Boosting Your Portfolio With Preferred ETFs

Should you be putting your money into stocks or bonds? How about investing in a hybrid that contains the best of common stocks and the best of corporate bonds? This financial crossbreed exists in the form of preferred stock. What some investors call an evolution, others may call a mutation by claiming that preferred stocks combine the worst of common stocks and the worst of corporate bonds.

The Best Of:

• With preferred stocks you will typically receive a consistent dividend, as you would with bonds, but they are taxed like common stock dividends.
• Preferred stocks will give you a higher price appreciation than bonds if the common stock increases but the price will not increase at the same rate as the common stock.
• The dividend yield on preferred stocks is usually higher than the yield on the corporate bonds.
• Preferred stocks have the first right to dividends; Preferred shareholders will be paid before any dividends are paid out to the holders of the common stock.

The Worst Of:

• Preferred shareholders do not have any voting rights.
• In the case of a default, bond investors have the priority in claims on assets.
• Preferred stocks can depreciate in value, just like the common stock, although they will usually retain their value better than common stocks.
• Rising interest rates will have a negative impact on preferred stocks.

One way to get involved with preferred stocks is through ETFs. Two preferred stock ETFs that I follow are the iShares S&P US Preferred Stock Index Fund (PFF) and the PowerShares Preferred Portfolio ETF (PGX). These two ETFs are tied directly to the financial sector as the top 10 holdings between the two ETFs include most of that sector’s major players: Barclays PLC (BCS), JP Morgan Chase & CO (JPM), HSBC Holdings (HBC), Wells Fargo & Company (WFC), Morgan Stanley (MS), and Bank of America (BAC).
You may be wondering why you would want to have anything to do with stocks (common or preferred) in the financial sector instead of simply buying a diversified bond fund for the yield. After all, much of the decline in the financial sector since April ’10 has been due to unfavorable economic data as well as uncertainty with how the banks will cope with the financial reform regulation, the Dodd-Frank bill. Specifically within the Dodd-Frank bill is the Durbin Amendment which Bank of America CEO, Brian Moynihan, states:

The most recent, the Durbin Amendment in the interchange area, this is going to cause a significant reduction in revenue in the future and a carrying value change in our asset in the credit card business...

Caution in this area is warranted but no matter what your thoughts are about the financial sector it appears that, in many circumstances, preferred stock ETFs can outperform both common stocks and corporate bonds.

Round 1: Preferred ETFs vs. a Morningstar Analyst’s Recommended Bond Fund

I took a look at the Morningstar Analyst Research application on SeekingAlpha.com. This handy application allows you to pull up analyst research reports on over 2,000 stocks and ETFs. I pulled up the report for PFF and found that the analyst didn't seem to be a big fan of preferred stocks. The report wasn't negative, I’d say it was neutral, but the analyst recommended the Barclays Capital Long Term Bond ETF (LWC) which I put to the test.

I looked at the prices for all three ETFs around the March 2009 stock market lows through 1/14/11. LWC’s inception date was 3/10/2009 which is why that date was chosen as the starting point for this test. The results clearly favor the preferred stock ETFs:

ETF	Date	Price	% Gain
PFF	3/10/2009	$15.89
	8/27/2010	$38.98	145%
PGX	3/10/2009	$6.65
	8/27/2010	$14.08	111%
LWC	3/10/2009	$30.78
	8/27/2010	$35.39	14.9%

The key difference between a preferred stock and a corporate bond is the possibility of a higher price appreciation in an advancing stock market. The preferred stock ETFs also boast a higher dividend yield. PFF currently yields 6.92%, PGX yields 7.23%, and LWC is yielding 5.56%.

