NEW LOW OBSERVER

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 December 6, 2013 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Watch List Review

Cumulatively, our top five fail to keep up with the market.  Consolidated Edison (ED) was the best performer with a gain of 13%.  We were not too convinced that Consolidated Edison would do well in a rising rate environment.  While rate hasn’t risen, share have gained ground and drive dividend yield lower.

IBM (IBM) was the worse performing stock of these five companies.  We have mentioned before that fair value for the stock would be around $160 thus making the stock less attractive to our team.

U.S. Dividend Watch List: December 5,2014

Below are 40 companies that are worth considering on our watch list. 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 22, 2013 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Watch List Review

Our watch list was on par with the Dow but fail to keep pace with the S&P 500.  IBM (IBM) was the worse performer of the top five companies falling 11.2%.  One would recall that we didn’t believe that IBM was trading at great discount so it doesn’t surprise use to see the stock down slightly year over year.

We said that Consolidated Edison (ED) wasn’t a bargain trading at 16x its earnings.  It turned out that the company was able to exceed the expectation and grew net income above what the street had estimated.  As such, shares were up 11% and is now trading at 14x trailing earnings.

Lindsay (LNN) peaked our interest last year.  This farming equipment company was a recent addition to the Dividend Achiever list thus has potential for long-term growth.  The stock gained 13% excluding dividend year-over-year.

U.S. Dividend Watch List: November 21,2014

Below are 40 companies that are worth considering on our watch list. 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 15, 2013 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Watch List Review

Deere & Company (DE) topped the list last year but the shares failed to gain much traction with an increase of only +5.7%.  Value Line Investment Survey's projected fair value at $118.80 is based on a multiple of 11x cash flow.  Unfortunately for the bulls, DE shares have not traded close to that projection, yet.  Net income per share for DE is expected to fall from $9.09 in 2013 to $8.34 in 2014 (-8%).  The profit outlook is even more grim in 2015 with an expectation of a decline to $6.43 (-22%).  Our valuation model indicates that the current price range is a buy with downside risk as low as -30% below current level.

Caterpillar (CAT) was the best performer from the watch list.  Net income per share rose more than projected which help fuel the rise in share price.   When analysts are too pessimistic, it may be time to get bullish and take on the opposite view.

U.S. Dividend Watch List: November 14,2014

The market was virtually flat for the week.  Below are 36 companies that are worth considering on our watch list. Continue reading →

After a minor correction, the market came roaring back and gained +2.7% for the week. As a result of the market rebound, the number of companies on our watching declined dramatically from 101 to 36 companies. Below is the list of companies that are worth considering. Continue reading →