AAII

Dividend
Investing:
A Users Guide

Copyright 2012 by the American Association of Individual Investors. AAII Dividend Investing is a trademark and service mark of the American
Association of Individual InvestorsAll rights reserved. This publication may not be reproduced in whole or in part by any means without prior
written consent.
Printed in the U.S.A.
AAIIs Dividend Investing (DI) is not a registered investment adviser or a broker/dealer. Readers are advised that the newsletter is issued solely
for informational purposes and should not be construed as an offer to sell or the solicitation of an offer to buy securities. The opinions and
analyses included in the DI are based on sources believed to be reliable and written in good faith, but no representation or warranty, expressed or
implied, is made as to their accuracy, completeness, timeliness, or correctness. Neither we nor our information providers shall be liable for any
errors or inaccuracies, regardless of cause, or the lack of timeliness of, or any delay or interruptions in, the transmission thereof to the users. All
information contained in the DI should be independently verified with the companies mentioned.
Past performance is no guarantee of future results. Recommendations are made without consideration of your financial sophistication, financial
situation, investing time horizon, or risk tolerance. Readers are urged to consult with their own independent financial advisers with respect to
any investment.
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AAII Dividend Investing was developed by the American Association of Individual Investors. Data used in this book and at the DI website is
supplied by AAIIs Stock Investor Pro/Thomson Reuters, I/B/E/S and company releases.
American Association of Individual Investors
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Chicago, Illinois 60611-3151
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[Link]
ISBN: 978-1-883328-28-3

First Printing, July 2012

Table of Contents
Chapter One: The AAII Dividend Inves ng Philosophy and Strategy .......................... 1
Dividends Maer............................................................................................................ 1
The AAII Dividend Invesng Strategy ............................................................................. 1
Porolio Addion and Deleon Rules ............................................................................ 3
Dividend Dates ............................................................................................................... 3
Dividend Payments and Reinvestments ......................................................................... 4
Chapter Two: Following the AAII Dividend Inves ng Por olio .................................. 5
Overview ........................................................................................................................ 5
Building Your Inial Porolio .......................................................................................... 5
Holding Less Than 24 Stocks .......................................................................................... 6
Weekly Updates ............................................................................................................. 7
Monthly Report .............................................................................................................. 9
Summary ........................................................................................................................ 9
Chapter Three: FAQsYour Ques ons Answered....................................................12
Geng Started ............................................................................................................. 12
How AAII Dividend Invesng Works ............................................................................. 15
Porolio Alerts ............................................................................................................. 15
The Dividend Invesng Website and Emails ................................................................. 16
Glossary .................................................................................................................19
Appendix: Subscriber Resources .............................................................................23

Chapter One:
The AAII Dividend Investing Philosophy and Strategy
For example, assume stock XYZ trades at $20 per share
and has an indicated dividend yield of 3%. Over the
course of the next 12 months, the stock price rises
10% to $22. During this period, shareholders receive
60 cents in dividends (3% yield mes $20 stock price
equals 60 cents in dividends). The total return realized by shareholders over this period is 13%. How? The
stock price appreciated by $2 (10%) and shareholders received 60 cents in dividends (equivalent to the
3% yield), resul ng in a total increase of net worth of
$2.60. Dividing the $2.60 total increase at the end of
the period by the $20 stock price at the beginning of
the period equals 13%.

Dividends Matter
Since 1926, dividends have accounted for more than
40% of the return realized by inves ng in large-cap
stocks. The o -touted 9.9% historical annual return for
stocks is significantly impacted by the payment of dividends. Ibbotson Associates, which tabulates long-term
historical returns, says that if dividends were taken out
of the equa on, the long-term annual return for stocks
would fall to a more mundane 5.5%.
Dividends also create a steady stream of por olio
income. They are cash payments distributed to shareholders periodically. Most dividend-paying companies
follow a regular calendar schedule for distribu ng the
payments, typically on a quarterly basis. This gives
investors a reliable source of income.

The advantage of total return is that it gives investors

the poten al for a win-win combina on. Net worth is
increased by both the change in the stocks price and
the payment of the dividend. Stock prices are unpredictable, of course, so there is no guarantee that the
total return will be posi ve for any specific stock held in
the por olio. But the presence of a dividend provides
another component of return in an investors favor.

This stream of income helps to boost and protect

returns. When stock prices move upward, dividends
enhance shareholders returns. Shareholders get the
benefit of a higher stock price and the flow of income;
when combined, these elements create total return.
Dividend payments provide a minimum rate of return
that will be achieved, as long as the company does not
alter its dividend policy. This helps cushion the blow of
downward market moves.

Another way we seek to achieve posi ve rates of return in the Dividend Inves ng por olio is by selec ng
fundamentally a rac ve stocks. Stocks selected for the
por olio must possess good business models, strong
balance sheets, growth in sales and earnings, posi ve
free cash flow, a rac ve valua ons and a history of rising dividend payments. Each company must also add to
the por olios diversifica on.

Dividends are a commitment by a company to distribute a por on of its earnings to shareholders on a

regular basis. Once a company starts paying a dividend,
it is reluctant to cut or suspend the payments. This
commitment puts pressure on corporate execu ves to
make prudent business decisions in order to maintain
the stream of dividend payments. As a result, dividends
can make companies more shareholder friendly.

Diversifica on is accomplished in several ways. Companies are selected from a variety of industries and
sectors. No minimum market capitaliza on is required,
allowing for the inclusion of companies of diering
sizes. Several strategies are used to iden fy stocks with
varying characteris cs. Some stocks will have stronger
poten al for sales and earnings growth, while others
will have higher yields.

The AAII Dividend Investing Strategy

The AAII Dividend Invesng (DI) por olio follows a
total return strategy. The por olio invests in stocks
that have the poten al to rise in price and make larger
dividend payments in the future. Rising prices provide
the opportunity to realize capital apprecia on, which is
one part of a stocks total return. Dividends provide an
income component, adding a second part to a stocks
total return. Price apprecia on and dividend payments
combined make up the total realized return on an investment, and each part can contribute to increasing it.

Companies must also have a reasonable expecta on of

paying a dividend over the foreseeable future, and we
generally look for a history of rising dividend payments.
We consider the indicated yield (projected dividend
payments for the next 12 months divided by the current
share price) for all stocks, but place a greater emphasis
on stocks with the poten al to enhance the por olios
total return than those that merely pay a high dividend.

