Russ Kaplan, Heartland Adviser, 1/27/12

““I was recently booking a trip to Las Vegas, and was encouraged to see standard Venetian hotel rooms priced at $289 per night midweek. Higher-end accommodations were $359 and up. Sure, I’’d like to snag a room for half that, but the higher prices are indicative of a recovery. One of the quickest ways to gauge the health of a resort is revenues per available room (RevPAR), a metric that reflects both occupancy and pricing. If the resort is full (and not marked down just to fill beds), then demand is healthy. Keep in mind, those hotel visitors don’’t just sit in their rooms. They will book show tickets, reserve time at the spa, have a few meals, and spend some time rolling the dice. Looking at the latest numbers from the quarter ended Sept. 30, Las Vegas Sands’’ Venetian and Palazzo properties were 92.7% occupied at an average daily rate of $191, for a RevPAR of $177. That’’s down from $244 at the end of 2007 before the bottom fell out of the market. But it’’s a substantial improvement from the $149 at the beginning of 2011. As is usually the case, an uptick on the hotel side has translated into stronger revenue in both the retail and food and beverage categories. And on the casino floor, cash dropped at the tables bounced to $536 million last quarter, up from $476 million a year ago.

““But this isn’’t about the Las Vegas properties. In fact, Sin City only accounts for about 10% of the company’’s profits. Most comes from Macau, a vibrant gaming enclave and tourist destination a few miles from Hong Kong in the South China Sea. For years, Macau was referred to as the Las Vegas of China. But that’’s not even a fair comparison any more——Macau’’s gaming revenue overtook Las Vegas in 2006, and today its wins are about five times larger. Las Vegas may pocket about $6 billion in gaming wins annually. But Macau’’s casinos collected $33.6 billion in 2011, an impressive 42% growth rate from 2010.

““Macau is the only venue in town (gaming on the mainland is restricted) so the region draws heavily from a population of 1.3 billion people that live within a short three-hour flight. Las Vegas Sands’’ Venetian Macao resort has been a hit with both high-rollers and everyday players since it opened. Even in the first three months of 2009, when Macau’’s total visitor count dropped almost 10%, the Venetian Macau saw a 14% increase (six million visitors). This glamorous resort, which anchors the famed Cotai Strip, almost prints cash. Players pumped $897 million into the casino’’s slots in the quarter ended Sept. 30 (6.4% of which never came out). And rolling chip volume (a measure of VIP play) rose 15% from a year earlier to $12.7 billion, most of which was wagered on high-stakes baccarat tables. …”

This free excerpt is only a portion of Nathan Slaughter’s recommendation of LVS.

Nathan Slaughter, StreetAuthority’’s Market Advisor, 1/24/12

Click here to view the video on YouTube.

Chloe Lutts, Editor of Dick Davis Investment Digest and Dick Davis Dividend Digest

Chloe Lutts is the editor of Dick Davis Investment Digest and Dick Davis Dividend Digest, and the third generation of the Lutts family to join the family business. For each Digest, Chloe reads hundreds of investment newsletters to select the strongest ideas for her readers. Prior to joining the Dick Davis Digests, Chloe was a financial reporter for Debtwire, a division of the Financial Times, covering fixed income, and before that, she reported on global debt markets for Institutional Investor. She also has previous experience at Cabot, writing about growing momentum stocks for Cabot Top Ten Trader and high-potential small companies for Cabot Small-Cap Confidential. She holds a B.A. in International Relations from Brown University, and also studied in Beijing and Paris.

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10 Blue-Chip Dividend Payers to Own in 2012

Dear Investor,

A recent survey of our subscribers revealed that their greatest investing concerns are market volatility, economic uncertainty and maximizing dividend income.

As more and more Americans approach retirement age, and lose other regular income streams, I expect to see the last concern pop up more frequently. Fortunately, unlike market volatility and economic uncertainty, making your portfolio generate regular income is entirely within your control. And since it’s the focus of our Dick Davis Dividend Digest, I can help you.

There are a lot of fixed-income investments for investors to choose from: bonds and preferred stocks offer investors varying levels of security on corporate debt. There are always a few alternative income investments in every issue of Dividend Digest, but dividend-paying stocks are our main focus. And for all but the most conservative investors (those who really can’t afford to risk any capital, ever), dividend-paying stocks are a great way to generate income right now.