Round 2: Preferred ETFs vs. Financial Common Stocks


Preferred stocks are not going to outperform their common counterpart when the common stock has a large upward price movement, but which one has the better performance in a market that is trending lower? I took a look at three major banks, Bank of America (BAC), JP Morgan & Chase CO (JPM), and Wells Fargo & Company (WFC), compared to the preferred stock ETFs. The financial sector hit its most recent high around the middle of April ’10 and was on the decline through the latter part of 2010. I pulled these results from the opening price on 4/15/10 to the closing price on 8/27/10:

Stock/ETF	Date	Price	Gain/Loss
BAC	4/15/2010	$19.48
	8/27/2010	$12.64	(35.1%)
JPM	4/15/2010	$47.81
	8/27/2010	$36.60	(23.4%)
WFC	4/15/2010	$33.51
	8/27/2010	$24.00	(28.4%)
PFF	4/15/2010	$38.89
	8/27/2010	$39.95	2.7%
PGX	4/15/2010	$13.87
	8/27/2010	$14.36	3.5%

The Result

The examples show that the preferred stock ETFs can outperform both common stocks and corporate bonds. The key to using preferred stocks lies in defining your thoughts about the market’s direction as well as understanding the limitations of all the financial products. The fact that preferred stocks have a low correlation to both common stocks and corporate bonds qualifies them as excellent diversification instruments.

In a modestly bullish or neutral market, preferred stocks have a good chance of outperforming bonds; Preferred stocks may also outperform their common stock counterparts due to their higher dividend yields. In an aggressive bull market, the preferred stocks will most likely underperform common stock but outperform bonds. In a bear market, preferred stocks can outperform common stocks and provide some safety due to their high yields. During this type of market, bonds may outperform preferred stocks as investors shift from the equity market into the relative safety of the bond market.
Note: The results shown in the examples represent only the price changes without accounting for any dividends.


Disclosure: I am long PFF, PGX, along with 2 or 3 closed end funds of preferred shares.

6 Noteworthy Stocks with Yields Over 4%

If you’re looking to boost the total dividend yield of your portfolio, picking up a few stocks yielding 4%, 5%, or 6% can go a long way. One must be careful, of course, to select companies that have sustainable dividend payouts and that are good long-term investments. Although not every one of these may make for a good investment, and readers should do their own more thorough research, here are six high-yielding companies that are worth being aware of.

Altria Group (MO)

Altria is one of the largest tobacco companies in the world, and also has an interest in alcoholic beverages. Depending on the individual investors views on ethical investing, it may or may not meet your requirements for inclusion in your portfolio, but the dividend yield is particularly high. There have been threats to the tobacco industry in many countries including the US for quite a while, and the uncertainty has kept stock valuations quite low. Coupled with the high dividend yields, tobacco investors that have reinvested their dividends have absolutely crushed the market over the last few decades. With a market capitalization of over $50 billion, Altria is the market leader in the United States. A key downside to this stock is Altria’s balance sheet. With a fairly high debt/equity ratio, a moderately low (but very stable) interest coverage ratio, and goodwill that approximately equals shareholder equity, Altria’s balance sheet leaves a lot to be desired. This is partially offset by the consistency of sales and profits, but worth taking into consideration when investing.
Dividend Yield: 6.30%
Latest Annual Dividend Increase: 10%
Payout Ratio: 80%
Total Debt/Equity Ratio: 2.37

CenturyLink (CTL)

CenturyLink, created after the acquisition of EMBARQ by CenturyTel, is an integrated communications company with significant operations in the heartland of the United States. The dividend yield has decreased a bit in recent months due to a significant stock rally, but the yield is still quite significant. The high payout ratio makes the dividend a little bit risky, and limits dividend growth. This is typical in this industry, however, and the consistent operations help keep the dividend stable. CenturyLink, like the previously mentioned stock, has a balance sheet that is stable but not particularly appealing.
Dividend Yield: 6.50%
Latest Annual Dividend Increase: 4%
Payout Ratio: 91%
Total Debt/Equity Ratio: 0.79

Allete (ALE)

Allete operates in both the energy and real estate industries. The company has significant leverage, but this is to be expected from a utility, and the stock trades at a lower P/B ratio than many other utilities. The utility portion of this company operates mainly in the US Midwest, and they have significant and growing renewable energy sources in the form of wind and hydro power. The company has a significant amount of real estate in Florida, and intends to sell at reasonable prices. A strike against ALE is that the company did not increase the dividend in 2010 over 2009.
Dividend Yield: 4.70%
Latest Annual Dividend Increase: 0%
Payout Ratio: 74%
Total Debt/Equity Ratio: 0.81

Leggett and Platt (LEG)

