Category Archives: Dividend Achiever Watch List

Dividend Watch List

Posted on September 24, 2010 by | 1 comment

Watch List Summary

As always, we revisit the previous list for the best and worse performing stocks from our Dividend Watch List.  The best performing stock was National Fuel Gas (NFG) which rose 12.9% in two weeks. The biggest decline was Carlisle (CSL) which fell 5.2%.

Of the top five companies, we particularly like Northern Trust (NTRS). Anyone interested can read our take of Northern Trust from September 1, 2010 article.  Intel (INTC) bounced off the 52-week low and rose 5% in two weeks.  ConAgra (CAG) got hit after lowering its guidance as investors overlooked the 15% hike in the dividend. ConAgra shares are approaching their historical undervalued range according to Investment Quality Trends (http://www.iqtrends.com/).

*Note: Price data as of market close on Thursday September 23, 2010*

September 24, 2010 Watch List

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
WST West Pharmaceutical Services 33.04 0.89% 14.43 2.29 0.64 1.94% 28%
CSL Carlisle Companies Inc. 28.25 1.00% 12.12 2.33 0.68 2.41% 29%
NTRS Northern Trust Corp.  46.97 3.69% 15.40 3.05 1.12 2.38% 37%
TR Tootsie Roll Industries Inc  24.06 3.71% 26.44 0.91 0.32 1.33% 35%
FFIN First Financial Bankshares, Inc.  45.08 3.51% 17.27 2.61 1.36 3.02% 52%
MLM Martin Marietta Materials, Inc. 74.34 3.97% 41.30 1.80 1.60 2.15% 89%
CAG ConAgra Foods, Inc. 21.56 4.91% 13.31 1.62 0.80 3.71% 49%
LANC Lancaster Colony Corp.  45.47 5.06% 11.17 4.07 1.20 2.64% 29%
HGIC Harleysville Group Inc.  31.66 5.36% 11.95 2.65 1.44 4.55% 54%
FUL HB Fuller Company 19.49 5.52% 10.71 1.82 0.28 1.44% 15%
CWT California Water Service Group 35.78 5.83% 19.34 1.85 1.19 3.33% 64%
WFSL Washington Federal, Inc.  14.81 6.01% 14.10 1.05 0.20 1.35% 19%
SBSI Southside Bancshares, Inc.  18.44 6.03% 6.98 2.64 0.68 3.69% 26%
HRB H&R Block, Inc. 12.74 6.34% 8.73 1.46 0.60 4.71% 41%
BCR CR Bard, Inc. 78.75 6.43% 16.04 4.91 0.72 0.91% 15%
PAYX Paychex, Inc.  26.25 6.49% 19.89 1.32 1.24 4.72% 94%
USB U.S. BanCorp. 21.82 6.75% 15.70 1.39 0.20 0.92% 14%
CL Colgate-Palmolive Co. 78.06 6.76% 18.63 4.19 2.12 2.72% 51%
FFIC Flushing Financial Corp.  10.92 7.37% 11.26 0.97 0.52 4.76% 54%
OMI Owens & Minor, Inc. 27.48 7.68% 13.95 1.97 0.71 2.58% 36%
BEC Beckman Coulter, Inc. 47.33 7.69% 22.54 2.10 0.72 1.52% 34%
UMBF UMB Financial Corp.  34.24 7.77% 14.27 2.40 0.74 2.16% 31%
HCC HCC Insurance Holdings, Inc. 25.71 7.80% 8.84 2.91 0.58 2.26% 20%
INTC Intel Corp.  18.98 7.84% 11.37 1.67 0.63 3.32% 38%
MDT Medtronic, Inc. 33.25 7.95% 10.52 3.16 0.90 2.71% 28%
AWR American States Water Co. 33.74 8.14% 20.70 1.63 1.04 3.08% 64%
UFPI Universal Forest Products, Inc.  27.95 8.50% 22.72 1.23 0.40 1.43% 33%
JNJ Johnson & Johnson   61.81 8.71% 12.77 4.84 2.16 3.49% 45%
WFC Wells Fargo & Co. 25.04 8.77% 15.08 1.66 0.20 0.80% 12%
DNB Dun & Bradstreet Corp. 71.08 8.78% 15.29 4.65 1.40 1.97% 30%
XOM Exxon Mobil Corp.   61.15 9.31% 11.81 5.18 1.76 2.88% 34%
FRS Frisch's Restaurants, Inc 19.85 9.73% 10.28 1.93 0.60 3.02% 31%
32 Companies






