Here is an article on ranking dividend aristocrats.

http://seekingalpha.com/article/1823142-ranking-dividend-aristocrats

Here is an article on ranking dividend aristocrats.

http://seekingalpha.com/article/1823142-ranking-dividend-aristocrats

Mosaic investors are those individuals who build their portfolios around a core of index ETFs, but choose to “spike” their portfolio with a few individual stocks.

**The following material is not available for publication elsewhere on the Internet.**

Filed Under: Stocks Tagged With: Dividend Stocks, Mosaic Investors

Selecting the recommended stocks from the 40 securities listed in a prior blog, here is the Quantext Portfolio Planner (QPP) analysis of those 17 stocks. Included is the Correlation Matrix graph and for good measure, I threw in the “Delta Factor” projections. Since there were fewer stocks than in the original analysis I was able to show all the correlations.

**QPP Analysis:** As in the prior QPP analysis the S&P 500 is projected to grow at 7.0% annually over the next several months. This arrangement of 17 stocks has a projected return of 8.2% and a projected standard deviation of 14.4%. The percentage allocated to each stocks comes out of the recommendations when I ran an optimizer-momentum analysis of 40 stocks. One could leave PG off the list as only 0.03% is recommended for this stock. PG shows up as 0.0% in this screenshot due to rounding.

As in the analysis of 40 stocks, this group of 17 outperforms the S&P 500 by a significant amount over the last five years and does it with less volatility. Even with the reduced number of holdings, the Diversification Metric still comes in at 43% or above our goal of 40%. The yield remains over 3.0%, another plus for this portfolio.

Filed Under: Delta Factor, QPP Analysis, Stocks

Is the forty (40) stock portfolio optimized if one assigns 2.5% to each stocks? Follow the optimized-momentum analysis to answer this question.

**Efficient Frontier:** A quick glance at the Efficient Frontier graph shows us that equal allocation to each stock does not provide the most optimized portfolio. This does not come as a surprise. The equal allocation was done for simplicity just to see how the QPP analysis looking in a prior blog post. The optimizer-momentum software tool provides us with more information as to how we might improve the Return/Risk ratio for a 40-stock portfolio.

Keep in mind that I placed a few constraints on the optimizer. For example, in this run I limited the percentage to be held in any one stock to be 10%.

Filed Under: Optimization, Stocks

The following list of forty (40) stocks was suggested by a reader for Quantext Portfolio Planner (QPP) analysis. Long time readers of ITA know that QPP is a software program developed by Geoff Considine, author of a blog, The Portfolioist.

**QPP Analysis:** The following list of 40 stocks results in a well-diversified portfolio as indicated by the Diversification Metric. Anything over 40% is considered excellent and this portfolio generates a 42% value. The S&P 500 is assumed a growth rate of 7.0% over the next six to twelve months and this portfolio is projected to generate a 7.5% return with only a 12% standard deviation. This gives rise to a projected Return/Risk ratio of 0.63. Anything over 0.6 is highly valued.

Check the Historical Data below and see how this group of stocks performed compared to the S&P 500. What is particularly impressive is the difference in portfolio volatility. This portfolio was 6.6% points lower than the S&P 500, a huge difference.

**Correlation Matrix: ** The QPP software considers 80% or higher to be highly correlated and anything below 50% to be low. Most of the stocks in this combination are either moderately correlated or fall into the low correlated bracket.

At a later date I will run an optimization-momentum analysis of this portfolio. Keep checking in for that analysis.

Filed Under: Free Material, QPP Analysis, Stocks

ITA Platinum members looking for dividend growth stocks will find this list of interest. I am not recommending any companies for purchase, but rather throwing out a list of companies that passed stringent screens. Do your own research before making any investment decisions.

**The following information is not for publication elsewhere on the Internet.**

Here is my optimization analysis on a 12-Dividend portfolio made up of individual stocks. It might be interesting to look at a portfolio made up of 20 to 30 individual stocks.

I like the 9.0 projected return and the high Return/Risk ratio. A yield of 2.7% is also quite respectable.

Do these results match others who are using this optimizer in conjunction with the QPP software?

Filed Under: Free Material, Stocks Tagged With: Stocks

Now we take the same list of stocks as used in the prior blog post, only this time I optimized the portfolio by requesting for a maximum Return/Risk ratio. In the first screenshot readers will see the QPP analysis. In the second slide, note the correlation matrix and in the third I show the constraints placed on the portfolio of stocks.

**QPP Analysis:** The following asset allocation gives up return, but significantly reduces risk. Reduction in the standard deviation (10.7%) is related to the constraint of requesting a maximum Return/Risk ratio. Note the increase in Diversification Matrix and the reduction in the Portfolio Autocorrelation. This portfolio has a respectable yield of 3.8%.

**Correlation Matrix:** Pay attention to those stocks that have a weight greater than zero. For example, omit VTI, COP, etc. in your thinking. They do not enter into the calculations even though there is a percentage present. This portfolio ends up with no highly correlated holdings. It is also important to note that the correlations change when the weight or percent allocated to a specific stock varies.

**Portfolio Constraints:** The following screen shot shows the constraints placed on the portfolio when the Set Objective is to maximize the Return/Risk ratio. Had I requested a maximum Return, Risk would have increased significantly.

Please post comments and questions in the space provided below.

Filed Under: Free Material, QPP Analysis, Stocks Tagged With: QPP Analysis

This past weekend I was running my dividend stock screening program to see which companies passed the screen. Then I recalled that I once had a “valuation” screen that looked for companies that were priced under numerous valuation parameters as laid out in the Stock Investor Professional, AAII’s stock screening program. Here are the valuation parameters I used for my screen, in addition to the dividend or yield screens.

**This material is not available for publication elsewhere on the Internet. It is reserved for Platinum members.**

In the following screenshot Platinum members will find the latest list Piotroski Stocks. These stocks have a High F-Score of eight (8) or higher.

*The following information is not available for publication elsewhere on the internet without my permission. LGH*

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Be sure to check out the update of the Galileo Portfolio over on the new website at itawealth.com
The Einstein and Aristotle Portfolios are up for review later this week.

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