Dividend Champion Portfolio August 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 are sold on 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 July month-end):

Name Symbol Yield Payout 3-yr P/E
Helmerich & Payne Inc. HP 4.76 42.24 116.13 8.87
Chevron Corp. CVX 4.84 46.83 10.86 9.68
ExxonMobil Corp. XOM 3.69 43.84 13.43 11.89
Emerson Electric EMR 3.63 49.47 7.04 13.62
Eagle Financial Services EFSI 3.39 38.28 2.26 11.29
Community Trust Banc. CTBI 3.54 48.82 1.60 13.78
Universal Health Realty Trust UHT 5.23 64.65 1.29 12.37
Sonoco Products Co. SON 3.39 52.43 3.36 15.46
Wal-Mart Stores Inc. WMT 2.72 40.08 10.98 14.72
Black Hills Corp. BKH 3.89 56.25 2.23 14.47
Universal Corp. UVV 3.65 53.75 2.04 14.74
Old Republic International ORI 4.42 60.66 1.41 13.71
Tompkins Financial Corp. TMP 3.11 48.41 4.99 15.58
Questar Corp. STR 3.79 65.63 6.55 17.30
First Financial Corp. THFF 2.95 38.13 1.41 12.91

EFSI is not eligible for purchase due to its low liquidity.

There is turnover in one position this month.  Cincinnati Financial (CINF) will be sold for a capital gain of 5.64% and original purchase date of 3/6/15.  It will be replaced by Emerson Electric (EMR) which currently yields 3.63%.

The current portfolio is below:

Position Shares Average Purchase Price Initial Purchase Date Percentage Gain/Loss Excluding Dividends Current Allocation
CVX 218 103.1835 12/6/2012 -17.42% 9.55%
EMR 425 49.64 8/4/2015 -0.02% 10.84%
ORI 1145 16.22 4/4/2014 3.14% 9.85%
UVV 348 47.3 4/8/2015 22.56% 10.37%
TMP 429 44.46 8/6/2014 21.01% 11.86%
CTBI 682 36.55 5/5/2014 -3.80% 12.33%
XOM 196 89.01 4/5/2013 -13.34% 7.77%
HP 238 90.57 10/6/2014 -35.42% 7.16%
STR 860 22.8 3/6/2015 -4.25% 9.65%
UHT 398 55.27 4/8/2015 -11.76% 9.98%

 

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, search for ‘Scott’s Dividend Champ Portfolio Hedged’ in the Ready-to-Go section.