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):
|Helmerich & Payne Inc.||HP||5.19|
|Eaton Vance Corp.||EV||3.67|
|Archer Daniels Midland||ADM||3.43|
|Old Republic International||ORI||4.21|
|T. Rowe Price Group||TROW||3.13|
|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|
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 current portfolio is below:
|Position||Initial Purchase Date||Percentage Gain/Loss Excluding Dividends|
The equity curve for the portfolio is below, since inception: