The Securities and Exchange Commission has not necessarily reviewed the information in this filing and has not determined if it is accurate and complete.
The reader should not assume that the information is accurate and complete.

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 13F

FORM 13F INFORMATION TABLE
OMB APPROVAL
OMB Number: 3235-0006
Estimated average burden
hours per response: 23.8
COLUMN 1 COLUMN 2 COLUMN 3 COLUMN 4 COLUMN 5 COLUMN 6 COLUMN 7 COLUMN 8
VALUE SHRS OR SH/ PUT/ INVESTMENT OTHER VOTING AUTHORITY
NAME OF ISSUER TITLE OF CLASS CUSIP (x$1000) PRN AMT PRN CALL DISCRETION MANAGER SOLE SHARED NONE
ABBVIE INC. Com 00287Y109 17,318 336,925 SH   SOLE   254,975 0 81,950
ALLSTATE CORPORATION Com 020002101 68,499 1,210,653 SH   SOLE   909,600 0 301,053
ALTRIA GROUP INC Com 02209S103 3,874 103,510 SH   SOLE   87,420 0 16,090
AMERICAN ELECTRIC POWER Com 025537101 6,816 134,543 SH   SOLE   98,475 0 36,068
AMGEN INC Com 031162100 4,937 40,025 SH   SOLE   30,325 0 9,700
APACHE CORP Com 037411105 14,737 177,662 SH   SOLE   134,375 0 43,287
AT&T INC Com 00206R102 40,078 1,142,789 SH   SOLE   853,895 0 288,894
BAXTER INTERNATIONAL Com 071813109 7,313 99,386 SH   SOLE   75,050 0 24,336
BERKSHIRE HATHAWAY INC CL A Com 084670108 375 2 SH   SOLE   2 0 0
BRISTOL-MYERS SQUIBB Com 110122108 6,541 125,913 SH   SOLE   93,925 0 31,988
CAPITAL ONE FINL CORP Com 14040H105 4,619 59,863 SH   SOLE   45,325 0 14,538
CHEVRON CORP Com 166764100 47,874 402,607 SH   SOLE   303,885 0 98,722
CISCO SYS INC Com 17275R102 36,396 1,623,750 SH   SOLE   1,226,750 0 397,000
CITIGROUP INC Com 172967424 4,240 89,075 SH   SOLE   67,475 0 21,600
COCA COLA CO Com 191216100 6,497 168,050 SH   SOLE   127,100 0 40,950
CONOCOPHILLIPS Com 20825C104 22,174 315,197 SH   SOLE   238,150 0 77,047
DOW CHEMICAL Com 260543103 28,512 586,784 SH   SOLE   438,195 0 148,589
DUPONT Com 263534109 7,201 107,324 SH   SOLE   81,208 0 26,116
EXELON CORP Com 30161N101 38,790 1,155,839 SH   SOLE   846,075 0 309,764
EXXON MOBIL CORP. Com 30231G102 26,895 275,338 SH   SOLE   208,150 0 67,188
FORD MTR CO Com 345370860 6,770 433,975 SH   SOLE   324,075 0 109,900
FREEPORT-MCMORAN COP&G Com 35671D857 5,877 177,725 SH   SOLE   132,275 0 45,450
GENERAL DYNAMICS CORP Com 369550108 13,830 126,976 SH   SOLE   95,075 0 31,901
GENERAL ELECTRIC Com 369604103 51,064 1,972,340 SH   SOLE   1,472,950 0 499,390
GOLDMAN SACHS GROUP Com 38141G104 18,517 113,010 SH   SOLE   85,535 0 27,475
HEWLETT PACKARD CO Com 428236103 41,938 1,295,977 SH   SOLE   976,265 0 319,712
INTEL CORP Com 458140100 65,588 2,540,796 SH   SOLE   1,908,225 0 632,571
ISHARES TR S&P500/VALUE INDEX FUND Com 464287408 567 6,524 SH   SOLE   0 0 6,524
JOHNSON & JOHNSON Com 478160104 7,260 73,906 SH   SOLE   54,810 0 19,096
JPMORGAN CHASE & CO. Com 46625H100 13,846 228,062 SH   SOLE   172,130 0 55,932
LILLY ELI & CO Com 532457108 24,726 420,075 SH   SOLE   313,875 0 106,200
LOCKHEED MARTIN CORP Com 539830109 18,918 115,891 SH   SOLE   86,725 0 29,166
MCDONALDS CORP Com 580135101 52,049 530,950 SH   SOLE   400,700 0 130,250
MEDTRONIC INC Com 585055106 37,886 615,624 SH   SOLE   465,700 0 149,924
MERCK & CO. INC. Com 58933Y105 30,413 535,724 SH   SOLE   400,669 0 135,055
MICROSOFT CORP Com 594918104 61,483 1,499,948 SH   SOLE   1,130,500 0 369,448
MORGAN STANLEY Com 617446448 10,759 345,175 SH   SOLE   261,175 0 84,000
NORFOLK SOUTHERN Com 655844108 35,603 366,400 SH   SOLE   273,500 0 92,900
OCCIDENTAL PETE CP Com 674599105 22,235 233,338 SH   SOLE   176,400 0 56,938
PEPSICO INC Com 713448108 6,863 82,195 SH   SOLE   62,025 0 20,170
PFIZER INC Com 717081103 66,365 2,066,158 SH   SOLE   1,538,912 0 527,246
PROCTER & GAMBLE CO Com 742718109 6,846 84,936 SH   SOLE   64,375 0 20,561
RAYTHEON CO Com 755111507 27,411 277,465 SH   SOLE   207,275 0 70,190
SIMON PPTY GROUP Com 828806109 7,417 45,225 SH   SOLE   34,050 0 11,175
SOUTHERN CO. Com 842587107 7,013 159,604 SH   SOLE   118,525 0 41,079
STANDARD & POOR'S DEPOSITARY RECEIPTS Com 78462F103 586 3,135 SH   SOLE   1,620 0 1,515
TARGET CORP Com 87612E106 56,548 934,525 SH   SOLE   703,975 0 230,550
TEXAS INSTRS INC Com 882508104 7,444 157,850 SH   SOLE   119,400 0 38,450
TIME WARNER INC Com 887317303 17,466 267,350 SH   SOLE   196,950 0 70,400
TWENTY FIRST CENTY FOX CL A Com 90130A101 16,939 529,850 SH   SOLE   390,550 0 139,300
UNION PAC CORP Com 907818108 5,186 27,635 SH   SOLE   20,885 0 6,750
UNITEDHEALTH GROUP INC Com 91324P102 70,428 858,985 SH   SOLE   644,375 0 214,610
US BANCORP Com 902973304 15,675 365,722 SH   SOLE   273,475 0 92,247
VERIZON COMMUNICATIONS Com 92343V104 26,917 565,838 SH   SOLE   427,969 0 137,869
WALGREEN CO Com 931422109 13,831 209,458 SH   SOLE   156,580 0 52,878
WALMART STORES INC Com 931142103 51,048 667,900 SH   SOLE   504,175 0 163,725
WELLS FARGO & CO Com 949746101 38,752 779,100 SH   SOLE   589,050 0 190,050