Value Investing News

This short article is an update of stocks that we follow in our “Margin of Safety Portfolio.” These are stocks identified to have a durable competitive advantage and, based upon our intrinsic valuation models and fundamental analysis, are trading at a substantial discount to intrinsic value.

Current trends and events
■New strategic partnerships at Microsoft;
■HP’s webOS will go open source;

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Automatic Data Processing Inc. is one of the world's largest independent computing services companies, providing a broad range of data processing services. Linked here is a detailed analysis and commentary.

PAYCHEX Overview: Paychex Inc. (PAYX) was formed in 1979 and is headquartered in New York. The company provides outsourcing solutions to small and medium-sized businesses in the areas of human resource, payroll, and benefits for employees. Paychex operates through a network of over 100 offices across the U.S. and four offices in Germany.

Too often we take a short-term approach, to our long-term detriment. There is a reason we don't see infomercials selling dividend growth investment strategies. For those looking to get rich now, a disciplined approach to investing that focuses on the long-term simply isn't appealing. if I knew in my 20's or 30's what I know now about dividend growth stocks, I would likely be retired now.

In 2009, I introduced the Stock Ideas list and it has proven to be immensely popular. The list consists of Dividend Aristocrats, US Broad Dividend Achievers and U.S. Dividend Champions. Duplications in the above lists are eliminated and stocks are crossed out when I learn that they have either cut their dividend or fail to raise it.

Which payroll processing comapny is the more compelling choice based on its dividend policy, business prospects, and valuation?

As a long-term buy-and-hold investor, most of my evaluation efforts are aimed at determining when to buy a stock. Sometimes it is necessary to sell a stock and we need to be equally adept at identifying those times.

As I have stated many times, my goal is to create an ever growing income stream from dividend stocks. Secondarily, it is my desire to beat the S&P 500 over time. With that said, I rarely look at the capital performance of individual stocks. However, I recently sorted my portfolio by Total Gain % (total gain/basis) and was mildly surprised at the top performers.

Automatic Data Processing, Inc. (ADP) provides technology-based outsourcing solutions to employers, and vehicle retailers and manufacturers. It operates in three segments: Employer Services, Professional Employer Organization Services, and Dealer Services. This dividend aristocrat has raised dividends for 35 consecutive years.

The speech given by Tarpon Folio manager Cale Smith last Saturday night at the Islamorada Investment Management 2010 investor meeting in the Florida Keys.