Leggett and Platt is a diversified designer and manufacturer of engineered components for a variety of industries. The balance sheet for the company is mediocre. The valuation and payout ratio are a bit high, but that is partly due to the cyclical nature of the company. As the economy recovers, continued rebound is expected by analysis forecasts. The good news for the company is that it generates extremely impressive cash flows, and in particular, a very healthy level of free cash flow in comparison to their net earnings. This allows the company to not only offer a significant dividend yield, but also to spend a considerable amount of money on share repurchases which fuel dividend growth.
Dividend Yield: 4.70%
Latest Annual Dividend Increase: 4%
Payout Ratio: 90%
Total Debt/Equity Ratio: 0.56

The Southern Company (SO)

The Southern Company is an electrical utility operating in Alabama, Florida, Georgia, and Mississippi. SO provides a recession-resistant and substantial dividend to potential investors. Downsides of the company include a weak balance sheet (but fair for a utility), and weak free cash flow. The dividend growth rate is significant considering the yield, and so the combined dividend yield and dividend growth rate is fairly attractive. I do find utilities, as a group, to be fairly expensive in the current market.
Dividend Yield: 4.80%
Latest Annual Dividend Increase: 4%
Payout Ratio: 73%
Total Debt/Equity Ratio: 1.07

Lockheed Martin (LMT)

Based on the recently increased dividend and the continually decreasing stock valuation, this large defense and aerospace company now offers a dividend yield in excess of 4%. Revenue, earnings, and cash flow have all performed strongly during the recession. Free cash flow is substantial, and enough to support the significant dividend payout. Unfortunately, like many companies on this list, Lockheed Martin has a balance sheet with a fairly large amount of debt, and goodwill that greatly exceeds shareholder equity. The interest coverage ratio, however, is higher than one might expect, and that’s a sign of stability. The low valuation, substantial dividend growth and yield (even with a low payout ratio), may make this stock reasonably attractive despite the shortcoming of the balance sheet.
Dividend Yield: 4.00%
Latest Annual Dividend Increase: 20%
Payout Ratio: 34%
Total Debt/Equity Ratio: 1.28

Full Disclosure: I am long CTL,PEG and SO.

BlackRock raises stake in Triangle Capital Corp. (TCAP)

New York-based BlackRock, the world’s largest asset manager with a portfolio of $3.5 trillion, has upped its stake in Triangle Capital Corp. (NYSE:TCAP), the Raleigh-based business lender.
BlackRock Inc. (NSYE: BLK‎) reported holding 816,461 shares, for a 5.49 percent stake in TCAP, according to a new filing with the U.S. Securities and Exchange Commission.
As of last September, four entities under the BlackRock Inc. umbrella held a combined 5.1 percent of the Raleigh company.

TCAP, a specialty lender that makes loans to lower mid-market companies, announced this week that it planned to raise more than $50 million in fresh lending capital by selling more common stock.
Following the announcement, on Tuesday, the volume of traded TCAP shares shot up 1,360 percent over the company’s 65-day average, accompanied by volatile prices in the $19.30 range, according to Yahoo Finance.

Disclosure I am Long TCAP shares.

Commodity ETFs Get No Love From Investors (GLD, IAU, SGOL, SLV, SIVR, PPLT, PALL, BAL, USO, USCI, CORN, WOOD, COPX)

It doesn’t seem like that long ago that exchange-traded commodity products were the darlings of the ETF world. Praised for democratizing an entire asset class (and one capable of delivering non-correlated returns to investors at that), commodity ETFs saw billions of dollars of cash inflows in 2009. Investors rushed to get their hands on everything from copper to tin, and they embraced the transparency and liquidity that the exchange-traded structure had to offer.


Last year was a banner year for commodities, with inflationary pressures, surging demand from emerging markets, and a host of supply issues conspiring to push prices of various resources sharply higher. Corn prices surged, gold repeatedly set new record highs, and a host of other agricultural products–including sugar and soybeans–climbed sharply higher. While 2010 was a stellar year all around for investors–most major asset classes posted nice gains–commodities were clearly the star. Lists of the year’s best performing ETFs included numerous commodity products, and gains of 50% were relatively common.

Considering the white hot performances turned in, 2010 should have been another great year for commodity ETFs–especially given investors’ tendency to chase returns. And a cursory look does indeed show continued strong interest in commodity ETFs; according to data from the National Stock Exchange, long unleveraged commodity products took in close to $11 billion in inflows. But there is more (or actually, less) to that number than meets the eye. Almost all of cash inflows into commodity ETPs in 2010 were attributable to physically-backed precious metals funds:

Category	Inflows
Physical Gold ETFs	$8,064
Physical Silver ETFs	$1,389
Physical Platinum ETF	$689
Physical Palladium ETF	$599
All Other Commodity ETPs	$251
Total 2010 Inflows	$10,992
Source: NSX.com

According to the ETF Screener, there are 74 non-leveraged, non-inverse commodity ETPs. Stripping out the seven physically-backed precious metals products SPDR Gold Shares (NYSE:GLD), iShares Gold Trust (NYSE:IAU), ETFS Physical Swiss Gold Shares (NYSE:SGOL), iShares Silver Trust (NYSE:SLV), ETFS Physical Silver Shares (NYSE:SIVR), ETFS Physical Platinum Shares (NYSE:PPLT), and ETFS Physical Palladium Shares (NYSE:PALL), this group took in only about $250 million last year. January inflows showed a decent bounce back, but the lack of interest still seems a bit strange. Precious metals have obviously been on quite a hot streak, so it shouldn’t be a total surprise that assets have been flowing into these funds at a torrid pace. But gold and silver aren’t the only commodities that have posted eye-popping gains over the last year–yet they account for the lions share of inflows. The iPath Cotton ETN (NYSE:BAL) jumped more than 95% in 2010, yet took in just $17 million of new assets.

War On Contango

It seems likely that the lack of interest in certain commodity ETFs has something to do with the manner in which exposure is achieved–and perhaps not necessarily the underlying resource. The seven precious metals products highlighted above are all physically-backed, meaning that the underlying assets are physical commodities. The majority of commodity ETFs don’t invest directly in natural resources, but rather in futures contracts written on those commodities. And as investors have learned, the returns generated by a futures-based fund can be impacted not only by changes in the spot price of the underlying asset, but by the slope of the futures curve. While futures-based funds often exhibit near-perfect correlation to the spot commodity prices, there can be a significant difference between the return delivered by a futures strategy relative to a hypothetical return on spot prices. For example, the United States Oil Fund (NYSE:USO), which invests in futures contracts on light, sweet crude oil, has lagged behind a hypothetical return on spot crude oil over the last several years:




The potentially adverse impact of contango in the returns of commodity ETFs has been well documented, and it appears that the nuances of futures-based investment strategies have had a material impact on investors interest in commodity products. Exposure to spot commodity prices remains desirable, but that simply isn’t possible for many resources. The high value-to-weight ratio of gold and silver makes construction of a physically-backed fund relatively straightforward. Funds that hold barrels full of crude oil or bushels of wheat would be impossible for logistical reasons, while the costs incurred in offering physically-backed exposure to other commodities would be a deterrent as well.

But that doesn’t mean that there aren’t ways to address the issue of contango in commodity products. It is perhaps no coincidence that two of the most successful commodity products to hit the market recently were designed to tackle the contango issue. The United States Commodity Index Fund (NYSE:USCI) screens 27 potential component commodity futures based on observable price signals, including a filter to select those least likely to be impacted adversely by contango. USCI raked in more than $90 million last year (it debuted in August) and had blown away other broad-based commodity funds from a performance perspective

Another popular commodity ETF has been the Teucrium Corn Fund (NYSE:CORN), a resource-specific product designed to reduce the effects of contango and backwardation. Unlike many commodity ETFs, CORN spreads exposure across multiple maturities, allocating 35% to the second-to-expire CBOT Corn Futures Contract, 30% to the third-to-expire CBOT Corn Futures Contract, and 35% to the CBOT Corn Futures Contract expiring in the December following the expiration month of the third- to-expire contract. That results in a smaller “roll yield” that can potentially deliver returns that correspond more closely to a hypothetical investment in spot corn prices. CORN took in $35 million last year, and that success has prompted Teucrium to roll out a natural gas ETF (NAGS) that approaches exposure in a similar manner. The company also has plans for a crude oil ETF (CRUD) that should begin trading within the next month.