John Buckingham, one of our Dick Davis Dividend Digest contributors and editor of The Prudent Speculator, brilliantly explained the advantages of dividend payers in the latest Dividend Digest:

“Clearly, equity investors must steel their nerves for heightened levels of volatility, especially as the European sovereign debt crisis remains front and center, growth in stronger economies like China and Germany has slowed and recent economic statistics in the U.S. have been far from robust, but relative to Treasuries, dividend yields are as attractive as they’ve been in 50 years. Aside from several months at the height of 2008-2009 Global Financial Crisis, the last time the yield on the S&P 500 was above the yield on the 10-year Treasury was 1958. And the big plunge in both interest rates and equity prices on October 3 moved the forward yield on the S&P closer to the 2.8% yield on the 30-year Treasury! What’s more, corporations have actually been boosting their payouts as more than half (258) of the S&P 500 members have either raised or initiated a dividend this year.”

He continued, “It is nice to see the renewed interest in income, as we can’t forget that dividends and their reinvestment have long been a substantial contributor to the total return on equities. Data from Morningstar going back to 1927 show that through the end of last year, the income component of total return amounted to 41% for Large-Cap Stocks, 35% for Mid-Cap Stocks and 31% for Low-Cap Stocks. More importantly, our own analytical work going back 20 years and numbers we’ve crunched from Eugene T. Fama and Kenneth R. French dating to 1927 find that dividend payers have actually outperformed non-dividend payers over the long term and they have done so with lower volatility! Not quite the Holy Grail, but higher returns with lower risk is obviously a winning combination.”

It’s hard to argue with that.

In fact, I feel so strongly about the benefit of owning dividend-paying stocks that I published a brand new report highlighting 10 of the best income-generating stocks that should be in your portfolio.

In 10 Blue-Chip Dividend Payers to Own in 2012, you’ll gain access to the top dividend-payers that can bring you steady, secure income.

And you can get it FREE when you subscribe to Dick Davis Dividend Digest today. Learn more now!

Wishing you success in your investing and beyond,

Chloe Lutts
Editor of Dick Davis Dividend Digest

P.S. Dividend-paying stocks have outperformed non-dividend-paying stocks by four to one over the past 35 years. The New York Times goes so far as to say that “without dividends, you would lose money investing in blue chips.” Don’t miss my new special report detailing 10 of the very best dividend-payers you need to own in 2012. Jump-start your portfolio today!

There are plenty of good systems out there, proven by the broad range of successful newsletters we review. Most investors will be better suited to some systems than others. If you’re patient and investing for the long-term, for example, you may be most comfortable with a Benjamin Graham-type value investing system.

Regardless of which system you choose to follow, one rule applies equally to all of them: Be consistent. Abandoning or ignoring your system because you’re reluctant to do what it’s telling you (often taking a loss, or giving up on a stock) is a surefire way to lose money in the stock market. The system is there for a reason; if you ignore it because you’re in love with a stock or afraid of losing money, it can’t work. And if you abandon your system whenever market conditions make it hard to follow (like being a growth investor in a bear market), you won’t be there to benefit when things change and it begins working again.

The value of following a system consistently is proven by Hulbert Financial Digest’s annual ranking of investment newsletter performance records. Switching to a system that has outperformed recently can be tempting, but Hulbert finds it would also be disastrous. Prompted by the fact that the newsletter that did best in 2010 was among the worst performers in 2011 (a frequent occurrence), HFD completed the following exercise:

“Consider a hypothetical portfolio that each year followed the investment newsletter model portfolio on the HFD’s monitored list that had the best return in the previous calendar year. Over the 21 years through this past December 31, this portfolio produced a 23.0% annualized loss. That’s equivalent to an almost complete wipeout. … The lesson I draw from these results is that the previous year’s returns are an unreliable foundation on which to base a decision about which adviser to follow this year.”

Instead, find a system that works for you, and follow it faithfully through thick and thin. Your consistency will be rewarded.

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In keeping with the findings above, today’s Investment of the Week selection comes from a newsletter that consistently ranks well on HFD’s long-term performance charts. NoLoad Fund*X, edited by Janet Brown, is the best-performing mutual fund letter tracked by HFD over the past 15 years. (Adjusted for risk, it is the third-best performing.) It’s also the third-best performing of all newsletters tracked by HFD over the last 15 years adjusted for risk.

