Category Archives: Dividend Achievers

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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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.

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 →

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 →

Another year is in the book and it ended on the high note. The S&P 500 rose 20% and Dow Jones Industrial Average gained an astonishing 25% for the year. This bull market is relentless and shows no sign of slowing down going into 2018. The good news for us and most investors are that being long the market is an easy bet. The toughest part, at least for us, is to fine new investment as small amount of companies trade near the yearly low. However, utilizing the list below, we believe, will give us the best chance of succeeding in the long term.

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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 December 9, 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 gained 10.5% on average. The best performer was Clorox (CLX) which rose 26.0%. Clorox's P/E at the time of our watch list publication was 23, a high multiple for large company. One of theory we have been pondering about is the exceptional return from high P/E stocks that appear on our watch list. More assessment of this thesis is to come.

Although the average gain didn't exceed the market return of 17.3% from S&P500 or the Dow Jones Industrial gain of 23.1%, we consider return of more than 10% to be satisfactory.

The worst performer is a utility holding company,PP&L Corporation (PPL). Interestingly, PP&L is appearing on this week watch list as shares fell from $40 to $34.50. One story our team is discussing has to do with the energy usage pertaining to mining of Bitcoin or other cryptocurrency. Could this be the catalyst that propel utilities companies to higher profitability? It's certainly possible. This article on WIRED highlights important data point in that regard.

U.S Dividend Watch List: December 8, 2017

The relentless bull market marched forward. There's little sign of slowing down but a correction surely is in the future and healthy. The difficulty of seeking viable new investment in this environment is challenging but not impossible. Every now and then, the market give us the opportunity to establish a position. Many of those companies can be found by tracking our watch list for fundamental and track its technical for better timing. Below are companies on our list this week. Continue reading →

The market is making an attempt to best the 2,600 level on S&P 500. Will wait and see if the bull could make this happen and closed the year above that level. This has been a slow and steady incline since 2,400 mark back in August. A correction to 50 days SMA, which is the range of 2,550, is probable and healthy. We do hope that some kind of correction is in the near future. When that occurs, we have 66 companies on the list as a starting point. 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 November 4, 2014 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Prior Year Performance Review

The top five companies from last year's list were outperformed by the market. The strength of this bull market has propelled the market to its all-time high. We believed that Clorox (CLX) and Kimberly-Clark (KMB) were quality companies worth considering as income producing asset while Pitney Bowes (PBI) should be placed under speculative category. Reviewing the performance table above and we believed our initial assessment was accurate.

The other two companies we mentioned were CVS Caremark (CVS) and Nike (NKE). Despite some negative news on Nike, the company performed well while CVS fell 16% for the year.

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

It appears that nothing can slow or stop this bull market from marching forward. Growth and momentum stocks are in the range while value strategy is left in the dust. That's precisely the situation we are in. Despite that, we remain true to this strategy and will continue to seek quality company at a reasonable price. Below are 63 companies trading at or near its yearly high. Continue reading →

The bull market march on this week. The S&P 500 is only 25 points away from 2,600. Though it is difficult to find quality companies to purchase at a discount price when the market is at the all-time high, we managed to put together a list of high quality companies which pay dividend trading near their yearly low. Below are list of 30 companies for 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 September 23, 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 underperformed the market due to loss from Gannett Co (GCI) and CVS Caremark (CVS). We didn't elaborated on these companies but did highlighted two that out performend the market. Wells Fargo (WFC) and T.Rowe Price (TROW) were both mentioned by our team. Lucky for us, they have gained 18.6% and 31.5% respectively. At the time, we thought that the issue Wells Fargo faced regarding fraudulent account was a one-time problem. Continue reading →

There are 50 names on the list this week. We hope that you find companies that suit your investment strategy. 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 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 →