Below are the 19 companies on our U.S. Dividend Watch List that are within 11% of their respective 52-week lows. 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 rigorous due diligence.
| Symbol | Name | Price | % Yr Low | P/E | EPS (ttm) | Dividend | Yield | Payout Ratio |
| WEYS | Weyco Group | 23.03 | 4.63% | 14.95 | 1.54 | 0.68 | 2.95% | 44% |
| FDO | Family Dollar Stores | 55.94 | 5.03% | 15.58 | 3.59 | 0.84 | 1.50% | 23% |
| ED | Consolidated Edison | 56.58 | 5.50% | 14.66 | 3.86 | 2.46 | 4.35% | 64% |
| SO | Southern Company | 44.11 | 5.65% | 16.34 | 2.70 | 1.96 | 4.44% | 73% |
| LKFN | Lakeland Financial Corp. | 24.96 | 6.35% | 11.61 | 2.15 | 0.68 | 2.72% | 32% |
| MSFT | Microsoft Corporation | 28.01 | 6.66% | 15.39 | 1.82 | 0.92 | 3.28% | 51% |
| MHP | McGraw-Hill Cos. | 44.95 | 6.97% | 29.38 | 1.53 | 1.12 | 2.49% | 73% |
| YUM | Yum! Brands | 63.99 | 7.22% | 18.93 | 3.38 | 1.34 | 2.09% | 40% |
| MYE | Myers Industries | 13.80 | 8.24% | 15.68 | 0.88 | 0.32 | 2.32% | 36% |
| DBD | Diebold | 29.96 | 8.32% | 24.36 | 1.23 | 1.15 | 3.84% | 93% |
| SYBT | S.Y. BanCorp. | 22.75 | 9.06% | 12.30 | 1.85 | 0.80 | 3.52% | 43% |
| KO | Coca-Cola Co | 37.42 | 9.26% | 18.99 | 1.97 | 1.02 | 2.73% | 52% |
| AROW | Arrow Financial Corp. | 24.70 | 9.30% | 13.35 | 1.85 | 1.00 | 4.05% | 54% |
| BCR | CR Bard | 100.79 | 9.66% | 16.36 | 6.16 | 0.80 | 0.79% | 13% |
| INTC | Intel Corp. | 21.12 | 9.80% | 9.91 | 2.13 | 0.90 | 4.26% | 42% |
| WABC | Westamerica BanCorp. | 44.49 | 9.85% | 15.18 | 2.93 | 1.48 | 3.33% | 51% |
| PX | Praxair | 110.15 | 10.15% | 19.63 | 5.61 | 2.40 | 2.18% | 43% |
| TEG | Integrys Energy Group Inc | 56.16 | 10.36% | 17.72 | 3.17 | 2.72 | 4.84% | 86% |
| FDS | FactSet Research Systems | 94.30 | 10.45% | 22.24 | 4.24 | 1.24 | 1.31% | 29% |
| 19 Companies | ||||||||
Watch List Review
Weyco (WEYS) is trading closest to its 52-week low this week. This footwear manufacture from Milwaukee has been on our list several times prior to this. The stock has been trading in a range for 3 years with the price ranging from $25 and $23. We are waiting to see what the 2012 financials come in at. Weyco has had a great several years with revenue growing from $225,305 in 2009 to $271,100 in 2011, a 9.7% annualized growth rate. Earnings per share (EPS) also expanded at a fast rate over the same time frame. EPS in 2011 was $1.37 compared to $1.11 in 2009, with an annualized growth rate of 11.1%. We don’t believe the company is facing some challenges in growing the top line with their niche market focus and a brand with limited visibility. Nevertheless, the recent strong growth rates coupled with a great dividend yield make Weyco worth looking into.
Trading just above its 52-week low is one of the largest discount retailer in the U.S., Family Dollar (FDO). The stock has fallen from its peak price of $74 down to $56. Despite the profit growth expectation of 10% (from $3.64 to $3.98), slowing of sales growth and margin contraction is holding shares back. Competitions is also brewing with Dollar General (DG) and Dollar Tree (DLTR) opening more stores in 2013. Income investors can rest assure that the dividend will be increased if not maintain because of their low payout ratio and strong cash flow.
Finally, we all know Warren Buffett is a big fan (and investor) of Coca-Cola (KO). This week's appearance on our watchlist is a rarity for this iconic company. The stock has retraced 8.6% from its peak price of $40.67. The dividend yield sits around 2.7% with a 50% payout ratio. Valueline Investment Survey expects Coca-Cola to trade at 17x cash flow. The stock is currently trading at 16x cash flow. In any case, if one ever wants to own Coca-Cola for the Buffett factor, this might be the time to start considering the stock.
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. Our view is to embrace the worse case scenario prior to investing. 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.