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<ul><li><p>1</p><p>Sam StovallChief Equity Strategist, S&amp;P Capital IQ</p><p>March 19, 2014</p><p>INVESTMENT OUTLOOK:Dont Dump Those Dividends!</p><p>This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&amp;P Capital IQ nor any other party guarantees its accuracy or makes warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright 2014 by Standard &amp; Poors Financial Services LLC. Redistribution, reproduction and/or photocopying in whole or in part is prohibited without written permission. All rights reserved. STANDARD &amp; POORS, S&amp;P, S&amp;P 500, STARS and S&amp;P CAPITAL IQ are trademarks of Standard &amp; Poors Financial Services LLC. All required disclosures and analyst certification appear on pages 31-37 of this presentation.</p><p>2 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>CORRECTION: Due, But Maybe Not on Time</p><p>Number of Months Between S&amp;P 500 Declines of &gt;10% Since WWII</p><p>Source: S&amp;P Capital IQ. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back tested performance to be lower than the performance shown. Returns exclude dividends. Past performance is no guarantee of future results. Red=Bear Markets, Green=Corrections.</p></li><li><p>2</p><p>3 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>BEWARE: Four-Year Cycle Low</p><p>Four-Year Cycle Lows: S&amp;P 500 Declines Ending in Mid-Term Election Years</p><p>Source: S&amp;P Capital IQ. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back tested performance to be lower than the performance shown. Returns exclude dividends. Past performance is no guarantee of future results.</p><p>4 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>PRESIDENTIAL CYCLE: S&amp;P 500 Price Returns by QuarterS&amp;P 500 Average Quarterly % Price Changes and Frequencies of Advance </p><p>During the 16-Quarter Presidential Cycle (12/31/45-3/14/14)</p><p>Source: S&amp;P Capital IQ. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back tested performance to be lower than the performance shown. Returns exclude dividends. Past performance is no indication of future results.</p><p>Year of</p><p>Pres.</p><p>Cycle Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year</p><p>Year 1 (0.4) 2.6 1.1 3.7 7.6 50% 56% 61% 78% 59%</p><p>Year 2 1.2 (2.5) (0.3) 7.0 5.3 47% 47% 59% 82% 59%</p><p>Year 3 7.0 5.0 1.0 2.9 16.1 88% 76% 59% 71% 88%</p><p>Year 4 1.2 2.3 0.4 1.7 6.1 59% 65% 53% 76% 76%</p><p>All Years 2.2 1.8 0.6 3.8 8.8 61% 61% 58% 77% 71%</p><p>(Frequency of Price Gains)</p><p>Batting Averages</p><p>(w/o dividends reinvested)</p><p>Average S&amp;P 500 % Changes</p></li><li><p>3</p><p>5 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>PRESIDENTIAL CYCLE: Russell 2000 Returns by QuarterS&amp;P 500 Average Quarterly % Price Changes and Frequencies of Advance </p><p>During the 16-Quarter Presidential Cycle (12/31/78-3/14/14)</p><p>Source: S&amp;P Capital IQ, Russell. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back tested performance to be lower than the performance shown. Returns exclude dividends. Past performance is no indication of future results.</p><p>Year of</p><p>Pres.