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Due to the recent slew of volatility that is destroying market confidence and throwing investors all over the place we have been working on new strategies for our clients. Many of our research clients include registered investment advisors. Their clientele have been “at a loss for words” over the recent market turmoil. In light of this turbulent market we have been working extensively on many new portfolios for clients.

More specifically clients have been requesting a consistent yield in excess of 5% with a considerably low volatility. One of my clients is a reader of this website and has opted to allow me to provide the portfolio we gave to him to this reader base. This portfolio is well diversified consisting of companies in a wide variety of sectors and industries. The weighted Beta of this portfolio is .68 indicating a low amount of volatility. The weighted yield for this portfolio is a solid 6.55%. This yield far outweighs the real negative returns that investors are accepting in the Treasury markets. This portfolio also consists of many companies that are trading at less than 5 times cash flows and with a P/E ratio of less than 10 for many. The potential for long term capital gains is enormous and while you wait for those gains you can rake in a yearly yield of 6.5%. It is important to note that the weighted dividend growth rate (on a 5 year average) is 9.74%.

Please note that this portfolio should be reviewed with your investment advisor before making any investments. Not all investments are right for everyone and this portfolio may not be acceptable for your level of risk tolerance.

Company

Ticker

% of Portfolio

Yield

Beta

Div Growth (5 Year Avg)

Annaly Capital Management

NLY

15%

15.00%

0.33

20.57%

Exxon Mobil

XOM

12%

2.60%

0.5

8.83%

Verizon

VZ

12%

5.50%

0.6

3.51%

NewYork Community Bank

NYB

12%

8.70%

0.76

0.00%

AstraZeneca

AZN

12%

6.10%

0.54

14.42%

Monsanto

MON

8%

2.00%

0.82

26.01%

Philip Morris

PM

9%

4.90%

0.9

0.00%

Intel

INTC

5%

4.16%

1.12

14.51%

Microsoft

MSFT

5%

3.24%

1

12.83%

Electro Rent Corp

ELRC

10%

5.79%

0.9

0.00%

Weighted Yield

6.55%

Weighted Beta

0.6801

Weighted Div Growth

9.74%

Source: Construct A Low Volatility Portfolio Yielding 6.5%

Additional disclosure: The securities I am long are part of our Hedge fund.