For anyone who hasn't seen our performance review of the Dividend Watch List from last year, we urged you to take a look.  Our assessment is a worst case look at how our list beat the S&P 500. 
On our current list, we excluded companies that have no earnings and payout ratios in excess of 100%. 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.

Because our list has many great companies, we urged investors to filter for companies with less than 50% payout ratio. This should minimized the risk of dividend reductions if earnings are to fall by half. If you understand the companies' history and their ability to pay the dividend, then payout ratios in excess of 50% may be considered. We suggest readers use the March 2009 low (or companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. The November 2008 to March 2009 time frame fits that description. 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.

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Performance Review: Dividend Achiever Watch List of September 25, 2009

Posted on September 21, 2010 by | Leave a comment
We’ve decided to revisit our watch list from one year ago to see if we can extract any valuable lessons from our "research of quality stocks at a new low" approach. The table below shows our watch list from 9/25/09 against 9/21/10.
September 25, 2009
September 21, 2010


Symbol Name Price Div/Shr Yield Price Div/Shr Yield % Gain w/o Dividend % Gain w/ Dividend
WMT WAL MART STORES 49.47 1.09 2.20%
53.57 1.18 2.20%
8.3% 10.5%
CAH CARDINAL HEALTH 27.32 0.70 2.56%
33.11 0.72 2.17%
21.2% 23.8%
WEYS Weyco Group, Inc. 22.51 0.60 2.67%
23.97 0.62 2.59%
6.5% 9.2%
BCR BARD C R INC 78.06 0.68 0.87%
80.48 0.69 0.86%
3.1% 4.0%
NWN NORTHWEST NAT 41.91 1.58 3.77%
46.44 1.66 3.57%
10.8% 14.6%
ABT ABBOTT LAB 47.33 1.60 3.38%
52.15 1.68 3.22%
10.2% 13.6%
PNY PIEDMONT NAT GAS 23.84 1.08 4.53%
28.20 1.38 4.89%
18.3% 22.8%
BDX BECTON DICKINSON 68.50 1.32 1.93%
73.71 1.48 2.01%
7.6% 9.5%
LLY ELI LILLY 32.68 1.96 6.00%
36.33 1.96 5.39%
11.2% 17.2%

Watch List Avg.







