When it comes to investing… not trading… investing; you want to buy into the very finest corporations on earth. The companies that are growing their earnings. They’re paying out less than 40% of their earnings as a dividend to their shareholders, and they are raising their dividend each year at a rate that well-exceeds inflation. I call these the Safe-Dividend Growers. And, perhaps, best-of-all, this strategy has been tested and found to be among the very best of at least 359 tested in recent years. We typically beat the 500 doing only what I write about right here.
Running the search, to find these companies, I come up with these 23 again: JKHY, NKE, ROST, TJX, EFX, AOS, HD, HRL, UNH, LOW, EL, NOC, SYK, COST, STZ, SJM, TSCO, SBUX, LMT, FDS, DG, NDAQ and CVS. Now, DG might get the axe here in the near future. I’m awaiting data to make that determination, and I’ll report what I learn as I become aware of it.
Interestingly, technical price strength has lately been coming off, and I see good price strength only in the following: AOS, STZ, FDS and NDAQ. All the rest are engaged in a bit of a struggle.
Checking in with the market timer, I see a rather unique phenomena setting up. Nearly all the indicators are getting to their respective low-risk market entry signaling places, without the market having to decline in order to do so. This happens so rarely, but what the timer is telling me is, if we do not get a decline soon, the indicators are going to signal a low-risk entry, and the market will likely take off to the upside to the surprise of EVERYONE, but you and I.
If they get there before it lifts off, I’ll make that call right here. I could see it happening before even one more week should go by… stay tuned, and get your shopping lists ready!
Here’s to your successful investing!
Harold F Crowell