Update 8/16/11: Adib Motiwala no longer manages a Covestor model
The Dividend Value Plus model, managed by Adib Motiwala, was designed to provide a total return that is created by both long-term capital appreciation and dividends. Motiwala looks for undervalued stocks and employs a bottom-up approach. He looks for fundamentally valuable (or ‘good’) companies that have simply fallen out of favor.
One of the top holdings in the model is Altria Group Inc (NYSE: MO), the parent company of Philip Morris International Inc (NYSE: PM). On October 25th, MO had a 6.04 percent dividend yield and its price to earnings ratio was lower than some competitors. The past three years have shown some reduction in the company’s sales, falling from $38.1 billion in 2007 to $19.4 billion in 2008, then finally to $16.8 billion in 2009. During the first three quarters of 2010, the company had reached a reported $12.8 billion in sales.
Another top holding in the model is Pfizer Inc (NYSE: PFE). On October 25th, PFE’s dividend yield was 4.07 percent and its price to earnings ratio was higher than many competitors. The company saw some growth in sales in 2009, increasing from $48.3 billion in 2008 to $50 billion in 2009. By quarter two of 2010 PFE had already reported $34.1 billion in sales for the year.
The Canadian wireless device and telecommunication company Research In Motion Ltd (NASDAQ: RIMM) is another top holding in the Dividend Value Plus model. RIMM was not paying a dividend as of October 25th but the company did have a lower price to earnings ratio than many competitors. Their sales have been growing steadily, increasing from $6 billion in 2008 to $11.1 billion in 2009 then reaching $15 billion for the 2010 fiscal year. During the first two quarters of the 2011 fiscal year they had already reported $8.8 billion in sales.
