67 WALL STREET, New York - March 11, 2014 - The Wall Street Transcript has just published its current Investing Strategies Report. This special feature contains expert industry commentary through in-depth interviews with highly experienced Money Managers. The full issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
Topics covered: Bottom-Up Stock Selection - High-Quality Companies - Dividend-Paying Stocks - Midcap Growth Strategy - Secular Growth Themes
Companies include: Walt Disney Co. (DIS), Netflix, Inc. (NFLX), CVS Caremark Corporation (CVS), Walgreen Co. (WAG), QUALCOMM Inc. (QCOM), Johnson & Johnson (JNJ), Medtronic, Inc. (MDT), BlackRock, Inc. (BLK), Eaton Corporation (ETN), Chevron Corp. (CVX), International Business Machine (IBM) and many others.
In the following excerpt from the Investing Strategies Report, an experienced portfolio manager discusses his firm's investing methodology and top stock picks for investors:
TWST: Could you please begin with an overview of Haverford Quality Growth and a look at some key points about your portfolio's structure?
Mr. Hoyle: At Haverford, we have two primary overarching beliefs, and one is that dividend-paying stocks offer the best risk-adjusted returns, and second is that high-quality stocks provide superior risk-adjusted returns. So in the history of Haverford, we've only ever bought companies that pay a dividend and companies that we deem to be high quality by several different metrics.
And we also are focused on owning U.S. companies, but we have historically purchased ADRs, and we're focused on companies that are roughly $5 billion to $10 billion market cap and greater, so large-cap stock, our two major tenants being that we buy dividend-paying companies and high-quality companies.
We think that dividends are the ultimate determinant of intrinsic value. Dividends are objective, they can't be manipulated, they impose capital discipline, they provide downside protection, and really we're looking for companies that can grow their dividend year in and year out. And historically, dividend growth provides income that's growing at a rate above that of inflation.
TWST: What will a closer look at your portfolio reveal? Can you tell us something about your sector allocations?
Mr. Hoyle: From a sector allocation standpoint, historically the sandbox that we play in, of these high-quality, dividend-paying companies, you're going to see a larger representation of health care and consumer staple stocks...
For more of this interview and many others visit the Wall Street Transcript - a unique service for investors and industry researchers - providing fresh commentary and insight through verbatim interviews with CEOs, portfolio managers and research analysts. This special issue is available by calling (212) 952-7433 or via The Wall Street Transcript Online.
- Utility Industry
- Netflix, Inc.
- CVS Caremark Corporation