As of December 5th the portfolio is up 20.66% since its inception only one year ago. Over the same time period the SPDR S&P ETF (SPY) has returned 4.86% including dividends. For December 5th the portfolio sold Mercury General (MCY) and Black Hils (BKH) due to payout ratios exceeding the lowest of the Dividend Champion stocks.
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The proceeds of the sales were used to purchase Pitney Bowes (PBI) and Eagle Financial Services (EFSI). PBI has undoubtedly struggled since this spring, but may be finding a bid in the $17.50-$20 range. At the end of November its yield was 7.94% and payout ratio was 71.15%.
There is a caveat with EFSI – it is a thinly traded over-the-counter stock. It has been added to the portfolio but readers should be aware that the stock has an average volume of less than 5000 shares per day, so trading the stock can be especially difficult. At the end of November its yield was 4.09% and its payout ratio was 58.06%.
If the thin volume of EFSI has you concerned, the next highest ranked stock for this month which is not already in the High Yield Dividend Champion portfolio portfolio is Questar (STR).
Below are the top 12 stocks for this month using the rating system highlighted in this article. Current holdings and returns can be viewed on the right hand side of Scott’s Investments:
|Pitney Bowes Inc.||PBI||7.94||71.15||0.112|
|Community Trust Banc.||CTBI||4.40||49.80||0.088|
|Tompkins Financial Corp.||TMP||3.59||45.43||0.079|
|Eagle Financial Services||EFSI||4.09||58.06||0.070|
|Sonoco Products Co.||SON||3.57||53.46||0.067|
|RPM International Inc.||RPM||3.64||56.95||0.064|
|Johnson & Johnson||JNJ||3.52||55.61||0.063|
|MGE Energy Inc.||MGEE||3.42||55.65||0.061|
Disclaimer: No current positions in stocks mentioned. Please note that Scott’s Investments and its author is not a financial adviser. Please consult your own investment adviser and do your own due diligence before making any investment decisions. Please read the full disclaimer at the bottom of Scott’s Investments.