Holdings

Dividend Growth Income Fund (as of Sept 1st 2013)

Company	Symbol	% of portfolio	Yield On Cost (YoC)
Apple	AAPL	10.81%	2.50%
Conoco Phillips	COP	8.82%	4.80%
Walmart	WMT	7.95%	2.50%
T.Rowe Price Dividend Growth	PRDGX	6.16%	1%
Abbvie	ABBV	4.93%	4.80%
Phillips 66	PSX	4.79%	2.25%
McDonalds	MCD	4.09%	3.80%
Chevron Corporation	CVX	3.83%	3.30%
Target Corporation	TGT	3.66%	2.60%
Walt Disney	DIS	3.52%	1.75%
Dynex Capital	DX	3.04%	12%
CVS Caremark Corporation	CVS	2.85%	1.65%
Digital Reality	DLR	2.63%	5.60%
Time Warner Inc	TWX	2%	2%
Costco Whole Sale	COST	1.94%	1.10%
Medtronics	MDT	1.90%	2.25%
Scana Group	SCG	1.90%	4.50%
Walgreens	WAG	1.90%	2.50%
Coca Cola Company	KO	1.88%	2.80%
Textrainer Group Holdings	TGH	1.88%	5.40%
Wisconsin Energy Corporation	WEC	1.82%	3.60%
401K Cash	$$$	17.64%	0%
brokerage a/c cash	$$$	.25%	0%

Fund Objective: Invest in blue chip large cap and mid cap companies that have increased dividend payouts consistently. 

Investment Strategy:

• This is a buy, hold and monitor portfolio
• If a company's business is fundamentally sound and doing well, the holding period is forever. Exception is for technology stocks as this fund will eventually exit technology stocks such as AAPL in a few years time.
• Be overweight in consumer staples and retail, energy and healthcare companies
• Include ~20% of holdings in consumer discretionary, cyclical and riskier companies
• Have a mix of ~80% blue chip, ~20% mid cap companies for growth potential
• Companies should not be overvalued, have low to moderate payout ratios, exhibit revenue growth / earnings per share (EPS) increases.
• Reinvest dividend payments every month back into buying existing company stock

Additional Comments: 

• The portfolio includes T.Rowe Price Dividend Growth mutual fund as this is part of the 401K plan added to the holdings to represent an accurate picture of investments. Current 401K plan does not have options to invest in individual stocks. Holdings in T.Rowe Price Dividend Growth mutual fund can be found here. Nevertheless, this fund is widely diversified across various industries and has a low expense ratio  of around .67% and low churn
• The portfolio is overweight cash in the 401K account and this will be used exclusively for buying units of T.Rowe Price Dividend Growth mutual fund.
• Additional cash will be added to the brokerage account regularly when opportunities present themselves.