A monthly performance review of Durig’s high yielding Fixed Income 2 (FX2) Managed Income Portfolio which also explores the many benefits that the portfolio can provide to investors.
(performance is reported net of fee, as of 2-20-20)
This review looks at the performance of the Dogs of the Dow Portfoliowhich produces over 4% in dividend income alone, and also examines the benefits the portfolio can provide to income investors.
Performance Highlights
(all performance is reported net of fee, as of 2-10-20)
Though the stocks in Durig’s Dogs of the Dow Portfolio more than likely will change from year to year, the underlying screens used to select them remain the same.
Durig searches for and selects a group of of the highest yielding dividend stocks from the Dow Jones Industrial Average (DJIA) which have fallen out of favor (aka the “dogs”) and holds them for one year. Over time, these “dogs” tend to have “more room to run” with respect to their share price.
Time in the market nearly always beats timing the market.
Historically, blue chip dividend stocks have shown themselves to be resilient under downward market pressure, and are thought to offer relative stability in hectic markets as compared to non-dividend paying stocks. Additionally, companies that pay dividends tend to have much stronger fundamentals, such as stable earnings and growth, effective management and stronger financials.
The dividends paid by blue chips can also help to diversify income streams, and because dividends (and earnings) tend to grow over time they typically outpace inflation, preserving the value of your hard earned dollars. These dividends can also help to lessen historical volatility, explained in a recent article:
“During the overall market downturn in 2002, when non dividend-paying stocks fell by an average of 30%, while dividend-paying stocks only declined on average by 10%. Even during the severe 2008 financial crisis that precipitated a sharp fall in stock prices, dividend stocks held up noticeably better than non dividend stocks.”
Less historical volatility equates to a smoother and more comfortable ride for investors.
Durig’s Dogs of the Dow Portfolio can be extremely efficient in a tax advantaged account (such as an IRA) since neither capital gains nor dividends are taxed, allowing your investment to grow tax-free.
Avoid the Crowd
The majority of blue chip investors find themselves in an overly crowded mutual fund structure. While it may seem nice to share gains and losses but in actuality pooled investments are far more muddled, and typically more costly due to high administrative costs, hidden fees, and can create unwanted tax inefficiencies.
Avoid the crowd with a low cost, individually managed Dogs of the Dow account that offers a much cleaner investment environment.
Start building a better retirement today with the Dogs of the Dow.
Sign Up Below to Receive Updates on the Dogs of the Dow, and Many Other Related Investments!
Risk Disclaimer: Any content on this review should not be relied upon as advice or construed as providing recommendations of any kind. It is your responsibility to confirm and decide which trades investments to make. Invest with only with risk capital; that is, with money that, if lost, will not adversely impact your lifestyle and your ability to meet your financial obligations. Past results are no indication of future performance. In no event should the content of this correspondence be construed as an express or implied promise or guarantee.
Durig Capital is not responsible for any losses incurred as a result of this article Information provided in this correspondence is intended solely for informational purposes and is obtained from sources believed to be reliable. Information is in no way guaranteed. No guarantee of any kind is implied or possible where projections of future conditions are attempted.
Disclosure: The primary benchmark* used was SPDR® Dow Jones Industrial Avrg ETF Tr.
Announcing Durig’s latest addition to its portfolio of income solutions, the European Dividend Aristocrats Portfolio. This one of a kind portfolio targets 20 high yielding blue-chip stocks* (the actual securities held in the portfolio are American Depository Receipts and trade just like stocks) listed on various European exchanges for investment and was designed to produce high levels of dividend income and even the potential for growth of income over time. The idea is to invest only in the stocks of companies with a current high dividend and a long history of continuous annual dividend increases. Focusing investment on companies that increase their dividends annually should position the portfolio to consistently capture to the “cream of the crop” of higher dividend companies of a variety of European exchanges.
We are thrilled to introduce the latest addition to Durig’s portfolio of investment solutions, the Dogs of Europe. Designed to capture the high quality dividends of European Blue Chips with the potential to grow income over time, this new portfolio strategy allows investors to participate in European equity trends with the help and support of a registered investment advisor in the United States.
Relationships Founded in Trust for Global Investors
A Registered Financial Advisor such as Durig is a fiduciary and have the duty to always act in the best interests of their clients. Because of this duty, the incentive / fee structure is built into the relationship to ensure that advisors compensation is tied directly to the clients’ success.
