High Yield Dividend Champion Portfolio – February Update

Alpha Architect Empowers Investors Through Education. Check out their newest Value, Momentum, and Trend Index. (Sponsored)

The High Yield Dividend Champion Portfolio is a publicly tracked stock portfolio on Scott’s Investments.  The 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.  Stocks are then ranked on yield, P/E and 3 year dividend growth rate and assigned an overall rank.

Stocks are 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 are below and displayed in order of their overall ranking (figures are from the end of November, “999” indicates a N/A value):

Name Symbol Yield P/E 3-yr
Altria Group Inc. MO 3.75 8.79 8.3
Target Corp. TGT 3.3 15.8 8.7
AT&T Inc. T 5.34 18 2.1
Meredith Corp. MDP 3.3 15.98 6.3
Kimberly-Clark Corp. KMB 3.42 18.28 5.6
Archer Daniels Midland ADM 2.98 20.16 10.1
Old Republic International ORI 3.54 11.25 1.4
Black Hills Corp. BKH 3.42 21.12 5.1
Universal Health Realty Trust UHT 4 20.54 1.6
Consolidated Edison ED 3.56 20.14 3.1
Realty Income Corp. O 4.94 43.6 5
Community Bank System CBU 3.75 26.39 4.5
Leggett & Platt Inc. LEG 3.1 18.83 5
United Bankshares Inc. UBSI 3.7 19.37 1
Eagle Financial Services EFSI 2.91 14.11 4.6
Sonoco Products Co. SON 2.87 19.97 6.6
National Retail Properties NNN 4.79 32.52 4.1
Computer Services Inc. CSVI 2.67 19.7 15.8
Federal Realty Inv. Trust FRT 3.31 38.47 7.1
People’s United Financial PBCT 3.51 20.28 1.5
Weyco Group Inc. WEYS 2.84 19.36 5.1
National Fuel Gas NFG 2.98 16.89 2.6
Mercury General Corp. MCY 5.11 27.35 0.4
Vectren Corp. VVC 2.97 22.37 5.4
ExxonMobil Corp. XOM 3.53 28.44 4.3

 

There is turnover in two positions this month. People’s United Financial (PBCT), a holding since July 2017, was sold for a capital gain of 7.05%.  Weyco Group (WEYS), a holding since March 2017 was sold for a capital gain of 7.08%.  The proceeds were used to purchase Meredith Corporation (MDP) and Black Hills Corp (BKH)

The current portfolio is below:

Position Shares Average Purchase Price Initial Purchase Date Cost Basis Current Value
MDP 514 56.05 2/6/2018 $28,809.70 $28,809.70
KMB 246 115.49 10/9/2017 $28,410.54 $28,078.44
ORI 1145 16.22 4/4/2014 $18,571.90 $23,701.50
ADM 762 41.95 6/6/2017 $31,965.90 $32,004.00
TGT 391 68.65 6/3/2016 $26,842.15 $28,429.61
MO 400 58.14 1/7/2016 $23,256.00 $26,612.00
SON 552 51.21 10/9/2017 $28,267.92 $28,383.84
UBSI 820 35.8 1/10/2018 $29,356.00 $28,413.00
BKH 557 51.75 2/6/2018 $28,824.75 $28,824.75
T 650 38.13 3/7/2016 $24,784.50 $23,939.50
 Cash $19,184.44
Current Portfolio Value (excluding recent dividends): $296,380.78

Leave a Reply

Your email address will not be published. Required fields are marked *