Recently, Janet Brown recommended this broad-market fund as her Top Pick for 2012:

“Large-cap growth funds led in 2011 and one of the easiest and lowest-cost ways to participate in this area is through PowerShares QQQ Trust (QQQ), an exchange traded fund (ETF) that tracks the Nasdaq 100 index. The Nasdaq is often considered to be a technology index, but although technology is a big part of the index, it’s more diversified than many people think, covering 100 large domestic and international companies. QQQ has 66% in information technology, 16% in consumer discretionary and 11% in healthcare. The Nasdaq also tends to avoid financial firms and this has helped performance lately as financials were one of the worst-performing areas in 2011. While there are many Nasdaq index funds, QQQ is very liquid and one of the most actively traded ETFs available.”

QQQ has delivered a stellar performance over the past month, and if the market remains strong, it will continue to do so.

Wishing you success in your investing and beyond,

Chloe Lutts
Editor of Investment of the Week

P.S. You’ve taken risks all your life: skydiving, bungee jumping, cliff diving. Keep that risk-taking attitude alive with your investing life, and you can bank profits like a 318% gain on Questcor Pharmaceuticals and more. But be warned, we limit this ultra-powerful system to only 500 subscribers. Click here to learn more.

“While continued sluggishness in gas prices and the weakening European economy create near-term headwinds, the French oil giant expects existing projects to spur long-term growth. The company is also consider­ing potential upstream acquisitions, including those that would build up its Canadian oil sands operations. Too, its valuation is compelling as the stock currently trades at less than 6 times estimated consensus forward earnings. Its price-to-sales multiple of 0.5 leaves the shares changing hands at a discount to its integrated oil peer group. And, last but certainly not least, giant-cap Total currently offers a dividend yield north of 5%.”

John Buckingham, The Prudent Speculator, January 2012

The stocks below all come from the Investment Digest Top Picks, and they all have yields of at least 2%, in addition to growth potential.

Dan Sullivan, editor of The Chartist, recommends McDonald’s Corp. (MCD) for both its growth potential and its yield of 2.8%:

“This iconic restaurant chain now operates 32,943 restaurants in 117 different countries. The company recently reported same-store sales growth of 7.4% and third quarter earnings per share of $1.45, which is 12% higher than the same period a year ago. These are excellent numbers given the current tough economic conditions that exist across the globe. The company has a very rare A++ financial strength rating. Not only is McDonald’s financially strong, its technical picture is bright. The stock has trounced the S&P 500 this year, gaining 31%. The stock is not only trading at a 52-week high, it is close to an all-time high. The company also sports a very attractive yield of 2.90%. We would expect the stock to be a star performer again in 2012.”

Stephen Quickel, editor of US Investment Report, recommends Insperity, Inc. (NSP), which currently yields about 2.1%:

“In 2008 CEO/cofounder Paul Sarvadi’s 20-year-old Administaff, Inc. encountered serious growing pains. It provided staff outsourcing to small- and medium-sized companies like itself. With the economy and hiring beset by recession, revenues stopped growing at $1.6 billion and its earnings and stock price nose-dived. But Sarvadi had lots of cash and no debt. So he started shaking things up. First, he expanded to become a full-service human resources department for clients in 24 major U.S. markets, everything from recruiting to performance management. To reflect the transformation, he changed its name last March to Insperity. ‘It’s not in the dictionary,’ he says. ‘It means to inspire prosperity’–both its own and that of its up-and-coming clients. Today it’s paying off. Insperity has scored eye-catching earnings surprises in seven consecutive quarters. Analysts look for a 2011 jump from $0.86 to $1.27 per share, then to $1.69 in 2012 and $2.00-plus in 2013–rising at a 34% annual clip. NSP shares, up from 19 to 25 since September, still trade at just 14.8 times 2012 earnings and a forward PEG ratio of 0.43–with a 2.4% dividend yield to boot. The consensus price target is 36–and more when hiring resumes and the P/E reverts toward its 20x norm.”

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Finally, Ingrid R. Hendershot, editor of Hendershot Investments, likes Paychex, Inc. (PAYX), which currently yields almost 4%:

“Paychex, Inc. is a leading provider of payroll, human resource and benefits outsourcing solutions for small and medium-sized businesses. With a strong brand, Paychex has more than 100 offices nationwide and serves more than 564,000 payroll clients. The company’s average client has 17 employees. Payroll processing is the bedrock of the company’s business and will continue to be so in the future. There are over 11 million businesses in the markets Paychex serves, with only a 15% penetration rate by the industry–providing plenty of future growth opportunities. The company also is focusing on selling complimentary services to its payroll clients in all markets, with growth rates in human resource services outpacing payroll growth.

