Baseball Hall of Famer Wee Willie Keeler’s famously advised, “Keep your eye clear and hit ‘em where they ain’t.” This motto has an important corollary for investors: Buy what’s unpopular and hold the stock until the market discovers its value.
The stronger-than-expected revenue growth posted by the S&P 500’s constituents supports our thesis that US economic growth will accelerate meaningfully this year. We also review fourth-quarter earnings from the last two Wealth Builders Portfolio holdings to report results.
All our Lifelong Income Portfolio holdings have reported their results for the three months ended Dec. 31, 2013, and issued guidance for 2014. The prognosis: Expect another year of high yields, reliable dividends and solid upside.
Our Lifelong Income Portfolio strives to balance exposure to undervalued dividend payers that have fallen out of favor temporarily with cyclical names that offer above-average yields and leverage to strengthening economic growth.
Worries that the Federal Reserve will abandon its easy-money policies have resurfaced, triggering another knee-jerk selloff of dividend-paying equities. Investors should regard this pullback as an opportunity to stock up on our favorite names.
The dozen holdings in our Lifelong Income Portfolio have reported earnings for the quarter ended Sept. 30, 2013, with the majority posting solid results that should support their dividends and growth plans. We review the quarter that was for the last two holdings to announce their earnings.
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