</p><p>Cycle Q1 Q2 Q3 Q4 Year Q1 Q2 Q3 Q4 Year</p><p>Year 1 1.1 7.8 2.0 5.6 16.1 56% 100% 67% 78% 89%</p><p>Year 2 4.2 (3.5) (6.6) 9.3 2.2 63% 25% 50% 88% 50%</p><p>Year 3 9.8 7.9 0.2 2.0 20.0 78% 67% 56% 67% 67%</p><p>Year 4 2.6 1.3 3.2 0.3 7.8 67% 56% 56% 56% 67%</p><p>All Years 4.5 3.6 (0.1) 4.2 11.8 66% 63% 57% 71% 69%</p><p>Avg. Russell 2000 % Changes Batting Averages</p><p>(w/o dividends reinvested) (Frequency of Price Gains)</p><p>6 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>POTENTIAL TRIGGERS: Likely Headwinds</p><p>A Boxer is Rarely Felled by the Punch He Expects.</p><p>Source: S&amp;P Capital IQ.</p><p> Peaking of S&amp;P 500 EPS &amp; Profit Margins</p><p> Continued Dysfunction in Washington</p><p> The End of QE3 (Fed Tapering)</p><p> Emerging Market Slowdown</p><p> European Deflation</p><p> Military Actions</p></li><li><p>4</p><p>7 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>MARKET DECLINES: Typically Better to Buy than Bail</p><p>S&amp;P 500 Declines Since 1945: Magnitudes, Durations and Recoveries</p><p>Source: S&amp;P Capital IQ. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back tested performance to be lower than the performance shown. Returns exclude dividends. Past performance is no indication of future results.</p><p>Average Duration RecoveryType (% Decline) Count % Chg. in Months Mos.Pullbacks (5%-10%) 58 (7) 1 2Corrections (10%-20%) 19 (14) 5 4All Bears (20%+) 12 (28) 14 25 &gt;"Garden Variety" (20%-40%) 9 (26) 11 14 &gt;"Mega-Meltdown" (40%+) 3 (51) 23 58</p><p>Average</p><p>8 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>GLOBAL GDP: Projected Growth In Coming Quarters</p><p>Source: Standard &amp; Poors Economics, IHS Economics &amp; Country Risk . Data as of February 15, 2013.</p><p>Global Economic Growth Expected to Climb From 2.5% in 2013 to 3.7% by 2015</p></li><li><p>5</p><p>9 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>VALUATIONS: Seen as Appealing but Not Compelling</p><p>S&amp;P 500 EPS Actuals, Estimates, and Valuations as of 3/14/14</p><p>Source: S&amp;P Capital IQ.</p><p>S&amp;P 500 at 1841 Operating GAAP</p><p>P/E Ratio on Trailing EPS (Dec. '13E) 17.0 18.4</p><p>Median Trailing P/E Since 1988 17.7 19.6</p><p>% Prem./(Disc.) To Avg. Since 1988 (4) (6)</p><p>P/E Ratio on 2013E EPS 17.0 18.4</p><p>P/E Ratio on 2014E EPS 15.2 15.3</p><p>P/E Ratios</p><p>$57 </p><p>$85 $99 $103 </p><p>$110 $118 </p><p> $30</p><p> $50</p><p> $70</p><p> $90</p><p> $110</p><p> $130</p><p>2009</p><p>A</p><p>2010</p><p>A</p><p>2011</p><p>A</p><p>2012</p><p>A</p><p>2013</p><p>E</p><p>2014</p><p>E</p><p>S&amp;P 500 Operating EPS</p><p>10 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>Source: S&amp;P Capital IQ, BLS. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do notreflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual performance to be lower than the performance shown. Returns exclude dividends. Past performance is no guarantee of future results.