Seeking Alpha

High Yield Dividend Champion Portfolio - July Update

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Includes: BEN, BKH, CSVI, ED, KMB, LEG, MDP, MO, ORI, PBCT, PEP, PNR, SKT, T, TGT, UVV
by: Scott's Investments
Scott's Investments
Independent research, long/short equity, dividend investing, ETF investing

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. Sadly, the curator of the list at DRIP Investing, David Fish, passed away last month. Tributes on Seeking Alpha are available here and here. The list has been an invaluable free resource for investors and his generosity is greatly appreciated. In the interim, a Seeking Alpha author has decided to continue tracking and updating the list. 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 June, “999” indicates a N/A value):

Name Symbol Yield P/E 3-yr
Altria Group Inc. MO 4.93 14.79 8.3
Tanger Factory Outlet Centers SKT 5.96 32.63 12.7
Target Corp. TGT 3.36 16.13 8.7
Pentair Ltd. PNR 3.33 13.62 7.9
Consolidated Edison ED 3.67 3.53 3.1
AT&T Inc. T 6.23 19.11 2.1
Kimberly-Clark Corp. KMB 3.8 20.61 5.6
Franklin Resources BEN 2.87 10.14 18.6
PepsiCo Inc. PEP 3.41 21.26 7.7
Old Republic International ORI 3.92 11.44 1.4
Universal Corp. UVV 4.54 18.55 1.9
Leggett & Platt Inc. LEG 3.41 18.22 5
People’s United Financial PBCT 3.87 17.39 1.5
Computer Services Inc. OTCQX:CSVI 2.9 17.91 15.8
Meredith Corp. MDP 4.27 364.29 6.3

There is turnover in one position this month. Black Hills Corp (NYSE:BKH) was sold for a capital gain of 23.61% and original purchase date of 2/6/2018. The proceeds were used to purchase Pentair Ltd. (NYSE:PNR).

The current portfolio is below:

Position

Shares Average Purchase Price Initial Purchase Date Cost Basis Current Value Percentage Gain/Loss Excluding Dividends
MDP 514 56.05 2/6/2018 $28,809.70 $28,424.20 -1.34%
KMB 246 115.49 10/9/2017 $28,410.54 $26,285.10 -7.48%
ORI 1145 16.22 4/4/2014 $18,571.90 $22,739.70 22.44%
PEP 291 102.49 6/8/2018 $29,824.59 $31,881.96 6.90%
TGT 391 68.65 6/3/2016 $26,842.15 $30,024.89 11.86%
MO 400 58.14 1/7/2016 $23,256.00 $23,316.00 0.26%
SKT 1400 21.11 5/7/2018 $29,554.00 $33,908.00 14.73%
ED 385 75.31 3/8/2018 $28,994.35 $30,607.50 5.56%
PNR 718 42.28 7/6/2018 $30,357.04 $30,357.04 0.00%
T 650 38.13 3/7/2016 $24,784.50 $21,242.00 -14.29%
Cash Cash $34,494.81

Disclosure: None

Editor's Note: This article discusses one or more securities that do not trade on a major U.S. exchange. Please be aware of the risks associated with these stocks.