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Dividend Growth Plan Addition: Exxon Mobil Corp.

May 07, 2020 7:43 PM ETExxon Mobil Corporation (XOM)AWR, MDT, WBA54 Comments
The DGI Plan profile picture
The DGI Plan


  • I have the opportunity to add a new position to my dividend growth portfolio due to recent moves made during my first quarter review.
  • I'm interested in finding a viable Dividend "Champion" to add for steady growth of income and capital preservation.
  • XOM presents an interesting opportunity due to significant undervaluation and expectations of appreciation with more upside than down.

In my First-Quarter 2020 Portfolio Review, I did some rebalancing and restructuring to my dividend growth portfolio. This included trimming Target (TGT) and selling CVS (CVS). This also freed up some capital to acquire new positions.

After selling CVS, the total number of positions in the portfolio was 20. My end-goal is to build the portfolio up to 40-50 positions. With only 20 stocks currently, I'm not looking to expand any existing positions and instead focus on opening new ones.

To identify a viable new position, I began by copy and pasting the Champions tab only from the CCC list (maintained by Justin Law) into the screener tool provided. I'm not doing the entire list for now due to current market volatility and possible impending dividend cuts. This narrows to the pool of companies that have a history of stable dividend growth. Within the screener tool, I made the exception rule be two. To begin narrowing down the pool, I first eliminated financials and real estate. These sectors present too much risk at this phase of my portfolio.

During the quarterly review, I identified two non-defensive sectors that were overweight, Consumer Discretionary and Industrials. My plan requires that non-defensive sectors not make up more than 10% of the total portfolio. As a result, I also eliminated those sectors from the pool. Below is the list of 30 stocks that resulted and their sector:

Dividend Champions, Contenders, and Challengers

The next step is to do individual research on each one. I simply go down the list top to bottom. I skipped American States Water (AWR) and Medtronic (MDT) as these are already in my portfolio. My main source for research is Morningstar reports provided by my brokerage.

There are two primary ways I initially eliminate stocks from my shortlist. The first being limited research. If I can't find

This article was written by

The DGI Plan profile picture
I self-manage my family's retirement portfolio and have found dividend growth as a viable strategy. I embrace a growth mind-set to better my investing business plan and strategy. I find it helpful to write about my process and hope to help other investors. I work full-time as a real estate appraiser and I'm a Colorado native. My  hobbies include listening to classic rock, being an american sports enthusiast  (both playing and watching) and investing of course.

Analyst’s Disclosure: I am/we are long XOM, MDT, AWR, WBA. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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