Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Dell Inc. (DELL), Xerox Corporation (XRX): One Person’s Trash Is Another Person’s Treasure Portfolio

The story was somewhat similar for office supply chain Staples, Inc. (NASDAQ:SPLS), which reported its first-quarter results on Tuesday. But, unlike with Dell Inc. (NASDAQ:DELL), investors seem quite pleased with the company’s progress in combating online competition. Even with weakness seen in Europe and Australia during the quarter, Staples held to its full-year EPS forecast and plans to utilize its direct-to-consumer operations as the backbone for its future growth prospects. Between plans to shrink its square footage and focus on its Web-based sales, and the pending merger of OfficeMax Inc (NYSE:OMX) and Office Depot Inc (NYSE:ODP), which should yield it customers by store attrition, Staples, Inc. (NASDAQ:SPLS) looks to be a company on the mend.

Finally, if you like money, then you’re going to love printing service and IT-software specialist Xerox Corporation (NYSE:XRX), which declared a $0.0575-per-share dividend on Tuesday. The dividend will be payable to shareholders on July 31, 2013, and marks the second quarter in a row that it’ll be paying a stipend of $0.0575. With IT software and services slowly growing into the primary business for Xerox Corporation (NYSE:XRX), you can expect sales and cash flow to stabilize and this dividend to grow consistently over the coming years.

We can do better
This marks the third week in a row that this deep-discount and contrarian portfolio has outperformed the S&P 500 and gained ground. Although this week’s gains were modest — and once again fueled by Arkansas Best Corporation (NASDAQ:ABFS)’s incredible run higher — I’ll be looking for continued outperformance over the long run as investors abandon speculative investments and seek out deeply discounted turnaround plays. We can and will continue to do better!

Check back next week for the latest update on this portfolio and its 10 components.

The article One Person’s Trash Is Another Person’s Treasure Portfolio originally appeared on Fool.com and is written by Sean Williams.

Fool contributor Sean Williams owns shares of QLogic, Dell Inc. (NASDAQ:DELL), Skullcandy Inc (NASDAQ:SKUL), and France Telecom SA (ADR) (NYSE:FTE), but has no material interest in any other companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool owns shares of Dendreon Corporation (NASDAQ:DNDN), France Telecom, Skullcandy, and Staples, and recommends Exelon Corporation (NYSE:EXC) and France Telecom.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.