Figure 1. Dividend Payments Tab

On occasion, we may add a stock that does not have

a long history of rising dividend payments or that has
recently ins tuted a dividend if we believe it has the
poten al to increase dividends in the future.

Deteriora ng trends in sales, earnings or cash

flow;
Deteriora ng financial strength;
High valua ons;

Portfolio Addition and Deletion Rules

Changes in the corporate structure, including a

merger, acquisi on, or divesture; or

For a stock to be added to the DI por olio, it must possess the following the characteris cs:

The company is aected by nega ve developments.

Currently pays a dividend;

Dividend yield above benchmark yields;

Cash dividends paid to the DI por olio are not automa cally reinvested via a dividend reinvestment plan
(DRIP). Rather, payments are added to the por olios
cash balance and deployed when adding a new stock
to the por olio. Excess cash may also be used to add to
posi ons of stocks underweighted in the por olio but
s ll fundamentally a rac ve.

Higher dividend payments this year rela ve to

last year, or a reasonable expecta on that future
dividend payments will be raised (in certain cases,
a company that recently ini ated a dividend will
be considered if there is a reasonable expecta on
that it will increase its dividend in the future);
A free-cash-flow payout ra o below 100% (u lity stocks are allowed to have a ra o above 100%
if free cash flow is posi ve when calculated on a
pre-dividend basis);

Dividend Dates
Investors should pay close a en on to the dividend
dates before buying or selling dividend-paying stocks.
Companies list two key dates when announcing a dividend: the record date and the payment date.

Improving trends in sales and earnings;

The record date is the day you must be on the companys books as a shareholder in order to receive the
dividend. To qualify as a shareholder on the record
date, you must own the shares before the ex-dividend
date, which is two trading days before the record date.
The ex-dividend date is used by the stock exchanges to
indicate when a new shareholder is no longer en tled
to the declared dividend. For example, if the record
date is a Monday, you must own the shares before
the previous Thursday, which is the ex-dividend date.
On the ex-dividend date, the stock price is adjusted to
reflect the upcoming dividend payment. Depending on
the size of the dividend, this could result in a no ceable
price change both leading up to the ex-dividend date
(the price rises) and a erward (the price falls). Therefore, you should factor in the ex-dividend date before
deciding when to buy or sell a dividend stock.

A strong balance sheet, as measured by the current ra o and the liabili es-to-assets ra o;
An a rac ve valua on, as measured by the priceearnings ra o;
Has no more than one class of shares; and
Dividends are paid as qualified dividends, not nondividend distribu ons.
Foreign companies (ADRs or those listed on foreign exchanges), real estate investment trusts (REITs), master
limited partnerships (MLPs) and unit investment trusts
(UITs) are not eligible because of tax rules.
A stock may be deleted from the DI por olio for one or
more of the following reasons:

The ex-dividend date is also important from the standpoint of taxes. The Tax Act of 2003 reduced the maximum tax rate on qualified dividends to 15%. To prevent
individuals from gaming the system, this reduced tax
rate only applies if the stock has been held for more
than 60 consecu ve days during the 120-day period
beginning 60 days before the ex-dividend date. The IRS

The dividend is cut or suspended, or there is a

reasonable expecta on that this will occur;
Yield falls to a level considered to be too low for
the por olio;

s pulates that when coun ng the number of days the

recipient has held the stock, the day the recipient disposed of the stock should be included, but not the day
the recipient acquired it.

Should the por olios cash balance grow to a significant

size, it may be reinvested into some, but not all, of the
por olios exis ng holdings. Subscribers are alerted in
our weekly email and on the website to all transac ons,
including reinvestments, before they occur.

The second date is the payment date. This is the date

that the dividends will be paid to shareholders recognized by the company on the record date. You will owe
taxes as of the date the dividend was paid, not the date
you withdraw or reinvest the cash.

As a subscriber, you have three op ons for your cash

dividend payments. You can set the cash payments
aside for future stock purchases when a DI addion alert is published. You can withdraw the cash for
por olio income. You can also reinvest the dividends,
using them to acquire more shares of the same stock.
Withdrawing the cash or immediately reinves ng the
cash will result in your por olios performance diering
from the returns achieved by the DI por olio.

Both the ex-dividend date and the payment date are

listed on the Dividend Payments tab located in the
Por olio sec on of the DI website (Figure 1) and in the
Dividend Payments table of the DI monthly newsle er.

Should you choose to immediately reinvest your dividends, your brokerage firm may be able to facilitate
the transac on at no charge. Many companies do oer
dividend reinvestment programs directly to shareholders, but these programs require extra paperwork and
recordkeeping. Going through your broker, if possible,
may be the easiest way to automa cally reinvest your
dividends. Contact your brokerage firm for informa on,
including any poten al expenses you may incur.

Dividend Payments and Reinvestments

Dividend payments are allocated to the DI por olios
cash balance to fund future stock purchases. When a
stock is sold, the proceeds of that sale and any exis ng
cash in the por olio are used to fund the purchase of
a replacement stock. If the total cash available exceeds
the average posi on size for the por olio, not all of the
available cash may be used to purchase the new stock.

Chapter Two:
Following the AAII Dividend Investing Portfolio
AAII Dividend Invesng (DI) is designed to educate you
on how to become a successful dividend investor. Following the DI approach involves crea ng your own portfolio based on the DI por olio and reading the weekly
updates for por olio addi ons and dele ons.

newsle er provides more in-depth coverage of

the por olio, highlights certain stocks within the
por olio, and oers educa onal commentary
regarding dividend inves ng.

Building Your Initial Portfolio

Overview

DI emphasizes the por olio concept and individual

stock selec on as described in Chapter One: The AAII
Dividend Inves ng Philosophy and Strategy.

AAII Dividend Invesng is designed to provide all the

informa on and educa on you need to manage a
dividend stock por olio, including important investment principles regarding stock analysis and por olio
management. The service includes a detailed lis ng of
the complete por olio, por olio addi on and dele on
alerts, and ongoing support for your eorts in maintaining a por olio that considers both por olio return and
por olio risk.

How many of the 24 stocks should you own? Clearly,

the more stocks you own, the greater the por olios diversifica on and the lower the por olio risk. The number of stocks you choose from the current DI por olio
and when you buy them, however, depend on several
factors. We suggest that subscribers invest in all 24
stocks, but the following issues should be kept in mind.