10.8% 13.9%













S&P 500 1,044.38 21.58 2.07%
1,139.78 21.84 1.92%
9.1% 11.2%

Dow 30 9,665.19 281.71 2.91%
10,761.03 282.03 2.62%
11.3% 14.3%

As you can see, none of the companies on this list experienced any loss. However, not all high quality dividend-paying stocks are created equal. The gains ranged from 4% to 23.8% with dividend included. Overall, the average gain was 10.8% without dividends and 13.9% with dividends, which is a little better than the S&P 500 but lagged the Dow Jones Industrial average.
There are several interesting things we found. The first thing is that some companies on the list have virtually gone nowhere based on valuation. Wal-mart was and is yielding 2.2% and Bard still yields 0.86%. On one extreme of the spectrum, two companies are now cheaper than they were a year ago, on valuation basis. For example, Piedmont Natural Gas (PNY) is now yielding 4.89% compared to 4.53% a year ago. Yet, the shares of PNY have risen 22.8%. Also in the category is Becton Dickinson (BDX) which is yielding more today than it did last year.
The second finding is that, on average, these companies raised dividend by 7%. This should come as no surprise to those who know the Dividend Achiever list.
Another observation that can be made is the sectors that were at a new lows at the time. From this list, we can assume that the medical/pharmaceutical sectors were out of favor. Of the companies on the list, 5 of 9 belonged to that sector.
The next thing we noticed is that high dividend yields didn't necessarily mean higher returns. Although Eli Lilly (LLY) sported the highest dividend yield, which pushed LLY’s total return from 11% to 17%, it didn't out perform Cardinal Health’s (CAH) total return of 23.8% and Piedmont Natural Gas’ (PNY) total return of 22.8%. As we’ve indicated in our articles and commentary, among high quality dividend paying stocks, the yield isn’t as important quality of the company. Furthermore, what you lack in yield is often made up for in capital appreciation.
The final point is that, although BCR returned just 4% over one year, the shares had risen as high as $90, or 15.30%, in late April 2010. Conservative investors would do well to consider such performance exceptional since the historical return of the market over an extended period of time seldom exceeds 12% especially in less than a year. Similar intra-period performance can be demonstrated in many of the stocks on our list. This is the reason the New Low team is so focused on "seeking fair profits" as described by Charles H. Dow.
In summary, our watch list from one year ago beat the S&P by 270-basis points but fell short against the Dow Industrials by 40-basis points. Naturally, the spread widened without the dividend.
Going forward, as our watch list expands, we expect to show example of only the top five or ten on our list to simplify the examination process. It is our expectation that only 1/3 of the companies that are part of our list will outperform the market over a one year period. However, when the market of 5,000 investment options is winnowed down to what we believe are the best starting points, we think that selecting three out of ten high quality dividend stocks at a new low is reasonable approach.

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Dividend Watch List

Posted on September 10, 2010 by | Leave a comment

Watch List Summary

On this week's list, the best performing stock from the previous list was a steel and iron supplier, Harsco (HSC) which rose 13.6%. The worst performing stock was H&R Block (HRB) which fell 5%.

Johnson & Johnson (JNJ) is slowly moving away from the top of the list.  Taking JNJ's place is Intel (INTC) which fell 2% since our last update. Intel is trading at just 10x trailing earnings, 9x next year's estimated earnings. The reduction in price was triggered when INTC lowered its guidance and UBS downgraded the stock due to weak PC demand.  This might be a good time to start looking at Intel which currently yields 3.5%. With a target return of 10% annually, Intel only needs to increase 6.5% for investors to obtain the historical average market return. Intel's current valuation is also very close to the 2008-2009 market bottom. Read more about Intel's low valuation here.

Several notable companies on the list are Toosie Roll (TR), Colgate-Palmolive (CL), Beckman Coulter (BEC), Paychex (PAYX), and Norther Trust (NTRS).

