Franklin Resources: Big BEN

Our strategy is based on adding one stock each month to our model portfolio; the stocks are chosen exclusively from those that have announced splits in the previous month.

The universe from which we are is selecting, the group of split stocks, is already assumed to be performing “ahead of the market”. So all one has to do is achieve an average performance within that pre-selected group.

First, we look for companies that are making money “the old fashioned way” are preferred. In other words, companies that have real earnings that are growing at a moderate pace get preference.

Second, we look for companies that pay dividends receive high marks. Dividends are a hedge against a falling market and are a signal, in themselves, that the company’s management recognizes for whom they are working.  (more)

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