<FOOLISH WORKSHOP>
All BSP, All the Time
by Ethan Haskel ([email protected])
Baltimore, MD (May 12, 1999) -- Do you find yourself getting antsy as Thursday rolls around? Can't wait another two or three days until the Beating the S&P (BSP) Update is posted on our message boards?
Is your mind wandering during yet another (blah blah blah) business meeting, wondering whether Eli Lilly <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LLY)") else Response.Write("(NYSE: LLY)") end if %> has replaced Xerox <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: XRX)") else Response.Write("(NYSE: XRX)") end if %> as one of the top 10 high yielding BSP stocks?
Are you looking to add another four Dow Dividend stocks to round out the value portion of your portfolio? Do you need a refresher course on the 30 stocks that comprise the Dow Jones Industrial Average?
Well, have we got good news for you, compliments of your Foolish sponsors!
Recently in the Foolish Four portfolio report, Ann Coleman delivered the disclosure of a delicious device destined to delight devoted (and discerning) Dools -- rather, Fools.
As outlined by Ann last week, Stock Strategy Live! is a devilishly clever tool that allows BSP and Dow Dividend investors to find the "up-to-the-20-minute" current stocks for purchase. In order to get the most out of this gadget, I'll walk you through some of the features, many of which are fairly well hidden.
First, don't miss the help page link. Here BSP newbies will find some basic instructions on how to select the correct BSP stocks, as well as a few informative links.
Stay on that help page and click the link at the bottom for the current S&P 30 stocks. Nearly instantly, you're whisked away to the BSP universe, where all 30 of the current BSP stocks are listed in alphabetical order. You'll get a daily quote box for each stock, including stock price, volume, and dividend yield information. There are also links to individual stock charts, SEC reports, financial profiles, and even the Fool message boards. What's more, clicking on any single financial variable will automatically provide you a list of all 30 BSP stocks ranked according to that variable, whether it be dividend yield, average daily volume, or whatever.
And that's just the appetizer. The meat of the calculator allows you to find the current BSP stocks, the ones you would choose if you were to invest now (or NOW! if you favor the parlance of Money magazine).
To find all the BSP stocks again, just dial in "I want to Beat the S&P" and "List all Stocks." You'll get a compact roster of those 30 BSP stocks, along with their dividend yield, stock price, and RP value.
Here's where it really gets good. Dial in "High Yield/Low Price," and you'll get the 10 highest yielding BSP stocks, ranked from lowest-priced to highest. As a reminder that the lowest-priced stock is not included in the official BSP strategy, the next five stocks (BSP 2-6) are highlighted in bold text.
Eureka! You've got the current BSP stocks -- 24 hours a day, seven days a week, rain or shine, whether markets are open or closed. A veritable 7-Eleven for the stock shopper.
Yes, there are some advanced features, too -- dessert, if you will. You might notice that one of the stocks in the high yield/low price list is highlighted in italics. That's the stock that is the highest yielding of them all. Some of the earlier versions of the Dow Dividend strategy, notably the Unemotional Value 4 strategy, dump this stock if it's also the lowest-priced stock on the list.
The calculator also can find the RP stocks for BSP. Danger, Will Robinson! This version, which has shined for the Dow Dividend stocks, hasn't been fully backtested for BSP yet. Buyer beware.
Of course, Stock Strategy Live! can compute the same information for the Dow stocks, too. Ann Coleman notes that the calculator is still in the beta testing phase. And there are a heck of a lot of disclaimers there in teeny tiny print for all you legal eagles.
Thanks again to Tom Smith (alias Yotommy), for inspiring this wonderful idea many moons back, and for pioneering it on his own website. Yotommy's just one of many Fools who truly make this whole venture one pleasure ride after another.
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A quick follow-up note on last week's article on Retiring with BSP wherein I outlined an investing strategy for those golden years. Ann Coleman picked up the ball where I left off, applying the strategy to Dow Dividend investing. She also looked at how the strategy performed in a few disaster scenarios. It's essential Foolish reading at its best.
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Beating the S&P year-to-date returns (as of 05-11-99):
Schlumberger <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: SLB)") else Response.Write("(NYSE: SLB)") end if %> +33.7%
Kimberly-Clark <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: KMB)") else Response.Write("(NYSE: KMB)") end if %> +16.2%
Campbell Soup <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: CPB)") else Response.Write("(NYSE: CPB)") end if %> -21.1%
Ford Motor Co. <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: F)") else Response.Write("(NYSE: F)") end if %> +10.7%
Bank of America <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: BAC)") else Response.Write("(NYSE: BAC)") end if %> +15.5%
Beating the S&P +10.7%
Standard & Poor's 500 Index +10.6%
Compound Annual Growth Rate from 1-2-87:
Beating the S&P +21.1%
S&P 500 +18.2%
$10,000 invested on 1-2-87 now equals:
Beating the S&P $105,900
S&P 500 $78,700