Our daily breakout stock ideas are most suitable for aggressive investors seeking ideal entry points...
Fidelity Dividend: Quality and Growth
10/22/2014 8:00 am EST
The latest addition to our model portfolios is a fund from Fidelity that is currently undergoing a transition, explains Walter Frank, fund expert and editor of MoneyLetter.
As of the first of this year, Ramona Persaud replaced Larry Rakers as manager of Fidelity Dividend Growth (FDGFX). Beginning last October, the two worked together to reshape the portfolio.
Under Rakers, the fund contained 400 to 500 stocks in all capitalization ranges. Rakers kept sector weightings near that of the S&P 500 (SPX) but his emphasis on value stocks led to more cyclically-oriented fare in the portfolio.
Under Persaud, the fund's portfolio has been trimmed to about 130 holdings, with a lower turnover rates. The fund also tends to hold larger and more concentrated positions. 23% of assets are in its top ten holdings.
Persaud uses a bottoms-up stock selection process, with an emphasis on purchasing quality stocks at reasonable valuations.
Stocks generally fall into one of three situations: classic dividend growers, accelerating cash return, and opportunistic holdings and special situations.
More from MoneyShow.com:
Related Articles on STOCKS
I understand, my views are not outside the mainstream, but long-term investors should buy Apple shar...
Next week has a couple significant concerns: one of course is the FOMC meeting, generally discounted...
On Monday, after a reshuffling of $2.8 trillion of market cap across three sectors, brand-new sector...