Category Archives: Dividend Achievers

U.S. Dividend Watch List: February 18, 2022

The market continue to push and pull this week as the S&P gave back nearly 1.5% for the week. Technical factor point to bearish market with the major index trading below 200 day moving average. Our proprietary market indicator confirm this sentiment. That being said, more opportunities to acquire great companies at great value rise as market trade in range. Below is the watch list for the week. Continue reading

Dividend Yield vs Dividend Growth

There are healthy debates on dividend yield versus dividend growth. Investors seeking income will automatically gravitate toward dividend yield by default. While that intuition is good, we should pay attention to other aspects such as growth rate of the payment. In our quick study, we attempt to compare companies with similar business model and strong dividend history. There is not better comparison in our mind that Coke (KO) and Pepsi (PEP). We extracted 5 years data (2016-2021) dividend and price data for both companies from Yahoo Finance. The conclusion speaks for itself, we should pay more attention to dividend growth as a key indicator for capital appreciation.

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Coke has higher dividend yield that Pepsi in 2016 and 2021. If an investor was to choose an income producing asset in 2016, they would gravitate toward Coke with 3.22% yield while Pepsi yield of 2.86%.

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Now we look dividend payment growth rate. Pepsi raised their payment by 43% while Coke increased their payment by 20%.

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Finally we review what happened to the stock price. We took the average price of both stocks for 2016 and 2021. The performance is clear that Pepsi outperformed Coke by a wide margin. This finding is consistent with the teaching of Geraldine Weiss in Dividends Don’t Lie that dividend is a proxy for profit growth.

U.S. Dividend Watch List: February 4, 2022

It was a rough start to the year as market plunged 6% in January pushing one index below its yearly low. A market correction will naturally pull more companies toward their 52-week low and that’s exactly what we observe in our watch list. Below is the dividend watch list for this week. Continue reading

U.S. Dividend Watch List: January 21, 2022

We are seeing minor crack in the market this week as the Russell 2000 broke below 1-year low and out of a year-long trading range. Because of that, our Market Indicator is now Neutral to Bearish. Below is our dividend watch list for the week. Continue reading

U.S. Dividend Watch List: January 7, 2022

The market opened 2022 on a high note as the S&P and the Dow reached all-time high at the beginning of the week. However, those gains were short-lived. The S&P 500 closed the week 2.5% from the high while Russell 2000, a proxy for growth, was off by 12%. Here is the first dividend watch list for 2022. Continue reading

U.S. Dividend Watch List: December 10, 2021

The market closed the week on a high note as S&P 500 reached all-time high while the Dow is not far out from that mark. Despite that, we observed more companies trading near their yearly low. Below are list of 51 companies on our list this week. Continue reading

U.S. Dividend Watch List: October 8, 2021

We start by looking back at last year’s list which contain only limited amount of companies because of an explosive move from March low. It should not surprise anyone that value oriented strategy such as low P/E and low P/B out performed. These strategies tend to outperform at market bottom.

October 9 2020 1 year performance

Best performing stock was State Auto Financial Corp (STFC) which rose 77% driven by acquisition by Liberty Mutual. On the opposite end of the spectrum is AT&T (T) which lost 5%. Chasing high yield proved to be less desirable strategy.

U.S. Dividend Watch List: October 8, 2021

It was a positive week for the market but a pattern of lower high and lower low could be on the horizon if the S&P 500 can’t break 4,450. We are seeing more companies on our watch list which could also signal a weakness in the internal market. A careful consideration of long-term investment from this list would be a good starting point. Continue reading

U.S. Dividend Watch List: September 17, 2021

Overall, the market appears to be cooling off a bit and we are seeing both the Dow and S&P 500 failing to make all-time high. The Dow is off the peak by 3% while the S&P 500 is off by 2.35%. One should not take this as a sign that a market will crash and a healthy bull market require pull back on a periodic basis. Recent pull back in the market pushed the number of companies on our watch list to 74. Continue reading

U.S. Dividend Watch List: August 20, 2021

The market ended the week virtually flat after hitting all-time high on Monday. The Transport and the Russell continue to struggle to move higher and test the peak. At the end of the week, they are nearly 10% off from the high. Below is the dividend watch list for the week. Nearly a third of the companies on this list are Dividend Aristocrat which would be a great start for anyone seeking high quality companies with strong record of dividend payments. Continue reading

U.S. Dividend Watch List: August 6, 2021

The market continue to push all-time high. At the end of this week, the Industrial and S&P 500 closed at all-time high. The Nasdaq is off by a fraction of percentage. However, the Transport can’t seems to push back up to the top and remain nearly 10% off the high. Despite this concern, there are numbers of good companies to consider as part of building investment portfolio. Continue reading

U.S. Dividend Watch List: July 16, 2021

The market was able to reach all-time highs this week but closed the week lower by -1%. Our watch list remains relatively stable at less than 50 companies but we are seeing more Dividend Aristocrats popping up. Below is this week’s watch list. Continue reading

U.S. Dividend Watch List: June 25, 2021

The S&P 500 ended the week at all-time highs and the Nasdaq reached its all-time high on Thursday. However, the Dow Jones Industrial Average and Transports are lagging and have not exceed their peak. Despite the overall strong market, we believe there are pocket of opportunity in our Dividend Watch list below. Continue reading

U.S. Dividend Watch List: May 28, 2021

The S&P 500 and Dow Jones Industrial is attempting to test the new high at the end of the week. Despite that, more companies are appearing on our watch list this week. Continue reading

U.S. Dividend Watch List: May 14, 2021

It was a volatile week for the market as the S&P dropped as low as 3% but rebounded to close the week virtually flat. The market condition, according to our proprietary market indicator, continue to be bullish. That being said, we are following this signal closely for any sign of divergent.

Below is the dividend watch list for this week. Continue reading

U.S. Dividend Watch List: April 30, 2021

The market briefly reached all-time high on Thursday but retreated on Friday. While the sell off on Friday may look concerning, all sign point to continuation of bull market. Some concerning sign, if any, would be the failure for Nasdaq to participate and reach all-time high. Below is this week dividend watch list. Continue reading