Bill Deshurko of Centerville, Ohio founded 401 Advisor in 2003 after becoming frustrated with by losses incurred through a typical buy and hold approach. He developed his strategy primarily for retirees and other investors who require a high monthly income to maintain their lifestyle. The strategy is also suited for conservative investors who can receive growth through reinvested dividends.
Bill identifies high yielding securities that have the financial ability to maintain a dividend. He looks for modest dividend companies that have shown a history of raising dividends. He attempts to keep 20% of portfolio liquid for hedging purposes to maintain principal. His Covestor model Dividend and Income Plus launched in January 2010, and has returned 25.3% since inception, including dividends (as of end of day 4/4/11). The target yield for the model is 8%.
On March 25, Bill made a number of new purchases for his model. He bought Verizon (NYSE: VZ), Southern Copper (NYSE: SCCO), Penn West Petroleum (NYSE: PWE) and Terra Nitrogen (NYSE: TNH).
On March 30, Bespoke Investment Group noted the recent strong performance of Verizon stock:
Verizon (VZ), which has traded in a range between $25 and $40 for the past decade, has been on fire lately. Yesterday the stock closed higher for the ninth consecutive trading day, and it broke significantly above its prior bull market high reached in early January.
A long time has passed since Verizon last experienced a 9-day winning streak — 25 years and 268 days to be exact. On July 10th, 1985, Verizon completed its last 9-day winning streak. That streak ended at 10 days on 7/11/85, and it’s the longest winning streak in the stock’s history. An up day today and tomorrow will establish a new record for Verizon.
Here’s a 5 year chart of VZ with dividends, via Google Finance:
Source:
“Verizon breaks out” Bespoke Investment Group, 3/30/11
http://www.bespokeinvest.com/thinkbig/2011/3/30/verizon-vz-breaks-out.html