Managing an individual DI por olio consists of three

basic steps:

First, you need not rush to invest in stocks immediately

a er a por olio addi on alert is issued. This is also
true of por olio dele on alerts. Depending on market
ac on, you may wish to buy on weak days and sell on
strong daysbut we dont suggest a market ming
approach. However, if you are going to use the DI approach eec vely, you should act on por olio addi on
and dele on alerts reasonably quicklywithin the
week.

1. Building your inial porolio: The Holdings tab in

the Por olio sec on of the DI website (Figure 2)
and the Por olio Holdings table of the DI monthly
newsle er list all of the stocks currently comprising the DI por olio. The por olio is designed
to hold 24 stocks, and we suggest dividing your
investments in equal dollar amounts among all 24
stocks. If you decide to invest in a subset of the
overall Dividend Inves ng por olio, instruc ons
are provided below.

Pay a en on to the stocks ex-dividend dates. Purchasing a stock before the ex-dividend date ensures that you
will receive the next dividend payment, but also makes
you liable for the taxes on the distribu on. Buying the
stock a er the ex-dividend date can poten ally allow
you to acquire it at a lower price, par cularly if the dividend is significant. But you will not be eligible to receive
the upcoming dividend and you will not incur the tax
liability on the dividend.

2. Weekly update: A er the market close each week

(Friday, except for certain holiday-shortened
weeks), updated commentary and news about
the por olio is sent out via email and published
on the DI website. If a change to the por olio is
made, a dele on or addi on alert is prominently
listed in the weekly update.

You should also be cau ous about trading early during

the day, par cularly at the open of the first trading day
following a por olio addi on or dele on alert. If you
are a buyer, give the sellers me to get involved in the
market. Depending on market ac on, you may wish to
buy on weak (down) days. In addi on, it is always safer
to employ limit orders. In order to be part of the DI
por olio, stocks must have sucient liquidity so that
our addi on alerts should not aect prices significantly

3. Monthly report: Addi ons to the por olio are

made monthly, shortly a er the beginning of the
month. An alert about the addi on is included
in the weekly update and discussed in greater
detail in the monthly report, both of which can
be accessed on the DI website. (Subscribers can
also opt to have the monthly report sent to them
by mail for a small addi onal cost.) The monthly

for any extended period of me. If you are buying a

large number of shares, you might wish to spread your
buying over more than one day. While we generally
suggest ac ng on por olio addi on and dele on alerts
within the week, dont be afraid to wait longer if you
feel the stock price is moving in your favor (falling if you
are a buyer or rising if you are a seller).

Figure 2 displays a sample complete DI list. A 12-stock

por olio created from this list based on the highestyielding method would include the stocks with the highest yield, adjusted to ensure that as many sectors and
industries are represented as possible. You will no ce
that the dollar amounts invested are the same, but the
number of shares held in each stock varies.

In general, the commission costs as a percentage of

total acquisi on cost will be higher when purchasing
only a few shares of stockmeaning that your percentage trading costs will fall as you increase the number
of shares you purchase. For those managing their own
investment por olio, it is best to use a deep-discount
broker. In todays marketplace, there is li le reason to
pay more than $20 in commissions for a stock transacon and, depending on your need for other services,
you can get execu ons for much less than that.

AFLAC Incorporated (Financial)76 shares

($3,000 $39.74 = 75.5, or 76 shares)
AT&T Inc. (Services)88 shares ($3,000 $34.04
= 88.1, or 88 shares)
Chesapeake U li es (U li es)72 shares ($3,000
$41.58 = 72.2, or 72 shares)
Chevron Corpora on (Energy)31 shares ($3,000
$97.78 = 30.7, or 31 shares)

Holding Less Than 24 Stocks

Eaton Corpora on (Technology)69 shares

($3,000 $43.36 = 69.2, or 69 shares)

If you choose to hold less than 24 stocks, it is imperave that you divide your ini al investment as equally as
possible among stocks from dierent industries with an
equal ini al investment amount in each stock. You can
select stocks by yield, earnings growth rate or the date
they were added to the por olio (newest to oldest). It
is strongly advised that you hold at least 12 stocks, and
holding more stocks will increase your por olios diversifica on and lower its risk.

Emerson Electric Co. (Technology)64 shares

($3,000 $47.23 = 63.5, or 64 shares)
General Dynamics (Capital Goods)47 shares
($3,000 $63.96 = 46.9, or 47 shares)
Genuine Parts Co. (Consumer Cyclical)48 shares
($3,000 $62.69 = 47.9, or 48 shares)

Here is an example of how you would create a por olio

based on the 12 highest-yielding stocks in the DI por olio, adjusted for sector and industry diversifica on.

Legge & Pla , Inc. (Consumer Cyclical)144

shares ($3,000 $20.90 = 143.5, or 144 shares)
Microchip Technology (Technology)97 shares
($3,000 $31.06 = 96.6, or 97 shares)

Assume you decide to invest $36,000 in a 12-stock

por olio. You would invest approximately $3,000 per
stock ($36,000 12 = $3,000). You would purchase 120
shares of a stock trading at $25 ($3,000 $25 = 120),
but only 25 shares of a stock trading at $120 ($3,000
$120 = 25). You should not be concerned with purchasing odd lots (amounts less than 100 shares). Furthermore, purchasing an equal number of shares of each
stock would lead to some stocks being weighted higher
than others in your por olio, which would likely increase your por olios overall risk (vola lity).

Vectren Corpora on (U li es)104 shares

($3,000 $28.94 = 103.7, or 104 shares)
Waddell & Reed Financial (Financial)105 shares
($3,000 $28.69 = 104.6, or 105 shares)
If you own less than 24 stocks and a stock you own is
deleted from the DI por olio, you should replace it using the same methodology you followed beforeeither
according to date added, highest yield or earnings
growthand adjust the strategy to ensure exposure to
several sectors and industries. You can make an immediate purchase of a new stock or wait to review the new
stock added to the DI por olio shortly a er the start of
the month. The new DI stock should be examined to see

When deciding how much money to commit to your

DI por olio, keep in mind that buying stocks in small
value amounts will lead to higher transac on costs as a
percentage of your por olios value that will, over me,
nega vely impact your performance.

Figure 2. Holdings Tab

if it ranks among the highest-yielding or fastest-growing

stocks, depending on your methodology. If it does not,
choose from among the other exis ng stocks.

commentary about the por olio.

If a por olio dele on alert is issued during the month
for one of the stocks you own, sell it and keep the proceeds to buy a stock from the por olio addi ons a er
the start of the next month (see the previous sec on
for instruc ons if you are holding less than 24 stocks).

Weekly Updates
A er the close of trading each Friday (or the last weekly
trading day) a weekly update is sent out via email
(Figure 3) and published on the DI website. This update
no fies you of any changes that have been made to the
por olio. The weekly update also provides news and

When you sell a stock from your por olio, give the buyers me to get involved in the market. Depending on
market ac on, you may wish to try to sell on strong (up)

Figure 3. Weekly Email

days. While we generally suggest ac ng on por olio

addi on and dele on alerts within the week, dont be
afraid to wait longer if you feel the stock price is moving
in your favor (falling if you are a buyer or rising if you
are a seller). Again, be aware of the ex-dividend date, as
it can impact the stocks price.

Summary
While it is certainly reasonable to make some adjustments in the aforemen oned procedures to accommodate personal preferences or special knowledge,
we do not suggest wide varia ons if you wish to mirror
the performance of the DI por olio. DI is a por olio
approach and we do not a empt to rate individual
stocks. Randomly picking a half-dozen stocks from the
24-stock por olio, especially if sectors and industries
are ignored, defeats the purpose of the DI por olio
strategy. We do not purport to know how each of these
stocks will behave in the future, but we believe that the
por olio as a whole (or the suggested subsets) should
perform well on a risk-adjusted basis.

Monthly Report
The monthly report (Figure 4) provides more in-depth
analysis of the stocks held in the por olio, including addi onal details about why they were added or are connuing to be held. The report also provides addi onal
commentary about the DI por olio, a full summary of
all transac ons, a monthly list of the 24 stocks making
up the DI por olio, and educa onal content about stock
analysis and por olio management.

It is important to remember that risk and return are a

trade-o: The most return/risk ecient por olio oers
the highest return at the level of risk you are willing to
assume. In terms of your total wealth, por olio management through asset alloca on and por olio structure are more important than individual stock selec on.
DI is designed to help educate investors in me-tested
methods of por olio crea on and risk reduc on.

The monthly report is posted in the Monthly Report

sec on of the DI website. A print version is available for
a small addi onal charge to cover postage and prin ng
costs.

For answers to your ques ons, see the next chapter.

Figure 4. Monthly Report

10

Chapter Three:
FAQsYour Questions Answered
Ge ng Started .......................................................................................................12
Minimum number of stocks ......................................................................................... 12
Inves ng in only the highest-yielding stocks ................................................................ 12
Handling your dividends .............................................................................................. 12
Whether rebalancing is necessary ............................................................................... 12
Choosing a broker ........................................................................................................ 13
How to purchase equal amounts ................................................................................. 13
Whether to use stops ................................................................................................... 13
Handling shares from spinos...................................................................................... 13
Minimum total amount to invest ................................................................................. 14
How AAII Dividend Inves ng Works ........................................................................15
How stocks are replaced in the por olio ..................................................................... 15
Whether dividends are reinvested ............................................................................... 15
Actual DI por olio ........................................................................................................ 15
Calcula on of reported DI performance ...................................................................... 15
Whether price targets or buy/hold/sell recommenda ons are used .......................... 15
Por olio Alerts .......................................................................................................15
Announcement of por olio dele ons.......................................................................... 15
Why alerts are only issued once a week ...................................................................... 16
Announcement of por olio addi ons.......................................................................... 16
When to implement por olio alerts ............................................................................ 16
Viewing past transac ons ............................................................................................ 16
The Dividend Inves ng Website and Emails ............................................................16
Changing your contact informa on ............................................................................. 16
Logging out of DI website ............................................................................................ 16
Login kickback: Allowing cookies ................................................................................. 16
Changing screen type size ............................................................................................ 17
Email alerts blocked ..................................................................................................... 18
Opening PDF of monthly report ................................................................................... 18
Blank screen with error message ................................................................................. 18

11

un l an addi on alert is sent out. The second op on is

to withdraw the dividend payments, either as por olio income or to fund required minimum distribu ons
(RMDs) if held in an individual re rement account (IRA).
The third op on is to automa cally reinvest the dividends, via either a direct reinvestment plan (DRIP) or
your brokerage firm. Many brokerage firms will facilitate direct reinvestments, and this may be an easier and
less costly way to engage in such programs.

Getting Started
Answers to ques ons you may have when building a
por olio based on DI.
I am a new subscriber to AAII Dividend Invesng.
Should I invest in all 24 stocks or only invest in stocks
as they are added to the por olio?
The more stocks you own, the greater your por olios
diversifica on and the lower the risk. Op mally, you
should purchase all 24 of the stocks in the AAII Dividend
Invesng (DI) por olio. However, commission costs
as a percentage of por olio value will be higher when
purchasing only a few shares of each stock. You should
use a deep discount broker if you are managing your
own por olio. There is li le reason to be paying more
than $20 in commissions per each buy and sell transacon and, depending on your need for other services,
you can get execu ons for much less than that. If you
cannot own all 24 stocks in the DI por olio, then we
recommend that you hold at least 12 stocks, ensuring
exposure to several sectors and industries to provide diversifica on. You can choose among the most recently
added stocks, which most currently reflect our selec on
criteria; the 12 with the strongest projected growth;
or the 12 with the highest yields. Invest equal dollar
amounts in the individual stocks you purchase, whether
you buy all 24, 12 or a number in between.

Subscribers who choose to either withdraw the dividend payments or par cipate in a direct reinvestment
plan will realize por olio returns that are dierent from
those reported for the DI por olio.
Do you have any advice as to when or how o en one
should rebalance the por olio?
We do not advocate ac ve rebalancing of DI holdings
selling o par al posi ons of holdings that have grown
or adding to posi ons that have underperformed. However, when buying stocks to replace those that have
been deleted from your DI por olio, we do recommend
that you invest amounts that are propor onate to the
average holding size of your overall DI por olio plus
your por olios cash balance.
Here is a simple way to determine the approximate
amount to invest when buying stocks to replace those
that have been deleted from your DI por olio:

Can I invest in just the highest-yielding stocks?

