Stock Of The Month: DD

If things go according to plan, this month's pick will start a new personal philosophy that "big and boring" is OK.

I've had a bit of a bias against large-cap stocks, because of the diseconomies of scale for mature companies in mature markets. But while the opportunities for capital gains are limited, large-caps are a great source for stable dividend payments - the kind of stock that can be bought and held for a long time.

DuPont (DD), or more properly, E. I. du Pont de Nemours, is a $31 billion, 207-year-old, diversified chemicals company, serving any and all industries with its vast portfolio of products. As the economy improves, DuPont will be a beneficiary. DD also has a dividend yield of 5%, and a dependable, positive cash flow to back it up.

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Southern Copper (PCU) 11.30%
Apple (AAPL) 10.33%
Google (GOOG) 8.83%
Terra Nitrogen (TNH) 7.51%
Dominion Resources Black Warrior Trust (DOM) 6.96%
Tesoro (TSO) 6.57%
Ace Limited (ACE) 5.76%
Atlas Energy Resources (ATN) 4.89%
American Software 4.52%
Blackstone (BX) 4.36%
Frontline (FRO) 4.31%
The Distressed (AIG, C, F, FNM, GM, JSDA, MOT, WFC, YRCW) 4.12%
Cherokee (CHKE) 3.11%
Tidewater (TDW) 3.31%
Biovail (BVF) 3.30%
PDL BioPharma (PDLI) 3.11%
Apache (APA) 2.93%
DuPont (DD) 2.71%

Stock Of The Month: BX

One of "The Distressed" has graduated to the big leagues.

This past February, I described Blackstone (BX) as "the weasels that sold high on the hedge fund craze". Those same weasels managed to double their stock's value in the past 5 months. They also declared their 13% dividend yield to be safe for this year. Aside from that, investors can only trust that Blackstone knows more than the general market, and can execute more effectively than the competition.

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Apple (AAPL) 10.17%
Southern Copper (PCU) 9.68%
Google (GOOG) 9.66%
Terra Nitrogen (TNH) 8.63%
Dominion Resources Black Warrior Trust (DOM) 8.46%
Tesoro (TSO) 6.25%
Ace Limited (ACE) 6.07%
American Software 5.23%
Frontline (FRO) 4.79%
Atlas Energy Resources (ATN) 4.18%
Biovail (BVF) 4.08%
Tidewater (TDW) 4.00%
PDL BioPharma (PDLI) 3.69%
The Distressed (AIG, C, F, FNM, GM, JSDA, MOT, WFC, YRCW) 3.59%
Blackstone (BX) 3.54%
Cherokee (CHKE) 3.50%
Apache (APA) 2.77%

Stock Of The Month: PDLI

For the second time in three months, I've selected a pharma stock...sort of.

PDL BioPharma, Inc. (PDLI) is somewhat similar to last month's pick, Cherokee, in that it manages a portfolio of licenses, patents and royalties. Its biggest sources of income are from Avastin (cancer), Tysabri (multiple sclerosis), and Synagis (respiratory virus). PDL does not manufacture or market these drugs, nor will it be investing in the development of new drugs, leading to steady cash flows and outstanding margins - and the ability to fund a 12% dividend.

Here's my current portfolio. As always, I believe in all of these stocks - until I sell them.

Southern Copper (PCU) 10.80%
Apple (AAPL) 9.19%
Dominion Resources Black Warrior Trust (DOM) 9.18%
Google (GOOG) 9.07%
Terra Nitrogen (TNH) 8.96%
Tesoro (TSO) 7.63%
Frontline (FRO) 5.95%
Ace Limited (ACE) 5.90%
The Distressed (AIG, BX, C, F, FNM, GM, JSDA, MOT, WFC, YRCW) 4.94%
American Software 4.87%
Atlas Energy Resources (ATN) 4.69%
Tidewater (TDW) 4.28%
Biovail (BVF) 3.60%
PDL BioPharma (PDLI) 3.50%
Cherokee (CHKE) 3.41%
Apache (APA) 3.12%