Portfolio Playoffs -- Finding The Best Dividend Portfolio (Part ll)

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Includes: CAR, CAT, COP, CVI, DIS, EBAY, GOOG, KO, LVS, NLY, PFE, SNY, SSW, SVU, VOD, WM
by: MyPlanIQ

[Author's Note: The original version of this article included stocks that do not pay dividends. It has been corrected.]


With continued low interest rates likely, bonds will be under pressure to deliver growth and income. Increasingly dividend bearing stocks are of interest to help provide income as well as growth. Over the past few months we have reviewed around 60 different selections of dividend bearing stocks.

We have started with the first set keeping the top two as they gave a reasonable spread of high returns (but short history) and steady growth. As we proceed, we may determine to prune the list as we find better alternatives.

Portfolio/Fund Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
13 High Yielding Stocks 1% 6% 19% 89% 6% 22%
3 Bargain Dividends Investors Should Buy Today 27% 150% 24% 135%
Click to enlarge

We now look at 4 and 5 dividend stock selections.

Portfolio Tickers
4 Special Dividend Plays (NYSE:CVI) (NYSE:NLY) (NYSE:SSW) (NASDAQ:VOD)
4 Stocks With Pricing Power (NYSE:CAT) (NYSE:DIS) (OTCPK:LVMUY) (NYSE:SNY)
Fools 5 Dividend Payers to Save your Portfolio (NYSE:JNJ) (NYSE:KMB) (NASDAQ:MAT) (NYSE:MCD) (NYSE:SYY)
Fools 5 Dividend Payers That Are No Gamble (NYSE:PG) (SYY) (NYSE:UPS) (NYSE:WM) (NYSE:WMT)
5 Dividend Stocks Rewarding Shareholders (NYSE:AET) (KMB) (NYSE:PPG) (NYSE:WFC) (NYSE:XOM)
Click to enlarge

A full list of tickers and companies are at the end of the article.

KMB and SYY overlap in these selections and when we include the stocks previously covered, our list of stocks called more than once becomes:

INTC 2
KMB 2
MCD 2
NLY 3
PG 3
SO 2
SYY 2
WM 3
Click to enlarge

We are starting to see a list of the usual suspects being used repeatedly.

Portfolio Performance Comparison

Portfolio/Fund Name YTD
Return
1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
Fools 5 Dividend Payers to Save your Portfolio 2% 26% 172% 21% 137% 11% 55%
Fools 5 Dividend Payers That Are No Gamble 2% 5% 29% 12% 76% 3% 14%
5 Dividend Stocks Rewarding Shareholders 5% 8% 36% 17% 68% 5% 13%
4 Stocks With Pricing Power 5% 3% 8%
4 Special Dividend Plays 14% 16% 59% 26% 98%
Click to enlarge

We see a number of interesting returns from this set. The two that stand out are:

Portfolio/Fund Name YTD
Return
1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
Fools 5 Dividend Payers to Save your Portfolio 2% 26% 172% 21% 137% 11% 55%
4 Special Dividend Plays 14% 16% 59% 26% 98%
Click to enlarge

The returns and Sharpe ratios are strong. The Fools 5 Dividend Payers is clearly at the top of the list and worth following

Three Month Chart One Year Chart Three Year Chart Five Year Chart

None of the performances are terrible but we can see how the top performers are ahead of the field.

The best of the bunch so far are:

Portfolio/Fund Name 1Yr AR 1Yr Sharpe 3Yr AR 3Yr Sharpe 5Yr AR 5Yr Sharpe
Fools 5 Dividend Payers to Save your Portfolio 26% 172% 21% 137% 11% 55%
13 High Yielding Stocks 1% 6% 19% 89% 6% 22%
3 Bargain Dividends Investors Should Buy Today 27% 150% 24% 135%
4 Special Dividend Plays 16% 59% 26% 98%
Click to enlarge

We will also continue to build a list of the most frequently referenced equities and construct a portfolio of the most popular.

More...

AET Aetna
CAT Caterpillar
CVI CVR Energy
DIS Disney
INTC Intel
JNJ Johnson & Johnson
KMB Kimberly-Clark
LVMUY LVMH MOET HENN
MAT Mattel
MCD MacDonalds
NLY Annaly Capital
PG Procter and Gamble
PPG PPG Industries
SNY Sanofi American
SO Southern
SSW Seaspan
SYY Sysco
UPS United Parcel Service
VOD Vodaphone
WFC Wells Fargo
WM Waste Management
WMT Wal-Mart
XOM Exxon Mobil
Click to enlarge

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

Additional disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.