Dividend Champion Portfolio October 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 September month-end):

Name Symbol Yield Payout 3-yr P/E
Helmerich & Payne Inc. HP 5.82 49.11 116.13 8.44
Emerson Electric EMR 4.26 52.08 7.04 12.24
ExxonMobil Corp. XOM 3.93 52.05 13.43 13.25
Chevron Corp. CVX 5.43 66.25 10.86 12.21
Universal Health Realty Trust UHT 5.45 55.65 1.29 10.20
Eagle Financial Services EFSI 3.48 45.71 2.26 13.14
Wal-Mart Stores Inc. WMT 3.02 41.00 10.98 13.56
Cincinnati Financial CINF 3.42 46.46 2.78 13.59
Questar Corp. STR 4.33 65.63 6.55 15.16
Tompkins Financial Corp. TMP 3.15 44.80 4.99 14.23
Dover Corp. DOV 2.94 41.38 16.29 14.08
Old Republic International ORI 4.73 59.68 1.41 12.61
Sonoco Products Co. SON 3.71 54.69 3.36 14.74
Community Trust Banc. CTBI 3.49 48.82 1.60 13.98
T. Rowe Price Group TROW 2.99 45.61 12.38 15.24

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

There is turnover in one position this month.  Universal (UVV), a holding since April, will be sold for a gain of 9.62%.  The proceeds will be used to purchase Walmart (WMT).

The current portfolio is below:

Position Average Purchase Price Initial Purchase Date Percentage Gain/Loss Excluding Dividends
CVX 103.1835 12/6/2012 -15.68%
EMR 49.64 8/4/2015 -6.93%
ORI 16.22 4/4/2014 -2.03%
WMT 65.68 10/6/2015 0.00%
TMP 44.46 8/6/2014 20.11%
CTBI 36.55 5/5/2014 -5.31%
XOM 89.01 4/5/2013 -12.49%
HP 90.57 10/6/2014 -37.98%
STR 22.8 3/6/2015 -11.71%
UHT 55.27 4/8/2015 -14.49%