New Dividend Portfolio Now Tracked!

I have written updates the past 2 months on a screen I call "High Yield Stocks with Staying Power".  The screen will now be tracked publicly as a continuous hypothetical portfolio with a starting balance of $100,000 on Scott's Investments (see the right hand column for a portfolio titled "High Yield Stocks with Staying Power").

Like many of the screens, strategies, and portfolios I track and prefer, this strategy takes a small number of  historically relevant ideas, to create a simple, yet powerful action plan for the individual investor. As I have previously detailed,  "Some studies have shown that the, highest yielding, low payout stocks perform better over time than stocks with higher payouts and lower yields."


Therefore, why not create a portfolio of high yield, low payout stocks?  In addition, why not feature stocks which have a long history of paying dividends?  This portfolio attempts to capture these three simple strategies.  


Each month I will begin with the Dividend Champions list as compiled at DRIP Investing.  The list is comprised of stocks which have increased their dividend payout for at least 25 consecutive years. I then take the top third of Dividend Champions based on yield and sort the results based on the top third with the lowest payout ratio.  This month's Dividend Champions list has 99 stocks, so the top 33 yielding stocks was my starting point.  I then ranked the remaining 33 based on payout ratio and take the top third, or 11 stocks.  These stocks will comprise the month portfolio. 


The goal is to weigh the odds in our favor that we will be investing in stocks which have historically paid and raised dividends. In addition, we want stocks with a high yield in order to increase income received. 


I began tracking the portfolio in December and to date it is up 3.07% including dividends.  For Monday, February 7th, the portfolio will sell Sonoco (SON) and buy Kimberly-Clark (KMB).


This months top 11 results, or current portfolio effective Monday, are below:

Ticker	Company	Industry	Retire- ment Portfolios	Dividend Yield	Payout Ratio	200-Day Simple Moving Average
UVV	Universal Corp.	Tobacco Products, Other	Here	5.09%	33.77%	-6.93%
JNJ	Johnson & Johnson	Drug Manufacturers - Major	Here	3.55%	41.71%	0.34%
T	AT&T, Inc.	Telecom Services - Domestic	Here	6.15%	47.03%	5.57%
MCD	McDonald's Corp.	Restaurants	Here	3.30%	47.91%	1.81%
SYY	Sysco Corp.	Food Wholesale	Here	3.48%	51.13%	2.31%
CINF	Cincinnati Financial Corp.	Property & Casualty Insurance	Here	4.83%	52.02%	16.43%
CLX	Clorox Corporation	Housewares & Accessories	Here	3.35%	55.81%	3.71%
CTBI	Community Trust Bancorp Inc.	Regional - Southeast Banks	Here	4.23%	55.83%	5.80%
ABT	Abbott Laboratories	Drug Manufacturers - Major	Here	3.82%	56.29%	-4.56%
PNY	Piedmont Natural Gas Co. Inc.	Gas Utilities	Here	4.00%	56.38%	2.39%
KMB	Kimberly-Clark Corporation	Personal Products	Here	4.06%	57.84%	4.09%

No positions, data courtesy of Finviz. Portfolio will be updated monthly on around the 5th of the month.  Modifications may be made in the future to limit turnover.




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