This week we asked Ben Dickey, one of the founding principals of BSG&L Financial Services, some questions about their two Covestor models, Pure Growth and Growth Plus Income.
Covestor Live: Both of your models have been in the top 5 over the last 3 months. What do you find is the key to creating that kind of success in such an unpredictable market?
Ben Dickey: The developing world is still growing at a strong rate. Commodities are doing well and the companies that supply them. Look at companies that derive most of their sales in developing countries. I am also buying Commodity Trusts which are paying high dividends. If you receive 10% dividend, that is the same as 10% growth.
CL: In the Growth Plus Income model you recently sold shares of Trustmark Corp (NASDAQ: TRMK). What factored into that decision?
BD: The Financial Reg. bill has caused some problems for intermediate size banks. I let them go and picked up a high dividend payer.
CL: In your September investment report, you mention that you are watching several stocks, including Caterpillar Inc (NYSE: CAT). What kinds of corporate or economic events are you watching for that will make you decide whether or not to buy CAT?
BD: I own CAT now, I am looking at buying some more. Their overseas sales have skyrocketed and they are increasing sales projections. Steel prices have come down a little, so it has helped their bottom line. They also have an almost 3% dividend. (CL Note: On September 8th, CAT had a 2.18 percent dividend yield.)
CL: How could the results of midterm elections affect your portfolio management style?
BD: One of the remaining clouds hanging over the business world is the uncertainty of taxes and regulation. The election may remove some of this and help propel the market higher.
