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 from the end of July):
|Helmerich & Payne Inc.||HP||4.52||63.23||114.15||18.33|
|T. Rowe Price Group||TROW||3.06||15.10||15.21||20.33|
|Community Trust Banc.||CTBI||3.68||13.17||2.25||21.67|
|Eagle Financial Services||EFSI||3.40||11.87||3.10||22.33|
|Old Republic International||ORI||3.87||12.67||1.39||22.67|
|Computer Services Inc.||CSVI||3.01||18.53||21.05||22.67|
|Altria Group Inc.||MO||3.34||24.35||8.36||27.00|
|Weyco Group Inc.||WEYS||3.01||17.46||6.18||29.33|
|Eaton Vance Corp.||EV||2.80||18.00||9.18||29.67|
|Archer Daniels Midland||ADM||2.66||17.34||16.96||30.67|
|United Bankshares Inc.||UBSI||3.45||19.34||1.06||31.00|
|Bowl America Class A||BWL-A||4.69||40.28||1.78||31.33|
|Wal-Mart Stores Inc.||WMT||2.74||16.14||7.78||32.67|
|Universal Health Realty Trust||UHT||4.36||32.43||1.47||33.67|
There is turnover in one position for August. Eaton Vance (EV), a holding since 2/5/16, will be sold for a capital gain of 36.19%. Proceeds will be used to purchase Computer Services (CSVI). A small portion of the proceeds from the EV wil also be used to rebalance the Portfolio’s position in Helmerich & Payne (HP).
The current portfolio is below:
|Position||Shares||Average Purchase Price||Initial Purchase Date||Percentage Gain/Loss Excluding Dividends|