Begin by calcula ng the average posi on size (in dollars)

for each of the stocks in your DI por olio. This is merely
the process of adding together the market value of each
of your DI stocks and your cash balance and then dividing the total by the number of DI companies you own.
This average is approximately the amount you should
try to invest in each of the new DI stocks. For some
months, inves ng this amount will leave you with cash
le over. This will happen if you have deleted a stock for
a gain or have accumulated cash from dividend payments. If you are not averse to holding cash, this can
be used in those months when you may have deleted a
stock for a loss. Otherwise, invest the cash you have on
hand equally into the stocks you are buying.

The more stocks you own, the greater your por olios
diversifica on and the lower its risk will be. The number
of stocks you choose from the current DI por olio and
when you buy them, however, depend on several factors. We suggest that subscribers who want to track the
por olio invest in all 24 stocks.
If you choose to hold less than 24 stocks, you could
choose from among the highest-yielding stocks. However, make sure that you divide your ini al investment as
equally as possible among stocks from dierent industries with an equal ini al dollar amount in each stock.
It is strongly advised that you hold at least 12 stocks,
and holding more stocks will increase your por olios
diversifica on and lower its risk.

If you find that you do not have enough cash on hand

to invest the average holding amount and you are not
willing to add new money to your por olio, than any
cash available should be invested equally among the
new stocks.

What should I do with my dividends?

Subscribers have three op ons when it comes to handling cash dividend payments. The first is to allocate
dividend payments to your por olios cash balance

12

Figure 5. Investor Surveys Area of [Link]

Do you have any advice as to which broker I should

use?

company cuts its dividends, exhibits signs of weakening

financial condi on or otherwise shows signs that it may
no longer be an a rac ve dividend candidate. Since DI
follows a long-term inves ng approach, with the focus
of genera ng returns through both price movement
and dividend payments, stop losses are not used or encouraged. Plus, the regular payment of dividends helps
to cushion some of the vola lity that may occur.

We do not favor one broker over another. However,

AAII surveys members on their experience with online
discount brokers. You can see weekly results and an annual tabula on of the Online Discount Broker Survey at
the Investor Surveys area of the AAII website (Figure 5).
AAII also publishes an annual Discount Broker Guide
that provides an in-depth comparison of the most
popular brokers from our survey of members.

If you choose to sell before a por olio dele on is issued, pay a en on to the ex-dividend date and determine if you want the cash dividend. The stock price
will decline by the dividend amount on the ex-dividend
date.

When purchasing stocks should I invest equal share

amounts or equal dollar amounts?
You should try to invest equal dollar amounts in each
stock you purchase. The key is equal ini al dollar
amounts, not number of shares, in each stock. Purchasing odd lots of shares (less than 100 shares) does not
incur extra costs.

What should I do with shares I receive from spinos?

Should a company divest itself of certain opera ons and
issue shares in the new company to shareholders, we
review the spino and make adjustments accordingly.
We analyze each spino on a case-by-case basis and announce to all subscribers what we intend to do before
the divesture occurs.

Should I use stops in my DI por olio?

Por olio dele ons for the DI por olio are issued when a

13

Figure 6. Transac ons Page

Is there a minimum amount of money you recommend

inves ng in the DI por olio?

that commission costs will be higher when purchasing

only a few shares of each stock. You should use a deep
discount broker if you are managing your own por olio. There is li le reason to be paying more than $20 in
commissions for each transac on and, depending on
your need for other services, you may be able to get
execu ons for less than that. When deciding how much
money to commit to your DI por olio, keep in mind that
buying stocks in small dollar amounts will lead to higher

We recommend that you hold at least 12 DI stocks,

choosing them from a variety of sectors and industries.
Furthermore, you should invest equal dollar amounts
in the individual stocks you purchase. The more money
you invest in the DI por olio, the lower the transacon costs per share or per investment. Keep in mind

14

transac ons costs as a percentage of your por olios

value that will, over me, impact your performance.

How is performance calculated?

The results we report are based upon the performance of a tracking por olio that consists of all 24 DI
stocks. This performance includes both price changes
(capital gains) and cash dividend payments (income).
Actual brokerage commissions and fees are incurred
and figured into performance calcula ons. The return
we present is a me-weighted rate of return used for
measuring the performance of money managers and
mutual funds. All costs and expenses are considered in
the calcula on. We comply with the performance presenta on standards of the CFA Ins tute, which requires
the use of a me-weighted rate of return. The purpose
of the me-weighted rate of return is to measure the
performance of the investment advice, not the impact
of money flowing into and out of the account.

How AAII Dividend Investing Works

Answers to ques ons you may have about how the DI
por olio is managed.
How are deleted stocks replaced in the AAII Dividend
Invesng por olio?
Once a month, those stocks that were deleted during the previous month are replaced with new ones to
bring the DI por olio back to 24 stocks. New stocks are
added based on their fundamental characteris cs, current yield, dividend history, valua on and industry. They
may be chosen from a dierent industry and may have
a higher or lower yield than the stocks that were sold
from the por olio.

Are price targets or buy/hold/sell recommenda ons

listed for the DI por olio stocks?

Dele on alerts and addi on alerts are announced in

the weekly update (email and online) and the monthly
report (mail and online).

No, because we are more concerned with changes in a

companys fundamentals than fluctua ons in a stocks
price. We do pay a en on to the price-earnings ra o
for all holdings and make changes to the por olio if
the valua on becomes excessive. Similarly, we delete
a stock if its yield falls significantly below the benchmarks yield. We do not use price targets because we
believe that changes in the underlying fundamentals
are more important to achieving success than price
fluctua ons.

Are dividends reinvested?

We do not par cipate in dividend reinvestment programs (DRIPs), but rather allocate the dividend payments to cash un l a new addi on or por olio reinvestment alert is issued.
Specifically, accumulated cash from dividend payments
and the proceeds from the dele on of a por olio holding are combined to fund the addi on of a new stock.
Should the DI por olios cash balance reach a significant enough size, it may be reinvested into some, but
not all, of the por olios exis ng holdings. Subscribers
are alerted to all transac ons, including reinvestments,
before they occur.

The key to mimicking the performance of the DI portfolio, or any other model por olio, is to own all of the
holdings and to follow all addi on and dele on alerts.

Portfolio Alerts
Clarifica on of what you need to do when por olio
alerts are issued.

Is the DI por olio actually traded?

When and how are por olio dele ons announced?
An actual por olio following the strategy used for the
DI por olio from the perspec ve of a subscriber was
started at the beginning of 2012. Trades are not placed
un l a er por olio alerts have been issued to our subscribers via email and the DI website. Actual discount
broker commissions and fees are incurred and are
figured into performance calcula ons. A comprehensive
transac on record of the por olio is found at the Transac ons page in the Por olios sec on (Figure 6).

