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.
Income Growth Over Time
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
12.41% Year-to-Date
12.87% Trailing 1 Year Return
15.98% Annualized Return Since Inception
Beta of 0.72 (vs. Benchmark*)
(Performance shown above is as of 7-31-19)
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.
The New Dogs on the Block
Last week, Durig Capital reviewed it’s own unique version of the Dogs of the Dow Strategy. Over the years, the Dogs of the Dow Strategy has been adopted by many investors looking to beat the Dow Jones Industrial Average (DJI).
Last month, Durig Capital explored several variations of the classic Dogs of the Dow Investment Strategy. Later in the article, we examined the historical performance of these strategy variations, benchmarked against the performance of Durig’s own unique Dogs of the Dow Portfolio Strategy. The original strategy designed by Michael O’Higgins in the book “Beating the Dow” in 1991 was designed for just that; beating the Dow Jones Industrial Average (DJI).
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.
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.
Interest coverage for Q1 was a solid 2.6x.
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:
