October 15, 2014
FROM THE EDITOR
Nancy Zambell

by Nancy Zambell
Editor of Dividend Digest and Investment Digest
from Dividend Digest, Issue 265

Welcome back to volatility!

In the past few weeks, the markets have posted some significant down days, and the Dow Jones Industrial Average, the S&P 500 Index and the Nasdaq Composite have all fallen below their 50-day and 200-day moving averages.

Most experts don’t believe that this is the beginning of the end for the bull markets. After all, economic statistics continue to improve. Unemployment is declining, rates are still very low, helping the credit markets, and third-quarter earnings—just beginning to be announced—are looking pretty good.

Consequently, the majority of our advisors—as well as our Cabot analysts—believe in the strength of the long-term markets, but also think that they may get bumpy in the short-run.

I love bringing you great investment recommendations to help you grow your portfolios, but I also believe that you need to be prepared for those short-term down cycles in the markets. So, my editorial in today’s Dividend Digest discusses some ideas to help you protect your portfolio during these volatile times.

Please keep those strategies in mind as you review your portfolio holdings. You may wish to take some profits in your big winners, so that you can free up cash for new opportunities, especially those that pay dividends and offer value as well as growth.

We begin with our Spotlight Stock, a big pharma that has a blockbuster drug with the potential to not only treat—but cure—cancer patients. The test trials are, indeed, impressive, and if this drug performs as well in the general population, the profit opportunities will be tremendous.

Our high yield recommendations this month are a mix of financial, energy, and staples. We have several real estate offerings, including a preferred stock and two Real Estate Investment Trusts.

We see that conservative trend playing out among the rest of our picks, including a couple of transportation stocks (rising dividends and value), small-cap (financial and uniforms), utilities and share buyback (waste management) picks.

Don’t forget to browse this website for a growing library of educational articles and videos.

EDITOR'S PICK

September 22, 2014
CVS Caremark (CVS)
Dr. Stephen Leeb

Dr. Stephen Leeb

Health care is one area where expenditures grow, rather than decline, with age. And while higher health care spending isn’t a good thing, and it would be great to see per capita health care spending diminish, you can’t argue with demographics.

One implication is that while most retailers increasingly will struggle, those geared toward health care could benefit. That’s why this month’s Spotlight stock is Growth Portfolio’s CVS Caremark (CVS), one of the few companies positioned to profit simultaneously from both the rise in health care spending and the compelling need to cut per capita health care expenditures.

CVS is the nation’s leader in two major health-related industries, drugstores and pharmacy benefit management (PBM). While its drugstores sell a wide variety of items, health care products are an important part of the mix. And as the leading PBM, the company plays a major role in controlling health care costs. Together, these two divisions make CVS the country’s largest diversified provider of health care services. Read More »


FEATURED INCOME INVESTMENT

October 16, 2014
Oaktree Capital Group, LLC (OAK)
George Putnam III

George Putnam III

Oaktree Capital Group, LLC (OAK) is a leading investment firm in the turnaround and distressed securities area. It also invests in convertible securities, emerging markets, real estate and value-oriented public equities.

Oaktree’s assets under management have grown steadily over the years to about $91 billion today. After running up to the low 60’s early this year, the stock has fallen back to the low 50’s.

While Oaktree’s reported results can be somewhat lumpy because much of its revenue comes from the profits earned on the investments made by its funds, both the new funds and the existing funds also provide a steady flow of management fees. Read More »


INCOME INSIGHTS

John Nyaradi

John Nyaradi

By John Nyaradi,  from Wall Street Sector SelectorDividend Digest dated October 15, 2014

Monday brought another stock market selloff, as everything sank, except gold. While the spot price of gold jumped 1.11 percent, the SPDR Gold Trust ETF could not even make it to 0.80% (GLD).

Even the dollar was down (UUP). Reality continued to set in as the Federal Reserve’s bond-buying extravaganza continued to wind down. The New York Fed will be conducting the last seven POMO auctions between Tuesday and October 28, when the most important phase of the quantitative easing program will end. Read More »