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Dividend Champion Portfolio August Update

The High Yield Dividend Champion Portfolio is a publicly tracked stock portfolio on Scott's Investments. Its goal is to capture quality high yield stocks with a history of raising dividends.

The screening process for this portfolio starts with the "Dividend Champions" as compiled by DRIP Investing. The list is comprised of stocks that have increased their dividend payout for at least 25 consecutive years. Stocks from the Dividend Champion list are then ranked on yield, payout ratio, P/E, and 3 year dividend growth rate.

Stocks are sold on the re-balance date (generally around the 5th of the month) when they drop out of the top 15 (to limit turnover) and are replaced with the next highest rated stock.

The top 15 stocks are below and displayed in order of their overall ranking (figures are July month-end):

NameSymbolYieldPayout3-yrP/E
Helmerich & Payne Inc.HP4.7642.24116.138.87
Chevron Corp.CVX4.8446.8310.869.68
Exxon Mobil Corp.XOM3.6943.8413.4311.89
Emerson ElectricEMR3.6349.477.0413.62
Eagle Financial ServicesOTCQX:EFSI3.3938.282.2611.29
Community Trust Banc.CTBI3.5448.821.6013.78
Universal Health Realty TrustUHT5.2364.651.2912.37
Sonoco Products Co.SON3.3952.433.3615.46
Wal-Mart Stores Inc.WMT2.7240.0810.9814.72
Black Hills Corp.BKH3.8956.252.2314.47
Universal Corp.UVV3.6553.752.0414.74
Old Republic InternationalORI4.4260.661.4113.71
Tompkins Financial Corp.TMP3.1148.414.9915.58
Questar Corp.STR3.7965.636.5517.30
First Financial Corp.THFF2.9538.131.4112.91

EFSI is not eligible for purchase due to its low liquidity.

There is turnover in one position this month. Cincinnati Financial (NASDAQ:CINF) will be sold for a capital gain of 5.64% and original purchase date of 3/6/15. It will be replaced by Emerson Electric (NYSE:EMR) which currently yields 3.63%.

The current portfolio is below:

PositionSharesAverage Purchase PriceInitial Purchase DatePercentage Gain/Loss Excluding DividendsCurrent Allocation
CVX218103.183512/6/2012-17.42%9.55%
EMR42549.648/4/2015-0.02%10.84%
ORI114516.224/4/20143.14%9.85%
UVV34847.34/8/201522.56%10.37%
TMP42944.468/6/201421.01%11.86%
CTBI68236.555/5/2014-3.80%12.33%
XOM19689.014/5/2013-13.34%7.77%
HP23890.5710/6/2014-35.42%7.16%
STR86022.83/6/2015-4.25%9.65%
UHT39855.274/8/2015-11.76%9.98%

I also have a second portfolio using similar metrics as the High Yield Dividend Champion portfolio. The primary difference is it only requires 10 years of dividend increases and it also hedges the portfolio during unfavorable market conditions. Hedging requires margin, but the portfolio can also be implemented without the hedge.

Disclosure: None.

Editor's Note: This article covers one or more stocks trading at less than $1 per share and/or with less than a $100 million market cap. Please be aware of the risks associated with these stocks.


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