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Dividend Detective Commentary

October 2013 Commentary (10/4/13)

Review of September 2013 Results & This Month's Changes 

Good Month For Dividend Stocks

We didn’t beat the overall market, but September was still a good month for our stocks. All three of our Sample Portfolios, Conservative, Growth & Income, and High Yield/Speculative, produced identical 2.6% returns, a little short of the S&P 500’s 3.0% number.

Nine of our 19 Industry & Specialty portfolios equaled or beat the S&P benchmark, and only two recorded losses. Rural Telecoms, up 15%, and Dividend Speculators, up 6%, did the best. Oil Industry, down 1%, and Canadian Real Estate Trusts, down 3%, were the losers. Here are last month’s and year-to-date returns for each of our portfolios.

Portfolio

Average Portfolio Returns

Last
Month
Year-to Date
     

Rural Telecom 

15%

27%

Dividend Speculators 

6%

9%

Business Development Corps.

5%

12%

CEF Growth Opportunities

5%

9%

Insurance Industry

5%

18%

Manufacturing & Services

4%

22%

Energy: General Partners

3%

25%

Monthly Paying Closed-End Funds

3%

-2%

Partnerships: Ex-Energy 

3%

12%

Energy Partnerships

2%

27%

Regional Banks

2%

17%

US Real Estate Investment Trusts

2%

14%

Utilities  

2%

17%

ETF Monthly Income

1%

-3%

Large Banks

1%

-8%

Canada Stocks  

0%

2%

Preferred Stocks

0%

-1%

Oil Industry

-1%

16%

Canada Real Estate Investment Tr.

-3%

-8%

     

Sample #1: Conservative

3%

4%

Sample #2: Growth & Income

3%

26%

Sample #3  High Yield/Speculative

3%

12%

     

S&P 500

3%

18%

Preferreds Bargains Galore
Our Preferreds didn’t join last month’s party. In fact, six of them suffered losses. Many are trading well below their call prices, including several investment grade picks. Continuing a recent trend,  investment grade preferreds underperformed “junk” and unrated preferreds last month. All of this has created bargains and price appreciation opportunities that we haven’t seen since 2008/2009. Check out the Preferred Portfolio write-up for details.

When Politicians Play Chicken
At this writing, nobody is stepping up to the plate to solve the political ‘stare down’ in Washington. Probably, nothing will happen until the government hits the debt limit in around two weeks. Most talking heads expect a solution when we hit that mark. If that happens, the market will be off to the races. If not, the future is unpredictable, at best.

I suggest not adding to positions until a resolution is in sight. Then go “all in.” If no resolution happens; all bets are off.

This month, we're adding three new picks, one each to our Manufacturing & Services, Partnerships Excluding Energy, and REITs. For the details, please go to our Premium Subscriber's page.  

If you're not a subscriber, you can sign up here.

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