Dividend Champion Portfolio - April Update

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Includes: ADM.PA, BWL.A, CTBI, CVX, ED, EFSI, EMR, EV, HCP, HP, MDU, MO, NNN, ORI, PG, STR, T, TGT, TROW, UBSI, UHT, UVV, WEYS, WMT, XOM
by: Scott's Investments

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. Payout ratio will no longer be a factor. The modification has a relatively low impact to 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 March month-end):

Name Symbol Yield P/E 3-yr
Helmerich & Payne Inc. HP 4.68 27.31 114.15
Archer Daniels Midland ADM 3.3 12.14 16.96
AT&T Inc. T 4.9 17.33 2.22
Questar Corp. STR 3.55 21.02 8.1
Emerson Electric EMR 3.49 14.5 5.4
Altria Group Inc. MO 3.61 23.47 8.36
Old Republic International ORI 4.1 12.52 1.39
Exxon Mobil Corp. XOM 3.49 21.71 9.73
Eaton Vance Corp. EV 3.16 15.24 9.18
Eagle Financial Services OTCQX:EFSI 3.48 11.65 3.1
Chevron Corp. CVX 4.49 38.94 6.83
Community Trust Banc. CTBI 3.51 13.28 2.25
Universal Corp. UVV 3.73 16.28 2
T. Rowe Price Group TROW 2.94 15.76 15.21
HCP Inc. HCP 7.06 999 4.16
MDU Resources MDU 3.85 25.27 2.9
Consolidated Edison ED 3.5 18.87 2.42
Wal-Mart Stores Inc. WMT 2.92 15.02 7.78
Bowl America Class A BWL.A 4.86 30.43 1.78
United Bankshares Inc. UBSI 3.6 18.54 1.06
Weyco Group Inc. WEYS 3.01 15.85 6.18
National Retail Properties NNN 3.77 40.88 3.11
Target Corp. TGT 2.72 15.58 17.84
Universal Health Realty Trust UHT 4.59 31.6 1.47
Procter & Gamble Co. PG 3.22 27.17 5.99

There is no turnover in the existing positions for this month.

The current portfolio is below:

Position Initial Purchase Date Percentage Gain/Loss Excluding Dividends Current Allocation
CVX 12/6/2012 -8.10% 9.43%
EMR 8/4/2015 7.21% 10.32%
ORI 4/4/2014 10.85% 9.39%
EV 2/5/2016 18.78% 10.77%
ADM 12/7/2015 0.37% 11.19%
MO 1/7/2016 9.36% 11.61%
XOM 4/5/2013 -6.42% 7.45%
HP 10/6/2014 -34.62% 6.73%
TROW 3/7/2016 1.09% 11.38%
T 3/7/2016 1.36% 11.46%

Disclosure: None.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.