Please assign a menu to the primary menu location under MENU


Portfolio Optimization 2017

D Dominion Energy LogoCOP ConocoPhillips Logo

We are constantly looking at our watch lists and trying to figure out what will be the next stock purchase. But it is important to review your current portfolio and make sure it is doing what it needs to be doing. Every year around the fourth quarter, I look to see if there is a way to optimize my portfolio in any way. Let’s take a look at my recent buy and sell in order to accomplish this.


I have been sitting on ConocoPhillips (COP) since 2015 when I bought it. I have held it through a lot, including its dividend cut, low oil prices, the OPEC deal last December, and the recent hurricanes. These events have caused a huge fluctuation in the company/ stock since I purchased it. It just isn’t doing what I want it to do. I should have sold it back after the dividend cut, but I was still new to the dividend game and I like to think long term. There are better and safer stocks out there for the long term.


So finally, I have sold off my position of COP, about 34 shares. I decided it was the perfect time to sell since after the hurricanes, COP stock price increased for about 7 days straight. I was able to claim a small capital gain from this. The proceeds from the sell, were used to initiate a new position by buying 22 shares of Dominion Energy Inc (D). Thanks to Mr. ATM and anyone else on twitter that gave me their stock ideas last week. D just seems like the best fit for my portfolio at this time.


Its dividend history is stronger as well as the financials being safer for the long term. I don’t see oil prices staying high for long which won’t help out COP’s earnings or dividend. Yes, I know that D’s price at this time is a bit over inflated. However, I am thinking long term. In the long run, the price will even itself out along with growth. And if it does go lower, I plan to buy more to lower my cost basis.


This buy also helps sector diversification. Lowers my energy sector which was my highest sector. It was getting close to 30% because of how much money I put into oil stocks back in 2015 when the prices were at a low. I also only had one Utilities stock until now, so this new buy brings up the allocation of that sector.


Below see the changes in yield and forward dividends after the optimization.


Allocation Prior

Yield = 3.76%

Forward Annual Dividend Total = $912.52


After Optimization

Yield = 3.88%

Forward Annual Dividend Total = $942.92


That is a $30.40 annual dividend increase after the optimization changes as well as the added bonus of more safety for the long term.



What do you think of the optimization? Do you like the buy or sell? What would you have bought instead? Comment below.



    1. Thanks Geek! That is the plan. I like the decision already. Hope it works out well moving forward. Thanks for the comment.

  1. Hi

    Just remember that you are chasing yesterday’s successes when you dividend hop. Posts like these always concern me, as they indicate that the investor will get cold feet when conditions change. Aren’t you in it for the long haul?

    That said – and this is important! – I am an index fund investor, so ignore me if you wish! I would totally understand. I approach investing from an admittedly different perspective, which may be right and may be wrong.

    I wish us both the utmost success.
    Damian recently posted…Short Story Review – Péter Esterházy – She Loves MeMy Profile

    1. I would never ignore a comment or different point of view. I welcome it. That is what the personal finance community is all about. You are correct and I am in it for the long haul. Typically I don’t “dividend hop” or even sell my shares. Also, even if this is a higher yield, I don’t chase yield. You can see that by looking at my last few buys that aren’t REITs. However not every condition change is a good change. That being said, a smart investor still has some sense to sell if necessary. This was one of the cases I believe. I appreciate your comment and thanks for stopping by the site.

      1. Hi

        Definitely understand where you are coming from.

        For me, because the vast, vast majority of my investments are in index funds, even if the dividend were to go down (and here in Australia the dividend yields are pretty great), I wouldn’t be overly concerned because it’s, well, an index. But for a single stock I would – see Telstra for a good example of a recent huge tumble in dividend and share price.

        I guess I’m reminded of a year or so ago when all of the dividend blogs were investing in Kinder Morgan, and then all jumped out when the dividend was cut. Probably a smart idea, but it did seem like the herd went in together, and the herd went out.
        Damian recently posted…I Remember – #730My Profile

        1. KMI is a good example. They are starting to recover but after a whole year, it really hasn’t happened much. So you are losing a lot of time in market, that money could be going to something better to grow more. In time if you were to not sell and wait it out, you would still be ahead. It would just take way longer probably, given the company actually rebounds. But I agree with index funds. I own a few as well. When they are down, I double up instead of selling. But as you said, they are much more diverse in general and safer than putting all your eggs in one basket.

