Tag: Action Point

TAKE ADVANTAGE OF THE INCOME, AND DEFENSIVE QUALITIES OF DIVIDEND PAYING STOCKS

May 17, 2019

TAKE ADVANTAGE OF THE INCOME, AND DEFENSIVE QUALITIES OF DIVIDEND PAYING STOCKS

Morningstar’s CHRISTINE BENZ’ “TANTALIZING DIVIDEND YIELDS” FUNDS:

SCHWAB U.S. DIVIDEND EQUITY ETF (SCHD)

  • – Morningstar Silver Analyst Rating
  • – Higher-yielding half of the 2500 largest U.S. stocks (excluding REITs)
  • – Consistent dividend payers
  • – Companies that score well on various profitability measures

VANGUARD EQUITY-INCOME FUND (VEIPX)

  • – Morningstar Silver Analyst Rating
    “…run by two separate management teams plying complementary strategies.”
    – Christine Benz, Morningstar.com
  • Vanguard Equity-Income Fund management teams:
    — Wellington – finds dividend paying companies inexpensive relative to their growth prospects
  • – Vanguard – uses a quantitative approach

VANGUARD HIGH DIVIDEND YIELD ETF (VYM)

  • – Morningstar Silver Analyst Rating
  • – Avoids big bets in traditional high-yield sectors like financials, utilities and energy stocks by the way it weights the portfolio

Watch the related WEALTHTRACK episode.

LATIN AMERICA ECONOMIC EXTREMES

May 10, 2019

CONSIDER PUTTING A SMALL AMOUNT OF YOUR EMERGING MARKETS ALLOCATION INTO AN ESTABLISHED LATIN AMERICAN FUND.
LATIN AMERICA ECONOMIC EXTREMES

    FAILURES:
    Venezuela’s economic collapse

    SUCCESSES:

  • Open market economies:
  • – Chile
  • – Colombia
  • – Peru
  • POTENTIAL TURNAROUND

      Brazil- attempting serious pension reform

    ESTABLISHED LATIN AMERICAN STOCK FUND

      T. Rowe Price Latin American fund (PRLAX)

    • – Bronze Medalist
    • – 4-Star Rating
    • – Experienced team
    • -“Sound and distinctive growth discipline”

Watch the related WEALTHTRACK episode.

MAKE SURE YOU HAVE SOME DEFENSIVE HOLDINGS IN YOUR PORTFOLIO

May 3, 2019

MAKE SURE YOU HAVE SOME DEFENSIVE HOLDINGS IN YOUR PORTFOLIO

  • Ward’s Choices: Counter-cyclical stocks like utilities and cell tower companies
  • Individual Investors’ Choices: Defensive non-stock assets like cash, Treasury bonds, gold …

Watch the related WEALTHTRACK episode.

HAVE FAITH IN THE RESILIENCE OF THE U.S. ECONOMY

April 27, 2019

HAVE FAITH IN THE RESILIENCE OF THE U.S. ECONOMY

    Contractions are caused by:

  • Excesses in important sectors of the economy
  • Overheating and “irrational exuberance”
  • Prices and inflation spike
  • Federal Reserve tightens monetary policy

Watch the related WEALTHTRACK episode.

READ: “SOCIAL VALUE INVESTING: A MANAGEMENT FRAMEWORK…”

April 19, 2019
Check out:
Social Value Investing: A Management Framework for Effective Partnerships
By Howard Warren Buffett and William Eimicke

  • Public, private, philanthropic partnerships can work
  • Neither sector can solve global challenges by themselves
  • Working together can be more effective in addressing big issues such as inequality, climate change, affordable house, healthcare & food insecurity
  • Buffett & Eimicke show examples of effective & ineffective ways to partner

Watch the related WEALTHTRACK episode.

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