Multiple issuers have filed for approval of physically-backed copper ETFs, and ETF Securities has already introduced three physical metal funds (copper, tin, and nickel) on the London Stock Exchange.

Betting On Commodities–Through Stocks

Another explanation for the tepid interest in commodity ETFs may be the surge in popularity of funds focusing on commodity intensive equities. Because the profitability of companies engaged in the extraction and sale of natural resources depends on the prevailing market price, mining stocks and other companies engaged in various aspects of commodity production can provide a contango-free option for establishing exposure to natural resource prices. The 25 products in the Commodity Producers Equities ETFdb Category took in $2.5 billion in aggregate last year. While funds focusing on gold and silver miners were among the most popular, broad-based funds such as HAP and other sector-specific options such as iShares S&P Global Timber & Forestry Idx (NYSE:WOOD) (timber) and Global X Copper Miners ETF (NYSE:COPX) (copper miners) also attracted significant dollar amounts
.
Innovation Continues

Since the first generation of commodity products burst on to the scene, investors have seemingly become more critical of the manner in which exposure to natural resources in offered. Contango has become a four-letter word to those who have been burned by an upward sloping futures curve, and interest in products that offer exposure through futures contracts has waned considerably. As recent product launches and the growing pipeline show, issuers are constructing the “next generation” of commodity ETFs to avoid the issues that have plagued the current lineup. Here’s to continued innovation in the commodity ETF space, leading to better options for accessing a very attractive asset class.

Disclosure I am  IAU and SLV shares. As Well as the CFD closed end fund.

GE Raises the Dividend for the Second Time in a Year

General Electric GE increased its quarterly dividend for the second time this year to $0.14 per share, or an annualized rate of $0.56 per share. The prior dividend rate was $0.12 per quarter. This announcement is consistent with management's stated intentions and supports our thesis for the company.

More important, I think the decision reflects the board's confidence in GE's core business. I expect GE to continue to repurchase shares up to the stated threshold of $22 per share as well as pursue acquisitions below $3 billion. Additionally, GE is first eligible to repurchase the preferred shares sold to Berkshire Hathaway BRK.B in October 2011. We expect GE to buy these back as soon as possible, given the steep 10% dividend.

Disclosure I am long GE shares.

3 Stocks Insiders Are Buying Like Crazy

For the past eight weeks, Insider Monkey has been publishing articles about the stocks insiders were buying like crazy. The stocksthey  listed in the first 6 articles have performed spectacularly compared to the S&P 500. Having slightly underperformed the S&P 500 index during the seventh week.

Overall, insiders are better at investing than outsiders because they know more about their companies than do most investors. This holds especially true for smaller companies, which are either followed by only a few analysts or none at all. Academic studies conducted during the past 40 years confirm that stocks bought by several insiders outperform the market by about 7 percentage points per year in those studies.

Last week, I brought 3 more companies insiders are buying to your attention. Here are their performance numbers since we highlighted them:

1. A. Schulman Inc (SHLM): Barington’s James Mitarotonda bought more than 15,000 shares during the past few days. In his last transaction, he paid $21.35, which was also the closing price for the stock on Friday, Jan 21st. Schulman’s Chief Marketing Officer, Paul R. Boulier, purchased 1,200 shares at $21.08 a few days earlier than Mitarotonda did. Schulman lost 0.7% during the past five trading days, underperformed the S&P 500 index which lost 0.5%.

2. Advanced Photonix Inc (API): Advanced Photonix made our list about a month ago. That time it returned 21% in one week, reaching $1.9 per share. API lost 0.6% last week.
3. Winmark (WINA): Winmark also underperformed the market last week, losing 1.4%.
This has been the worst weeks so far for our insider purchases. The average return for these three stocks was -0.9% vs. -0.5% for SPY. Currently insiders aren’t buying a lot of stocks. They are contrarian investors. They usually buy after large price declines, not price increases.

