67 WALL STREET, New York - July 12, 2013 - The Wall Street Transcript has just published its Investing in Dividend-Paying Companies and Other Strategies Report offering a timely review of the sector to serious investors and industry executives. This special feature contains expert industry commentary through in-depth interviews with 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 - Cyclical Sectors, Exposure to Emerging Markets - Large-Cap, Deep-Value - Value Oriented Strategy - High-Quality Companies - Value Investing, Deep Value - Longer-Term Investing
Companies include: JPMorgan Chase & Co. (JPM), Wells Fargo & Company (WFC), Chevron Corporation (CVX), ConocoPhillips (COP) and many more.
In the following excerpt from the Investing in Dividend-Paying Companies and Other Strategies Report, expert portfolio managers discuss portfolio-construction methodology and investment philosophy:
TWST: Would you give us some examples of your current favorite stocks or top holdings?
Mr. Williams: Some of the biggest weightings and top weightings would be in the financial sector, such as JPMorgan (JPM). Trying to maintain our banking exposure has been somewhat difficult, since many of the banks over the past five years cut their dividends.
Therefore, trying to match, say, the Russell 1000 Value index with attractive dividend yields in the banking sector has been somewhat of a challenge. Some of our more concentrated holdings would be in some of the larger banks, Wells Fargo (WFC) along with JPMorgan, and also in the energy area too.
We always feel it's important to maintain our weighting in energy; the energy stocks yields have done very well. There we have big weightings in Chevron (CVX) and ConocoPhillips (COP), which would be the highest yielding in the energy sector, around 4.4%.
And we've also liked, over the last six months or year, the large-cap pharmaceutical stocks. A year ago, companies like Merck (MRK) and Pfizer (PFE) would have had a 4% yield. Now, of course, they've done very well and they're down in the 3% to 3.4% area, a little bit higher for Merck, but we still find that area attractive as well.
And as Matt said, the consumer type of stocks were 10% overweighted a year ago, and as those stocks have done extremely well we've been cutting back. We owned a big size position in Heinz, which was taken over earlier this year. As some of these stocks have been bought out or done very well, we've been shifting out of that sector and really diversifying across the board over the last six months to nine months...
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.
- Basic Materials Industry
- Utility Industry
- Wells Fargo