Category Archives: Dividend 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 3, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Last year, there were numbers of financial companies trading near their yearly low. As such, we suggested our readers to explore Financial ETF, XLF, as an alternative to individual shares. Price for XLF were virtually flat year-over-year but price fell to $22.31 in late December of last year.

Illinois Tool Works (ITW) raised dividend payout by 28% last year which was a bullish sign. Share rose 9% in one year and we can expect more dividend increase to be in the short horizon.

U.S. Dividend Watch List: August 2, 2019

Market closed the week 3% lower than last week. There were several news one could attribute to this weakness. The first one was the rate cut from the Federal Reserve and the second was the plan to impose more tariffs on China. How should one position for this market? The fact that the market is near its all-time high, we can say that buying at this level poses some short-term risk. Buffett, as an example, was a net selling of stocks in the last quarter. Continue reading →

Below is the watch list 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 July 20, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The average gain for the top five company was subpar compared to the market. It was driven by large losses in Invesco (IVZ) and Cardinal Health (CAH). We thought that AT&T (T) offered an exceptional opportunity for income investors last year when it yielded 6%. The good and bad news is that the yield is still at 6% because the price hasn't changed much while the dividend payout has increased by 2%.

Our team shined a spotlight on Hershey Company (HSY) which was the second best performing stock on our watch list with a +58% gain in one year. At $91, the stock was below our 10-year target undervalued level.

U.S. Dividend Watch List: July 19, 2019

After crossing the 3,000 mark, the S&P 500 took a little breather this week and closed -1.3% lower. With the market virtually at an all-time high and the Transport 8% off its high, one has to be a little cautious establishing any position at this point. If you are to do so, we suggest our readers to start with the watch list 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 July 6, 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 slightly underperformed the market. The best performer was Cummins (CMI) which is a major industrial company operating in the natural gas market. Cummins raised their dividend payment by 5%, from $1.08 to $1.14. The share price increase of +29% could be attributed to a strong gain in the net income. At the time of our writing last year, EPS were at $5.56 with projected EPS for 2018 to be at $14.07, current EPS (TTM) is at $15.41.

Our team said Legg Mason (LM) was setting up to be a good long-term accumulation and shares rose +10.60% in one year. However, share fell -32% hitting $23.51 before rebounding to $37.96. That's a 62% swing in share price to the upside. This type of action helps reaffirm our strategy of multi-stage purchases which could involve buying 1/3 or 1/2 of the position with the anticipation for further declines.

Another company we highlighted was 3M (MMM) which lost -13% of its value in one year. Shares were trading at a 2.50% dividend yield one year ago and the yield is currently at 3.30%. 3M raised their dividend 5.80%, from $1.36 to $1.44. Our 10-year target suggests that 3M is undervalued and should be considered for long-term accumulation.

U.S Dividend Watch List: July 5, 2019

The S&P 500 and the Dow Jones Industrial Average pushed through their all-time highs this week. This upward movement isn't confirmed by the Transportion index which is about 10% off the peak. Naturally a rise in the market leads to lower number of companies trading near their yearly low. Below is 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 15, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Average gain of the top five companies were extraordinary at 25%. Financial sector was the strongest with Cincinnati Financial (CINF) rising 50% in one year, followed by Federated Investors (FII). However, Legg Mason (LM) was virtually flat for the year.

U.S. Dividend Watch List: June 16, 2019

Below are 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 May 25, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Top five companies did exceptionally well with an average gain of 31.9% compared to the index which gained 3.4%. Best performer of the five was Sanderson Farms (SAFM) which piqued our interest a year ago. It's interesting to note that a stock could gained 48% while earning collapsed. At the time of trading, Sanderson earned $13.47 per share and analysts expected the company to earn $9.18 a year later.

Another company we told our readers to explore is ABM Industries (ABM) which gained 27% in one year. Our team did research the stock and took position in October.

