Dividend Champion Portfolio – March 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.

I made one change to the screen methodology for 2016 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.

In 2016 stocks are ranked on 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 February month-end):

Name Symbol Yield
Helmerich & Payne Inc. HP 5.19
Emerson Electric EMR 3.89
Eaton Vance Corp. EV 3.67
Archer Daniels Midland ADM 3.43
AT&T Inc. T 5.2
Old Republic International ORI 4.21
Chevron Corp. CVX 5.13
T. Rowe Price Group TROW 3.13
ExxonMobil Corp. XOM 3.64
Universal Corp. UVV 3.89
Community Trust Banc. CTBI 3.68
Altria Group Inc. MO 3.67
Universal Health Realty Trust UHT 4.98
Eagle Financial Services EFSI 3.49
HCP Inc. HCP 7.78
Consolidated Edison ED 3.83

 

There is turnover this month in two positions.  Questar (STR) has been a holding since 3/6/2015 and will be sold for a capital gain of 9.43% .  Target (TGT), a holding since 12/7/2015, will be sold for a capital gain of 10.12%.

The proceeds from the two sales will be used to purchase AT&T (T) and T. Rowe Price Group (TROW).

The current portfolio is below:

Position Initial Purchase Date Percentage Gain/Loss Excluding Dividends
CVX 12/6/2012 -12.15%
EMR 8/4/2015 4.57%
ORI 4/4/2014 11.59%
EV 2/5/2016 11.06%
ADM 12/7/2015 4.89%
MO 1/7/2016 6.28%
XOM 4/5/2013 -5.12%
HP 10/6/2014 -28.01%
TROW 3/7/2016 0.00%
T 3/7/2016 0.00%

 

The equity curve for the portfolio is below, since inception:

Div Champ

2 thoughts on “Dividend Champion Portfolio – March Update”

  1. Scott; can an investor buy the dividend champions as a fund (eg an ETF) or do we have to invest in each of the equities individually and follow your updates on hold or sell?

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