</p><p>VALUATIONS: S&amp;P 500 P/E CPI Relationship</p><p>Asof3/14/14,theS&amp;P50012MonthTrailingGAAPP/ERatioTradedataDiscounttotheAverageSince1948WhenInflationWasBetween1.5%and2.5%</p><p>12-Month S&amp;P 500 Frequency</p><p>Observation Quintiles Trailing Discount/ % Chg Next of Price</p><p>(CPI Ranges) GAAP-P/E Premium 12 Months Advance</p><p>Current: Y/Y CPI at 1.5% 18.4X NA ??? NA</p><p>Lowest 20% (=5.5%) 10.1X 81.7 8% 71%</p><p>All Observations 17.6X 4.4 9% 72%</p></li><li><p>6</p><p>11 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>VALUATIONS: The Rule of 20</p><p>The S&amp;P 500s P/E on Trailing 12-Month GAAP P/E Plus CPI Should Equal 20 in a Fairly Valued Market</p><p>Source: S&amp;P Capital IQ. Past performance is no guarantee of future results. </p><p> 10</p><p> 100</p><p> 1,000</p><p> 10,000</p><p>Dec</p><p>-48</p><p>Dec</p><p>-53</p><p>Dec</p><p>-58</p><p>Dec</p><p>-63</p><p>Dec</p><p>-68</p><p>Dec</p><p>-73</p><p>Dec</p><p>-78</p><p>Dec</p><p>-83</p><p>Dec</p><p>-88</p><p>Dec</p><p>-93</p><p>Dec</p><p>-98</p><p>Dec</p><p>-03</p><p>Dec</p><p>-08</p><p>Dec</p><p>-13</p><p>S&amp;P 500 Rule of 20 Value</p><p>12 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>VALUATIONS: The Rule of 20</p><p>By this Metric, Valuations Remain Attractive</p><p>Source: S&amp;P Capital IQ. Past performance is no guarantee of future results. </p><p>CPI</p><p>Y/Y Q4 '13E Mid-Point Q4 '14E</p><p>% Chg. $100 $105 $110</p><p>1.6 1845 1935 2024</p><p>1.8 1825 1914 2002</p><p>2.0 1805 1893 1980</p><p>2.2 1785 1871 1958</p><p>2.4 1765 1850 1936</p><p>2.6 1745 1829 1914</p><p>S&amp;P 500 Level Based on GAAP EPS</p></li><li><p>7</p><p>13 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>HISTORICAL RELATIONSHIPS: Inflation and Rates</p><p>AverageMonthlyBondYieldPremiumstoHeadlineCPIFrom4/30/533/14/14</p><p>Source: S&amp;P Capital IQ, Federal Reserve. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back tested performance to be lower than the performance shown. Returns exclude dividends. Past performance is no guarantee of future results. * Since 1971.</p><p>Headline 10-Year I.G. S.G. Conv.</p><p>CPI T-Note Bonds Bonds Mortgages*</p><p>Averages 3.7% 6.1% 6.5% 7.4% 8.6%</p><p>Avg. Prem. to CPI NA 2.4% 3.1% 4.1% 4.3%</p><p>Today 1.6% 2.7% 4.5% 5.1% 4.3%</p><p>Implied Levels 1.6% 4.0% 4.7% 5.7% 5.9%</p><p>14 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>HISTORICAL RELATIONSHIPS: Rates and Returns</p><p>AverageMonthlyTotalReturnsDuringMonthsofRising/Falling10YearTreasuryNoteYields:12/31/76 2/28/14</p><p>Source: S&amp;P Capital IQ, Russell, NAREIT, WSJ, Federal Reserve. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back tested performance to be lower than the performance shown. Returns include dividends. Past performance is no guarantee of future results. </p></li><li><p>8</p><p>15 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>YIELD DIFFERENTIALS: Narrow Is Usually Good</p><p>AverageS&amp;P500Forward12MonthPricePerformanceFollowingQuarterlyDividendYieldvs.TreasuryYieldDifferentials.Dataasof12/31/532/28/14.</p><p>Source: S&amp;P Capital IQ, Federal Reserve. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales charges or fees an investor would pay to purchase the securities they represent. The imposition of these fees and charges would cause actual and back tested performance to be lower than the performance shown. Returns exclude dividends. Past performance is no guarantee of future results.