September 10, 2010 Watch List

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
INTC Intel Corp.  17.97 2.10% 10.76 1.67 0.63 3.51% 38%
WST West Pharmaceutical Services 33.65 2.75% 14.69 2.29 0.64 1.90% 28%
TR Tootsie Roll Industries Inc  23.87 2.89% 26.23 0.91 0.32 1.34% 35%
OMI Owens & Minor, Inc. 26.44 3.61% 13.42 1.97 0.71 2.69% 36%
BEC Beckman Coulter, Inc. 45.71 4.00% 21.77 2.10 0.72 1.58% 34%
BCR CR Bard, Inc. 77.31 4.49% 15.75 4.91 0.72 0.93% 15%
CL Colgate-Palmolive Co. 75.18 4.50% 17.94 4.19 2.12 2.82% 51%
DNB Dun & Bradstreet Corp. 68.45 4.76% 14.72 4.65 1.40 2.05% 30%
PAYX Paychex, Inc.  25.85 4.87% 19.58 1.32 1.24 4.80% 94%
NTRS Northern Trust Corp.  47.70 5.30% 15.64 3.05 1.12 2.35% 37%
PBI Pitney Bowes Inc   20.10 5.46% 12.18 1.65 1.46 7.26% 88%
JNJ Johnson & Johnson   59.98 5.49% 12.39 4.84 2.16 3.60% 45%
NFG National Fuel Gas Co. 45.21 5.56% 17.32 2.61 1.38 3.05% 53%
FFIN First Financial Bankshares, Inc.  45.97 5.56% 17.61 2.61 1.36 2.96% 52%
CWT California Water Service Group 35.80 5.89% 19.35 1.85 1.19 3.32% 64%
LANC Lancaster Colony Corp.  45.86 5.96% 11.27 4.07 1.20 2.62% 29%
MSA Mine Safety Appliances Co 23.74 5.98% 21.20 1.12 1.00 4.21% 89%
RNST Renasant Corp.  13.58 6.01% 18.35 0.74 0.68 5.01% 92%
UVV Universal Corp. 37.57 6.25% 7.40 5.08 1.88 5.00% 37%
SBSI Southside Bancshares, Inc.  18.53 6.55% 7.02 2.64 0.68 3.67% 26%
CSL Carlisle Companies Inc. 29.81 6.58% 12.79 2.33 0.68 2.28% 29%
CAG ConAgra Foods, Inc. 21.95 6.81% 13.55 1.62 0.80 3.64% 49%
AWR American States Water Co. 33.35 6.89% 20.46 1.63 1.04 3.12% 64%
UMBF UMB Financial Corp.  33.97 6.92% 14.15 2.40 0.74 2.18% 31%
WFSL Washington Federal, Inc.  15.01 7.44% 14.30 1.05 0.20 1.33% 19%
XRAY DENTSPLY International Inc.  29.87 7.60% 16.15 1.85 0.20 0.67% 11%
HGIC Harleysville Group Inc.  32.34 7.62% 12.20 2.65 1.44 4.45% 54%
BDX Becton, Dickinson and Co. 71.27 7.66% 13.95 5.11 1.48 2.08% 29%
UFPI Universal Forest Products, Inc.  27.78 7.84% 22.59 1.23 0.40 1.44% 33%
HRB H&R Block, Inc. 12.93 7.93% 8.86 1.46 0.60 4.64% 41%
MLM Martin Marietta Materials, Inc. 77.35 8.18% 42.97 1.80 1.60 2.07% 89%
MDT Medtronic, Inc. 33.34 8.25% 10.55 3.16 0.90 2.70% 28%
FRS Frisch's Restaurants, Inc 19.65 8.62% 10.18 1.93 0.52 2.65% 27%
BANF BancFirst Corp.  37.89 8.66% 14.98 2.53 1.00 2.64% 40%
FFIC Flushing Financial Corp.  11.06 8.75% 11.40 0.97 0.52 4.70% 54%
WMT Wal-Mart Stores, Inc. 51.97 8.79% 13.36 3.89 1.21 2.33% 31%
AROW Arrow Financial Corp.  23.86 8.80% 12.30 1.94 1.00 4.19% 52%
HCC HCC Insurance Holdings, Inc. 25.95 8.81% 8.92 2.91 0.58 2.24% 20%
BBT BB&T Corp. 23.65 8.89% 22.31 1.06 0.60 2.54% 57%
SYK Stryker Corp. 46.67 9.20% 15.87 2.94 0.60 1.29% 20%
MSEX Middlesex Water Company  16.12 9.36% 19.19 0.84 0.72 4.47% 86%
XOM Exxon Mobil Corp.   61.20 9.40% 11.81 5.18 1.76 2.88% 34%
CBSH Commerce Bancshares, Inc.  37.52 9.74% 15.25 2.46 0.94 2.51% 38%
SVU SUPERVALU INC 10.63 9.93% 6.52 1.63 0.35 3.29% 21%
VFC VF Corp. 75.51 10.07% 15.07 5.01 2.40 3.18% 48%
GD General Dynamics Corp. 61.13 10.22% 9.78 6.25 1.68 2.75% 27%
BRC Brady Corp. 26.70 10.24% 17.68 1.51 0.70 2.62% 46%
WAG Walgreen Co. 28.96 10.28% 13.92 2.08 0.70 2.42% 34%
TRH Transatlantic Holdings, Inc. 48.62 10.30% 7.74 6.28 0.84 1.73% 13%
IBM International Business Machines 127.99 10.34% 12.10 10.58 2.60 2.03% 25%
RLI RLI Corp. 54.47 10.42% 9.69 5.62 1.16 2.13% 21%
51 Companies






We excluded companies that have no earnings and payout ratios in excess of 100%. 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.