“Turbulent economic times and high unemployment have proven challenging for Paychex’s operations in recent years as many small businesses have struggled, although business trends are now improving. Management reaffirmed its guidance for fiscal 2012 with revenues growing in the range of 7%-9% and earnings growing in the range of 5%-7%. Despite difficult business conditions, Paychex’s operations remain highly profitable. Excellent net profit margins have averaged more than 26% over the last five years, which have contributed to the company’s outstanding 35% average return on shareholders’ equity over the same period. These high returns are even more impressive when one considers that the company operates with a cash-rich and debt-free balance sheet. With minimal capital expenditure needs, the company generates bountiful free cash flows. Paychex has returned most of this cash to shareholders through share repurchases and dividends. The stock dividend currently yields a generous 4.3%, and management remains intent on maintaining its strong dividend policy with a target of paying out 80% of earnings. Long-term investors should consider picking up a paycheck from Paychex, a HI-quality company with a strong brand, profitable operations and a generous dividend yield. Buy.”

With their solid dividends and reliable growth, McDonald’s, Insperity and Paychex would all make good additions to any kind of portfolio.

Wishing you success in your investing and beyond,

Chloe Lutts
Editor of Investment of the Week

P.S. Turn your portfolio into a cash machine with an investment in dividend-paying stocks. Every month, we’ll give you the distilled advice of the best minds on Wall Street on which of the dividend-paying stocks you should buy right now. Click here to learn more.

“Despite what’s happened in the market, Rio Tinto has continued to affectively harness its massive cash flows, spending on projects, reducing debt, buying back shares, boosting its payout 32.6% on a year-over-basis and generally establishing a foundation for building wealth over the long term. Global demand for Rio’s key products, including iron ore, copper and aluminum, are forecast to double over the next couple decades, driven by demand from China, India and other economies experiencing rapid industrialization and urbanization.

“On Jan. 12 Rio completed the acquisition of Canada-based Hathor Exploration Ltd and its Roughrider uranium project, ending a pursuit that began in November 2011. Rio outbid Cameco Corp (TSX: CCJ, NYSE: CCO), for Hathor, whose Athabasca Basin exploration properties in northern Saskatchewan include the flagship Roughrider deposit. Roughrider holds around 58 million pounds of uranium and has the potential to produce 5 million pounds more of the yellow metal a year. It supplies about a fifth of the world’s uranium.

“Rio is already the world’s fourth-largest uranium miner, with annual production of 17 million pounds. The Hathor acquisition gives it a foothold in the Athabasca Basin, home to 20% of the world’s uranium production.  Prices for uranium, used to fuel nuclear power plants, had been struggling to recover since Japan’s earthquake/tsunami last March decimated the Fukushima-Daiichi facility. Several countries, most prominently Germany, which was already on course to eliminate nuclear power, as well as France, which is particularly dependent on it and the U.S., to reevaluate their nuclear power programs. But ever-increasing demand for power in China and India will drive nuclear in coming decades.

“Rio’s attempt to challenge Cameco, the king of the uranium heap with annual production of about 22 million pounds, is illustrative of its goal to dominate the commodities it produces. But Canadian law currently prevents Rio from enjoying the output from Roughrider once it does advance from the exploration stage, as foreigners are prevented from owning more than 49% of a producing uranium mine. Prime Minister Stephen Harper and his majority Conservative government have expressed their opposition to this policy.

“Rio’s takeover of Hathor has cleared Canada’s Competition Bureau but still faces an Investment Canada review, required of all foreign purchases over a certain size. Because its projects are all exploration stage there are no uranium-specific restrictions on ownership. Barring a change in the law—not out of the question, given Mr. Harper’s recent shift to a more open stance regarding foreign capital flows to Canada—Rio will own 49% of one of the most significant uranium resources in the world. That’s the worst-case. The upside is Mr. Harper and his allies on Parliament Hill successfully roll back what many observers regard as an antiquated Cold War restriction on uranium production.  …

“Rio’s Pilbara iron ore expansion to 283 million metric tons per annum (Mt/a) is on track for completion by the end of 2013. Regulatory approval on the company’s proposal to expand Pilbara to 333 Mt/a is expected in early 2012. Rio assumed control of Mozambique-focused coal miner Riversdale upon completion of its on Aug. 1, 2011, while first coal from its Benga project likely to be reported along with full-year 2011 results.

