Alerts

The Impressive Performance of Dividend Gems

We wanted to take this opportunity to remind you about our newest investment newsletter, Dividend Gems.
Dividend Gems is the only monthly publication we offer that specifically focuses on securities.
Dividend Gems covers what Mike feels to be the best risk-reward securities from a variety of industries, sectors, and asset classes (including ADRs) restricted to securities listed on the NYSE and AMEX. 
 
 
(1)    The Dividend Gems Recommended List is Complete
After the first three issues, the Dividend Gems recommended securities list is now complete with forty-five (45) of Mike’s highest-rated securities. Mike owns (and actively manages) many of the securities on this list himself.
This list spans several industries and sectors, enabling readers to build a well-diversified portfolio of securities positioned to create long-term growth with low relative risk.
Some of these securities offer spectacular dividends with relatively low risk, while others offer very nice dividends with a high chance of capital appreciation.
 
(2) The Dividend Gems Securities List is Actively Managed
By no means is this a buy-and-hold list. We believe that active management provides the best means to reduce risk and boost returns. If you are able to take advantage of price volatility you can add tremendously to your investment gains over time.
To assist in this process, we also provide an analysis of trading opportunities when we spot them in advance so that investors can actively manage their positions.
 
(3) All Securities Ratings Are Reviewed Each Month
Each security is tracked monthly and issued a rating based on several factors such as dividend safety, dividend growth, valuation, capital appreciation potential, business stability, long-term grow prospects, new catalysts, and other variables. This material is presented in summary tables.
 
 
 
 
 
(4) Dividend Gems Also Includes Specific Trading Strategies
Each month we will select up to ten (10) securities that will be discussed in detail according to relevance. For each of the selected securities, we will cover trading and fundamental analysis, providing trading guidance and discussing material changes that are expected to alter the short-, intermediate-, and long-term fundamental landscape. 
We also alert readers on dividend capture strategies and other methods that can be used to collect income and exploit the relative volatility from these investments.
 
(5) Dividend Gems Provides Outstanding Educational Material Found Nowhere Else
Like all of our newsletters, Dividend Gems also provide educational material and unique insights from Mike in order to help readers become more skilled investment managers.
For instance, the first three issues of Dividend Gems covered the following topics in great detail:
• Valuation and analysis of Canadian oil trusts
• Valuation and analysis of U.S. oil trusts
• Valuation and analysis of three (3) selected bond funds
• Specific dividend capture strategies
 
Material planned* for future issues includes:
• Valuation and analysis of REITs
• Valuation and analysis of high-yield REITs
• Valuation and analysis of other high-yield securities
And much more
*these topics are not guaranteed to appear in future issues. This will be determined based on priority and relevance of other topics of discussion.
 
(6) Outstanding Performance
The launch of Dividend Gems has already been a huge success, both for subscribers and for us.
For instance, within two weeks after the first issue was released, one of the seventeen (17) securities added to the Dividend Gems recommended list was bought out, sending shares soaring by 25%.  
But that’s certainly not all.
The performance of Dividend Gems securities recommendations have also blown away the S&P 500 Index.
Since the first three issues were focused on building this list, the table shows the performance of the securities added to the list in Volume 1 (released on February 14, 2011) and Volume 2 (released on March 14, 2011). 
Below I have posted two charts illustrating the performance of each security added to the Dividend Gems recommended list in the very first issue, released on February 14, 2011.
But we don’t just show you the performance of each security. We show the performance versus the S&P 500 Index. Very rarely will you see investment newsletters show relative performance because they simply aren’t honest.
Next I show the annualized performance and the total performance (including dividends). I also discuss the risk-adjusted performance relative to the S&P 500.
 
Dividend Gems Securities 1 through 9 (Added on February 14, 2011)
 
 
Dividend Gems Securities 10 through 17 (Added on February 14, 2011)
 
 
Remember, these are dividend securities so the gains are even higher than shown in the performance charts.
 
