Dividend Champion Portfolio – June 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 but payout ratio is no longer a factor.  The modification has a relatively low impact on 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 25 stocks using the new method  are below and displayed in order of their overall ranking (figures are May month-end):

Name Symbol Yield P/E 3-yr
Target Corp. TGT 3.26 13.00 17.84
Helmerich & Payne Inc. HP 4.50 62.40 114.15
AT&T Inc. T 4.90 17.40 2.22
Emerson Electric EMR 3.65 17.94 5.40
Old Republic International ORI 3.91 12.52 1.39
Altria Group Inc. MO 3.55 22.89 8.36
Eagle Financial Services EFSI 3.48 11.62 3.10
Questar Corp. STR 3.49 21.92 8.10
Universal Corp. UVV 3.88 15.67 2.00
Community Trust Banc. CTBI 3.44 13.41 2.25
ExxonMobil Corp. XOM 3.37 28.62 9.73
Consolidated Edison ED 3.66 19.03 2.42
HCP Inc. HCP 7.00 999.00 4.16
Chevron Corp. CVX 4.24 146.38 6.83
Eaton Vance Corp. EV 2.92 16.53 9.18
Archer Daniels Midland ADM 2.81 16.45 16.96
Weyco Group Inc. WEYS 3.05 17.23 6.18
T. Rowe Price Group TROW 2.80 16.47 15.21
Coca-Cola Company KO 3.14 26.87 8.97
Universal Health Realty Trust UHT 4.82 29.08 1.47
Wal-Mart Stores Inc. WMT 2.83 15.66 7.78
National Retail Properties NNN 3.84 39.08 3.11
Bowl America Class A BWL-A 4.77 39.61 1.78
Procter & Gamble Co. PG 3.30 27.10 5.99
Sonoco Products Co. SON 3.10 21.77 4.81

There is  turnover in one position for June.  Archer Daniels Midland (ADM) will be sold for a capital gain of 23.13% and original purchase date of 12/7/2015.  The proceeds will be used to purchase Target (TGT)   which is currently the top ranked stock on the list.

I will also a small portion of the ADM proceeds to rebalance the portfolio by purchasing additional shares of XOM and HP which are the two lowest weighted postilions in the portfolio.

The current portfolio is below:

Position Average Purchase Price Initial Purchase Date Current Value Percentage Gain/Loss Excluding Dividends
CVX 103.1835 12/6/2012 $21,941.70 -2.46%
EMR 49.64 8/4/2015 $22,227.50 5.36%
ORI 16.22 4/4/2014 $21,663.40 16.65%
EV 28.38 2/5/2016 $25,221.00 26.96%
TGT 68.65 6/3/2016 $26,842.15 0.00%
MO 58.14 1/7/2016 $26,120.00 12.32%
XOM 88.97307 4/5/2013 $18,387.20 -0.64%
HP 82.79467 10/6/2014 $18,107.32 -28.99%
STR 25.03 5/6/2016 $26,842.75 -0.24%
T 38.13 3/7/2016 $25,493.00 2.86%

2 thoughts on “Dividend Champion Portfolio – June Update”

  1. Hello, Sir,
    I’m fascinated by this sort of screen, and have been following your portfolio for a few months now on SeekingAlpha. I was just wondering if you could share your methodology in compiling the screen? I’ve tried a few things, and have never been able to quite replicate your results, and would like to be able to.
    Thanks,
    Tom

    1. Hi Tom – I won’t share it publicly, but there’s no secret sauce. It is yield / P/E / 3 yr Dividend Growth with a little extra weight given to yield

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