The nature of the relationship between a client and a registered investment advisor is a bit different than other financial professionals, especially around the globe.
This week, Durig reviews one of the largest publicly traded hospital companies in the United States. Community Health Systems (NYSE:CYH) has spent the past few years paring down its portfolio of hospitals with an eye to retain those locations that are most profitable. The results of these divestitures are starting to be seen and the company has now put up two consecutive quarters of positive growth. In its most recent quarter results, one can see that same-store metrics tell a compelling story, especially in the competitive healthcare sector (see bullets above).
A year-end performance review of Durig’s Portfolio Solutions, designed to help you earn income, covering some of the key benefits that each can provide. The following portfolios will be reviewed in this article:
This review explores the performance of the Dogs of the Dow Portfolio, with nearly 4% in dividend income alone, and considers the many merits of blue chip dividend stocks such as those held in the portfolio.
For this week’s bond review, Durig looks at a chemical company created by a DuPont spinoff in 2015. Chemours Company (NYSE:CC) is a global leader in the manufacturing of fluoroproducts, chemical solutions, and titanium technologies. It is one of the leading global producers of titanium dioxide (used in paints, coatings, plastics, cosmetics and food), as well as the creator and producer of Opteon™, an award winning environmentally sustainable refrigerant. Highlights from the company’s second quarter results include: (see bullets above).
Many employers today offer retirement plans to their employees, very commonly set up as a 401k plan. These retirement plans can be an excellent way for investors to build their retirement with help from their employer, but there are many pitfalls to be had if the plan administrator does not understand what to watch out for.
This week, Durig takes another look at the number two grocer in the United States. Albertsons has made a significant turnaround in the past few years after its purchase of Safeway stores in early 2015. With its most recent quarterly results, the company has now logged seven consecutive quarters of identical store sales growth. In addition, the company’s online grocery sales grew by 40% year-over-year, a massive win for this traditional brick and mortar retailer. (Other results from its Q2 results, see bullets above)
In this article, Durig explores what it means to be a fiduciary, benefits of working with one, and their fundamental differences from other types of financial professionals.
What is a Fiduciary?
Registered Financial Advisors are fiduciaries, and are held to a much higher and completely different standard of care for their clients than other types of financial professionals. A fiduciary must always act in their clients best interests.
With interest rates continuing to fall and attractive yields becoming increasingly difficult to find, many investors are turning away from conventional fixed income investments such as US Treasuries.
A review and performance recap of Durig’s highly successful Dividend Aristocrats Portfolio that also compares the portfolio to another aristocratic dividend portfolio. The Dividend Aristocrats Portfolio was also designed with income stability in mind, maintaining investment focus on only higher quality blue chip companies known as “Aristocrats.”
(all performance reported net of fee, as of 10-18-19)
A benchmark performance review of Durig’s unique Dogs of the S&P 500 Portfolio that examines the income benefit the portfolio can provide, also exploring some of the achievements the portfolio has had in lifetime performance.
This week, Durig looks at an energy company that is making the transition from its historical focus on natural gas to be more focused on oil production. Chesapeake Energy (NYSE:CHK) has been making strides this year to transition towards a more oil focused production portfolio. Chesapeake has already increased oil in its production portfolio from 17% in 2018, to 24% as of the end of the second quarter. The company estimates it will exit 2019 with oil representing 26% of its production. Oil is a higher margin product, so Chesapeake is already seeing the fruit of its decision (see bullet points above).
A monthly performance review of Durig’s Dogs of the Dow Portfolio that explores several benefits that income producing investments such the Dogs of the Dow can help to provide.
Durig takes an in-depth look at it’s newest addition to its portfolio of investment solutions, the Income Aristocrats. An extremely diversified portfolio, the income aristocrats seamlessly blends the Fixed Income 2, Dogs of the S&P 500, and the Dogs of the Dow strategies into an income generating machine.
This week, Durig looks at the auto industry to focus on a manufacturer who supplies components to many of the industry’s leader auto makers. American Axle & Manufacturing (NYSE:AXL), a leading supplier of driveline technology, recently released its second quarter results. The company registered solid free cash flow, net cash from operations and improving EBITDA and EBITDA margins (see bullets above).
A monthly performance review of the Dividend Aristocrats, a diversified blue chip stock portfolio built around some of the highest yielding dividend payers listed on the S&P 500. We also examine the various benefits the strategy can offer investors in volatile markets.