</p><p>16 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>VALUATIONS: EPS Yield Minus 10-Yr. Yield Spread Favors Stocks</p><p>Stocks Still Look Relatively Attractive to Bonds based on the S&amp;P 500 Operating EPS Yield Minus 10-Year T-Note Spread Since 1988</p><p>Source: S&amp;P Capital IQ, Federal Reserve. Past performance is no guarantee of future results. </p><p>-4.0</p><p>-2.0</p><p>0.0</p><p>2.0</p><p>4.0</p><p>6.0</p><p>8.0</p><p>Dec</p><p>-88</p><p>Dec</p><p>-89</p><p>Dec</p><p>-90</p><p>Dec</p><p>-91</p><p>Dec</p><p>-92</p><p>Dec</p><p>-93</p><p>Dec</p><p>-94</p><p>Dec</p><p>-95</p><p>Dec</p><p>-96</p><p>Dec</p><p>-97</p><p>Dec</p><p>-98</p><p>Dec</p><p>-99</p><p>Dec</p><p>-00</p><p>Dec</p><p>-01</p><p>Dec</p><p>-02</p><p>Dec</p><p>-03</p><p>Dec</p><p>-04</p><p>Dec</p><p>-05</p><p>Dec</p><p>-06</p><p>Dec</p><p>-07</p><p>Dec</p><p>-08</p><p>Dec</p><p>-09</p><p>Dec</p><p>-10</p><p>Dec</p><p>-11</p><p>Dec</p><p>-12</p><p>Dec</p><p>-13</p><p>Dec</p><p>-14</p><p>-1 Std. Dev.</p><p>+1 Std. Dev.</p><p>EPSYieldSpreadNow3.0pointsvs0.5avgsince'88and6.6in9/11.Est.</p></li><li><p>9</p><p>17 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>HISTORY: Boring is Beautiful</p><p>40% of the total return for the S&amp;P 500 </p><p>since 1926 has come from reinvested </p><p>dividends!</p><p>Source: S&amp;P Dow Jones Indices..</p><p>18 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>S&amp;P 500 YIELDS: Large Contributors to Total Returns</p><p>AveragePercentageofTotalReturnRepresentedbytheDividendYield19362013</p><p>Source: S&amp;P Capital IQ. Past performance is no guarantee of future results.*1936-1939. **Data through 12/31/13.</p></li><li><p>10</p><p>19 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>DIVIDENDS: Getting Harder to Find Non-Payers</p><p>ThePercentageofCompaniesinEachBenchmarkthatPaysaDividendAsof3/6/14</p><p>Source: S&amp;P Capital IQ. Past performance is no guarantee of future results.</p><p>20 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>PAYOUT RATIO: Averaged More Than 50%</p><p>CurrentRolling12MonthPayoutRatioisWellBelowtheLongTermAverage</p><p>Source: S&amp;P Capital IQ. Past performance is no guarantee of future results.</p></li><li><p>11</p><p>21 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>Source: S&amp;P Capital IQ. Past performance is no guarantee of future results. Defensive: Consumer Staples, Health Care, Telecom Services, and Utilities. Cyclical: Consumer Discretionary, Energy, Financials, Industrials, Info. Technology and Materials.</p><p>VOLATILITY: Defensive Also Means Lower Beta</p><p>AverageBetasoftheDefensiveandCyclicalSectorsintheS&amp;P500.Dataasof3/14/14</p><p>22 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>Source: S&amp;P Capital IQ. Past performance is no guarantee of future results. </p><p>VOLATILITY: Increases as Bull Markets Age</p><p>Number of Times Per Bull Market Year from 12/31/49 through 3/14/14 that the S&amp;P 500 Advanced/Declined 1% or More in a Single Day</p></li><li><p>12</p><p>23 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>PercentageGainRequiredtoGetBacktoBreakevenAfterDeclineSeverity</p><p>Source: S&amp;P Capital IQ.</p><p>VOLATILITY:LowerVolatility=LessNeededtoRecover</p><p>24 Permission to reprint or distribute any content from this presentation requires the prior written approval of S&amp;P Capital IQ.</p><p>SINCE 2000: Benefiting from Quality and Yields</p><p>U.S.EquityBenchmarkPerformances:12/31/992/28/14</p><p>Source: S&amp;P Capital IQ. Indexes are unmanaged, statistical composites and it is not possible to invest directly in an index. The returns shown do not reflect payment of any sales...</p></li></ul>