Best Picks List 2013 - My Holdings (Part 1)

Best Picks List - 2013

I have created and started tracking my model portfolio of around 30 stocks in 'Best Picks List - 2013'. I would publish the performance of my model portfolio 'Best Picks List - 2013' on 12/31/2013 same as what I did for last year 2012 where my model portfolio beat the US major benchmark index S&P 500 by +5.6% (non-risk adjusted).
I am positive on the US markets performance this year as well (looking for at least +10% return) and think that it is a stock-pickers market, or in other words if you can pick the proper stocks you can outperform the broader indices. Over a period of time I would share some of my holdings.

My Holdings - Part 1

With close to 20% 1-yr return in 2012, I have kept both Macy's, Inc. (NYSE:M) and Limited Brands, Inc. (NYSE:LTD) in my model portfolio. Both M & LTD have outperformed S&P 500 in 2012 and both M & LTD (when total return is taken into account) have outperformed the S&P Retail Select Industry Index in 2012. Both M & LTD sport a 2% dividend yield which is good, despite the fact that dividends may be taxed at a higher rate in 2013. LTD is a shareholder friendly company returning cash to shareholders through special dividends which it announced consistently for the last couple of years (2010 - 2012). With consistently beating Wall Street's expectations on same store sales (SSS) both M & LTD will continue to go higher in 2013. Consumer Confidence and gas prices can be a drag on retail sales as we know, so those are something to keep an eye on.

Macy's Inc. - Monthly & Yearly Same Store Sales Chart