At Henssler Financial, we have developed alternate portfolios to our Traditional Recommended portfolio for investors who desire a different market exposure or have income needs. We still apply our strict investment criteria to the selection of stocks. Holdings must be at least “A” by Value Line for financial strength; “A-” by Standard & Poor’s for earnings and dividend quality, or “2” by Value Line for safety.
Small-Mid Cap Portfolio
The Small-Mid Cap Portfolio is comprised of approximately sixty-five (65) stocks. It is a broadly diversified group with a beta of approximately 0.882 (calculated as of September 30, 2011). Accordingly, its volatility may be expected to be slightly lower than the Standard & Poor’s MidCap 400 Index (S&P 400 Index). However, the average financial strength (as calculated by Value Line Investment Survey) of the stocks included in the Small-Mid Cap Portfolio is higher than that of the S&P 400 Index. For example, many stocks in the S&P 400 Index do not meet the minimum quality requirements for our Small-Mid Cap Portfolio.
The median market capitalization for holdings in this portfolio is $3.21 billion, while the weighted average market capitalization for holdings is $4.32 billion. This portfolio contains companies, such as, Polaris Industries, Inc. (NYSE: PII), Humana Inc. (NYSE: HUM), Mattel Inc. (NASDAQ: MAT) and Hormel Foods (NYSE: HRL).
Dividend Growth Portfolio
The Dividend Growth Portfolio’s objective is to provide a modest current level of income with the potential for high dividend growth. The strategy targets a weighted average dividend growth of 8% for the portfolio as a whole. The Dividend Growth Portfolio is comprised of approximately twenty-two (22) stocks. It is a broadly diversified group with a beta of approximately 0.837 (calculated as of September 30, 2011). Accordingly, its volatility may be expected to be slightly lower than the Dow Jones US Select Dividend Index. However, the average financial strength (as calculated by Value Line Investment Survey) of the stocks comprising the Dividend Growth Portfolio is higher than that of the Dow Jones US Select Dividend Index. For example, many stocks in the Dow Jones US Select Dividend Index do not meet the minimum quality requirements for the Dividend Growth Portfolio.
The median market capitalization for holdings in this portfolio is $24.64 billion, while the weighted average market capitalization for holdings is $49.06 billion. This portfolio contains companies, such as, VF Corp .(NYSE: VFC), McDonald’s Corp. (NYSE: MCD), Southern Company (NYSE: SO) and Chevron Corp. (NYSE: CVX).
High Yield Income Portfolio
The objective of the High Yield Income Portfolio is to provide a high and sustainable level of current income with the potential for only modest dividend growth and long term capital appreciation. The High Yield Dividend Portfolio is comprised of approximately twenty-four (24) stocks. It is a broadly diversified group with a beta of approximately 0.865 (calculated as of September 30, 2011). Accordingly, its volatility may be expected to be slightly lower than the Dow Jones US Select Dividend Index. However, the average financial strength (as calculated by Value Line Investment Survey) of the stocks in our High Yield Dividend Portfolio is higher than that of the Dow Jones US Select Dividend Index. For example, many stocks in the Dow Jones US Select Dividend Index do not meet the minimum quality requirements for this Henssler Portfolio.
The median market capitalization for holdings in this portfolio is $35.47 billion, while the weighted average market capitalization for holdings is $60.13 billion. This portfolio contains companies, such as, Genuine Parts (NYSE: GPC), Honeywell International (NYSE: HON), Royal Dutch Shell ADR (NYSE: RDS), and Waste Management (NYSE: WM).
At Henssler Financial we believe you should Live Ready. If you have questions regarding the appropriateness of these portfolios in your investment strategy, the experts at Henssler Financial will be glad to help. You may call our experts at 770-429-9166 or e-mail at experts@henssler.com.
Disclosures
This article is meant to provide valuable background information on particular investments, NOT a recommendation to buy. The investments referenced within this article may currently be traded by Henssler Financial. All material presented is compiled from sources believed to be reliable and current, but accuracy cannot be guaranteed. The contents are intended for general information purposes only. Information provided should not be the sole basis in making any decisions and is not intended to replace the advice of a qualified professional, such as a tax consultant, insurance adviser or attorney. Although this material is designed to provide accurate and authoritative information with respect to the subject matter, it may not apply in all situations. Readers are urged to consult with their adviser concerning specific situations and questions. This is not to be construed as an offer to buy or sell any financial instruments. It is not our intention to state, indicate or imply in any manner that current or past results are indicative of future profitability or expectations. As with all investments, there are associated inherent risks. Please obtain and review all financial material carefully before investing. Henssler is not licensed to offer or sell insurance products, and this overview is not to be construed as an offer to purchase any insurance products.
