We have seen new portfolio changes for the September 1, 2013 model portfolio. Changes were made to the equity income portfolio, growth and income, as well as mid-cap growth.
In the model equity income portfolio, Argus has recommended adding shares of Clorox Co. (NYSE: CLX) at $85.15 for a 3.4% allocation of the portfolio. The firm is selling its full holding of KKR & Co. L.P. (NYSE: KKR). Since inclusion in January 2013, the KKR shares have appreciated 27% while providing an annual yield that has ranged as high as 6.7%. Argus sees the benefits of Clorox continuing ahead with it being a S&P Dividend Aristocrat.
In the growth & income model portfolio, Argus is recommending a new purchase of Mattel Inc. (NASDAQ: MAT) at $42.80 for a 4.6% of the portfolio. It has also recommended selling its entire stake of United Technologies Corp. (NYSE: UTX) at $106.45. Since inclusion in May 2012 into this portfolio, United Tech shares have appreciated more than 35% while providing an annual yield of at least 2.0%. Mattel’s strength is based upon American Girl and Monster High dolls.
In the mid-cap growth portfolio, Argus is recommending that investors add Eaton Corp. PLC (NYSE: ETN) at $66.00 for some 2.6% of the portfolio. It is selling 100% of its position in Goodyear Tire & Rubber Co. (NASDAQ: GT) at $18.75. Since inclusion in July 2012, Goodyear shares appreciated 69%. Argus said of Eaton”
Eaton has a balanced presence in early-, mid- and late-cycle sectors, as well as recession-resistant service capabilities. Eaton’s acquisitive nature has turned the company into a growth story, posting 38% annual sales growth in 2Q13 that was primarily driven by the Cooper acquisition.
As a reminder, Argus releases its model portfolio changes for each month sometimes days or even a couple of weeks ahead of the start of each month.
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