Dividend Champion Portfolio March Update

The High Yield Dividend Champion Portfolio is a publicly tracked stock portfolio on Scott’s Investments.  Its goal is to capture quality high yield stocks with a history of raising dividends.

The screening process for this portfolio starts with the “Dividend Champions” as compiled by DRIP Investing. The list is comprised of stocks that have increased their dividend payout for at least 25 consecutive years.  Stocks from the Dividend Champion list are then ranked on yield, payout ratio, P/E, and 3 year dividend growth rate.

Stocks will be sold at the re-balance date (generally around the 5th of the month) when they drop out of the top 15 (to limit turnover) and are replaced with the next highest rated stock.

The top 15 stocks  are below and displayed in order of their overall ranking (figures are February month-end):

Name Symbol Yield Payout P/E 3-yr
Helmerich & Payne Inc. HP 4.10 40.92 9.98 116.13
Chevron Corp. CVX 4.01 42.25 10.53 10.86
ExxonMobil Corp. XOM 3.12 36.08 11.57 13.43
Old Republic International ORI 4.88 51.75 10.60 1.41
Eagle Financial Services EFSI 3.36 38.65 11.51 2.26
Community Trust Banc. CTBI 3.68 48.19 13.11 1.60
Tompkins Financial Corp. TMP 3.23 48.14 14.89 4.99
Cincinnati Financial CINF 3.49 57.86 16.59 2.78
Consolidated Edison ED 4.12 61.47 14.93 1.64
Questar Corp. STR 3.59 65.12 18.12 6.55
Universal Corp. UVV 4.34 65.62 15.11 2.04
AFLAC Inc. AFL 2.51 24.00 9.58 6.36
WGL Holdings Inc. WGL 3.47 62.50 18.02 4.15
Weyco Group Inc. WEYS 2.82 46.63 16.53 5.43
Emerson Electric EMR 3.25 59.68 18.39 7.04

As previously stated EFSI is not purchased due to its low liquidity.

There is turnover in three positions for March. McDonalds (MCD) , a holding since January 2014, was sold for a capital gain of .61%.  Mercury General (MCY) , originally purchased September 2014, was sold for a capital gain of 7.09%.  AT&T (T) , a holding since March 2014 was sold for a capital gain of 3.53%.

The proceeds were used to purchase Cincinatti Financial (CINF) Consolidated Edison (ED) and Questar (STR).

The current portfolio is below:

 

Position Average Purchase Price Initial Purchase Date Percentage Gain/Loss Excluding Dividends Current Allocation
CVX 108.06 12/6/2012 -4.17% 7.51%
CINF 52.47 3/6/2015 0.00% 10.28%
ORI 16.22 4/4/2014 -8.26% 8.95%
ED 59.98 3/6/2015 0.00% 10.31%
TMP 44.46 8/6/2014 17.30% 11.76%
CTBI 36.55 5/5/2014 -11.87% 11.54%
XOM 89.01 4/5/2013 -3.80% 8.82%
HP 90.57 10/6/2014 -25.83% 8.40%
STR 22.8 3/6/2015 0.00% 10.30%
AFL 58.63 1/9/2015 6.02% 12.09%

I also have  a second portfolio using similar metrics as the High Yield Dividend Champion portfolio. The primary difference is it only requires 10 years of dividend increases and it also hedges the portfolio during unfavorable market conditions. Hedging requires margin, but the portfolio can also be implemented without the hedge. The portfolio is available on Portfolio123 and backtested results were posted in the June update.