Special Dividends & Virtual Value Portfolio
From MarketShadows December 17, 12: Virtual Value Portfolio Update
Two stocks in Paul Price's Virtual Value Portfolio – Interactive Brokerage Group (IBKR) and Dolby (DLB) – are going ex dividend for special payments this week on Wed. 12/19.
Note from Paul:
Online brokerage firm IBKR will go ex-dividend for a special $1.00 per share extra dividend on Wednesday, 12/19. Payment will come on 12/28 to beat the expected tax increases. To qualify for the dividend, shares of IBKR need to be purchased before Tuesday, 12/18, 4:00 pm est.
Dolby (DLB) also goes ex-dividend for a special $4 per share dividend on Wednesday 12/19. Payment will be on Dec. 27.
Position: Long IBKR and DLB shares.
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Paul's Virtual Value Portfolio
Prices as of the close on 12/17. Dividends collected not included. (Click on table to enlarge):
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Are Stocks Cheap?
Examining the question of whether stocks are cheap or expensive, we explored P/Es and determined that the S&P is trading at about average levels. See: P/E 10 as a Valuation Gauge = Incomplete Information.
However, the playing field shifts with interest rates. Near-zero interest rates provide the least competition from fixed income. Ever.
Paul's investment strategy is to take small (5% or less) positions in a diversified group of solid, bargain-priced companies. Dividend payments are a plus. For those interested in option strategies, Paul has an example option play with MMM in this week's newsletter.
Paul's Virtual Value Portfolio is designed for intermediate to long-term investing.
