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Semi-retired individual investor focused on dividends in a Retirement Income Portfolio. Member of the National Association of Investment Clubs (NAIC) since 1982.
  • Consuelo Mack Interview With Bill Priest 2 comments
    May 27, 2013 12:26 PM

    It's appropriate that the markets are silent on this Memorial Day of remembrance.

    This week's WealthTrack interview by Consuelo Mack is with Bill Priest and Tim Hartch, "Award Winning Managers, Contrasting Strategies."

    Dividend investors may be particularly interested in Priest's comments about how stocks are chosen for his MainStay Epoch Global Equity Yield Fund.

    Priest says every company has five options for how to deploy its free cash flow:

    1. Pay dividends

    2. Buy back stock

    3. Pay down debt

    4. Invest in the business

    5. Buy other companies.

    His goal is to build a fund with a 9% return, comprised of 4.5% in dividends, 1.5% in either buybacks or debt reduction, and 3% growth.

    I always enjoy looking at the portfolios of funds that have great track records. Priest's Global Equity fund seeks to have 100-105 stocks with a low beta (.75). Here are the top ten equity sectors in the fund's holdings (as of March 28, 2013):

    Diverse Telecommunication Services 11.30%

    Pharmaceuticals 10.88%

    Tobacco 7.74%

    Electric Utilities 7.09%

    Multi-Utilities 6.90%

    Media 4.95%

    Oil, Gas & Consumable Fuels 4.22%

    Insurance 3.98%

    Aerospace & Defense 3.87%

    Wireless Telecommunication Services 3.33%.

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

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Comments (2)
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  • saw the show.. she does a great job interviewing guests on every show. always asks the questions , that i,as an investor would ask............am a fan of henry schlein , great company, as was hartch on the show.
    27 May 2013, 04:42 PM Reply Like
  • Author’s reply » I enjoyed Tim Hartch's comments as well. I was as surprised by his two dental recommendations (HSIC and XRAY) as Mack appeared to be. But, he made a great point about the demographics of our aging population and the growing demand for dental care as the population ages. My universe is limited to dividend-paying stocks, so those were two new ones for me. Consuelo Mack is the best. Thanks for your response!
    27 May 2013, 05:04 PM Reply Like
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