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As stated previously, Investment Quality Trends provides information targeted towards subscribers with varying levels of portfolio building expertise. Unlike many other newsletter services we do not construct and maintain model portfolios. Because we follow such a wide variety of companies that are dynamically moving in price, along with a steady influx of new subscribers, such an approach would be impractical for our particular application.
For performance tracking purposes, however, The Hulbert Financial Digest has maintained a portfolio for Investment Quality Trends since 1986. This portfolio consists of all the companies in the Undervalued and Rising Trend categories, which, at any given time, could total as many as one hundred companies or more; clearly too large a number to be practical.
In January of 2000 we initiated The Lucky 13 portfolio to assist subscribers in establishing a foundation for their investment portfolios. In the Mid-August 2006 issue of Investment Quality Trends we initiated The Timely Ten feature to compliment The Lucky 13.
Whether you are looking to build a portfolio from scratch, are partially invested and looking to add new positions, or are fully invested and merely in need of some affirmation and hand holding, The Timely Ten presents our top ten recommendations as of each issue. Short of utilizing the personal investment management services of our sister company, IQ Trends Private Client Asset Management, this is as close to real time as you can get.
The Timely Ten consists of stocks from the Undervalued category that generally have:
- An S&P Dividends and Earnings Quality Ranking of A- or better
- A “G” designation for outstanding long-term annual dividend growth of 10% over the last twelve years
- A price/earnings ratio (P/E) of 15 or less
- A payout ratio (percentage of earnings paid out as a dividend) of 50% or less (75% for Utilities)
- A debt level of 50% or less (75% for Utilities)
- Technical characteristics on the daily and weekly charts that suggests the potential for imminent capital appreciation.
The Timely Ten can be found on page 11 of each issue. The format is easy to follow as can be seen in the sample below, taken from the First-March 2009 issue.
Rank |
Previous Rank |
Stock Name |
Tick Symbol |
Payout Ratio |
S&P Rank |
Yield |
|
| 1 |
4 |
IBM |
IBM |
24% |
A |
2.3% |
| 2 |
1 |
Altria Group |
MO |
54% |
A |
8.5% |
| 3 |
2 |
Johnson & Johnson |
JNJ |
40% |
A+ |
3.5% |
| 4 |
3 |
United Technologies |
UTX |
31% |
A+ |
3.8% |
| 5 |
6 |
Coca Cola |
KO |
66% |
A |
4.0% |
| 6 |
5 |
Union Pacific |
UNP |
24% |
A |
2.9% |
| 7 |
7 |
Emerson Electric |
EMR |
43% |
A |
4.8% |
| 8 |
--- |
Colgate Palmolive |
CL |
46% |
A+ |
2.7% |
| 9 |
--- |
Abbott Labs |
ABT |
55% |
A- |
3.2% |
| 10 |
10 |
Molson Coors |
TAP |
32% |
A- |
2.3% |
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