Por olio dele on alerts are announced on a weekly

basis. Dele ons are normally disclosed a er the close
of trading on the last day of every week through
the weekly update email and on the DI website. The
monthly report also covers any por olio changes made
during the prior month.
A er the close of trading on the last trading day of
the week (Friday, except for certain holiday shortened
weeks), the Weekly Update page of the DI website is

15

updated to disclose any dele on alerts that have been

issued for the week, along with the latest news and
commentary on stocks in the DI por olio. New por olio
alerts are also prominently displayed on the home page
of the DI website.

The Dividend Investing Website and

Emails
Assistance and guidance for u lizing the AAII Dividend
Invesng website.

Why are por olio dele on alerts issued only once a

week?

We recommend that you upgrade your browser to the

most current version available. This will ensure that you
are viewing and naviga ng the DI website as intended.

We take a longer-term, por olio-centric approach to

inves ng. By issuing our dele on alerts a er the close
of trading for the week, we allow all subscribers at least
two days to decide whether there is any ac on they
want to take. We have tried to make the DI system as
easy to follow as possible. Knowing that there will only
be one alert a week eliminates the need to constantly
look for changes.

How can I change the contact informa on I have on

file?
Your contact informa on is maintained within your
profile se ngs. You can update your login informaon, email address or mailing address by going to the
Manage page of My Profile, near the top of any DI page.
Note that you will first need to log into the website to
make any changes to your profile.

When are por olio addi ons announced?

Por olio addi on alerts are issued on a monthly basis.
Like dele on alerts, addi on alerts are announced
through the weekly update, DI website and in the
monthly report. Por olio addi on alerts are issued on a
Friday (or the last trading day of the week) shortly a er
the start of the month.

When I return to the website, it seems I am s ll logged

in. Why am I not automa cally logged out when I close
the browser?
Use the Log Out bu on, located in the upper right-hand
corner of any page, to end your session at the website
at any given me during your visit.

How quickly should I act a er receiving a por olio

alert?

When I enter my login name and password on the

Login page and then click on the Log In bu on, my
browser just returns to the same Login page asking me
for my login name and password again.

You need not rush to purchase or sell stocks immediately a er a por olio alert. You should be cau ous
about trading early in the day, par cularly at the open,
the first day a er a por olio alert. If you are a buyer,
give the sellers me to get involved in the market. Depending on market ac on, you may wish to try to buy
on weak days. Also, it is always safer to employ limit
orders. The stocks in the DI por olio are reasonably
liquid, and our por olio alert alone should not aect
the price significantly for any extended period of me.
If you are buying a large number of shares, you might
buy some one day and some another. While we generally suggest taking ac on within the week, you can wait
longer if you feel the stock is moving in your favor.

You will need to enable your Web browser to allow

cookies to resolve this problem. AAII Dividend Invesng
does not use cookies to gather personal informa on or
for marke ng purposes.
If you do not already know how to enable your browser
to allow cookies, instruc ons for the most commonly
used Web browsers are provided below.
For instruc ons on using addi onal browsers and updates to browsers listed here, please see the FAQs page
of [Link] at [Link]/help.

Where can I find a lis ng of all of the transac ons for

the actual AAII Dividend Inves ng por olio?

Internet Explorer 6.0, 7.0, 8.0, 9.0Enable Cookies

1. Click on Tools > Internet Op ons or click on the
sprocket icon in new versions such as 9.0
2. Click on the Privacy tab.
3. In the Privacy sec on, under Se ngs, youll see a
bu on labeled Advanced. Click on Advanced.
4. In the Advanced Privacy Se ngs sec on, click on

A comprehensive list of transac ons for the actual DI

por olioincluding trades, dividends, interest income,
[Link] presented on the Transac ons page in the
Por olio sec on (Figure 6). The list of transac ons is
updated on a weekly basis.

16

5.
6.
7.
8.
9.

the checkbox labeled Override Automa c Cookie

Handling. (Youll no ce that the word Accept is
clicked on by default under First party cookies and
Third party cookies. Leave these radio bu ons
checked.)
Click on the Ok bu on (make sure it is the Ok
bu on for Advanced Privacy Se ngs, directly under the words Always allow session cookies).
You should be back in the main Privacy sec on
where you clicked Advanced. Click on Sites.
In the field labeled Address of Web Site, type in
[Link] [Link] and then click
the Allow bu on.
Click OK.
Click OK in the main Privacy sec on to close the
Internet Op ons box.

3. Verify that either Always or Only from sites you

navigate to is selected to the right of the words
Accept cookies:.
4. Click OK.
5. Close and relaunch your browser.
Safari 5.1Enabling Cookies
1. Click the sprocket icon on the browser toolbar,
which is the se ngs menu.
2. Click on Preferences.
3. Click the Privacy tab.
4. Verify that either Never or From third par es
and adver sers is selected to the right of the
words Block cookies:.
5. Close the window.
Google Chrome (Older versions)Enabling Cookies
1. Click the wrench icon on the browser toolbar.
2. Select Op ons (Preferences on Mac and Linux;
Se ngs on Chrome OS).
3. Click the Under the Hood tab.
4. Click on Content Se ngs in the Privacy sec on.
5. Click the Cookies tab in the Content Se ngs dialog that appClick on Make excep ons for cookies
from specific websites or domains.
6. Click Manage excep ons.
7. Click the Add a new excep on pa ern field and
enter [Link] [Link].
8. Select Allow under Behavior.
9. Hit Enter on your keyboard to save the excep on.

Firefox 3.0 and newerEnable Cookies

1. Select Tools menu at the top of the browser
screen or click on Firefox in the upper le -hand
corner.
2. From the drop-down menu choose Op ons.
3. When the Op ons box appears, click on the Privacy tab.
4. Make sure that the drop-down menu for Firefox
will: is set to Use custom se ngs for history.
5. The checkbox next to Accept cookies from sites
can be le unchecked if you prefer, but
aaiidividendinves [Link] will s ll need to be
added as an excep on. Click on the Excep ons
bu on.
6. Note: If you do prefer to have the Accept cookies
from sites checkbox selected, we also recommend that you unselect the checkbox next to
Accept third-party cookies.
7. Near the top of the Excep ons box, type in
aaiidividendinves [Link] in the field labeled
Address of web site (www is not required).
8. A er typing in aaiidividendinves [Link], you
will no ce that the bu ons just below that field
are no longer grayed out and are now clickable.
Click the Allow bu on. You should see
aaiidividendinves [Link] and the word Allow
added to the site/status box. Click OK to close
the Excep ons box.
9. Click OK to close the Op ons box.