This week, Durig Capital takes a look at a unique oil and gas producer. Reviewed several times in the past, most recently in May of 2019 following the company’s release of their Q1 Results, California Resources Corporation (NYSE:CRC) produces oil, natural gas and natural gas liquids (NGL) strictly within the state of California. And, it sells all of it oil production in the state of California, which, as a state, represents the 5th largest economy in the world. The company recently signed its third major joint venture agreement, which will allow the company to add production and revenue with no initial capital cost to CRC. In addition to this great news, CRC also posted some excellent results from its second quarter (see bullet points above).
This week, Durig takes a closer look at the various benefits that its Dogs of the S&P 500 Portfolio may provide investors in light of today’s unpredictable financial markets. September Performance Highlights (See bullet points above).
A Multi-Benefit Income Strategy
Durig’s Dogs of the S&P 500 Portfolio has the dual benefit of growth and income from a variety of the highest yielding (with regard to dividends) blue chip companies listed on the S&P 500. The portfolio is able to capture the highest quality blue chip dividends through its use of strategic weighting, achieving an average dividend yield of 4.66%, with the growth component of this strategy helping to boost the total year-to-date portfolio return to 20.78%, and a trailing 1 year return of 13.77%, outpacing the S&P 500 itself in both year-to-date return and trailing 1 year return. This multi benefit strategy allows investors to capture strong growth in principal, while still generating a healthy level of diversified income and realizing strong historical returns.
This week, Durig Capital takes a look at an industrial designer, manufacturer and marketer of aftermarket parts for light vehicles, commercial trucks and other industrial uses. Tenneco (NYSE:TEN) is on track and getting ready to create two market leading companies after its landmark acquisition of Federal-Mogul late last year. Its second quarter results tell the story of a company working diligently to grow its business, even among some industry slowdowns (see above).
Tenneco’s 2024 bonds have a yield-to-maturity of just about 7.85%. This is a fantastic yield, especially when investors can’t even get 2% from the current 30-year U.S. Treasury bond. In light of this and the company’s solid Q2 performance, these bonds are ideal for additional weighting in Durig Capital’s Fixed Income 2 (FX2) High Yield Managed Income Portfolio, the aggregated performance of which is shown below.
This week, Durig Capital recaps the recent performance of its own unique version of the Dogs of the Dow Strategy and benchmarks it to that of its closest peers. Also explored is the importance of portfolio correlation to the overall market, and how correlation can help to provide investors an idea of how a portfolio could theoretically perform under various market conditions.
Durig’s Dogs of the Dow – September Performance Highlights
The Dividend Aristocrats Portfolio, Durig Capital’s newest exciting investment solution is now open for investment. This portfolio strategy targets the “cream of the crop” among a diversity of blue-chip companies listed on the S&P 500, seeking the companies with only the highest yields and have a stable history of increasing dividends.
This week, Durig Capital looks at the healthcare sector to review one of the largest publicly traded hospital companies in the United States. Community Health Systems (NYSE:CYH) has spent the last few years rationalizing its portfolio of hospitals. The company is beginning to realize the effects of this strategy as evidenced by its same-store results for the second quarter (see above).
Over the last few months, the ongoing trade-war between the U.S. and China has escalated into something of a volatility generating machine, with some market indices jumping up or down hundreds of points in a single day as new tariffs are added, sentiments of certain key political figures are expressed, etc. Causality aside, the markets are boiling and have many investors looking to find a way to beat the heat without having to leave the kitchen entirely. This week, Durig Capital explains how investors can do just that with its Dogs of the S&P 500 Portfolio.
This week, Durig Capital recaps the recent performance of its own unique version of the Dogs of the Dow Strategy and benchmarks it to that of its closest peers. Also explored is the importance of portfolio correlation to the overall market, and how correlation can help to provide investors an idea of how a portfolio could theoretically perform under various market conditions.
Durig’s Dogs of the Dow – July Performance Highlights
This week, Durig Capital looks to a Canadian issuer, a specialty pharmaceutical company that is successfully treating long-term HIV patients with its unique medicines so that patients have the opportunity to have a better quality of life. Theratechnologies (TSX:TH) has two landmark drugs, Trogarzo™ and EGRIFTA™ specifically developed to help HIV patients. The company has reported its second quarter results (for the three months ending May 31, 2019) and continues to see outstanding growth over its product lines.
