The market had a tremendous run this past year. Year-over-year, the S&P rose 40% with some corrections along the way. Our watch list from prior year also had an outstanding outcome. Low P/E strategy shot up 200% driven mainly by an acquisition of Meredith (MDP) by IAC’s Dotdash. MDP gained 421% in one year. Another name that helped propelled the Low P/E and Low P/B strategy was State Auto Financial (STFC) which rose 316% in a year after Liberty Mutual agree to acquire the company.
U.S. Dividend Watch List: October 29, 2021
The Dow Jones Industrial, S&P 500, and Nasdaq closed the week at all-time high. As bullish indicator, Dow Jones Transport is a fraction of percentage from its all-time high as well and setting up for Dow Theory up trend confirmation. Below is a watch list containing companies to watch.
| Symbol | Name | Price | % Yr Low | P/E | EPS (ttm) | P/B | Yield | Payout Ratio |
| CAG | ConAgra Foods | 32.20 | 0.03% | 13.0 | 2.48 | 1.8 | 3.9% | 50% |
| NUS | Nu Skin Enterprises, Inc. | 40.15 | 1.90% | 8.8 | 4.56 | 2.2 | 3.8% | 33% |
| HCSG | Healthcare Services Group Inc | 19.19 | 2.24% | 20.2 | 0.95 | 3.0 | 4.4% | 88% |
| BF-B | Brown-Forman Corp. CL 'B' | 67.89 | 2.48% | 42.2 | 1.61 | 12.1 | 1.1% | 45% |
| CL | Colgate-Palmolive | 76.19 | 2.95% | 23.8 | 3.20 | 138.5 | 2.4% | 56% |
| MKC | McCormick & Company | 80.23 | 3.06% | 28.5 | 2.82 | 4.9 | 1.7% | 48% |
| MKTX | MarketAxess Holdings Inc. | 408.67 | 3.16% | 55.9 | 7.31 | 14.7 | 0.6% | 36% |
| CAH | Cardinal Health | 47.81 | 3.35% | 23.0 | 2.08 | 7.8 | 4.1% | 94% |
| KMB | Kimberly-Clark Corp. | 129.49 | 3.37% | 22.0 | 5.88 | 91.8 | 3.5% | 78% |
| LMT | Lockheed Martin Corporation | 332.32 | 3.91% | 15.3 | 21.71 | 9.5 | 3.4% | 52% |
| LZB | La-Z-Boy | 33.24 | 4.14% | 12.1 | 2.74 | 2.0 | 1.8% | 22% |
| VZ | Verizon Communications Inc. | 52.99 | 4.19% | 10.0 | 5.32 | 2.8 | 4.8% | 48% |
| CLX | Clorox | 163.01 | 4.34% | 29.2 | 5.58 | 48.7 | 2.8% | 83% |
| HRL | Hormel Foods Corp. | 42.32 | 4.55% | 26.8 | 1.58 | 3.4 | 2.3% | 62% |
| LANC | Lancaster Colony Corp. | 170.00 | 4.60% | 32.9 | 5.16 | 5.6 | 1.8% | 58% |
| ATR | AptarGroup | 120.78 | 5.33% | 34.1 | 3.54 | 4.1 | 1.3% | 43% |
| BDX | Becton, Dickinson and | 239.59 | 5.94% | 37.8 | 6.34 | 2.9 | 1.4% | 52% |
| SMG | The Scotts Miracle-Gro Company | 148.46 | 6.65% | 15.0 | 9.87 | 7.4 | 1.8% | 27% |
| RGLD | Royal Gold Inc. | 99.02 | 7.62% | 21.5 | 4.60 | 2.6 | 1.2% | 26% |
| SWK | Stanley Black & Decker | 179.73 | 7.80% | 16.0 | 11.24 | 2.5 | 1.8% | 28% |
| NWN | Northwest Natural Gas | 45.09 | 8.10% | 14.8 | 3.04 | 1.5 | 4.3% | 63% |
| K | Kellogg Company | 61.30 | 8.28% | 16.2 | 3.79 | 6.2 | 3.8% | 61% |
| WABC | Westamerica BanCorp. | 55.76 | 8.46% | 16.9 | 3.29 | 1.8 | 2.9% | 50% |
| CASS | Cass Information Systems, Inc. | 40.99 | 8.84% | 21.7 | 1.89 | 2.3 | 2.7% | 59% |
| FDX | FedEx Corp | 235.53 | 8.87% | 12.5 | 18.84 | 2.6 | 1.3% | 16% |
| QCOM | QUALCOMM Inc | 133.04 | 8.90% | 16.6 | 8.00 | 18.4 | 2.0% | 34% |
| ATO | Atmos Energy Corp. | 92.12 | 8.90% | 17.3 | 5.33 | 1.5 | 2.7% | 47% |
| NWE | NorthWestern Corporation | 56.86 | 9.01% | 15.4 | 3.69 | 1.3 | 4.4% | 67% |
| GL | Global Life | 89.02 | 9.01% | 12.0 | 7.39 | 1.1 | 0.9% | 11% |
| WDFC | WD-40 Company | 227.00 | 9.60% | 44.6 | 5.09 | 15.5 | 1.3% | 57% |
| ATVI | Activision Blizzard, Inc. | 78.19 | 9.83% | 23.5 | 3.33 | 3.7 | 0.6% | 14% |
| SO | Southern Company | 62.32 | 9.93% | 21.1 | 2.95 | 2.3 | 4.2% | 89% |
| SCL | Stepan | 120.02 | 10.03% | 18.5 | 6.49 | 2.6 | 1.1% | 21% |
| INTC | Intel Corp. | 49.00 | 10.76% | 9.5 | 5.16 | 2.2 | 2.8% | 27% |
| ES | Eversource Energy | 84.90 | 10.78% | 23.4 | 3.63 | 2.0 | 2.8% | 66% |
| CMI | Cummins Inc. | 239.84 | 10.83% | 16.1 | 14.87 | 4.4 | 2.4% | 39% |
| GLW | CORNING INCORPORATED | 35.57 | 11.09% | 35.6 | 1.00 | 2.5 | 2.7% | 96% |
There are 23 current Dividend Achiever (green highlight) on this list and 9 Dividend Aristocrat (blue highlight). Because the market appears to be on the risk-on mode, our suggestion is to look at companies based on the traditional overvalue strategy listed below. Companies with High P/E and low payout ratio are typically our favorite basket.
| Traditional Overvalue | Traditional Undervalue |
||||||
| High P/B | High P/E | Low Yield | Low Payout | Low P/B | Low P/E | High Yield | High Payout |
| CL | MSA | CHE | CHE | LII | NHC | SPH | PETS |
| KMB | ECL | TFX | GL | TDS | NUS | UVV | GLW |
| CLX | MKTX | ATVI | ATVI | RGA | INTC | VZ | CAH |
| ITW | ROL | MKTX | TFX | UVV | HMN | OGE | ED |
| QCOM | WDFC | V | FDX | HMN | RGA | HCSG | D |
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.