both the Low Yield and Medium Yield Portfolios are too heavily weighted in the Financial sector. They are is 26% and 28% respectively and that leaves me a little too exposed to shocks in that sector. So I’ve decided to tweak things a bit by selling off a the profits of four holdings in my Low Yield Portfolio. The money is going into the Consumer Staples and Industrial Sectors. Below is what I’m selling.

Bank OZK (OZK)104.499 shares
Cullen/Frost (CFR)24.743 shares
Franklin Resources (BEN)46.065 shares
Arrow Financial Corp (AROW)37.5 shares

Below is what I’m buying.

J.M. Smucker (SJM)27.942 shares
Lockheed Martin (LMT)9.751 shares
Unilever (UL)62.52 shares

Financials now make up 23% of that portfolio which is under the max of 25% I had originally planned. Industrials increased to 17% and Consumer Staples increased to 16%. This makes me feel a little more comfortable with my exposures. Not much changed in the yield percentage, dividend growth percentage, or income forecast. But, the safety of my dividends increased slightly due to the improved diversification and the slightly better safety ratings of the new holdings.

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About : Kevin Bae

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