Dividend Champion Portfolio December 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 November month-end):

Name Symbol Yield Payout 3-yr P/E
Emerson Electric EMR 3.80 47.38 7.04 12.47
Wal-Mart Stores Inc. WMT 3.33 42.06 10.98 12.63
Archer Daniels Midland ADM 3.07 38.89 13.59 12.67
Helmerich & Payne Inc. HP 4.72 71.24 116.13 15.09
Eagle Financial Services EFSI 3.37 34.93 2.26 10.37
Questar Corp. STR 4.43 67.20 6.55 15.16
Target Corp. TGT 3.09 50.22 19.98 16.26
ExxonMobil Corp. XOM 3.58 61.73 13.43 17.26
Old Republic International ORI 3.90 54.01 1.41 13.84
Community Trust Banc. CTBI 3.38 48.63 1.60 14.39
Universal Corp. UVV 3.75 56.23 2.04 15.00
Weyco Group Inc. WEYS 2.92 44.94 5.43 15.40
T. Rowe Price Group TROW 2.73 46.12 12.38 16.88
Chevron Corp. CVX 4.69 93.04 10.86 19.85
Cincinnati Financial CINF 3.01 47.18 2.78 15.67

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

There is turnover this month in two positions.  Tompkins Financial (TMP) has been a holding since August 2014. It will be sold for a capital gain of 40.91%.   Universal Health Realty Trust (UHT)has been a holding since April 2015 and will be sold for a capital loss of 7.29%.

The proceeds will be used to purchase (ADM) and (TGT).

The current portfolio is below:

Position Initial Purchase Date Cost Basis Current Value Percentage Gain/Loss Excluding Dividends
CVX 12/6/2012 $22,494.00 $19,035.76 -15.37%
EMR 8/4/2015 $21,097.00 $20,616.75 -2.28%
ORI 4/4/2014 $18,571.90 $21,480.20 15.66%
WMT 10/6/2015 $20,360.80 $18,755.00 -7.89%
ADM 12/7/2015 $24,432.90 $24,432.90 0.00%
CTBI 5/5/2014 $24,927.10 $24,504.26 -1.70%
XOM 4/5/2013 $17,445.96 $15,054.76 -13.71%
HP 10/6/2014 $21,555.66 $12,088.02 -43.92%
STR 3/6/2015 $19,608.00 $15,953.00 -18.64%
TGT 12/7/2015 $24,512.26 $24,512.26 0.00%