Category Archives: Dividend Achievers

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 April 7, 2017 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Our analysis of Target (TGT) proved to be well timed. Share rose 35.8% from prior year. Below is the commentary on Target shares last year.

The top four companies from this list are the same as our previous list. Target (TGT) leads the pack and is trading less than 1% above the yearly low. The stock appears to be retesting the the low of $52.70. However, the technical set up appears to be bullish as the Relative Strength Index (RSI) is making a higher-high. Based on our observations, whenever we see this occur, there is good chance that the bottom is set, at least in the short-term. Additionally, our analysis of Target using the Coppock Curve suggests that now is an opportune time for accumulation.

Another company we were bullish on was Hormel Foods (HRL), the maker of SPAM. Shares dropped as low as $30 and peaked at $38. However, the performance since last year yield only 5% increase in share price. The following quote is an excerpt from last year post.

• Hormel's financial strength is A rated according to Value Line Investment Survey.
• The dividend yield of 2% does not seems like much but is higher than the historical average for this company.
• The P/E multiple of 20x may appears to be high when compared to the market. However, we believe that multiple could expand to 25 if this bull market persists. If this bull market is coming to an end, we could see that multiple collapse to 12.

We see a possible upside to $47 with a possibility of downside to $25. A multiple purchase plan is highly recommended.

U.S Dividend Watch List: April 6, 2018

The volatility in the market linger and our watch list has more than 100 companies ranging from small to large cap in different sectors. However, we would urge extreme caution as the bull trend appears to be in its last leg. If and when that occurs we will inform our reader of the approach we will take in our portfolio. Continue reading →

As a follow up to the watch list we published earlier this week, we will break down the watch list into several components using fundamental criterias. 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 24, 2017 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The average loss of the top five companies was 2.5% compared to gain of 10.4% for the S&P 500. We didn't touch on these five companies but did highlight our bullish sentiment for Hormel (HRL). The stock lost 6% for the year with swing of +/- 10%. Our team continued to believe the valuation and feel that a bottoming process for the stock is in place. In early January, the company announced 10% dividend increase. We continue to hold our long-term call options on the stock which we view as highly speculative.

U.S Dividend Watch List: March 23, 2018

The market lost 6% for the week and propelled the number of companies on our watch list to more than 100 companies. Our team will list all companies below but will expand our coverage by providing top five companies by each fundamental categories such as P/E ratio, Payout Ratio, and our proprietary ratio we'll term NLO ratio. 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 17, 2017 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 average return was -13.20% largely driven by SCANA (SCG) and Cato (CATO) which lost -40.80% and -39.50%, respectively. A gain of +30.80% from Target (TGT) wasn't enough to offset the loss incurred from the other four companies. The good news for us is that we were bullish about Target and acted on our intuition.

Other notable companies mentioned were Hormel Foods (HRL), Coca-Cola (KO), and Genuine Parts (GPC). The average change for the three companies are -2% compared to the S&P 500 gain of +15.70%. Although these companies are part of an elite group call Dividend Aristocrats, that doesn't mean they will outperform the market. Even when our valuation model point to potential upside, in the case of Hormel Foods and Coca-Cola, they didn't come to fruition.

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

Below are 54 companies on our watch list for 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 3, 2017 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 list didn't fare as well as the market. The combined loss was 16.5% while the S&P 500 gained 12.9%. The only company with a positive gain was Target (TGT). If we look at the sector breakdown of these companies, one will identify a clear trend of sector performance. Three of these five companies below in REIT sectors and the average loss were 21.3%. Cato (CATO) which is a specialty retail store lost half of its market value in one year. Our team were bullish on Target but were early in our purchases. Shares rose more than 30% since last year which is almost 2x the return from the market.

The other company mentioned last year was VF Corp (VFC). Our team was bullish on shares at the right moment and walk away from with a profitable trade. Since our list last year, VF Corp shares rose 40%.

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

The volatility trade is back on and the market continued to swing wildly. At the end of the week, the market lost 2% and the Dow Jones Industrial average broke below 25,000 mark. The result of this pull back is more companies are approaching the yearly low leading to more companies on our dividend list. 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 listed below. 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 17, 2017 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

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 →

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.

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 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.

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 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 →