U.S. Dividend Watch List: May 24, 2019

What a week that was. The market opened the week strong but fell off the cliff because of the trade tension. Could this pull back turn into an opportunity or is this a beginning of protracted decline? Only time will tell and we will utilize Dow Theory to help guide us. Below is the watch list we'll use to search for opportunities. Continue reading →

All of the attention this week was on the trade war with China. The market is seeking some kind of direction through this process. Despite a potential near term headwind, we'd urge our readers to focus on the long run, which is why we recommend everyone to listen to the Berkshire Hathaway 2019 Annual Shareholders Meeting. Once you've done that, please visit our watch list below for some investment ideas. Continue reading →

We saw the market reached an all-time high in the past two weeks. With bullish sentiment back, number of companies trading at or near their low are shrinking. Despite that, keep an eye on the Dow Jones Transport as a key indicator for the next move for the market. Our team believe in the upside bias but we take the wait and see approach before declaring that victory. Our team will utilize the watch list below to seek investments that have imbalance risk/reward profile. 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 April 20, 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 gained +19.10% outperforming the S&P 500 gain of +8.80% by a wide margin. The largest gain of +43.70% came from Procter & Gamble (PG). One year ago, Procter was trading at 3.70% dividend yield which happens to be in the undervalue range of our 10 year target. Since then the share price has done nothing but rise.

Interestingly, the worst performing company was Colgate-Palmolive (CL) which gained +2.70% and yet these two companies are operating in the same sector. But a closer examination of Colgate one year ago revealed that it was trading closer to its fair value and wasn't undervalued. Of the two companies within the same sector, the one that is trading at discount to historical yield, with a better risk-reward proposition, would be the one to purchase.

U.S. Dividend Watch List: April 19, 2019

Below are 27 companies that are 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 April 6, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The average gain of the top five companies were in-line with the S&P 500 at 11%. To our surprise, some of the best performers are energy related companies, Dominion Energy (D) and Alliance Resource Partners (ARLP). In addition to the price gain in Alliance Resource Partners of 12.8%, one would have received more than 10% return from dividend payment. To invest in any company with double digit dividend yield is extremely risky, in our view.

U.S Dividend Watch List: April 5, 2019

The market appears to be retesting the all-time high with a gain of 1.5% for the week. Even if the S&P 500 breaks its all-time high, we continue to look to Dow Theory bull market indications. As we speak, the Dow Jones Transport Average is 7% off from the high. Continue reading →

The market continues to push off against the 2,800 level and rose more than +1% this past week. The number of companies appearing on our watch list this week continues to dwindle. Despite that, we believe that you can find a handful of companies that will fit your own personal investment criteria. 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 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 top five companies gained +3.10% outperforming the S&P 500 by 0.5%. The top performer with a +30% return on investment is Procter & Gamble (PG). When we look back at the valuation of Procter & Gamble then, we can see (in hindsight) that the stock reached its lower limit of valuation based on dividend yield and altimeter. One can review the 10-year valuation on Procter, you will see that we placed an undervalue price at $75 and the price reached $79 at the time of the posting. By no means are we suggesting that our 10-year valuation is the key to timing the market, we're simply using it as a tool to assess the risk and reward profile of a quality company with a dependable dividend history.

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

Below are companies on our watch list for the 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 2, 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 had an extraordinary return in one year. The average gain was +19% compared to S&P return of +4.20%. The best performing sector was utilities with Connecticut Water Service (CTWS) gaining +35.80% in one year, which is exceptional for a utility company. The conventional wisdom is for utilities to underperform when interest rates rise. However, our study back in 2014 may provided an alternative view on the topic. We highlighted 3 companies that would outperformed the market but they failed to do so and lost, on average, -12% of their value.

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

It was a good February for the bulls with the S&P 500 gaining more than +2%. The number of stocks on our watch list continue to shrink. Nevertheless, we rely heavily on this list as our starting point for research. 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 16, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

There were many utility companies on our list last year. We were not particularly bullish on them due to our biased opinion on rising interest rate. This thesis did not pan out and the out-performance of these companies prove that.

On average, the top five companies rose +11.80% compared to gain of +1.60% for the S&P 500. The best performer was UGI Corp (UGI) which gained +22.30%. The 10 years T-bill rose from 2.40% at the beginning of the year to 3.20% by the end of 2018 (+33% increase). With a market correction, rates fell back to +2.60% (see chart below). To that point, our short-term bear case on utilities was wrong and we urge our readers to visit the article we wrote in 2014 titled Utility Stocks and Rising Interest Rates.

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

The market moved up another +2% this week. Due to the market correction late last year and a strong rally off the lows, we are not seeing a large number of companies that are trading near their respective yearly lows. However, the following companies have not participated in the rally and may be worth considering. Continue reading →