Jeff Paul's Instablog

DG-Income Growth Model Change Due To HNZ Buyout

Thu, 14 Feb 2013 23:55:12 -0500

Warren Buffett's Berkshire Hathaway made a bid to buyout HNZ. As a result of the price run-up, and lower current yield because of it, this holding has been sold in the DG-Income Growth model and replaced with the next highest yielding stock on the buy list, Clorox (CLX). This model will be completely rebalanced next month.

seekingalpha.com/article/851361-mid-year...-beta

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Stop-Loss Sales In DG Models

Wed, 17 Oct 2012 23:00:31 -0400

In the last two weeks, Intel (INTC) and Diebold (DBD) triggered my -20% stop-loss rule (4 wks of underperforming the S&P by 20%). I had written about perhaps ignoring the stop-loss for INTC because it has such a low payout ratio, but since I haven't had time to do more research on this, the rule will remain in effect. The sales occurred on Oct 5th.

INTC sold, replaced by Maxim (MXIM) in the Income Growth and Dividend Aristocrats+ model portfolios.

DBD sold, replaced by Harris Corp (HRS) in the Small Cap DG portfolio.

INTC was retained in the high-yield, low-payout model because this model does ignore the stop-loss rule.

Disclosure: I am long [[INTC]].

Riding Coach!

Tue, 07 Aug 2012 21:20:00 -0400

I've been looking to add some consumer discretionaries to my portfolio. When Coach (COH) dropped below $49 last week, I took the plunge. Not a bad move so far...14% up in a week. Hopefully the dividend keeps getting raised too.

Disclosure: I am long [[COH]].

Some Potential Low-payout Hidden Gems...

Sat, 25 Feb 2012 13:31:39 -0500

I just posted a follow-up article to my well-received one on high-yield, low-payout stocks. This article focuses on some small caps that did not meet the portfolio criteria due to size/trading volume, but may be of interest as they have yet to attract a lot of attention. They are all from the CCC list, so there is a good history of increasing dividends and they seem to be at reasonable valuations (P/E, P/B).

seekingalpha.com/article/392051-finding-...-stocks

Disclosure: I have no positions in any stocks mentioned, but may initiate a long position in [[LARK]], [[EEI]] over the next 72 hours.

High-Yield, Low-Payout Portfolio

Fri, 17 Feb 2012 15:43:27 -0500

Hi,

I posted an article today that implements the high-yield, low-payout research that I previously reported on. The 30 stocks are mostly different from my other model portfolios, so it will be interesting to see how this group performs.

seekingalpha.com/article/374851-a-high-d...-portfolio

Jeff

Income Growth Model Portfolio Updated For 2012

Thu, 02 Feb 2012 10:42:36 -0500

I finally rebalanced my DG Income-Growth portfolio. It has had the best performance (total return and risk-adjusted) of my three models and versus the SPY and SDY. 2/3 of the stocks are the same, just rebalanced the dollar amounts. Most of those replaced still pass all of my screens, but their yields have fallen due to price gains (not a bad problem). Overall, a 4.2% yield and a 0.73 beta, so I expect to see continuation of the low volatility in weekly returns, which should be appealing to income-oriented investors.

Click here for the article.