1. Trustco Bank Corp (TRST): This is a solid bank with a 4.3% dividend yield, and a P/E ratio of 15.9. It doesn’t seem to be a cheap stock, yet an insider purchased 5,000 shares at around $6.15 per share. On Friday, the stock closed at $6.05. There were several insider purchases in this stock a year ago when the stock price was around, you guessed it, $6. The stock underperformed the market last year, and we don’t think it’s going to deliver 20+% returns per year. It seems like a solid dividend stock which is more attractive than bonds. For the sake of following insiders’ performance, we won’t exclude this stock from our calculations.

2. Bank of Hawaii (BOH): This is also a solid bank with a 3.8% dividend yield and a P/E ratio of 12.3. It seems like a better long term buy then TRST. Insiders have been buying since the end of October when the stock price was $43.5. The latest insider purchase was on Wednesday, at $45.76. The stock closed the week at $46.76. Bank of Hawaii was downgraded on Tuesday, and this triggered a two day slide. This also gave our insider an opportunity to buy company shares at a small discount. A year ago the stock was trading at around the same level and there were several insider purchases. BOH also seems like a solid dividend stock which is more attractive than bonds.

3. RLI Corp (RLI): These are the types of insiders Insider Monkey likes. RLI Corp reported its fourth quarter earnings on Monday night and the results exceeded analysts’ expectations by a large margin. The consensus was earnings of $0.98 per share, but RLI reported $1.66 per share. The company’s P/E ratio is 10 based on its operating earnings and it is less than 9 based on its comprehensive earnings. The company’s management is taking steps that will benefit shareholders rather than themselves. They paid a special dividend of $7 per share in December, in addition to their regular dividend which has a 2.2% yield. Recently, they acquired a Seattle based private insurance company for $137 million which should contribute to their earnings as well.

Disclosure: I do not own any of these stocks at the time of this writing no plans to buy any in the future.

Invest in Prospect Capital Corporation's High Dividend

Where can you earn 17% dividend on a US based company? At Prospect Capital Corporation (PSEC). The upcoming dividend is .40625, which is a 16.89% yield at $10.17 share price which will ex-dividend on July 6th 2009. This dividend is the same amount that is had paid out for the prior 4 quarters.

It earns its dividends from investing into companies needing capital. What I like about this company is that the firm has expertise in energy and industrial sectors. It wisely invests in oil and gas, coal, materials, industrials, information technology, utilities, pipeline, storage, power generation, renewable and clean energy, and other types. Energy, materials, and technology are three candidates that have great potential for high ROI, as well as dividend payback.

Insiders are agreeing with me, as insider buying has been regular and intensive. Insider buying is just a clue - but a good one.

Prospect Capital has raised capital recently. It announced it has raised $64 million in gross proceeds from its public offering of roughly 7.8 million shares of common stock. Those shares were priced at $8.25 and investors are probably believing that the newly raised capital will be invested in more companies, that is in demand in this tight economy by companies of all types. This quarter's dividend is a repeat of the priors, the next quarter dividend could go down due to share dilution.

See this Yahoo Finance chart for more information about previous dividends and stock price movement.

We see stock appreciation over the long term, when the US & Canada economy picks back up in 2010 and 2011. In the mean time, why not earn a really nice dividend? Examine the chart closely and potentially buy on the dips. The chart shows a share price drop after each dividend payout.

Disclosure I am long PSEC shares in my Closed end fund folio.

Flower Foods (FLO) Bust out the Oven this stock is ready to Cook

As one of the nations leading producers of bakery goods, Flowers Foods (FLO -Investor Details) operates popular brands such as Nature's Own, Cobblestone Mill, Blue Bird and Bunny. In addition, Flowers is a leading consolidator in a defensive industry, and as such it offers investors a combination of revenue safety and growing profitability -- attractive qualities in tough economic times.

Founded in 1919 by the Flowers brothers in Thomasville, Georgia, the company went public in 1968 and was listed on the NYSE in 1982. The current entity came into being in 2001 when Flowers Industries sold its Keebler investment to Kellogg (K) and spun the remaining divisions into a new company.

