Theodore Roosevelt said "Do what you can, with what you have, where you are". Here are ways you can help those who are affected by the Earthquake in Japan.
Our watch list this week contains 31 companies that are within 11% of their 52-week low.
March 11, 2011 Watch List
| Symbol |
Name |
Price |
% Yr Low |
P/E |
EPS (ttm) |
Dividend |
Yield |
Payout Ratio |
| HCBK |
Hudson City Bancorp, Inc. |
9.92 |
1.54% |
9.10 |
1.09 |
0.60 |
6.05% |
55% |
| SYY |
Sysco Corp. |
27.83 |
2.58% |
14.35 |
1.94 |
1.04 |
3.74% |
54% |
| SHEN |
Shenandoah Telecom |
16.01 |
2.89% |
17.59 |
0.91 |
0.33 |
2.06% |
36% |
| BMI |
Badger Meter, Inc. |
37.68 |
3.04% |
19.73 |
1.91 |
0.56 |
1.49% |
29% |
| WABC |
Westamerica BanCorp. |
50.25 |
3.18% |
15.65 |
3.21 |
1.44 |
2.87% |
45% |
| FCBC |
First Community Bancshares |
12.26 |
3.20% |
9.97 |
1.23 |
0.40 |
3.26% |
33% |
| MCY |
Mercury General Corp. |
39.31 |
3.72% |
14.14 |
2.78 |
2.40 |
6.11% |
86% |
| CWT |
California Water Service |
35.17 |
4.02% |
19.43 |
1.81 |
1.23 |
3.50% |
68% |
| WEYS |
Weyco Group, Inc. |
23.21 |
4.13% |
20.18 |
1.15 |
0.64 |
2.76% |
56% |
| SJW |
SJW Corp. |
23.34 |
4.90% |
17.95 |
1.30 |
0.69 |
2.96% |
53% |
| CHFC |
Chemical Financial Corp. |
19.72 |
4.95% |
22.41 |
0.88 |
0.80 |
4.06% |
91% |
| JNJ |
Johnson & Johnson |
59.69 |
4.98% |
12.49 |
4.78 |
2.16 |
3.62% |
45% |
| AWR |
American States Water Co. |
32.93 |
5.41% |
22.40 |
1.47 |
1.04 |
3.16% |
71% |
| ATNI |
Atlantic Tele-Network, Inc. |
32.09 |
5.49% |
12.30 |
2.61 |
0.88 |
2.74% |
34% |
| PPL |
PP&L Corporation |
25.26 |
6.36% |
11.69 |
2.16 |
1.40 |
5.54% |
65% |
| TGT |
Target Corp. |
51.53 |
6.84% |
12.88 |
4.00 |
1.00 |
1.94% |
25% |
| PEP |
PepsiCo Inc. |
64.65 |
7.18% |
16.49 |
3.92 |
1.92 |
2.97% |
49% |
| HGIC |
Harleysville Group Inc. |
32.58 |
7.49% |
13.46 |
2.42 |
1.44 |
4.42% |
60% |
| RBCAA |
Republic BanCorp., Inc. |
18.10 |
7.67% |
5.86 |
3.09 |
0.57 |
3.15% |
18% |
| SYBT |
S.Y. BanCorp., Inc. |
23.93 |
7.99% |
14.33 |
1.67 |
0.72 |
3.01% |
43% |
| CL |
Colgate-Palmolive Co. |
79.18 |
8.29% |
18.37 |
4.31 |
2.32 |
2.93% |
54% |
| AVP |
Avon Products, Inc. |
27.16 |
8.64% |
19.54 |
1.39 |
0.92 |
3.39% |
66% |
| ABT |
Abbott Laboratories |
48.46 |
8.68% |
16.37 |
2.96 |
1.92 |
3.96% |
65% |
| LLY |
Eli Lilly & Co. |
34.86 |
8.87% |
7.61 |
4.58 |
1.96 |
5.62% |
43% |
| RLI |
RLI Corp. |
55.47 |
9.06% |
9.25 |
6.00 |
1.16 |
2.09% |
19% |
| KMB |
Kimberly-Clark Corp. |
64.65 |
9.15% |
14.53 |
4.45 |
2.80 |
4.33% |
63% |
| TRH |
Transatlantic Holdings, Inc. |
48.28 |
9.53% |
7.80 |
6.19 |
0.84 |
1.74% |
14% |
| WMT |
Wal-Mart Stores, Inc. |
52.59 |
10.09% |
11.79 |
4.46 |
1.46 |
2.78% |
33% |
| VLY |
Valley National BanCorp. |
13.59 |
10.22% |
16.78 |
0.81 |
0.72 |
5.30% |
89% |
| BOH |
Bank of Hawaii Corp. |
46.96 |
10.26% |
12.36 |
3.80 |
1.80 |
3.83% |
47% |
| PRK |
Park National Corp. |
64.10 |
10.65% |
14.21 |
4.51 |
3.76 |
5.87% |
83% |
| 31 Companies |
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Watch List Summary
On the top of our list this week is Hudson City Bancorp (HCBK). The stock has been under pressure this week. Current yield of 6% is attractive but with nearly $30B of debt and only $650M of cash on hand, it many not be worth risk/reward.
Sysco (SYY) remains second on our list again. Our guess is that the stock has been hit by the high food costs and the inability to pass such costs on to customers. Two weeks ago shares were trading at 3.73% yield which is slightly lower than where we are. If share revert to "undervalue" range of 2% according to IQTrend, that's a 87% upside from here.
Target (TGT) is another name with a tremendous upside potential gauging by the relative dividend yield establish by IQTrend. Historically, shares are undervalue at 1% yield. With the stock trading nearly 2%, it has the potential to double, all else being equal.
Top Five Performance Review
In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from March 12, 2010 and have check their performance one year later. The top five companies on that list can be seen in the table below.
| Symbol |
Name |
2010 Price |
2011 Price |
% change |
| XOM |
Exxon Mobil Corp. |
66.80 |
82.12 |
22.93% |
| AWR |
American States Water Co. |
32.50 |
32.93 |
1.32% |
| MON |
Monsanto Co. |
72.35 |
67.51 |
-6.69% |
| FPL |
FPL Group, Inc. |
47.07 |
55.69 |
18.31% |
| CWT |
California Water Service |
36.55 |
35.17 |
-3.78% |
|
|
|
Average |
6.42% |
|
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|
|
|
| DJI |
Dow Jones Industrial |
10,624.69 |
12,044.40 |
13.36% |
| SPX |
S&P 500 |
1,149.99 |
1,304.28 |
13.42% |
The performance of our top five stocks lagged the overall market. Exxon (XOM) was a slow starter but once crude price picked up, it carried on the momentum. California Water (CWT) and Monstanto (MON) were the major drag for our top five.
Disclaimer
On our current list, we excluded companies that have no earnings. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and extensive due diligence. We suggest that readers use the March 2009 low (or the companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. A minimum of 50% decline or the November 2008 to March 2009 low, whichever is lower, would fit that description. It is important to place these companies on your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety. It is our expectation that, at the most, only 1/3 of the companies that are part of our list will outperform the market over a one-year period.
