Portfolio Article

Our Portfolio holdings continue to post solid quarterly results. Even better, the market’s recent pullback gives us an opportunity to buy our favorites at appealing prices.

At last count, more than half our Portfolio holdings traded above my buy targets. These are all great companies that will continue to build wealth for investors, but now is the time for discipline.

Our Portfolios are a mixed bag in terms of their underlying businesses and growth drivers. But our holdings are on track for solid earnings and dividend growth over the long haul. These names don’t respond uniformly to changing business conditions or short-term market moves so diversification is key to reduce volatility.

Rising dividends are the essential fuel for higher stock prices. And nothing is more critical for payout growth than healthy, expanding businesses.

The Conrad's Utility Investor Portfolios have beaten benchmark interest rates since I launched on July 31, 2013 - a clear sign my recommended dividend-paying stocks follow earnings, not interest rates. And with another round of earnings due later this month, all of our companies are set to prove their worth to investors again.

Conrad's Utility Investor has three actively managed portfolios--Aggressive Income, Conservative Income and Top 10 Drips--each of which is tailored to a specific investment style and risk tolerance. We review each model portfolio's objective, book a 60 percent gain on one of our winners and shift one of our Conservative Income Portfolio holdings to the Aggressive Income Portfolio.

Buying stocks of strong companies at the lowest possible prices: That’s been my primary strategy thus far for the Conrad’s Utility Investor Portfolios.

This month, I’m adding two stocks to the Conservative Holdings.

Seek stocks of healthy and growing companies whose prospects exceed investor expectations. Then build a diversified and balanced mix you can hold long-term, to enjoy the rising cash flow and share price appreciation that growing dividends provide over time.

Healthy growing businesses produce rising dividends, which in turn push share prices higher: That’s the utility investor’s road to superior and safe long-term returns. And if operating results of our Portfolio companies are any indication, it’s still wide open.

Fourth quarter is usually a good time to hold utility stocks. But it’s only rarely a good time to buy, as prices often reach yearly highs.