Turnaround Investing Blog

George Putnam, one of the country's leading turnaround and distressed investing professionals, shares his timely insight on the economy and turnaround investing opportunities.

Stocks That Pay Dividends

Dow Hits 20,000, But These Dogs Are Still Sitting On The Porch

Excerpted from the February 2017 Issue

It finally happened: After taunting investors with several near-misses, the Dow Jones Industrial Average closed above 20,000 for the first time late this past month. It has been a good run – since the end of 2013, the Dow has gained 21%, about the same as the much broader S&P 500 Index. So with the Average closing at a record high, all of the 30 member stocks must have produced good returns, right?  Not exactly.  Many stocks in the Dow have performed exceptionally well: Home Depot shares rose 68%, Microsoft shares gained 76% and UnitedHealth Group surged over 116%. Yet there are several stocks that have been complete “dogs.” 

There is a well-known investing theory called “The Dogs of the Dow,” which focuses on the component stocks in the Dow that have the highest dividend yields. We created a different version of the Dogs of the Dow: we selected the seven stocks that have completely missed the rally over the past three years. If these lazy dogs get off the porch, they could have a market-beating run. All seven are solid, well-run companies with healthy balance sheets. Many offer attractive dividend yields. Some offer defensive traits should the stock market or oil prices turn downward.  Others have unique company-specific aspects that could bring them back to life.

Get all the details on these timely value stock opoortunities.

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Identify & Profit from Distressed Investing

Free Report: Distressed Investing

Turnaround Investing Blog

Turnaround Investing Blog

Return of Volatility? No, Return of "Normal"

Sizeable market moves can increase the temptation to sell on downdrafts and buy on upswings; however, we strongly advise against attempting to do that. The chances of getting out at the right time and then back in again before the market rebounds are extremely slim. Read More.

Harnessing Activists to Help Find Turnaround Stocks

Activist investors often produce attractive returns for their clients; and you can still use their influence to help your position as a turnaround investor in two ways: Buy a position in a stock with the expectation that an activist will soon follow or buy after an activist takes a stake.


Value Investing


While one of the many dozens of activist funds might find their way to selecting your particular stock, this approach is likely to be frustrating and unrewarding. A better approach is to buy after the activist makes their move. Once an activist takes a stake in a company, how do you evaluate whether it is worthwhile to follow on? Admittedly, this is a bit of an art... Learn how you can harness the power of activist investors to find market-beating turnaround stocks.

Turnaround Letter Stock Pick Named Top Performer of 2017


stock market advicex


What Last Year's Top Stock Pickers Are Buying in 2018


This Forbes write-up follows up on the recent Top Stock Tips report--naming The Turnaround Letter's Crocs recommendation the top performer of 2017: With 90% gains, CROX beat out 100 other investment ideas included in the report; and the stock continues to have value investing appeal, according to Putnam.


George notes, "We see additional upside for the stock in 2018 as management's efforts continue to bear fruit, though the gains will likely be more muted than we saw in 2017."