Thursday, September 6, 2012

Tortoise investing: 10 dividend favorites


There is a propensity, particularly among professional speculators, to experiment with practices that they believe can be exploited for gains with little or acceptable levels of risk.

Generally speaking, these manipulative practices are typically short-lived as the markets are self-policing. Such may be the case with high-frequency trading.

If these practices were not self-policing, manipulative practitioners would eventually destroy the markets as there would not be anyone standing to take the other side of the trade.

In short, I would suggest that high-frequency trading will end as many other manipulative practices in the past have ended; when the markets put their foot down and say �enough.�

This is to say that the markets cannot survive without the traditional retail investor; there simply isn�t sufficient volume and liquidity if trading is limited to only the professionals and institutions.

We understand that the investment world has changed dramatically because of computer technology and the Internet.

Tremendous amounts of data and information can be gathered, sorted and analyzed in a matter of minutes.

With all the technological firepower available to investors today, and brokerage firms that are willing to exploit it, no one is going to build an advertising campaign around the Dividend-Value Strategy; the tortoise is still just not as exciting as the hare.

For the enlightened investor, however, investing is not about entertainment and excitement. What has always been the key to the Dividend-Value Strategy is its track record of success for producing consistent gains in the stock market.

Accordingly, forty five years after its inception, our strategy continues to focus on combining sound stock selection with a long-term orientation because over time, the stock market rewards investors who recognize and appreciate good value.

In fact, the two greatest assets an investor can have are a system to identify quality and the ability to recognize value.

The two primary benefits of limiting investment considerations to only those stocks that are of the highest quality and represent good value are: The long-term growth of capital and income; and, an immediate return on investment in the form of dividends.

This is not to say that quality and value are immune to violent market dislocations; when the big boys hit the sell button at the same time all stock prices can take a hit.

What separates quality and value from everything else, however, is that quality and value inevitably recovers and prospers.

For all the reasons, we remain relentless in the pursuit of identifying value in the stock market and in understanding the myriad factors that influence stock prices each day.

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Meanwhile, our 'Timely Ten' list is our reasoned expectation based on our methodology and experience for what we believe will perform best over the next five years.

Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or fully invested and in need of some affirmation and hand holding, The Timely Ten represents our top tenr recommendations at a given time.

Our current Timely Ten and their current yields are:

Chevron Corp. (CVX) - yielding 3.3%
Coca Cola (KO) -- yielding 2.7%
Johnson & Johnson (JNJ) -- yielding 3.6%
AT&T Inc. (T) -- yielding 6.1%
Union Pacific (UNP) - 2.2%
United Technologies (UTX) -- yielding 2.7%
Eaton Corp. (ETN) -- yielding 3.5%
Occidental Petroleum (OXY) - yielding 2.3%
PepsiCo (PEP) -- yielding 3.4%
Abbott Labs (ABT) -- yielding 3.9%



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