Google Chrome (Versions 16.0 and newer)Enabling

Cookies
1. Click the wrench icon on the browser toolbar.
2. Select Op ons (Preferences on Mac and Linux;
Se ngs on Chrome OS).
3. Click the Under the Hood tab.
4. Click on Content Se ngs in the Privacy sec on.
5. Click on Manage excep ons...
6. Click Manage excep ons.
7. Under Hostname Pa ern, enter
[Link] [Link].
8. Select Allow under Behavior.
9. Close the window.
The type size is too small. I cannot read any of the
text!

Safari 3.0, 4.0 and 5.0Enabling Cookies

1. Choose Edit from the top menu bar, then select
Preferences.
2. Click the Security tab.

Display se ngs are configured dierently on each

computer depending on your par cular preferences.
The DI website was developed using specific font sizes
and layout dimensions that would allow for as many of

17

these dierent se ngs as possible.

technical problems with their servers, our emails

will not be accepted on your end. Also, ask if your
provider has any filters on their end that may be
iden fying the weekly update as spam or unsolicited mail. Also, tell your provider that we currently
use Lyris/Sparklist servers to send the DI update.

There are two ways you can control the size of fonts on
your computer monitor:
1. Adjust the font size under the Zoom (found by
clicking on the sprocket or wrench icon) or by
clicking on View > Text Size menu item in your
Web browser. This will only adjust HTML text and
will not increase the dimensions of the site in
propor on to the enlarged text.

Note: If you do not receive the alert via email, you can
read it on the DI website. Go to the Weekly Update secon or go to [Link] [Link]/
weeklyupdate. The email updates are normally sent by
6:00 p.m. Central Time each Friday. We also provide
links to the past alerts on the Weekly Update page.

2. Increase the viewing size of the en re website

propor onately by going to your Display se ngs
(in the Control Panel) and lowering your screen
resolu on.

How do I open the DI monthly report online?

The DI monthly report is posted in PDF format at the
Monthly Report page. To view or print the file, you need
Adobe Acrobat Reader, which is a free download at
[Link]/products/acrobat/
[Link]. Click issue date of a monthly report to
download the PDF file. If you are having trouble viewing the PDF in your browser, download the file onto
your computer by right-clicking on the link and selec ng
Save Link As....

Note: The DI website is best viewed using a resoluon of

1024 x 768.
I have set my preferences to obtain emails but am not
ge ng them.
Although a weekly update is included with your subscrip on, we cannot guarantee the delivery of each
email. There are a number of technical situa ons
beyond our control that may prevent delivery. A few
troubleshoo ng op ons you should inves gate include:

Why am I ge ng a blank white screen with the Page

cannot be found or HTTP 404 message?

1. Check in your deleted items folder or junk mail

folder for the weekly update. You may have spam
filters that are inadvertently iden fying the newsle ers as spam and, therefore, not sending them
directly to your Inbox.

The very first thing you will want to check in this case is
that you are properly connected to the Internet, since
these are the same error messages that display if you
a empt to access any website while inadvertently disconnected from the Internet. When properly connected
to the Internet, however, these two general browser
errors are most commonly experienced when using a
bookmark link that was most likely created a er logging
into the DI website. It is important to remember that
when crea ng a bookmark link for any login-protected
website (such as [Link] [Link]),
remember to bookmark the site only BEFORE logging
in and not a er. Once you log into a website, a unique
session ID number is created by the Web server. If you
bookmark a site a er a unique session has been generated, this will cause problems accessing the website at
a later date.

2. Within your email filter se ngs, make sure that

you allow all emails from aaiidividendinves ng@
[Link].
3. Check your mailbox to make sure it is not full. Delete any unwanted or old emails from your mailbox to ensure there is enough space to receive the
weekly update.
4. Check with your email provider to see if they are
having any technical problems. If they are having

18

Glossary

Dividend YieldCurrentProjected dividend payments

for the next 12 months divided by the current stock
price. This numbers shows, in percentage form, how
much income can be expected rela ve to the current
stock price.

Annual Indicated DividendThe total dollar amount

of cash dividends forecast to be paid over the next 12
months.
CompanyThe name of the company.

Dividend Yield1 Year AgoThe stocks dividend yield

(dividends divided by price) from one year ago.

Current PriceThe most recent price (during a trading

session) or the price of the final transac on (a er the
market close) for a given security. During the trading
day, price quotes are delayed by up to 20 minutes.

Dividend Yield5 Year AverageThe stocks average

dividend yield (dividends divided by price) over the past
five calendar years.

Current Ra oTotal current assets divided by total

current liabili es for a firm. A measure of balance sheet
strength, a ra o above 1.0 means current assets exceed
current liabili es.

EPS GrowthEs mate Y0 to Es mate Y1The forecast percentage growth in earnings per share for the
upcoming fiscal year (Y1) rela ve to forecast growth
earnings for the current year (Y0). This number shows,
in percentage form, the expected increase or decrease
in earnings over the next year.

Daily ChangeThe percentage change in the stocks

price for the most current trading day. This number is
updated on a delayed basis during trading hours.

EPS GrowthQuarter-over-QuarterThe change in

earnings per share for the current quarter rela ve to
the same quarter a year ago, expressed as a percentage.

Direct InvestmentA program that allows investors to

buy their ini al shares directly from a company, without
having to go to through a broker. Companies that oer
this service are designated by the word Yes in the
Dividend Payments table. Commissions are not charged,
but other fees might be. Informa on can usually be
found on a companys investor rela ons website. For
more informa on, see AAIIs Guide to Direct Purchase
and Dividend Reinvestment Plans at [Link]/
guides/Guide-to-DRPs.

EPS Growth12 MonthThe change in earnings per

share for the current 12-month period rela ve to the
previous 12-month period, expressed as a percentage.
Es mated EPS Growth RateThe consensus expected
annual growth rate in earnings per share for the next
three to five years.

Dividend Growth RateThe compound annual percentage change in dividends per share over the number
of indicated fiscal years. Posi ve numbers show an
increase in the dollar amount of dividends paid.

