Category Archives: Dividend Achiever Watch List

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 August 5, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Little was said about the top five companies in prior year. The one actionable item from our commentary was additional purchase of Carbo Ceramic (CRR) which didn't pan out well as oil supply continue to exceed demand. Despite that, the top five companies on our list returned 7% on average. The largest gain came from small regional bank Capital City Bank (CCBG). The biggest decline occurred in Gannett (GCI).

U.S. Dividend Watch List: August 4, 2017

The Dow reached another milestone breaking above 22,000 mark and closed the week at an all-time high. As a student of Dow Theory, it would be interesting to see Dow Jones Transport achieve the same mark. Despite that, we are still a continuation of a bull market. Below are companies on our watch list which we use as a starting point for our investment research. Continue reading →

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 July 22, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The top five companies from our list one year ago gained on average 21.5%. The biggest contributor to this gain came from Tiffany & Co. (TIF) which rose 51.1%. We took a bullish bet on Tiffany last year with a call option that turned out to be a well timed speculation. You can find more detail about that transaction here.

U.S. Dividend Watch List: July 21, 2017

It's another record week for the market as both the Dow Jones Industrial and S&P 500 reached all-time high. Interestingly, we believe that market breadth may be weakening as more more companies (more than 40) are appearing on our watch list. Similar condition last year produced 7 companies on our watch list. Our team would urge caution as new positions are established and existing positions are accumulated. If one are to start accumulating, we suggest start with companies on our watch list. Continue reading →

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 July 8, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The average return of the top five companies were exceptional at 32.1%. We were somewhat bullish about financial sector due to the large number of financial companies on our list. As such, we pointed our readers to Financial Sector ETF (XLF) which rose 32% for the year. Such strategy eliminated individual share risk. However, doing so would preclude you to more lucrative gain from shares of the like of State Street (STT) and S&T BanCorp (STBA)

Other notable companies include Tiffany (TIF), Target (TGT), Brown-Forman (BF-B), and Cardinal Health (CAH). Only Tiffany managed a positive return for the year. We may be blinded by our personal bias but we believe that these names still offer great value proposition for any income investors.

U.S. Dividend Watch List: July 7, 2017

There was some volatility in the market this week. Though the market ended the week relatively flat, the VIX rose 14% for the week. We urge readers to take caution as correction could occur at any moment. Our strategy is to utilize our watch list as a starting place for research. Below, you will 47 companies on our watch list. Continue reading →

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 June 24, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The performance of the top five companies were exceptional. The best performing stock was Goldman Sachs (GS) which gained 53%. Our take on the financial sector was wrong as we specifically urged readers to hold off on this sector for several months. Shares of Goldman did not fall below $139.50.

Trailing Goldman by a fraction of percentage point is Tiffany & Co. (TIF) whose shares rose 52.8%. Share price closed the week at $91.79 and we said last year that our fair value estimate for this company is around $100. Our assessment for Tiffany have proven to be correct and profitable as we were long Tiffany at the time of writing.

The worse performer was Cardinal Health (CAH) which gained only 5.9%. We thought shares should trade closer to $85 but that was wishful thinking on our part. Despite that, the company continued to provide dividend as income to shareholders.

U.S. Dividend Watch List: June 23, 2017

It was an uneventful week for the market and we're in the waiting mode to see of the S&P can break above 2,450 mark. At the end of the week, there are 36 companies on our dividend watch list. Continue reading →

It seems that even the Fed can't move the market with interest rate hike as the market was flat for the week. Despite the market being near its all-time high, our work of searching companies at their new low doesn't stop. Below, you will find a list of companies with good historical record of dividend paying company trading at or near its yearly low. Continue reading →

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 May 27, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The S&P 500 rose +15.10% in the last year. However, the top five companies on our watch list gained only +2.40% due to underperformance of 4 companies. The worst performer was Cal-Maine Foods (CALM) which is a major producer of eggs. We thought that the bottom was near at the time but we were proven wrong. Falling not far behind was HollyFrontier (HFC) which fell -8.10%. We didn't believe the company was providing enough margin of safety until it traded below book value. Refining is a difficult business but the utilization rate is approaching full capacity (100%, see data) which suggests that pricing should firm up in the near future. We are not suggesting an outright buy at this level but a purchase here is clearly better than last year.

U.S. Dividend Watch List: May 26, 2017

Another week and it's another all-time high for the S&P 500. The index rose +1.40% for the week. We ended the week with 37 companies on our watch list this week. Continue reading →

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 13, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Watch List Review

The average gain for the top five companies was 25.2% driven mainly by regional bank. The three banks gained more than 40%. The worse performer was Cardinal Health (CAH) which declined 4.4%. Our perspective then was that financial sector was near the bottom and urged our readers to assess ETF. In addition, we provided our readers with several companies to consider. Those companies combined for average gain of 15% where the S&P 500 gained 16.8%.