Because our list has many great companies, we urged investors to filter for companies with less than 50% payout ratio. This should minimized the risk of dividend reductions if earnings are to fall by half. If you understand the companies' history and their ability to pay the dividend, then payout ratios in excess of 50% may be considered. We suggest readers use the March 2009 low (or companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. The November 2008 to March 2009 time frame fits that description. It is important to place these companies in your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety.

Related Article
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Dividend Watch List

Posted on August 28, 2010 by | Leave a comment
Watch List Summary
The best performing stock from the previous list was Harleysville (HGIC) which rose 4% The worst performing stock was Medtronic (MDT) which fell 14%.

Topping the list this week is Johnson & Johnson (JNJ). Based on IQTrends (http://www.iqtrends.com/), JNJ is undervalued at or near 3.5% yield. The current yield is 3.7%. Trailing P/E of 12 is 25% below its average 5 years P/E of 16. We suggest readers adding JNJ to your investment watch list.

Second on the list is Intel (INTC). After cutting their sales and margin forecast down on Friday, stock rose 1%. Could the negative news be priced in? Only time will tell. Intel is trading at 11x trailing earnings. Compared that to its 5 years average of 21x, it could be a bargain. Analyst will have a weekend full of downward revision so we expect little more pressure next week. But given the stock is yielding 3.4% compared to the 5 years average yield of 2.3%, the risk/reward is more attractive now. Both JNJ and INTC have payout ratio below 50%.

Our Investment Observation of Wesco Financial (WSC) on Tuesday August 24th was quickly verifed as being undervalued by Warren Buffett's offer to buy the remaining portion that he didn't already own on Thursday August 26th. We were able to provide a new Investment Observation of Transatlantic Holdings (TRH). With Transatlantic Holdings selling below book value, median price-to-earnings and dividend increases every year since going public, we believe TRH is a great alternative to Wesco Financial. In addition to TRH, we are working on a company which we believe will be able to retain its value far into the future.

