Category Archives: Dividend Achievers

The bounce from the low was fast and furious and pushed many companies out of the 52 week low range. There are only a handful of companies this week but it’s worth revisiting companies on the April 3rd list as a good alternative.

Before we jump into this week’s list, let’s review the performance from last year. The best performing strategy was buying companies with low payout ratio. Two companies that came through was AmerisourceBergen (ABC) and Kroger (KR) both gaining more than 20%. Worse performing strategy was purchasing low P/E, a classic value investing strategy. Occidental Petroleum (OXY) and GAP (GPS) lost 78% and 68% respectively.

Disclaimer On our current list, we excluded companies that have no earnings. Stocks that appear on our watch lists are not recommendations to buy. Instead, they are the starting point for doing your research and determining the best company to buy. Ideally, a stock that is purchased from this list is done after a considerable decline in the price and extensive due diligence. Our view is to embrace the worse case scenario prior to investing. It is important to place these companies on your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety. It is our expectation that, at the most, only 1/3 of the companies that are part of our list will outperform the market over a one-year period.

Volatility continue to drive the market up and down as uncertainty continues to unfold both here and abroad.

Experts expect April to be the worse month and expect to see a peak in new coronavirus cases mid-April. At this moment, we think that market is looking for any reason to put up a good rally so any good news will likely drive the market higher.

It’s important to read how the market reacts to the up days. Our team continue to produce the dividend watch list and urge any income investors to utilize this list wisely but also apply caution as our team expects dividend cut to hit companies with high payout ratio (>75%). Continue reading →

Could things get any worse after a horrendous week? We certainly hope the curve for COVID-19 will flatten soon but only time can tell.

The S&P 500 has broken below the 2018 low at a record setting pace and has fallen -32% from the peak.

If you think that this situation is worse than the financial crisis then we probably have more room on the downside as the market fell more than -50% in 2008.

If you have the stomach to ride this out and want to pick the bottom, there are plenty of companies on our watch list this week. Continue reading →

Prior Year Watch List Review (March 1, 2019)

The best performing strategy this week was buying low P/B companies. The best performer was Quaint Oak Bankcorp (QNTO) which rose +20.00% in a year. Even through this sell off, shares barely moved. The worst performing strategy was high P/E with Nucor (NUE) dropping nearly -60.00% in a year. Below is a summary of the performance by various strategies.

U.S. Dividend Watch List February 29, 2020

It was a bloodbath last week as the market sold off. Would this be a buying opportunity? Only time will tell but here is a list of companies on our watch list. Continue reading →

Prior Year Watch List Review (February 14, 2019)

The best strategy to adopt was to purchase the top five companies with high P/E. Doing so would yield 23.1% return compare to the market return of 21.8%. Worse performing strategy is to purchase low P/E companies. The largest gain came from Brown-Forman (BF-B) which rose 46%. At the time of trading, P/E for BF-B was 31.6. Below is a recap of various strategy.

U.S. Dividend Watch List February 14, 2020

The market continue to defy gravity and closed the week at another all-time high. Below is a the dividend watch list for this week. Continue reading →

Prior Year Watch List Review (February 1, 2019)

The best strategy was to buying the top five companies with a high P/E ratio which gained +28.40%. The strong performance was driven by Brown-Forman (BF-B) and Aqua America (WTR) gaining +42.00% and +50.00%, respectively. Compare that to S&P 500 which gained +19.20% and Dow Jones Industrial Average gained of +12.70%. Purchasing top five stocks nearest to the low or low P/E stocks would net you negative returns in the last year.

U.S. Dividend Watch List January 31, 2020

It was a tough week for the market with all indexes retracting. One could attribute that to the Coronavirus outbreak that originated in China or perhaps the market is over-extended. We're less concern about the reason and simply looking forward to the opportunities to accumulate shares at a discount. Below is the watch list for this week. Continue reading →

It was a volatile week for the market as fear of virus outbreak hit the market. The VIX which measure volatility in the market rose nearly 30%. However, the big picture remain bullish for the market. The S&P 500 remain far from the medium and long term trend and our watch list contain 31 companies. Continue reading →

U.S. Dividend Watch List: January 3, 2020

Before we progress with the current watch list, let’s review how things panned out from last year’s list. The average return was +17.20% while the stock market rose +24.70%.

The best strategy, which yielded a return of +30.80%, was to buy the top 5 companies with the highest price-to-book ratio. Buying top 5 companies with low P/E lost -2.70%.

Buying the top 5 companies closest to the low yield generated a return of +22%. Our most recent research has indicated that purchasing the top 5 companies with either high P/E, high P/B, or low dividend yield provides the best chance of beating the market. We’ll continue to keep score going forward and be as transparent to our readers on our findings.

U.S. Dividend Watch List January 17, 2020

With the market at an all-time high, one has to be a little cautious establishing new positions. However, it seems that we have been saying the same thing week after week. Below is the current 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 December 14, 2018 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, comprised mostly of regional banks, average returned was 18.2%.

U.S. Dividend Watch List: December 13, 2019

Another week, another record high for the market. At this moment, all we will be doing is track companies that have reach their yearly low and have a reversing pattern. Until then, we will continue to monitor the market and all our positions and potentially raise cash at the beginning of next year. Below are companies on our watch list this week. Continue reading →

The Dow Jones Industrial Average and the S&P 500 reached another all-time high this week. Despite the strong move in those indexes, we have not seen the Dow Jones Transport confirm this bullish move. With markets at all-time highs, we have less than 30 companies on our watch list for the 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 November 16, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below

The biggest drag to the performance of the top five companies was Perrigo Company (PRGO) which lost -22% in one year. The stock was trading $63 during the same time last year but the market correction in December took the price down to $36.50, a -40% decline. Perrigo rebound to $50 range which is about 37% from the bottom.

A company we had interest in from last year's list was Ryder Systems (R). The price is virtually unchanged over the course of the last year. While the stock price didn't budge, the dividend did increase which increased the dividend yield from 3.7% to 4.3%. Our 10-year targets shows that Ryder Systems should be accumulated at this range so we urge our readers to consider this company at this juncture.

U.S. Dividend Watch List: November 15, 2019

The Industrial reached all-time high at 28,000 and the S&P 500 reached 3,120. The one missing piece for us is the Dow Jones Transportion Average which needs to exceed 11,570. With the market at its all-time high, it's expected that we will have fewer companies trading near their yearly low and that is exactly what we got. Below are the 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 November 2, 2018 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 list gained +13.8% which is better than S&P 500 and Dow Jones Industrial average. The largest contributor to this out performance was Avery Dennison (AVY). Though Avery Dennison wasn't part of Dividend Achievers or Aristocrats, the company raised its payout by +11%. Of the five companies, the only one that lost value (-9.3%) was Chemical Financial (CHFC).

U.S. Dividend Watch List: November 1, 2019

The S&P 500 closed at all-time highs on Friday but we are waiting for the Dow Jones Industrial Average to follow through. To be extremely bullish of this breakout, we'd like to see the Dow Jones Transport Average break through its all-time high as well. Such action would trigger a bullish indication from a Dow Theory perspective. We are cautiously optimistic but it is difficult to find good values at this junction. Our team has been net seller of stocks and so has Berkshire Hathaway who reported earnings today. Continue reading →