Dividend Champion Portfolio August 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 from the end of July):

Name Symbol Yield P/E 3-yr Total Rank
Target Corp. TGT 3.19 14.24 17.84 16.67
Helmerich & Payne Inc. HP 4.52 63.23 114.15 18.33
Questar Corp. STR 3.50 21.89 8.10 19.33
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
AT&T Inc. T 4.44 19.24 2.22 23.33
Emerson Electric EMR 3.40 19.28 5.40 24.33
ExxonMobil Corp. XOM 3.37 28.60 9.73 25.67
Universal Corp. UVV 3.57 18.31 2.00 26.00
Altria Group Inc. MO 3.34 24.35 8.36 27.00
Coca-Cola Company KO 3.21 26.28 8.97 27.67
HCP Inc. HCP 5.86 n/a 4.16 28.67
Chevron Corp. CVX 4.18 148.52 6.83 28.67
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
Consolidated Edison ED 3.35 20.80 2.42 32.00
Wal-Mart Stores Inc. WMT 2.74 16.14 7.78 32.67
McDonald’s Corp. MCD 3.03 22.67 6.22 33.00
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
CTBI 630 33.9 7/5/2016 5.22%
EMR 425 49.64 8/4/2015 8.36%
ORI 1145 16.22 4/4/2014 20.72%
CSVI 634 39.2 8/5/2016 0.00%
TGT 391 68.65 6/3/2016 9.16%
MO 400 58.14 1/7/2016 14.43%
TROW 300 71.35 7/5/2016 -2.12%
HP 341 80.9 10/6/2014 -21.85%
STR 1075 25.03 5/6/2016 0.84%
T 650 38.13 3/7/2016 13.19%

2 thoughts on “Dividend Champion Portfolio August Update”

  1. I’m curious at your selection of CSVI. It’s not widely followed and seems to be very thinly traded which has the potential for some very bad whipsaws. That’s certainly been the case this week.

    1. It is thinly traded but has a $500m+ market cap, as opposed to EFSI which has a sub $100m market cap.

Comments are closed.