High Yield Dividend Champion Portfolio - October Update

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Includes: ADM, BEN, BKH, CSVI, CTBI, ED, GPC, ITW, KMB, KO, LEG, MDP, MO, NNN, O, ORI, PBCT, PEP, PSBQ, SKT, T, TGT, UBSI, UVV, XOM
by: Scott's Investments

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 September, "999" indicates a N/A value):

Name Symbol Yield P/E 3-yr
Altria Group Inc. MO 5.31 15.71 8.3
Tanger Factory Outlet Centers SKT 6.12 35.2 12.7
Franklin Resources BEN 3.03 9.53 18.6
Consolidated ED 3.75 3.45 3.1
Black Hills Corp. BKH 3.27 5.67 5.1
AT&T Inc. T 5.96 18.15 2.1
Universal Corp. UVV 4.62 16.5 1.9
People's United Financial PBCT 4.09 14.89 1.5
PepsiCo Inc. PEP 3.32 20.4 7.7
Target Corp. TGT 2.9 17.64 8.7
Leggett & Platt Inc. LEG 3.47 17.87 5
Computer Services Inc. OTCQX:CSVI 2.84 18.26 15.8
Meredith Corp. MDP 4.27 999 6.3
Kimberly-Clark Corp. KMB 3.52 23.1 5.6
Illinois Tool Works ITW 2.83 19.02 16.1
Realty Income Corp. O 4.65 49.04 5
PSB Holdings Inc. OTCPK:PSBQ 3.9 999 6.7
United Bankshares Inc. UBSI 3.74 15.87 1
Old Republic International ORI 3.49 10.97 1.4
National Retail Properties NNN 4.46 32.48 4.1
Exxon Mobil Corp. XOM 3.86 24.15 4.3
Community Trust Banc. CTBI 3.11 15.4 3.2
Archer Daniels Midland ADM 2.67 20.27 10.1
Coca-Cola Company KO 3.38 33.72 6.2
Genuine Parts Co. GPC 2.9 20.29 5.3

There is turnover in one position this month. Old Republic International was sold for a capital gain of 34.46% and original purchase date of 4/4/2014. The proceeds were used to purchase People's United Financial.

The current portfolio is below:

Position Shares Average Purchase Price Initial Purchase Date Cost Basis Current Value Percentage Gain/Loss Excluding Dividends
BKH 516 60.18 8/8/2018 $31,052.88 $31,161.24 0.35%
UVV 540 60.15 9/9/2018 $32,481.00 $35,818.20 10.27%
PBCT 1896 17.28 10/8/2018 $32,762.88 $32,762.88 0.00%
PEP 291 102.49 6/8/2018 $29,824.59 $31,483.29 5.56%
TGT 391 68.65 6/3/2016 $26,842.15 $33,391.40 24.40%
MO 504 58.24 1/7/2016 $29,352.96 $31,837.68 8.46%
SKT 1400 21.11 5/7/2018 $29,554.00 $30,814.00 4.26%
ED 385 75.31 3/8/2018 $28,994.35 $30,037.70 3.60%
BEN 930 33.3 8/8/2018 $30,969.00 $28,774.20 -7.09%
T 928 36.4 3/7/2016 $33,779.20 $31,654.08 -6.29%
Cash Cash $8,042.49

Disclosures: None.