August 27, 2010 Watch List

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
JNJ Johnson & Johnson   57.60 1.30% 11.90 4.84 2.16 3.75% 45%
INTC Intel Corp.  18.37 1.38% 11.00 1.67 0.63 3.43% 38%
GD General Dynamics Corp. 57.37 1.95% 9.18 6.25 1.68 2.93% 27%
PBI Pitney Bowes Inc   19.61 2.14% 11.88 1.65 1.46 7.45% 88%
SVU SUPERVALU INC 10.19 2.31% 6.25 1.63 0.35 3.43% 21%
HRB H&R Block, Inc. 13.59 2.64% 9.50 1.43 0.60 4.42% 42%
CSL Carlisle Companies Inc. 29.50 2.68% 12.66 2.33 0.68 2.31% 29%
UVV Universal Corp. 36.47 2.70% 7.18 5.08 1.88 5.15% 37%
XRAY DENTSPLY International Inc.  28.86 2.70% 15.60 1.85 0.20 0.69% 11%
WFSL Washington Federal, Inc.  14.43 2.78% 13.74 1.05 0.20 1.39% 19%
DNB Dun & Bradstreet Corp. 67.37 2.85% 14.49 4.65 1.40 2.08% 30%
UMBF UMB Financial Corp.  33.48 2.86% 13.95 2.40 0.74 2.21% 31%
PAYX Paychex, Inc.  25.37 2.92% 19.22 1.32 1.24 4.89% 94%
BEC Beckman Coulter, Inc. 45.84 3.24% 21.83 2.10 0.72 1.57% 34%
HSC Harsco Corp. 20.74 3.49% 17.14 1.21 0.82 3.95% 68%
ALL Allstate Corp.   27.99 3.51% 15.13 1.85 0.80 2.86% 43%
NTRS Northern Trust Corp.  47.05 3.52% 15.43 3.05 1.12 2.38% 37%
EV Eaton Vance Corp. 26.93 3.74% 19.24 1.40 0.64 2.38% 46%
ITW Illinois Tool Works, Inc. 41.85 3.77% 13.86 3.02 1.36 3.25% 45%
NFG National Fuel Gas Co. 44.46 3.81% 17.03 2.61 1.38 3.10% 53%
WAG Walgreen Co. 27.32 4.04% 13.13 2.08 0.70 2.56% 34%
WFC Wells Fargo & Co. 24.00 4.26% 14.46 1.66 0.20 0.83% 12%
BBT BB&T Corp. 22.72 4.51% 21.43 1.06 0.60 2.64% 57%
OMI Owens & Minor, Inc. 26.68 4.55% 13.54 1.97 0.71 2.66% 36%
FRS Frisch's Restaurants, Inc 18.92 4.59% 9.80 1.93 0.52 2.75% 27%
CWT California Water Service Group 35.42 4.76% 19.15 1.85 1.19 3.36% 64%
WST West Pharmaceutical Services, Inc. 34.33 4.82% 14.99 2.29 0.64 1.86% 28%
MLM Martin Marietta Materials, Inc. 75.16 5.12% 41.76 1.80 1.60 2.13% 89%
USB U.S. BanCorp. 21.66 5.15% 15.58 1.39 0.20 0.92% 14%
MSA Mine Safety Appliances Co 23.57 5.22% 21.04 1.12 1.00 4.24% 89%
BANF BancFirst Corp.  36.49 5.28% 14.42 2.53 0.92 2.52% 36%
FFIN First Financial Bankshares, Inc.  45.85 5.28% 17.57 2.61 1.36 2.97% 52%
BDX Becton, Dickinson and Co. 69.72 5.32% 13.64 5.11 1.48 2.12% 29%
BCR CR Bard, Inc. 77.98 5.39% 15.88 4.91 0.72 0.92% 15%
CL Colgate-Palmolive Co. 74.25 5.39% 17.72 4.19 2.12 2.86% 51%
MDT Medtronic, Inc. 32.52 5.58% 11.66 2.79 0.90 2.77% 32%
FII Federated Investors Inc 21.13 5.60% 11.06 1.91 0.96 4.54% 50%
FUL HB Fuller Company 19.61 6.17% 10.77 1.82 0.28 1.43% 15%
TROW T. Rowe Price Group, Inc.  45.24 6.37% 20.20 2.24 1.08 2.39% 48%
TR Tootsie Roll Industries Inc  23.97 3.45% 26.34 0.91 0.32 1.34% 35%
WMT Wal-Mart Stores, Inc. 51.00 6.76% 13.11 3.89 1.21 2.37% 31%
LLY Eli Lilly & Co. 34.20 6.81% 8.47 4.04 1.96 5.73% 49%
XOM Exxon Mobil Corp.   59.80 6.90% 11.54 5.18 1.76 2.94% 34%
HGIC Harleysville Group Inc.  32.13 6.92% 12.12 2.65 1.44 4.48% 54%
UFPI Universal Forest Products, Inc.  28.18 7.15% 22.91 1.23 0.40 1.42% 33%
SBSI Southside Bancshares, Inc.  18.65 7.24% 7.06 2.64 0.68 3.65% 26%
HCC HCC Insurance Holdings, Inc. 25.59 7.30% 8.79 2.91 0.54 2.11% 19%
SEIC SEI Investments Company  18.02 7.52% 16.38 1.10 0.20 1.11% 18%
LM Legg Mason, Inc.  25.84 7.67% 20.35 1.27 0.16 0.62% 13%
HIG Hartford Financial Services Group  20.32 7.74% 70.07 0.29 0.20 0.98% 69%
RLI RLI Corp. 53.21 7.87% 9.47 5.62 1.16 2.18% 21%
SYK Stryker Corp. 44.00 7.90% 14.97 2.94 0.60 1.36% 20%
GS Goldman Sachs Group, Inc.   139.75 7.92% 7.05 19.82 1.40 1.00% 7%
AROW Arrow Financial Corp.  23.70 8.07% 12.22 1.94 1.00 4.22% 52%
CBSH Commerce Bancshares, Inc.  36.56 8.20% 14.86 2.46 0.94 2.57% 38%
IBM International Business Machines 124.73 8.32% 11.79 10.58 2.60 2.08% 25%
SFNC Simmons First National Corp.  26.29 8.73% 15.37 1.71 0.76 2.89% 44%
BRC Brady Corp. 26.34 8.75% 17.44 1.51 0.70 2.66% 46%
AWR American States Water Co. 33.94 8.78% 20.82 1.63 1.04 3.06% 64%
LEG Leggett & Platt, Inc. 19.48 8.89% 16.23 1.20 1.08 5.54% 90%
VFC VF Corp. 73.88 9.02% 14.75 5.01 2.40 3.25% 48%
TRMK Trustmark Corp.  19.74 9.24% 14.10 1.40 0.92 4.66% 66%
EGN Energen Corp. 43.97 9.24% 11.39 3.86 0.52 1.18% 13%
LANC Lancaster Colony Corp.  47.35 9.40% 11.61 4.08 1.20 2.53% 29%
TMP Tompkins Financial Corp. 37.94 9.51% 12.01 3.16 1.36 3.58% 43%
RNST Renasant Corp.  14.07 9.84% 19.01 0.74 0.68 4.83% 92%
TRH Transatlantic Holdings, Inc. 48.52 10.07% 7.73 6.28 0.84 1.73% 13%
CAG ConAgra Foods, Inc. 21.74 10.13% 13.42 1.62 0.80 3.68% 49%
MDU MDU Resources Group Inc. 18.85 10.17% 13.86 1.36 0.63 3.34% 46%
LOW Lowe's Companies Inc 21.10 10.18% 16.48 1.28 0.44 2.09% 34%
FFIC Flushing Financial Corp.  11.21 10.23% 11.56 0.97 0.52 4.64% 54%
RPM RPM International Inc. 17.25 10.15% 12.41 1.39 0.82 4.75% 59%
72 Companies






