When it comes to outsized performance in our portfolio, one company is helping lead the charge higher: Albemarle Corp. (ALB). The lithium mining giant is benefitting from strong demand for electric vehicles, explains Jim Woods, editor of Intelligence Report.
The first six weeks of 2023 were mostly bullish for markets, as many stocks took off with the turning of the calendar, including many of our Income Multipliers. And while the portfolio is all about long-term dividend growth, measuring outcomes year to date gives us a good snapshot of which of our holdings is moving higher and which have failed to keep pace.
This month’s data reveal that the 20 best-of-breed basket of dividend payers was recently up 3.91% in the nascent 2023. That performance more than doubled the gain of 1.97% in the Dow Jones Industrial Average, but it fell short of the S&P 500’s 6.37% move higher.
One chief reason for the relative outperformance of the S&P 500 is that its largest-cap components are mega-cap tech stocks, and those put in a very strong showing in January. Now, we also have exposure to tech in the Income Multipliers, but it’s not the high-P/E, no-earnings growth that has caught a bid from traders. Rather, our tech exposure comes with strong yield, as well as capital appreciation.
As for Albemarle, the stock is, of course, an electric vehicle (EV) play. That market segment has been a very popular destination for risk capital this year. If you are looking to add money to Income Multipliers, I would recommend following top performers like ALB, as it pays to ride the wave higher in secular themes with a lot of bullish kindling fueling the buying fire.
Of course, if you are in the game for the long term (and you should be), then adding incrementally to any of my Income Multipliers represents a sound decision, as the diversity in the holdings is what helps the portfolio weather the ebb and flow of fickle markets.
Recommended action: Buy ALB