Abstract:
The Caldwell Stock Report provides information and analyses regarding Caldwell Dividend Strategy and is published electronically on a monthly basis. The investment philosophy of Caldwell Dividend Strategy is based on risk reduction and moderate diversification. The methodology involves three rounds of screening, risk weighting and planning the composition of portfolio. Implementation involves monthly screenings, interim reports, etc.
The Caldwell Stock Report focuses on a dividend strategy developed by Mr. Greg Caldwell known as the Caldwell Dividend Strategy. The Caldwell Stock Report, published electronically every month provides useful information about the Caldwell Dividend Strategy. Mr. Greg Caldwell, the brain behind this dividend strategy, did his BA in Economics from Virginia University in Charlottesville and consequently focused on career in finance. The Caldwell Stock Report is designed to provide investors with authentic information and proper analysis.
The Caldwell Dividend Strategy, which is the crux of the Caldwell Stock Report, is based on certain key premises. These are -
- Stocks that are non-dividend paying entail great risk than dividend paying ones.
- Good capital gains can be derived from dividend-paying stocks too.
- All stocks entail risk that needs to be managed.
Investment Philosophy of Caldwell Dividend Strategy
The philosophy propagated by the Caldwell Stock Report can be outlined as follows -
- Risk reduction through technical and fundamental analyses.
- Use of risk-weighting for further reduction of risk.
- Preference of moderate diversification over broad diversification.
- Use of layered screening.
Methodology of Caldwell Dividend Strategy
- Initial screening - Stocks with less than 2% dividends are eliminated.
- Second screening - From the selected stocks after initial screening, those with potential of returns less than 10% are eliminated.
- Final screening - Stocks that qualify through the second screening are subject to a range of high end analyses that include risk/reward analysis, technical analyses, etc.
- Risk weighting - This is done by rating stocks as high risk, medium risk and low risk ones.
- Composition of portfolio - The targeted number of stocks in a portfolio range between 15 and 20. This can however increase or decrease depending on the specific case.
Implementation of Caldwell Dividend Strategy
Implementation is carried out by the following -
- Monthly screenings
- Interim reports, if and when needed.
- No margins
- In specific cases certain portfolios may not be fully invested.