Dividend Champion Portfolio September 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 August month-end):

Name Symbol Yield Payout 3-yr P/E
Helmerich & Payne Inc. HP 4.66 49.11 116.13 10.54
ExxonMobil Corp. XOM 3.88 52.05 13.43 13.41
Chevron Corp. CVX 5.28 66.25 10.86 12.54
Emerson Electric EMR 3.94 52.08 7.04 13.22
Wal-Mart Stores Inc. WMT 3.03 41.00 10.98 13.54
Universal Health Realty Trust UHT 5.57 55.65 1.29 10.00
Cincinnati Financial CINF 3.52 46.46 2.78 13.21
Eagle Financial Services EFSI 3.48 45.71 2.26 13.15
Tompkins Financial Corp. TMP 3.20 44.80 4.99 14.00
Questar Corp. STR 4.35 65.63 6.55 15.09
Old Republic International ORI 4.71 59.68 1.41 12.67
Universal Corp. UVV 4.23 58.26 2.04 13.78
Community Trust Banc. CTBI 3.53 48.82 1.60 13.82
Sonoco Products Co. SON 3.56 54.26 3.36 15.24
T. Rowe Price Group TROW 2.89 45.61 12.38 15.76

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

There is no turnover this month, so all positions will be held until next month.

The current portfolio is below:

Position Initial Purchase Date Percentage Gain/Loss Excluding Dividends Current Allocation
CVX 12/6/2012 -25.53% 9.32%
EMR 8/4/2015 -5.66% 11.08%
ORI 4/4/2014 -3.82% 9.94%
UVV 4/8/2015 5.01% 9.62%
TMP 8/6/2014 15.72% 12.29%
CTBI 5/5/2014 -3.75% 13.36%
XOM 4/5/2013 -17.46% 8.02%
HP 10/6/2014 -41.54% 7.02%
STR 3/6/2015 -17.37% 9.02%
UHT 4/8/2015 -21.22% 9.65%

The portfolio’s equity curve along with three benchmarks is below:

Div Champ