For this week’s bond review, Durig Capital ventures into the auto world to look at one of the leading auto rental companies in the U.S. and around the world. Hertz Global (NYSE:HTZ) had a fantastic 2018 and 2019 looks to be shaping up much the same.
First quarter 2019 is the seventh consecutive quarter the company has recorded year-over-year growth.
Total revenues were up 2% (during one the company’s historically slow quarters), up 4% on a constant currency basis.
Revenues in the U.S. grew by 7%.
Cash flow provided by operating activities grew by 28% over first quarter 2018.
This week, Durig Capital explores a popular variation of the classic Dogs of the Dow investment strategy, introduced by Michael O Higgins in the early 1990’s. The strategy has been widely accepted by some for its simplicity and repeatability, yet denounced by others for the exact same. Durig Capital believes less complicated is better; fewer moving parts mean fewer potential points of failure, and has done well historically with it’s own unique version of this simple strategy, discussed later in the article.
This week, Durig Capital reviews its own version of a time-proven investment strategy. The Dogs of the Dow investment strategy is a simple way for investors to design a portfolio around the “dogs” of the broader Dow Index, and rebalance it annually. Durig Capital’s Dogs of the Dow (DoD) portfolio has, since its inception in June 2017, resulted in a less volatile portfolio with excellent returns when compared the the broader Dow index.
This week, Durig Capital looks at a longtime company that has adopted a new name to reflect its new direction. Pyxus International, formerly Alliance One, is well into its “One Tomorrow” transformation plan, where it has added new products to its product base of leaf tobacco. The company has entered into producing e-liquids, cannabis and cannabis related products.
This week’s bond review shines a light on the solar industry, focusing on the second largest solar company by revenues. Canadian Solar has experienced outstanding growth over the past few years, with revenues growing by nearly 19% between 2016 and 2017. In addition, the company is projecting revenue growth this year of over 35% over last year. Growth has been driven by the large demands in China in recent years, but also increased demand in countries such as Brazil, Mexico and India. Canadian Solar’s first quarter results show the company is off to a solid start this year.
Gross profit in Q1 increased 57% over Q1 2017.
Net revenue in Q1 was up an impressive 110.5% from Q1 2017.
Operating expenses and general and administrative expenses both decreased year-over-year in Q1.
This week, Durig Capital takes another look at one of two publicly held global leaf tobacco merchants. The last review of Alliance One earlier this year revealed that the company had made its entrance into the e-cigarette market through its acquisition on Purilum, an e-liquids producer. Now Alliance One is taking further steps to diversify its product offerings into both the cannabis and industrial hemp markets. Additionally, the company recently released its Q4 and FY 2018 results. Fiscal year 2018 recorded improvements over the previous year, including:
Why Blue Chip Dividend Stocks?
The 
Quality Investments That Deliver
This week, Durig Capital looks at a longtime company that has adopted a new name to reflect its new direction. Pyxus International, formerly Alliance One, is well into its “One Tomorrow” transformation plan, where it has added new products to its product base of leaf tobacco. The company has entered into producing e-liquids, cannabis and cannabis related products.
English
Afrikaans
Albanian
Amharic
Arabic
Armenian
Azerbaijani
Basque
Belarusian
Bengali
Bosnian
Bulgarian
Catalan
Cebuano
Chichewa
Chinese (Simplified)
Chinese (Traditional)
Corsican
Croatian
Czech
Danish
Dutch
Esperanto
Estonian
Filipino
Finnish
French
Frisian
Galician
Georgian
German
Greek
Gujarati
Haitian Creole
Hausa
Hawaiian
Hebrew
Hindi
Hmong
Hungarian
Icelandic
Igbo
Indonesian
Irish
Italian
Japanese
Javanese
Kannada
Kazakh
Khmer
Korean
Kurdish (Kurmanji)
Kyrgyz
Lao
Latin
Latvian
Lithuanian
Luxembourgish
Macedonian
Malagasy
Malay
Malayalam
Maltese
Maori
Marathi
Mongolian
Myanmar (Burmese)
Nepali
Norwegian
Pashto
Persian
Polish
Portuguese
Punjabi
Romanian
Russian
Samoan
Scottish Gaelic
Serbian
Sesotho
Shona
Sindhi
Sinhala
Slovak
Slovenian
Somali
Spanish
Sudanese
Swahili
Swedish
Tajik
Tamil
Telugu
Thai
Turkish
Ukrainian
Urdu
Uzbek
Vietnamese
Welsh
Xhosa
Yiddish
Yoruba
Zulu