The company has strong cash flow, a nice dividend and an active stock buyback program -- Flowers repurchased 1.5 million shares of its own stock in the third quarter for $38 million dollars. Investors should also note some recent insider buying at the $23.00-$24.50 range.
In May,Flowers Foods boosts regular quarterly dividend by 17 percent to 17.5 cents. The company is also rich in real estate holdings. Including its home offices, it owns all but one of the 39 production facilities it operates throughout the US.

The stock’s recent correction allows new buyers the opportunity to take a position without chasing the shares. In addition, the company’s gross profit margin should begin to improve as lower input costs and efficiencies of scale start to take hold. The fact that consumers are eating more often at home bodes well for the company’s bread sales. Analysts are forecasting 12% earnings growth in 2010, which probably is too conservative, as a 15-16% rate of improvement is more like it. Its risk reward ratio is a favorable 2:1-translation: a buyer is essentially risking $1 to make $2 (the stock’s upside potential is about $6 while its downside risk nears $3 at this juncture) and that type of opportunity does not show up too often.

Disclosure I am long FLO in my consumer goods folio.

Folio Additions Updates for the Week new picks

Hello a update on the weekend adjustments to my stock folios. First my Bond Folio I added 2 new etf's. HYD, Market Vectors High-Yield Municipal Index ETF. MBG,SPDR Barclays Capital Mortgage Backed Bond ETF. No other changes to the bond folio, currently up 2.99% YTD.

Commodities folio I will sell RJN,RJZ and PSAU. I have added MOO market vectors agribusiness Etf. My Commodities Folio is up 4.46% YTD.

Consumer Goods Folio added SJM smuckers. Gotta love that folgers coffee drink it daily, sure to add to sjm's bottom line. Seen a 181% increase in insider buying. Very low debt and just boosted its quarterly dividend to a lip smacking 0.35 cents a share from 0.32. I see book value at approx. 42.00 a share with a target price of 49.80. Has 3.05 of cash per share on hand and earnings growing next year, all around win in my book. Currently up 3.89% ytd in this folio.

Emerging/Foreign Etf folio is rocking in rolling. Leader is VWO up 24.28 YTD, and eem is up 21.49 YTD the entire 10 etf folio is up 9.56% YTD.

Financial Folio big shake up here Will sell UWBK and SAVB on monday. I added GS goldman sachs, BEP the S&P 500 covered call fund inc ETF. Also added PGF Powershars financial preferred ETF fund. RY royal bank of canada and MFC manulife life insureance of canada as well. This folio of 11 picks is up 4.54% YTD.

Healthcare folio 13 picks down .01% YTD, no changes. Added money.

Index Etf folio 11 picks Up 7.38% no changes. Added money.

Industrial Goods Folio 11 picks up 14.02% YTD, no changes added Money.

Oil N Gas Folio 13 picks up 8.43% YTD, no changes added money.

Railroad Folio 6 picks Up 11.04% YTD, no changes added money.

Reits Folio 11 picks up 1.60% YTD, no changes added money.

Services Folio 9 picks up 4.28% YTD, no changes added money.

Shipping folio 9 picks Will be selling GSL on monday and added TRMD, no going to spell name here no way. HAHAHA This folio is up 12.59% YTD. OSG is hitting it out of the park up 36378% YTD, and GMR 21.35%, NAT 18.43% YTD. Nice rebound in shipping sector.

Technology Folio 9 picks, added QQQX, sold 1/2 AMSWA for a nice 41.25% gain. Current folio is up 10.30% YTD. Tech is riding well for now.

Utilities Folio 10 picks, Added DUK duke energy. Debating on a sell of LNT but will hold it longer yet, sure watching it though. Folio is up 4.29% YTD.

Sector Etf's 16 picks Will sell IYM,XLB,ICF,IAI on monday. Currently up 5.01% YTD.

This is the rundown of what changes I made today for mondays Market open.
Total Current holdings as of this writing is 205 holdings up 6.10% YTD. The stocks i claim I will sell on monday will be moved to my buy no more folio there they will sit till they are profitable or have a good run then I will sell them and dispense the money back into the folio they came from. In order to stay diverse in all my folios. Thanks for your time and Hats off to another great week in the world of dividend investing. 31 dividends received and reinvested this week very nice bonus.

Till next post thanks for reading and following my fun in dividend investing.