“Significant events from the first half of the year include the increase in Rio Tinto’s share of Ivanhoe Mines Ltd (TSX: IVN, NYSE: IVN) to 46.5%. First commercial production from Ivanhoe’s Oyu Tolgoi copper-gold project in Mongolia is on track for 2013. Meanwhile the first shipment of iron ore from the Simandou project should occur by mid-2015, after Rio achieved a ‘settlement agreement’ with the Government of Guinea.

“Rio boosted its share buyback by USD2 billion to USD7 billion, a process that will be completed by the end of the first quarter of 2012. As of Jun. 30, 2011, the company had purchased for cancellation 44 million shares at a total cost of USD3 billion. Management declared an interim dividend of USD0.54 per share, a 2% increase from 2010.

“A contracting global economy will affect Super Miners’ earnings and share prices, just as it will with every other mining company. And Super Miners aren’t always successful with their expansion plans. But, as my colleague Yiannis Mostrous pointed out in Mining Stocks: Be Selective, Rio Tinto is well diversified and its major operations are mostly low-cost. It has one of the strongest balance sheets in the industry, and been steadily reducing its debt. These are the kinds of firms that are in the best position to weather any future storm.”

David Dittman, Australian Edge, January 2012

Allot’s business is technology that inspects web and mobile traffic so carriers can know more about how their networks are used. Their technology helps keep information moving quickly and efficiently around the globe as people use more and more data every day.

This year’s Top Picks included several stocks from the communications technology sector that are reminiscent of Allot.

One thing about companies behind the Internet and mobile networks is that their technology is often unseen, and sometimes hard to understand. But occasionally one catches the eye of Wall Street—usually because its earnings are hard to ignore—as Allot did. And when that happens, the investors who knew about it first get richly rewarded.

Of course, the technology industry moves fast, and some companies fail before they ever get noticed. So it’s a relatively high risk-reward proposition (especially since two of the three stocks below trade under $2). But if that sounds like something you can handle, consider these communications technology leaders from the Digest’s Top Picks.

Leo E. Rishty, editor of Unique Situations, recommended Alcatel-Lucent (ALU) based on its new lightRadio wireless technology:

“Envision all of those [cell phone] towers disappearing and being replaced with a little box the size of a Big Mac hamburger box. Bell Labs, a wholly-owned subsidiary of Alcatel-Lucent, has developed such a product. It is known as LTE radio. They can be placed on the top of a light post or the top of any building (or on the side.) These little boxes are able to relay cell phone signals with less interference than the ugly 200-foot towers [where] cell providers are sharing the tower and creating interference and loss of signal. None of that is present in the Alcatel-Lucent lightRadio. Production of LTE radio is expected to commence shortly, and the product should be available in the early part of 2012. Alcatel-Lucent is a leader in mobile, fixed, IP and optics technologies, and a pioneer in applications and services. Alcatel-Lucent includes Bell Labs, one of the world’s foremost centers for research and innovation in communications technology. An investment in Bell Labs would be worth more than all of ALU. They have thousands of viable patents related to the telecom field, and more each day. I rate Alcatel-Lucent a Strong Buy with a conservative target of $4 to $5 a share.”

As an addendum, this is the second glowing recommendation of Alcatel-Lucent’s lightRadio technology that I’ve seen lately.

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The second technology stock comes from Dr. John Faessel, editor of On The Market. His Top Pick is CommerceTel Corp. (MFON), which trades over the counter and under $2:

“Mobile—the mobile device and its burgeoning array of uses—is a trillion-dollar industry revolutionizing the way information is disseminated and integrated. As a marketing tool it has no peer, and it’s the fastest growing sector of the advertising world. CommerceTel Corp. has over 1,500 major brands licensing their proprietary technology for connecting and engaging consumers’ mobile phones regardless of phone type, method (SMS, IVR, MMS) or wireless network. It allows for delivery of HD-quality graphics and animation to screens—whether broadcast, stadium board or digital signage screens—connecting the advertised company or brand to the consumer. The software is called C-4 and it won the Sybase Innovator of the Year Award. CommerceTel’s customers include McDonald’s, Pepsi, CNN, Disney, Sony Pictures, the NFL, AT&T and NBC. Taken as a whole, MFON is an unknown mini tiger with multi-bag potential. I am looking for more of the excellent quarter-over-quarter growth it has had going forward, and I believe that we’ll see them acquired at a fat multiple. It’s only a matter of time.”