Ex-Dividend DateThe owner of any shares purchased

on or a er the ex-dividend date will not be en tled to
that quarters dividend. This is two trading days before
the record date. Investors must purchase shares prior to
the ex-dividend date to receive the dividend.

Dividend Reinvestment Plan (DRIP Plan)A program

that allows shareholders use cash dividends to acquire
addi onal shares of stocks, including par al amounts
(e.g., 0.3 shares). Some companies oer these plans
and are designated by the word Yes in the Dividend
Payments table. Many brokers will also facilitate dividend reinvestments. Fees may exist, depending on the
company or the broker. For more informa on, see AAIIs
Guide to Direct Purchase and Dividend Reinvestment
Plans at [Link]/guides/Guide-to-DRPs.

First Year Dividend PaidThe first year a company paid

its dividend. If a dividend was suspended, the date is
the first year the dividend was reinstated.
Income Return Since PurchaseA component of total
return, this shows the percentage change in a holdings
value a ributable to dividend income. It is calculated
as a total return less than the price apprecia on since
purchase, adjusted for commissions.

19

Index Return Since PurchaseThe total return of the

benchmark index since the stock was added to the DI
tracking por olio, expressed as a percentage.

for the previous five years.

Payout Ra o: FCFPS (12 Month)The percentage of
free cash flow per share paid out as dividends over the
latest 12-month period. Free cash flow is cash flow from
opera ng ac vi es less capital expenditures. A measure of a companys ability to both pay dividends and
increase its cash balance.

Indicated Dividend YieldProjected (indicated) dividend payments for the next 12 months divided by the
current share price.
Liabili es to AssetsTotal liabili es divided by total
assets. A measure of balance sheet strength, lower percentages signal a lower propor onate amount of debt.

P/E Ra oEs mate Y0The price-earnings ra o (price

divided by earnings) based on forecast earnings per
share for the current fiscal year.

Market Capitaliza onA measure of company size,

this is the current share price mul plied by the number
of shares outstanding, expressed in millions of dollars.

P/E Ra oTTMThe price-earnings ra o (price divided by earnings) based on reported earnings per share
for the previous 12 months (trailing 12 months).

Months Dividends PaidThe calendar months the

company has typically paid dividends to shareholders.
Months are shown in numerical format with 1 = January, 2 = February, 3 = March, etc.

Por olio Alert DateThe date on which it was announced that a stock is being added to the DI Por olio.
Announcements are made on the alert date in the
weekly update email, on the DI website, and in the
monthly report.

Net MarginNet income divided by total revenues.

This number shows how profitable a company is relave to revenue on a percentage basis a er all costs,
including taxes, are factored in. Net margins vary by
industry.

Por olio Alert PriceThe price at which the stock

closed on the day it was announced that the stock is being added to the DI por olio. Announcements are made
on the alert date in the weekly update email, on the
DI website, and in the monthly report. This price is not
used in calcula ng the performance of the DI por olio.
The reported performance uses the actual cost basis
and associated commissions. Stocks are purchased for
the DI por olio the week following an alert.

Number of Years of Dividend IncreasesThe number

of current consecu ve years the company has increased
the annual dollar amount of the dividend it has paid.
Payment DateThe date a company distributed the
most recent quarterly dividend to shareholders. Once
a company announces a dividend, the payment date is
the date on which the next dividend will be paid.

Price Return Since PurchaseA component of total

return, this is the percentage change in stocks price
since it was purchased for the DI tracking por olio.
Price returns are adjusted for commissions and splits
and spinos.

Payment AmountThe dollar amount of the current quarterly dividend payment. An up arrow next to
the payment amount in the Dividend Payments table
indicates that the dividend is higher than that paid
last quarter. A down arrow indicates that the dividend is lower than that paid last quarter. If no arrow
is displayed, the dividend has not changed during the
quarter.

Purchase PriceThe average cost basis per share of the

shares purchased for the real DI tracking por olio. The
average cost basis includes any commissions incurred
for the purchase and is adjusted for stock splits and
spinos, if appropriate. Stocks with a recent por olio
addi on alert that have yet to be purchased for the
tracking por olio show na in the Stock Performance
table for the closing price un l the stock is purchased
for the tracking por olio.

Payout Ra o: EPS12 MonthThe percentage of

earnings paid out as dividends over the latest 12-month
period. A payout ra o of 100% means the dollar
amount of dividends paid equals the dollar amount of
profits earned.

Record DateThe date you must be listed on a companys books as a shareholder to receive the declared
dividend. If you purchased shares through a broker, you
must own the shares before ex-dividend date, which is

Payout Ra o: EPS5 Year AverageThe average payout ra o (percentage of earnings paid out as dividends)

20

two trading days prior.

sales for the current 12-month period rela ve to the

previous 12-month period.

Return on EquityNet income for the past 12 months

divided by average common equity over the preceding
four quarters. A measure of management eec veness,
it shows the percentage return the company is earning
on shareholders equity.

Sector: IndustryA descrip on of the type of business the company engages in as defined by Thomson
Reuters. Sector is the broad business category, while
industry is more specific.

Risk Index (3 Year)The 36-month annualized standard devia on of return for the stock divided by the
36-month annualized standard devia on of return for
the benchmark, which is the Dow Jones U.S. Index Fund
(IYY). The baseline value for the index is 1.00. Values
above 1.00 indicate greater risk than the benchmark.
Values below 1.00 indicate less risk than the benchmark.

Time-Weighted Rate of ReturnA por olio return

calcula on that excludes the ming influence of the
cash flows. This is the return presented for the DI tracking por olio. See How to Calculate the Return on Your
Por olio in the AAII archives for more informa on.

Sales GrowthQuarter-over-QuarterThe percentage

change in sales for the current quarter rela ve to the
same quarter a year ago.

Total Return Since PurchaseThe me-weighted

change in a stocks price from the commission-adjusted
purchase price plus the value of all dividends received
during the holding period. This number shows the percentage earned or lost from price movement plus the
dividend income.

Sales Growth12 MonthThe percentage change in

TickerStock cker symbol.

21

Appendix:
Subscriber Resources
Go to the Subscriber Resources page at AAIIDividendInves [Link] and click on Dividend Ar cles for more educaonal informa on. New ar cles are added each month.

Figure 7. Dividend Ar cles Sec on of Subscriber Resources

23

AAII Dividend Inves ng educates readers on how to build a

por olio based on me-tested investment research and proven
risk-reduc on strategies.

[Link]