In the December 2019 Issue, Morningstar.com published their DividendInvestor which contains their Income Bellwether Watchlist. Below is the performance* of the stocks based on the top highest and lowest dividend yield from November 11, 2019 to November 11, 2020.
As the data continues to demonstrate, low yield generally outperforms high yield. This has been resoundingly shown in our Dogs of the Dow in the period from 1996 to 2019.
*United Technologies was excluded from the results.
see also:
Posted in Dogs of the Dow, Income Bellwethers, Morningstar
Below is a chart of investment returns for various instruments as published by Business Insider. This includes our own high P/E Dogs of the Toronto Stock Exchange 60.
see also:
Posted in Bitcoin, Dogs of the TSX, Index YTD, TSX 60
The following is the breakdown of the Dogs of the TSX (here) in week 48, compared to other fundamental ratios. Continue reading
Below is a chart of HDFC Bank Limited from 2001 to 2020 reflecting the year-over-year (YoY) percentage change. This assessment reviews the probability of performance in the coming year(s).
Below is a chart of ICICI Bank Limited from 2001 to 2020 reflecting the year-over-year (YoY) percentage change. This assessment reviews the probability of performance in the coming year(s).
Below is the Coppock Curve for Realty Income (O): Continue reading
Below is the Coppock Curve data for the following indexes as of the end of October 2020:
If you’re interested in a index not listed, let us know. Continue reading
On this date in 1620, the (Plymouth) Council for New England was chartered by the king of England as a joint stock company with monopoly rights on (found here):
“…all the Breadth aforesaid throughout the Maine Land, from Sea to Sea [emphasis ours], with all the Seas, Rivers, Islands, Creekes, Inletts, Ports, and Havens, within the Degrees…”
The profits should be derived from (found here):
“…the Firme Lands, Soyles, Grounds Havens, Ports, Rivers, Waters, Fishings, Mines, and Mineralls, as well Royall Mines of Gold and Silver, as other Mine and Mineralls, precious Stones, Quarries, and all, and singular other Comodities, Jurisdictions, Royalties, Priveliges, Franchises, and Preheminences…”
The payments of those profits should be paid to (found here):
“…Us [England’s Royalty], our Heires, our Successors, the fifth [20%] Part, of the Ores of Gold and Silver, which from time to time, and aft all times hereafter, shall happen to be found, gotten, had, and obtained, in or within any the said Lands, Limitts, Territoryes, and Precincts, or in or within any Part or Parcell thereof, for, or in Respect of all, and all Manner of Dutys, Demands, and Services whatsoever, to be done, made, or paid to Us, our Heires, and Successors.…”
By 1635, the charter for the Council of New England was revoked. However, within the time of the Council for New England’s existence, which later folded into the Massachusetts Bay Company and other corporate entities, the wheels of a new nation were put into motion.
Review last year’s list, we see that closest to the low was the best strategy which lost only 0.6%. The market, however, gained 6.6% since last year. Purchasing companies with low P/E or high dividend yield, a classic value approach, did not work out well.
| November 1, 2019 | ||
| Strategy | High | Low |
| Yield | -45.7% | -10.8% |
| P/E | -7.4% | -49.6% |
| Payout Ratio | -25.6% | -26.7% |
| P/B | -1.2% | -29.7% |
| Closest to Low | -0.6% | |
| S&P 500 | 6.6% | |
| Dow Jones Ind | -3.1% | |
| Top 5 companies except for Index |
||
Majority of the gained came from Clorox (CLX) gained 40.9% and CH Robinson (CHRW) gained 18.4%.
U.S. Dividend Watch List: October 9, 2020
The market pulled back from all-time high and consolidation period will be healthy for this up market to continue. The pull back pushed more companies closer to their yearly low.
Continue reading
Posted in Dividend Achiever Watch List, Dividend Achievers, Dividend Watch List
Tagged members
On this date, in his letter to shareholder, Robert L. Rodriguez said the following:
"We believe the past six months is nothing more than consolidation after a period of superior performance. The overall market exhibits these same tendencies. Large capitalization stocks have outperformed smaller capitalization stocks. This is the reverse of 1991.
“With the cross currents of both a sluggish economic recovery and a national election, investors appear to be confused as to what market capitalization segment to focus on. We believe the trend towards investing in smaller capitalization stocks has experienced only a pause rather than a reversal.
“The recent severe underperformance by several ‘blue chip’ companies and the re-emergence of interest in small capitalization stock managers by pension funds convince us that the trend towards smaller stock investing is still intact. As capital is redeployed from larger stocks to smaller stocks, it will have an exponential impact."
Robert L. Rodriguez. FPA Capital Fund. “Letter to Shareholders”. November 1, 1992.
Posted in On This Day, Robert Rodriguez
In November 2019, Morningstar.com published their DividendInvestor which contains their Income Bellwether Watchlist. Below is the performance of the stocks based on the top highest and lowest dividend yield from October 9, 2019 to October 9, 2020.
As the data continues to demonstrate, low yield generally outperforms high yield. This has been resoundingly shown in our Dogs of the Dow in the period from 1996 to 2019.
see also:
Posted in Dogs of the Dow, Income Bellwethers, Morningstar
Dow: 1906 to 1924
Dow: 1921 to 1929
1966 to 1982
Dow: 1978 to 2000
Dow: 2000 to 2016
Nasdaq: 2000 to 2016
We’re hopeful that a picture is worth a thousand words. However, if narrative is required then read our article title “Dow 130,000 by 2032”.
Posted in Uncategorized
We begin with a look back at last year’s list. The S&P 500 rose 18.3% and the Industrial rose 7.9%. Purchasing the top 5 companies closest to the low would result in a loss of 60.1% while the best strategy was to purchase top 5 companies with highest P/B ratio. One theme is clear from our data, the typical value metrics didn’t work well.
| October 11, 2019 | ||
| Strategy | High | Low |
| Yield | -58.2% | -7.3% |
| P/E | 6.1% | -60.1% |
| Payout Ratio | -34.5% | -20.7% |
| P/B | 18.4% | -20.1% |
| Closest to Low | -60.1% | |
| S&P 500 | 18.3% | |
| Dow Jones Ind | 7.9% | |
| Top 5 companies except for Index |
||
Under the high P/B, 2 best performers were Eli Lilly (LLY) & Clorox (CLX). Hindsight is 20/20 but wouldn’t we all want to own Clorox knowing a pandemic was on the horizon?
U.S. Dividend Watch List: October 9, 2020
The market picked up a slight momentum going into October and we’re seeing a push toward the high. This movement pushed a lot of companies out of their yearly low range but we managed to gather a list for this week. Continue reading
Posted in Dividend Achiever Watch List, Dividend Achievers, Dividend Watch List
Tagged members
Below are the valuation targets for Ball Corp. (BLL) for the next 10 years. Continue reading