Finally, Geoffrey Eiten, editor of OTC Growth Stock Watch, recommends Clearfield, Inc. (CLFD):

“Clearfield designs, manufactures and distributes fiber optic management products for the communications networks of leading ILECS, CLECs, MSO/cable TV companies and mobile broadband providers. The company helps service providers solve the ‘fiber puzzle,’ which is how to reduce high costs associated with deploying, managing, protecting and scaling a fiber optic network to deliver the mobile, residential and business services customers want. Based on the patented Clearview Cassette, the company deploys a unique single-architecture, modular fiber management platform that is designed to lower the cost of broadband deployment and maintenance by consolidating, protecting and distributing incoming and outgoing fiber circuits. These end-to-end solutions enable Clearfield’s customers to scale their operations as their subscriber revenues increase. Fiscal year 2011 has been a break-out year for Clearfield. Although the industry was plagued with macro-economic challenges, the company aggressively grew revenues and converted an increasing amount of net income into shareholder value. Key to this success has been its mobile marketing initiatives in which its product line was brought directly to customer sites. I expect that CLFD will continue its high, profitable growth rate and also expect a big increase in shareholder value during 2012.”

People around the world are using more data every day, and the communications industry is constantly upgrading its networks with the newest and best technology in order to keep us connected and informed. Some of the companies that invent this technology will become big winners—only time will tell if that will include one of the stocks above!

Wishing you success in your investing and beyond,

Chloe Lutts

Editor of Investment of the Week

P.S. You’d have to read more than 200 investment newsletters each month to get the recommendations we offer in one 12-page issue. For the low price of $129 a year, you get 24 issues of the best investment advice on Wall Street. And it’s yours RISK FREE for 60 days. Click here to learn more.

Wishing you success in your investing and beyond,

Chloe Lutts
Editor Investment of the Week

“First, he expanded to become a full-service human resources department for clients in 24 major U.S. markets, everything from recruiting to performance management. To reflect the transformation, he changed its name last March to Insperity. ‘It’s not in the dictionary,’ he says. ‘It means to inspire prosperity’—both its own and that of its up-and-coming clients. Today it’s paying off. Insperity has scored eye-catching earnings surprises in seven consecutive quarters. Analysts look for a 2011 jump from $0.86 to $1.27 per share, then to $1.69 in 2012 and $2.00-plus in 2013—rising at a 34% annual clip. NSP shares, up from 19 to 25 since September, still trade at just 14.8 times 2012 earnings and a forward PEG ratio of 0.43—with a 2.4% dividend yield to boot. The consensus price target is 36—and more when hiring resumes and the P/E reverts toward its 20x norm.”

Stephen W. Quickel, US Investment Report, January 2012

“The company also is focusing on selling complimentary services to its payroll clients in all markets, with growth rates in human resource services outpacing payroll growth. Turbulent economic times and high unemployment have proven challenging for Paychex’s operations in recent years as many small businesses have struggled, although business trends are now improving. Management reaffirmed its guidance for fiscal 2012 with revenues growing in the range of 7%-9% and earnings growing in the range of 5%-7%. Despite difficult business conditions, Paychex’s operations remain highly profitable. Excellent net profit margins have averaged more than 26% over the last five years, which have contributed to the company’s outstanding 35% average return on shareholders’ equity over the same period. These high returns are even more impressive when one considers that the company operates with a cash-rich and debt-free balance sheet. With minimal capital expenditure needs, the company generates bountiful free cash flows. Paychex has returned most of this cash to shareholders through share repurchases and dividends. The stock dividend currently yields a generous 4.3%, and management remains intent on maintaining its strong dividend policy with a target of paying out 80% of earnings. Long-term investors should consider picking up a paycheck from Paychex, a HI- quality company with a strong brand, profitable operations and a generous dividend yield. Buy.”

Ingrid R. Hendershot, CFA, Hendershot Investments, January 2012