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No. of Recommendations: 8
I will reveal my portfolio with the condition that I am not recommending it to anyone in any way shape or form. As an engineer I am a data freak so I probably spend more time watching and studying than I should or need to, probably 2-5 hours per week in part because my schoolteacher wife just completed a deferred retirement program here in Florida and had a nice lump sum to roll into her IRA and we needed to determine how to invest it. When considering a stock for purchase I would estimate 2-3 hours research for each stock under consideration. I follow the REIT board and subscribe to Realty Stock Review for info on REITs. I also use for information on preferred stocks and Yahoo finance and for data on companies including records of past dividend payments. I have an online account but most of our holdings are with Merrill Lynch, who we have done business with for years. I know that trading fees are higher there but we trade very sparingly and I use their online research along with info from the broker who handles our account. We have never been encouraged to churn our accounts and overall we have been pleased with the service we have received there. I do not depend on ML to select what I should buy or sell. Rather I tend to ask my broker to tell me all the reasons he can think of why I should not do what I have tentatively decided to do. Primarily I want them to play devil's advocate to point out all the ways that we might be going wrong. Overall we have a very friendly but businesslike arrangement that I plan to maintain.

Now to the portfolio and to some extent why. The percentage following the stock symbol is the percentage of that stock in our nest egg. Please note that the portfolio percentages are not exact and may not add to 100 percent. I have also noted the current yields where applicable. Some stocks I inherited years ago with the provision that I hold them forever. These I term my heirloom stock. Others I have purchased along the way. Yield is as of 9-30-03.

Southern Company SO 15%, yield 4.7% My heirloom stock that has actually done quite well

FannieMae step rate bond 9%, yield 4.25% stepping up periodically

American Funds Investment Company of America AIVSX 8.3%, yield 2% reinvested. An heirloom mutual fund that I hope will help keep up with inflation

Cash 9% yield less than 1%, this is largely cash recently rolled into my wife's IRA and not yet invested. More typically cash would amount to 1-3 percent of the portfolio

Health Care Properties HCP 3.7% yield 7.28% A REIT with a good dividend paying record that has also increased in price since I began buying it in 1999.

Ford Motor Preferred FPRS 3.6% yield 7.44% A convertible preferred that we own primarily for yield.

Istar Financial SFI 3.2% yield 6.87% A financial REIT with good dividend

Simon Property Group SPG 3.1% yield 5.53% A shopping center REIT with good dividend

Cohen and Steers Premium Income Reality Fund RPF 2.6% yield 8.52% a closed end mutual fund with high dividend rate

Camden Property Trust 2.6% yield 6.63% An apartment REIT with good dividend

Allied Capital ALD 2.5% yield 9.25% A financial REIT with good dividend

Sun Communities SUI 2.3% yield 8.52% A retirement community REIT with good dividend

Vornado Realty Trust VNO 2.3% yield 5.67% A diversified REIT with good dividend

Sprint backed preferred DHM 2.3% yield 7.67% Good dividend

TECO Power TE 2.3% yield 5.54% a power company that has lowered the dividend but is still hanging on and I hope with fully recover.

Cousins Properties CUZ 2.2% yield 5.32% a diversified REIT with a good dividend

Duke Power DUK 2.2% yield 6.11% a large power company that hopefully are solving their problems

ConAgra Foods CAG 2.1% yield 4.86% Good dividend with hopefully some growth long range

Equity Office Properties EOP 1.9% yield 7.33% Office REIT with good dividend

Glenborough Realty Preferred GLBPRA 1.9% yield 8.16% Good dividend

First Industrial Realty Trust FR 1.9% yield 8.52% Industrial REIT with good dividend

Haven Capital Trust Preferred HAVNP 1.8% yield 8.09% Good dividend

Prologis Preferred PLDGP 1.8% yield 7.73% REIT preferred with good dividend

Public Storage PSA 1.6% yield 4.63% Public storage REIT with good dividend

Heinz HNZ 1.5% yield 3.17% Hopefully some growth with decent yield

Johnson & Johnson JNJ 1.4% yield 1.93% primarily for growth

CarrAmerica Realty Corp CRE 1.3% yield 6.74% Office REIT with good dividend

Several others at less than 1% each including CSCO, DLM, FCEL, ICF, LXP, PFE, MIR

Close examination of our current nest egg reveals a 5.27% yield excluding the cash in the accounts, most of which is awaiting investment in dividend yielding securities. This is less than my earlier claim of about 6% which was based on only the companies that I hold primarily for income. I apologize for the misinformation.

I would really appreciate it if you feel I am making a mistake here. If I am doing something stupid I need to know what it is and why it is stupid. A recommendation for corrective action is really more help than a pat on the back. Good luck to all of us, we need it.

Jim Sullivan aka 8128
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