Dividend Oriented Stocks Are Limited Under The Latest Screen

Dividend Stocks of Interest

From time to time I will post a few stocks for Platinum members interested in spicing up their portfolio.  While it is difficult to build a portfolio using only stocks and have that portfolio outperform the stock market over the long run, it is possible to pull down portfolio risk by adding companies that have a low correlation with the broad market.  Generally, the stocks I recommend have low correlations with the market and they are dividend growers.  In the following screen shot, I show both the screen I used and the resulting three companies that emerged.

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Bullish Percent Indicators Show Positive Market Trends

Markets Are Bullish

Bullish Percent Indicators (BPI) show increasing strength this week.  Everyone of the major markets improved as ITA readers can see in the following graph.  It is going to be interesting to see if this positive trend can be maintained throughout the summer months.  Don't plan on it.

Move down to the 7/6/2012 row and compare each number with the number immediately above to see the change during the week.  Also note that the NASDAQ and DJIA moved from defense to offense.  In other words, these two indexes now show X's in the right-hand column, whereas last week O'x populated the right-hand column.

Exactly what does that 54.71 value under the NYSE column mean?  That number indicates that 54.71% of the stocks in the NYSE index are generating bullish Point and Figure (PnF) graphs.  When the percentage tops 70% the market is considered to be overbought and when it is under 30% it is oversold.  While the DJIA is overbought, there are only 30 stocks in the index so it is of less importance than what happens within the NYSE.

Portfolio Performance: 6 June 2012

Portfolio Performance

It is time to post the Portfolio Performance data table after several weeks absence.  Since I last posted this table, all portfolios improved in absolute terms and several gained on the VTSMX benchmark.  The negative news is that all portfolios lost ground with respect to the customized ITA Index.  What this is telling me is the following – you got the asset allocation correct but you did not have the discipline to keep all asset classes in alignment with the Strategic Asset Allocation plan.  The portfolios that gained ground on the VTSMX were:  Schrodinger and Einstein, two portfolios that had almost no trading and all asset classes remain in balance or aligned with the target percentages.  The Curie, Maxwell, and Euclid showed no changes and we did make some trades in these two portfolios.

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