Investing with a Dividend Reinvestment Plan: A Portfolio Manager's Perspective

Wall Street Transcript

67 WALL STREET, New York - February 6, 2014 - The Wall Street Transcript has just published its current Investing Strategies Report. This special feature contains expert 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: Investing Strategies - Value Investment - Dividend Reinvestment Strategy - Portfolio Managers

Companies include: The Coca-Cola Company (KO), Johnson & Johnson (JNJ), 3M Co. (MMM), Procter & Gamble Co. (PG), Boeing Co. (BA), Polaris Industries, Inc. (PII), Dover Corp. (DOV), Raytheon Co. (RTN), VF Corp. (VFC), The Home Depot, Inc. (HD), Costco Wholesale Corporation (COST), Centurytel, Inc. (CTL), AFLAC Inc. (AFL), Hormel Foods Corp. (HRL), Caterpillar Inc. (CAT), General Electric Co. (GE), Comcast Corporation (CMCSA) and many others.

In the following excerpt from the Investing Strategies Report, an experienced dividend reinvestment portfolio manager discusses his methodology and top picks for investors:

TWST: For our first question, can you give us an overview of MP 63 and how does it get its name?

Mr. Fish: It got its name from the fact that it had 63 companies when we launched. We actually launched an index in 1994, and we started a fund based on that index in 1999. And again, the name simply comes from the number of companies we had.

TWST: What is the funds' investment approach, and how does the investment philosophy guide you in choosing core holdings?

Mr. Fish: Our basic approach is to buy dividend stocks, specifically the stocks we include have to sponsor a DRIP, or dividend reinvestment plan. So we have to have that qualification to begin with. Beyond that, we are choosing companies that have strong records of earnings and dividends growth over the years.

TWST: Can you give an example of a company; one or two holdings that best exemplify your investment philosophy or valuation technique?

Mr. Fish: Yes. For example, well known stocks like Coca-Cola (KO) and Johnson & Johnson (JNJ) both have long histories of dividend increases. In fact, both have increased their dividend for over 50 consecutive years, as have 3M (MMM) and Procter & Gamble (PG). Those are typical of the type of stocks that we own, and basically we feel that the strong and growing dividends come from strong and growing earnings, which also fuel the appreciation of the stock price.

TWST: What were some of your best performing stocks in 2013, and what looks good to you going into 2014?

Mr. Fish: In 2013, some of our best performers would be Boeing (BA), Polaris Industries (PII), Dover Corp. (DOV). 3M gained over 50%, Raytheon (RTN) gained over 50%, V.F. Corp. (VFC) gained over 65%...

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.

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