Category Archives: Dividend Watch List

U.S. Dividend Watch List: February 16, 2018

Previous Year Performance Review

In our on-going review of the NLO Dividend Watch List, we have taken the top five stocks on our list from February 17, 2017 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Symbol Name 2015 Price 2016 Price % change
MAC Macerich 66.41 60.66 -8.7%
KO Coca-Cola Co 41.23 44.98 9.1%
BMS Bemis Co Inc 48.62 45.97 -5.5%
SO Southern Company 47.80 43.93 -8.1%
SCG SCANA Corporation 65.65 37.71 -42.6%
      Average -11.1%
         
DJI Dow Jones Industrial 20,624.05 25,219.38 22.3%
SPX S&P 500 2,351.16 2,732.22 16.2%

Looking back at our commentary about Macerich (MAC), it's fair to say that our analysis was accurate. We felt that Macerich would underperform in the rising interest rate environment and the stock did just that. The following commentary came from the post last year.

"The valuation of Macerich is depended heavily on the interest rate cycle thus Valueline estimated that Macerich is trading below fair value but with declining secular trend as interest rate is expected to rise. Knowing that there are two strong secular headwinds, declining fundamental for mall and interest rate, we urge extreme caution to our readers."

The average change for the top five companies was -11.10% and the brightest spot from the top five was Coca-Cola (KO). A company we were optimistic about at the low and executed on that thesis. The following excerpt was extracted from the list a year ago.

"Next on our list is a company that is familiar to all, Coca-Cola (KO). The stock reached a low of $40 last December and trading in range between $42 and $40 for nearly 6 months. Perhaps the stock is forming a bottom or consolidating before another leg down. We acquired more shares as recent[ly] as last November thus it's fair to say that we are hopeful for the bottoming thesis."

U.S. Dividend Watch List: February 16, 2018

It was a good week for the bulls as the market rose +4.30%. Despite that rise, the correction put many companies in our watch list. Below are 55 companies that appear on this week's watch list. Continue reading

Performance Review: February 7, 2014

Below is the 4-year & 1-year total return performance of our Dividend Watch List from February 7, 2014  as compared to the Dow Jones Industrial Average.  We have also included the top three stocks in the respective categories from our February 2, 2018 U.S. Dividend Watch List.

U.S. Dividend Watch List: February 2, 2018

There are some who have described the recent market pullback as "market crash" or "blood bath." Yes the decline is large but to put things into perspective, the market (S&P 500) has risen +47% for the past 2 years. This equates to an annualized return of +23.50% which is close to the return of the best investor in the world, Warren Buffett. The pullback should be expected and welcoming for a healthy bull market. Should one choose to utilize this pullback as an entry point, we urge our reader to start with high quality companies which have consistent dividend payments, as listed below.

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U.S. Dividend Watch List: January 19, 2018

Previous Year Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from January 20, 2017 and have checked their performance one year later. The top five companies on that list can be seen in the table below.

Symbol Name 2015 Price 2016 Price % change
TGT Target Corp. 64.10 78.10 21.8%
VFC VF Corp. 51.85 79.79 53.9%
BF-B Brown-Forman Corp. CL 'B' 45.02 67.50 49.9%
KIM Kimco Realty Corp. 25.15 16.41 -34.8%
KO Coca-Cola Co 41.32 47.16 14.1%
      Average 21.0%
         
DJI Dow Jones Industrial 19,827.25 26,071.72 31.5%
SPX S&P 500 2,271.31 2,810.30 23.7%

While the average gain of the top five companies was exceptional in our view, the gain of +21% fall short of the S&P 500 gain of +23.70% gain and +31.50% gain of the Dow. The best performer was VF Corp (VFC). Because the company appeared on our list and seemed attractive to us on a fundamental basis, we took a long position.

Target (TGT) gained +21.80% over the course of the last year. We thought that the stock was attractive as negative news seemed to come out on a daily basis. A buyer of Target would have received 3.70% in dividends in addition to the price appreciation.

Looking back, it is clear that we missed an opportunity in Brown-Forman (BF-B), the maker of Jack Daniel's. Typically we find that companies with  strong brands and legacy assets to be attractive and we missed our mark with Brown-Forman. There were likely multiple factors which led us to ignore this company. However, our valuation model, based on the fundamentals, suggested that BF-B shares should be considered at or below the $45 level. Is there a lesson we can take away from this? We would say that, if and when a company with strong brands appear on our list, do not ignore them and consider doing the initial research.

U.S. Dividend Watch List: January 19, 2018

The list of 33 companies below represents have strong dividend track records. Not all companies on the list are at good values, they have fallen from their highs which we think is a good starting point to identifying potential long-term investments. Continue reading

U.S Dividend Watch List: January 12, 2018

We've started the new year off to a strong as the bull market hasn't skipped a beat. This has made finding investments challenging. However, it hasn't slowed us down and we have taken our equity exposure to the highest level yet. The number of companies below is a good place for anyone to start their research for a long idea. Continue reading