    1. Yeah typically I don’t like to sell and just hold for long term. But every now and again it’s still nice to re-adjust like you said and make sure your stocks are performing how you want them to.

  2. I think the optimization is great! You can’t go wrong with being up another $30.40 in dividends while simultaneously improving your portfolios safety. Fortunately, none of the stocks I own have cut dividends. I used to be a holder of Suncor energy but sold because of the volatility that comes with an oil stock. Also, I’m a fan of Mr. ATM’s picks. I wouldn’t mind picking up a few shares of IBM. Thanks for sharing!
    Graham @ Reverse the Crush recently posted…That’s what the f—k you do!—To become a Successful BloggerMy Profile

    1. I love seeing my forward dividends increase for no extra capital. Lucky none of yours have ever cut. I still like the oil companies as far as their stock is concerned. Big money in oil therefor big dividends. But just need to make sure to pick a company that is diversified enough and has the right management at the helm to continue to be profitable and increase dividends even in the down times. That is why I still hold CVX, one of the big players in the game. Yes, Mr. ATM made a good case for buying IBM the other day. Always worth a second look when new information is added to the mix. As always, thanks for stopping by and commenting!

  3. I think you made a great choice with the optimization. You’re right in that it’s always good to take a look at your current portfolio from time to time and not focus always on purchasing new stocks. But, it’s hard to argue with the optimization you’ve made since you increased your forward annual dividends in what appears to be a more sound company (or at least one that makes you more comfortable with the investment).
    Dividend Portfolio recently posted…September 2017 Dividend Income ReportMy Profile

    1. Thanks! Glad you like the optimization changes to the portfolio. Being comfortable with your stock choices plays a big part. Now just excited to see how it effects my growth numbers moving forward. It will at least pay out once this year for me.

    1. Thanks BHL. That was the plan. More yield, more dividends, less risk, and the same amount of capital. Looking forward to seeing how this effects growth next year when it starts paying out.

    1. I agree. I am trying to diversify more just with my new purchases if I see an opportunity. The size of the portfolio and number of stocks is still small so diversity will come in time. But It doesn’t hurt to cut out some of the laggards like you said to make it better for the long term game. Thanks for stopping by and commenting.

    1. Not a problem. Thanks for the quality analysis you always have on your site as well. I agree about minimizing risk and maximizing return. Risk is important in making gains but you have to find the threshold you can handle. Thanks for the comment.

    1. Thanks SMM. I think it was a good call. Especially for the reasons you mentioned. They are also expected to increase their dividend by about 10% for the next three years. Looking forward to seeing those gains. Thanks for commenting!

  4. Dividend Daze,

    Very timely post. I was actually starting to think about what I should be doing with my investments in a couple of oil companies. I don’t have huge positions as I trimmed them down for tax loss harvesting purposed a couple years ago.

    My concern is that some countries and states are putting deadlines on stopping the sale of gas vehicles. Granted, this is something that will still be many, many years off in the future before gas will be able to be completely replaced.

    The gas companies aren’t stupid and I’m sure are looking forward to the future and seeing the writing on the wall. They must be transitioning into alternative sources of energy. I don’t just see them going bankrupt. I’ll have to do some research on this and see what CVX and BP are doing, the two I own in my portfolio.

    Two Investing recently posted…September 2017 IncomeMy Profile

    1. Yeah I think a lot of people are doing the same thing and combing over their portfolio. Trying to think ahead before tax time and see what needs to be trimmed down or not. I am still a fan of oil companies and they are still going to be around for a while like you said. But they will have to come up with alternative sources. CVX is my only oil holding now and I play to keep it long term until I see otherwise. Will be interesting to see what happens. For now though, they are giving us big gains and pay big dividends.

Leave a Response

CommentLuv badge