Options expiration this past Friday allows us to make some changes in our portfolio for the coming month. These changes continue to reduce the number of stocks in the portfolio since the continuing rise in stock prices is making it harder to find stock values. We are now down to 12 stocks in the portfolio. LO continues to be our largest holding. GG has now moved up to second place. CTL is number three. JNK is number four. AGNC is number five.
Southern Company, symbol SO, has long been our favorite stock for safety but has reached $45 per share reducing the yield to 4.2% which makes it harder to do derivative plays going forward. We continue to believe SO is a super safe stock which the market has now noticed with the rise in the stock price.
Health Care Reit, symbol HCN, continues to be one of the best medical real estate companies out there. However it has reached a price of $55 which brings the yield down to right at 5.0%. A yield of that size for a medicare payment risk stock and a non qualified dividend makes this stock no longer a value.
Hatteras Financial, symbol HTS, continues to be an excellent agency reit which is well priced for value. However we believe the increased exposure to AGNC we took on last month adequately covers our fund for this sector.
Goldcorp, symbol GG, we have doubled our exposure to this gold miner which we believe offers good risk compensation going forward and has excellent upside price potential.
Realty Income, symbol O, we have increased our exposure here by 50% due to the market concerns about a couple of tenant bankruptcies that has weakened the stock price. We believe this company will adjust well and continue to move forward in dividends and stock price.
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