Dividend Champion Portfolio - December Update

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Includes: ADM, CSV, CTBI, CVX, ED, EFSI, EMR, HP, JNJ, KMB, KO, MCD, MO, NNN, ORI, PEP, PG, T, TGT, TROW, UVV, VFC, VVC, 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. Stocks are then ranked on yield, P/E and 3-year dividend growth rate but payout ratio is no longer a factor.

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):

Name Symbol Yield P/E 3-yr
Target Corp. TGT 3.11 14.17 17.84
AT&T Inc. T 5.07 16.44 2.22
VF Corp. VFC 3.08 18.93 20.64
Old Republic International ORI 4.20 12.24 1.39
Eagle Financial Services OTCQX:EFSI 3.60 14.63 3.10
Universal Corp. UVV 3.92 16.38 2.00
T. Rowe Price Group TROW 2.92 16.68 15.21
Altria Group Inc. MO 3.82 24.03 8.36
Consolidated Edison ED 3.84 17.23 2.42
Helmerich & Payne Inc. HP 3.70 999.00 114.15
Coca-Cola Company KO 3.47 24.45 8.97
Computer Services Inc. OTCQX:CSVI 2.85 19.05 21.05
Kimberly-Clark Corp. KMB 3.18 21.02 7.53
Archer Daniels Midland ADM 2.78 16.38 16.96
ExxonMobil Corp. XOM 3.44 40.79 9.73
Vectren Corp. VVC 3.42 19.63 3.11
PepsiCo Inc. PEP 3.01 21.95 9.48
Wal-Mart Stores Inc. WMT 2.84 15.28 7.78
National Retail Properties NNN 4.26 39.16 3.11
Emerson Electric EMR 3.40 22.94 5.40
Chevron Corp. CVX 3.87 999.00 6.83
McDonald's Corp. MCD 3.15 22.29 6.22
Johnson & Johnson JNJ 2.88 19.49 7.12
Procter & Gamble Co. PG 3.25 23.36 5.99
Community Trust Banc. CTBI 3.03 15.65 2.25
Weyco Group Inc. WEYS 2.92 20.12 6.18

There is turnover in three positions this month. Community Trust Bancorp was sold for a gain of 28.91% since its purchase in July 2016. Emerson Electric was sold for a gain of 17.37% since August 2015 and Eaton Vance (EV) sold for a one month gain of 21.59%.

The sales proceeds were used to purchase VF Corp., Consolidated Edison, and Coca-Cola Company.

The current portfolio is below:

Position Shares Average Purchase Price Initial Purchase Date Cost Basis Current Value Percentage Gain/Loss Excluding Dividends
VFC 470 57.39 12/7/2016 $26,973.30 $26,973.30 0.00%
ED 390 70.41 12/7/2016 $27,459.90 $27,459.90 0.00%
ORI 1145 16.22 4/4/2014 $18,571.90 $20,896.25 12.52%
KO 653 41.29 12/7/2016 $26,962.37 $26,962.37 0.00%
TGT 391 68.65 6/3/2016 $26,842.15 $30,095.27 12.12%
MO 400 58.14 1/7/2016 $23,256.00 $26,164.00 12.50%
TROW 300 71.35 7/5/2016 $21,405.00 $23,205.00 8.41%
HP 341 80.9 10/6/2014 $27,586.90 $27,573.26 -0.05%
UVV 474 56.96 10/6/2016 $26,999.04 $28,203.00 4.46%
T 650 38.13 3/7/2016 $24,784.50 $26,292.50 6.08%

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.