Posted on Monday, July 30, 2012

The August 2012 issue of the Investor Advisory Service is now available online for subscribers. To access the issue, please visit www.investoradvisoryservice.com. Print subscribers should expect to receive their issues by U.S. Mail within three business days.

In this issue, we present three midsized companies (as measured by revenues). All three of these companies have revenues between $500 million and $5 billion in their most recent fiscal years. BetterInvesting recommends that investors and investment clubs make sure that 50% of their portfolios are invested in midsized companies. 

There are many reasons why midsized companies should be a large part of any investor’s portfolio. First, midsized companies have many years of history on which we can review and determine if management is capable of delivering sustainable growth. Second, midsized companies are large enough to be a bit less volatile than small company stocks. Third, on the other hand, these companies are small enough to support robust sales and earnings growth rates that are faster than for larger companies. Fourth, these stocks are large enough to command some level of institutional interest which helps to support future price growth. And finally, two of our three stocks also pay dividends with yields in both cases exceeding 2%.

All three companies should be familiar names to IAS subscribers. The first is a consumer cyclical business that bagged some decidedly non-cyclical business results in the last recession. The second is a maker of scientific and technical instruments that consistently measures up. And the third is a financial services business that bears up well in all market cycles.

We have one sale recommendation in this issue, as well.

There are plenty more stocks to be discovered in this market, but you can start your research with this issue of the Investor Advisory Service.