U.S. Dividend Watch List: May 12, 2017

The bull run continued to push forward and them market touched its all-time high this week but closed the week slightly down. There are 35 companies on our dividend watch list this week. Continue reading →

After spending months trading in range, it appeared that the market is ready for a breakout to the upside as the S&P 500 closed the week at its all-time high of 2,399. It is going to be an interesting week as the market look to break above 2,400. Below are 30 companies on our watch list this week. Continue reading →

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 April 8, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The top five companies did exceptionally well with average gains of +43.70%. During the same period, the Dow Jones Industrial Average and S&P 500 returned +17.50% and +15%, respectively. At the time, it was clear to us that the financial sector was the weakest of all industry groups judging by the number of companies belonging to the watch list. The following excerpt was taken from our post last year.

There are too many banks on the list to focus on so anyone interested in taking a early stake in the sector should consider ETFs such as XLF or VFH as the low may not be in yet.  The Wall Street Journal published a good piece on the sector titled, Miserable Year for Banks: Stocks Suffer as Rates Stay Low.

Those ETFs mentioned above (XLF and VFH) returned +32% in one year.

In addition to the financials, we pointed out two companies in the agriculture sector to watch out for, they were Monsanto (MON) and Lindsay (LNN) which returned +34% and +27%, respectively. We said the following about these two companies:

Two companies in the agricultural sectors are trading near their yearly low and worth a look.  Monsanto (MON) and Lindsay (LNN) may have not reached their respective "bottoms" but one should start research at these levels to identify their respective intrinsic values. Our valuation models suggest a possible downside risk of -30% for both companies. How likely are they to reach that level is to be seen. However, one can never pick the exact bottom of the stock price and multiple purchases is a great strategy to deploy. Because Lindsay (LNN) was on our list last year and remain in the same position, we interpret this as a potential bottoming process in the company.

U.S Dividend Watch List: April 7, 2017

The market continues to trade in a tight range between 2,300 and 2,350. We'll have to see if it can hold the 2,300 level and possibly retest 2,400. Despite being near an all-time high, we continue to seek long-term investments at a reasonable price and below are 28 companies you should consider. Continue reading →

Prior Year 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 25, 2016 and have checked their performance one year later. The top five companies on that list can be seen in the table below.

The average return for the top five companies from last year is +27.30% with the biggest gain coming from General Dynamics (GD). The company was trading at 14x net income last year when it appeared on the list. Fast forward to today, the stock is trading at nearly 20x net income so while net income rose only 5%, most of the gain came from multiple expansion. The worst performer was AIG (AIG) which gained +14.90% or 0.2% below the market.

U.S Dividend Watch List: March 24, 2017

The market fell -1.40% for the week with the S&P 500 is approaching 2,300. We'll take a flyer on the idea that a consolidation phase is occurring before any move up or down. Below is the watch list containing 26 companies on our dividend watch list. Continue reading →

The S&P 500 appears to be consolidating between 2,350 and 2,400. We will be looking to see if the bull can push above 2,400 level this week.

Although the stock market is virtually at its all-time high, the market fundamentals are comparable to last year. We observed the market multiple of 24x in September 2016 which is the same multiple we are seeing now.  One thing to note is rising interest rates during the same time frame.  The 10-year notes rose to 2.50% from 1.60%, a staggering +56% increase in rate. However, at the same time the stock market is up more than +10%.

As the saying goes, a rising tide lifts all boats.  A bull market lifts all companies and there are only 20 companies on our watch list this week. Continue reading →

Top Five Watch List Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from March 4, 2017 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

We highlighted the top two companies last year. Needless to say, they've done well. However, our assessment of Monsanto (MON) was not accurate as we suggested our reader to be more careful of the projected valuation. Valueline estimated shares to be undervalued by 40% at the time and shares have risen 33% since last year. As for AIG (AIG), shares were trading 30% below book value last year. Since then, shares have climbed 22%.

U.S. Dividend Watch List: March 3, 2017

Another week, another record high which lead to potential rate hike by the Fed. We'll have an update to the Coppock Curve mid week. Until then, please review the list below for dividend paying company trading at or near the low.

Continue reading →

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 19, 2016 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The top five companies on our watch list had an average gain of 19.7% which trailed the average 6%. One of the factor contributing to our underperformance, if you consider 19.7% as such, came from Sigma-Aldrich (SIAL) which didn't trade up or down due to the acquisition. Shares remained flat for the entire year. Although we spoke little about the list, we were lucky enough to highlight two companies with exceptional performance. Stanley Black & Decker (SWK) and Cintas (CTAS) were the two companies our team eluded to. Cintas rose 42% and Stanley Black & Decker rose 37%. Our justification for their consideration was because they were part of an elite group called Dividend Aristocrat.

U.S. Dividend Watch List: January 17, 2017

Another week, another record for the market. The bull continued to push the market higher but in contrary, the number of company approaching the low has not decline much. Below are 22 companies on our watch list. Continue reading →

The bull is back in charge as of Friday and is looking to take the market back to its all-time high. Despite political turmoil and uncertainly, the market appears to be looking onward and forward. At the end of the week, there are 28 companies on our list. Continue reading →