Dividend Champion Portfolio August Update
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 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 July):
| Name | Symbol | Yield | P/E | 3-yr |
| Target Corp. | TGT | 4.38 | 11.81 | 13.7 |
| Altria Group Inc. | MO | 3.76 | 8.57 | 8.6 |
| Helmerich & Payne Inc. | HP | 5.53 | 999 | 28.8 |
| AT&T Inc. | T | 5.03 | 18.31 | 2.2 |
| Archer Daniels Midland | ADM | 3.03 | 17.8 | 16.4 |
| Sonoco Products Co. | SON | 3.22 | 18.36 | 5.9 |
| W.W. Grainger Inc. | GWW | 3.07 | 19.19 | 10.4 |
| Old Republic International | ORI | 3.87 | 12.66 | 1.4 |
| Genuine Parts Co. | GPC | 3.18 | 18.38 | 6.4 |
| Weyco Group Inc. | WEYS | 3.16 | 18.34 | 5.8 |
| United Bankshares Inc. | UBSI | 3.83 | 17.51 | 1.8 |
| T. Rowe Price Group | TROW | 2.76 | 14.19 | 12.4 |
| People’s United Financial | PBCT | 3.96 | 19.38 | 1.5 |
| ExxonMobil Corp. | XOM | 3.85 | 33.49 | 6.6 |
| Consolidated Edison | ED | 3.33 | 19.09 | 2.9 |
| Kimberly-Clark Corp. | KMB | 3.15 | 20.6 | 6.2 |
| National Retail Properties | NNN | 4.75 | 35.38 | 3.6 |
| Community Trust Banc. | CTBI | 3.06 | 16.18 | 2.8 |
| Emerson Electric | EMR | 3.22 | 23.19 | 4.7 |
| Coca-Cola Company | KO | 3.23 | 47.75 | 7.7 |
| Leggett & Platt Inc. | LEG | 2.99 | 18.46 | 4.1 |
| Chevron Corp. | CVX | 3.96 | 71.37 | 3.2 |
| Eagle Financial Services | EFSI | 2.95 | 15.13 | 2.6 |
| Universal Health Realty Trust | UHT | 3.41 | 23.99 | 1.6 |
| VF Corp. | VFC | 2.7 | 23.56 | 18.7 |
There is no turnover in the portfolio for August. I will use the available cash in the portfolio to purchase 49 additional shares of HP which will lower its average cost basis. The current portfolio is below:
| Position | Shares | Average Purchase Price | Initial Purchase Date | Cost Basis | Current Value | Percentage Gain/Loss Excluding Dividends |
| PBCT | 1758 | 17.86 | 7/7/2017 | $31,397.88 | $30,448.56 | -3.02% |
| ED | 390 | 70.41 | 12/7/2016 | $27,459.90 | $32,471.40 | 18.25% |
| ORI | 1145 | 16.22 | 4/4/2014 | $18,571.90 | $22,155.75 | 19.30% |
| ADM | 762 | 41.95 | 6/6/2017 | $31,965.90 | $32,377.38 | 1.29% |
| TGT | 391 | 68.65 | 6/3/2016 | $26,842.15 | $22,627.17 | -15.70% |
| MO | 400 | 58.14 | 1/7/2016 | $23,256.00 | $26,124.00 | 12.33% |
| TROW | 300 | 71.35 | 7/5/2016 | $21,405.00 | $24,954.00 | 16.58% |
| HP | 390 | 76.57 | 10/6/2014 | $29,862.30 | $18,127.20 | -39.30% |
| WEYS | 1088 | 27.81 | 3/7/2017 | $30,257.28 | $29,724.16 | -1.76% |
| T | 650 | 38.13 | 3/7/2016 | $24,784.50 | $24,934.00 | 0.60% |
Disclosure: None.
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