Portfolio Five is on its fourth year. The beneficiary contributed $2000 and the trustee contributed $4000 for a total of $6000. The portfolio is valued at $6334 for an increase of $334, or 5%, averaging about 2% / year adjusting for the timing of cash flows. You can see the portfolio on the right side or go here.
There are two stocks on watch in this portfolio. Alcoa (AA) faces intense worldwide competition in the metals market. There is over-capacity in this market with new plants coming on line, driven by nationalistic plans for domestic economies worldwide. Alcoa also pays a relatively modest dividend at 1.4%, as opposed for 3.6% for Nucor (which has allowed Nucor to absorb more of the blow of a falling stock price, making it up on dividends). If there isn’t a plan for Alcoa to increase we likely will sell in 2013.
A second stock on watch is Riverbed, a technology company, which is susceptible to changes in stock prices due to small alterations in analysts’ outlook. The stock went down significantly, then above its purchase price, then down again. We will continue to watch as it seems to be in a good portion of the technology business space.
Winners include Westpac banking from Australia and China Petroleum and Chemical (SNP).