High Yield Dividend Champion Portfolio December Update
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 November, “999” indicates an N/A value):
| Name | Symbol | Yield | P/E | 3-yr |
| Altria Group Inc. | MO | 5.84 | 13.99 | 8.3 |
| Target Corp. | TGT | 3.61 | 13.62 | 8.7 |
| Eaton Vance Corp. | EV | 3.44 | 13.01 | 8.1 |
| Tanger Factory Outlet Centers | SKT | 5.92 | 40.78 | 12.7 |
| Leggett & Platt Inc. | LEG | 3.92 | 15.5 | 5 |
| Archer Daniels Midland | ADM | 2.91 | 12.71 | 10.1 |
| AT&T Inc. | T | 6.4 | 15.54 | 2.1 |
| Universal Corp. | UVV | 4.73 | 15.24 | 1.9 |
| Consolidated Edison | ED | 3.56 | 3.65 | 3.1 |
| People’s United Financial | PBCT | 4.15 | 13.82 | 1.5 |
| Black Hills Corp. | BKH | 3.05 | 6.59 | 5.1 |
| ExxonMobil Corp. | XOM | 4.13 | 19.63 | 4.3 |
| PSB Holdings Inc. | PSBQ | 4.42 | 999 | 6.7 |
| T. Rowe Price Group | TROW | 2.82 | 13.25 | 9 |
| Franklin Resources | BEN | 2.71 | 10.52 | 18.6 |
| Illinois Tool Works | ITW | 2.88 | 18.61 | 16.1 |
| Old Republic International | ORI | 3.46 | 8.08 | 1.4 |
| PepsiCo Inc. | PEP | 3.04 | 21.02 | 7.7 |
| Community Trust Banc. | CTBI | 3.12 | 14.72 | 3.2 |
| Realty Income Corp. | O | 4.13 | 53.86 | 5 |
| Kimberly-Clark Corp. | KMB | 3.47 | 24.6 | 5.6 |
| Meredith Corp. | MDP | 3.81 | 999 | 6.3 |
| National Retail Properties | NNN | 4 | 35.25 | 4.1 |
| United Bankshares Inc. | UBSI | 3.76 | 15.26 | 1 |
| Computer Services Inc. | CSVI | 2.73 | 16.59 | 15.8 |
There is turnover in one position this month. PepsiCo (PEP), a holding since June 2018, was sold for a capital gain of 13.01%. The proceeds were used to purchase Eaton Vance (EV), currently ranked third on the list.
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 | $34,747.44 | 11.90% |
| UVV | 540 | 60.15 | 9/9/2018 | $32,481.00 | $33,836.40 | 4.17% |
| PBCT | 1896 | 17.28 | 10/8/2018 | $32,762.88 | $30,601.44 | -6.60% |
| EV | 869 | 36.82 | 12/7/2018 | $31,996.58 | $31,996.58 | 0.00% |
| TGT | 391 | 68.65 | 6/3/2016 | $26,842.15 | $26,513.71 | -1.22% |
| MO | 504 | 58.24 | 1/7/2016 | $29,352.96 | $27,306.72 | -6.97% |
| SKT | 1400 | 21.11 | 5/7/2018 | $29,554.00 | $34,104.00 | 15.40% |
| ED | 385 | 75.31 | 3/8/2018 | $28,994.35 | $31,747.10 | 9.49% |
| BEN | 930 | 33.3 | 8/8/2018 | $30,969.00 | $29,983.20 | -3.18% |
| T | 928 | 36.4 | 3/7/2016 | $33,779.20 | $27,969.92 | -17.20% |
| Cash | Cash | $12,091.47 |
Disclosure: None.
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