Dividend Champion Portfolio January 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.

For 2016 I am making one change to the screen methodology in order to further simplify the process. Stocks from the Dividend Champion list were previously ranked on yield, payout ratio, P/E, and 3 year dividend growth rate.

Going forward, stock will be ranked yield, P/E and 3 year dividend growth rate.  Payout ratio will no longer be a factor.  The modification has a relatively low impact to screen results.

Stocks will still be 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 using the new method  are below and displayed in order of their overall ranking (figures are December month-end):

Name Symbol Yield
Helmerich & Payne Inc. HP 5.14
Questar Corp. STR 4.31
Emerson Electric EMR 3.97
ExxonMobil Corp. XOM 3.75
Chevron Corp. CVX 4.76
Altria Group Inc. MO 3.88
Archer Daniels Midland ADM 3.05
Wal-Mart Stores Inc. WMT 3.2
Universal Health Realty Trust UHT 5.16
HCP Inc. HCP 5.91
Old Republic International ORI 3.97
Consolidated Edison ED 4.05
MDU Resources MDU 4.09
Eagle Financial Services EFSI 3.48
Target Corp. TGT 3.08

 

There is turnover this month in one position.  Community Trust Bancorp (CTBI) has been a holding since May  2014. It will be sold for a capital gain of 1.9%.

The proceeds will be used to purchase (MO).

The current portfolio is below:

Position Initial Purchase Date Percentage Gain/Loss Excluding Dividends
CVX 12/6/2012 -19.52%
EMR 8/4/2015 -10.13%
ORI 4/4/2014 13.63%
WMT 10/6/2015 -1.02%
ADM 12/7/2015 -2.49%
MO 1/7/2016 0.05%
XOM 4/5/2013 -14.34%
HP 10/6/2014 -46.45%
STR 3/6/2015 -16.23%
TGT 12/7/2015 0.55%

 

3 thoughts on “Dividend Champion Portfolio January Update”

  1. Do you worry that a stock recommended by this system 18 months ago, and which is now down 46%, is still the no. 1 pick?

    1. It is natural to worry, but being a systematic system we can only either choose to follow the signals or ignore them.

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