The above shows the decline in the effective dividend yield. It peaked in March of 2009 and then as the market improved it declined.
The above is the gain and percent gain over time. The market has been increasing at a rapid rate for the past year. We believe that amongst the stocks in this portfolio it is both a sign of recovery but also of inflation.
This is the same but a different view. We believe that the gains since March 2009 are reflective of the above two mentioned factors.
The above is the concern in that in the past few months we have seen less recovery and more inflation. One need look merely at the rates of increase with no down period.
This is the total gain since December 2008 of each. Note IBM, Dow and DuPont are the greatest with Alcoa behind. Dow, DuPont and Alcoa are in effect commodity oriented and IBM is selling infrastructure support. Verizon has gone no where. It is not a commodity and it has stalled in price as has J&J as well as Kraft. Kraft is a value added processor and we have seen little intrinsic value. Verizon has added tremendous technology with no return. J&J is spot on in health care and has also stalled.
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