So now let’s look at the average performance (February 14 through April 19) of the first seventeen (17) securities since they were added to the Dividend Gems recommended list (excluding dividends) and compare it with the performance of the S&P 500 Index over the same time period.
Dividend Gems (average performance of all 17 securities from Vol. 1): +2.44%
• Dividend Gems (average performance without the 2 lowest-rated securities): +3.47%
• S&P 500 Index (February 14-April 19): -1.50%
 
Now let’s look at the annualized results. We will also examine the annualized results including dividends because after all, the dividends are a very important attribute of these securities.
• Dividend Gems (annualized): +14.60% (excluding dividends)
• Average Dividend Yield (as of the date securities were recommended): 5.88%
• Dividend Gems (annualized): +20.48% (including dividends)
• Dividend Gems (anz'd w/o the 2 lowest-rated securities): +20.80% (excl. dividends)
• Average Dividend Yield (w/o the 2 lowest-rated securities): 5.43%
• Dividend Gems (anz'd w/o the 2 lowest-rated securities): +26.23% (incl. dividends)
 
• S&P 500 Index (annualized): -9.00% (excluding dividends)
• Average Dividend Yield: 1.75%
• S&P 500 Index (annualized): -7.25% (including dividends)
 
In order to complete the assessment of performance, we must look at the risk-adjusted returns. This measures the returns after adjusting for risk.
The average rating for the securities added to the Dividend Gems recommended list on February 14, 2011 was a 2, which represents a “Good” rating according to our methodology. This is in contrast to a 3 rating, or “Average,” which represents the rating of the S&P 500 Index.
Our estimates show that the reduced risk of the Dividend Gems recommended securities adds approximately +5.00% (hypothetically) to the already explosive annualized returns.
 
What about the March issue you ask? 
Well, I don’t like to look at the first month’s performance because you really can’t tell much.
However, to satisfy any doubters, I’ll show you how the eleven (11) securities added to the Dividend Gems list on March 14 have performed as of April 19.
 
Dividend Gems Securities 1 through 7 (Added on March 14, 2011)
 
 
As you can see, out of the seventeen securities added to the Dividend Gems recommended list in Volume 1 (February 14, 2011), fifteen (15) of these securities have outperformed the S&P 500 Index as of April 20th, 2011. 
That’s an impressive performance.
Let’s look at the next five (5) securities added in Volume 2.
 
Dividend Gems Securities 7 through 12 (Added on March 14, 2011)
 
 
As you can see, only one (1) of five (5) securities added in March beat the S&P500 Index. But again, you really can’t tell much in one month.
More important, let’s take a look at the average 1-month performance (through April 19) of the eleven (11) securities added since March 14, 2011 from the previous two charts above.
 
• Dividend Gems (ave. performance of all 11 securities from Vol.2): +1.82%
• S&P 500 Index (February 14-April 19): +1.20%
 
Now let’s look at the annualized results.
Dividend Gems March Securities Adds (annualized): +21.80% (excluding dividends)
• Average Dividend Yield (as of the date securities were recommended): 5.09%
• Dividend Gems March Securities Adds (annualized): +26.89% (including dividends)
 
• S&P 500 Index (annualized): +14.40% (excluding dividends)
• Average Dividend Yield: 1.75%
• S&P 500 Index (annualized): +16.15% (including dividends)
 
The average rating for the securities added to the Dividend Gems recommended list on March 14, 2011 was a 2-, which represents a “Slightly Good” rating according to our methodology. This is in contrast to a 3 rating, or “Average,” which represents the rating of the S&P 500 Index. Our estimates show that the reduced risk of the Dividend Gems recommended securities adds approximately +3.00% (hypothetically) to the already explosive annualized returns.
 
The table below summarizes the performance of the Dividend Gems recommended securities list.
 
 
 
 
So what are you waiting for?
 
Are you waiting for Dow 1000? Dow 2000? Dow 3000?
 
If so, you will be waiting a VERY long time.
 
Perhaps you’d like to wait it out with Robert Prechter, Marc Faber, Peter Schiff, Harry Dent, and the other professional marketers who have been making the same claims for decades. 
 
Aren’t you tired of losing money?
 
It’s time for you to make a change for the better.
 
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