Prior Year Performance Review
In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from May 5, 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 |
| SKT |
Tanger Factory Outlet Centers |
28.63 |
20.77 |
-27.5% |
| GWW |
W.W. Grainger |
189.23 |
286.77 |
51.5% |
| SCG |
SCANA Corporation |
65.94 |
36.50 |
-44.6% |
| BMS |
Bemis Co Inc |
45.38 |
42.73 |
-5.8% |
| SJM |
JM Smucker |
126.08 |
113.31 |
-10.1% |
| |
|
|
Average |
-7.3% |
| |
|
|
|
|
| DJI |
Dow Jones Industrial |
21,006.94 |
24,262.51 |
15.5% |
| SPX |
S&P 500 |
2,399.29 |
2,663.42 |
11.0% |
The average loss for the top five companies was 7.3%. Weighting down the list was SCANA Corporation (SCG) and Tanger Factory Outlet Centers (SKT) who lost 44.6% and 27.5% respectively. We didn't foresee the extreme drop in price but did warned our reader on REIT. The excerpt below was our remark.
One should exercise extreme caution on Real Estate Investment Trust (REIT). These include companies such as Tanger Factory (SKT) and SCANA (SCG). We believed that income investors entered this sector aggressively which makes the risk/reward profile at current level unattractive to us.
The best performing company of the top five was W.W.Grainger (GWW) with 51.5% gain. Our team was bullish on W.W. Grainger last year and was fortunate enough to get the timing right. As part of an elite group call Dividend Aristocrat, we believed that risk/reward was appropriate at the level we saw last year. However, there were companies in Dividend Aristocrat that went the opposite direction. AT&T (T) and Procter & Gamble (PG) lost 17% and 16% respectively.
U.S. Dividend Watch List: May 4, 2018
The market started the week at 2,680, dropped to 2,600 and closed the week at 2,660. The volatility is setting in but we see consolidation occurring. Our team continue to be mindful of the March low as the level to watch. If and when that level is breached, we will reassess our asset allocation between cash and equity holding. Below are companies for this week dividend watch list. Continue reading →
