The Stock Newsletter Club review and analysis of The Worthington Stock Letter rank it as a tier-1 stock market newsletter and top pick along with Nates Notes and Motley Fool Stock Advisor.
**The Worthington Stock Letter is currently closed to new subscribers.
- Has outperformed the S&P 500 and Wilshire 5000.
- Part of the Value Investors Association
- Typically holds stocks for at least one to two years which minimizes capital gains and trading costs.
- The vast majority of stocks provide dividends for those looking for income.
- An occasionally recommended stock under $5 which makes it hard to build up a good sized position in that stock.
- Doesn’t cover growth stocks, so misses a lot of the high growth companies and household names that perform well. You won’t find Amazon, Facebook, Alphabet and the like in the newsletter.
- During times of high market valuations, you may go a couple months or more without new stock recommendations.
Although not as well known as Motley Fool or Jim Cramer’s Action Alerts Plus, The Worthington Stock Letter has had a consistent and successful track record. The Worthington Stock Letter focuses strictly on value stocks and in particular dividend-paying stocks, although not all their recommendations carry a dividend. Thus, if you’re looking for growth stocks this particular investment letter won’t be a good fit for you.
Psychologically many investors have a very hard time buying and holding on to stocks that aren’t in the news or leading the market. Therefore they have great difficulty in following and sticking to a value investing approach. Then again that’s why some of the most successful value investors like Warren Buffett, Benjamin Graham and John Templeton among others went on to become extremely wealthy men.
The stock picks differ a bit from traditional value investing in that they are typically held only 1-2 years. The focus is not on producing income for retirement but in the total return of the stock in addition to dividends. Usually, there will be about 15-20 stocks which provide plenty of diversification. However, at times, it may be less than 10. It all depends on where Mr. Worthington feels the market is valued.
With all the new dividend stock newsletters popping up recently due to the low-interest-rate environment, we prefer to stick to the ones that have had a successful track record before value dividend stocks become popular.