We excluded companies that has no earning and payout ratio in excess of 100%. 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.

Because our list has many great companies, we urged investors to filter for companies with less than 50% payout ratio. This should minimized the risk of dividend reductions if earnings are to fall by half. If you understand the companies' history and their ability to pay the dividend, then payout ratios in excess of 50% may be considered.  We suggest readers to use the March 2009 low (or companies' most distressed level in the last 2 years) as the downside projection for investing. Our view is to embrace the worse case scenario prior to investing. The November 2008 to March 2009 time frame fits that description. It is important to place these companies in your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety.

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Dividend Achiever Watch List

Posted on August 6, 2010 by | Leave a comment

At the end of the week, our watch list contracted to 30 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 10% of their respective 52-week low for August 6, 2010. We filtered out companies that has no earning and payout ratio in excess of 100%. 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.

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
PBI Pitney Bowes Inc   20.71 1.02% 10.79 1.92 1.46 7.05% 76%
WST West Pharmaceutical Services, Inc. 35.26 2.23% 15.81 2.23 0.64 1.82% 29%
PAYX Paychex, Inc.  25.56 2.69% 19.36 1.32 1.24 4.85% 94%
HGIC Harleysville Group Inc.  30.90 2.83% 11.24 2.75 1.30 4.21% 47%
CWT California Water Service Group 34.97 3.43% 18.90 1.85 1.19 3.40% 64%
BEC Beckman Coulter, Inc. 46.12 3.87% 21.96 2.10 0.72 1.56% 34%
FFIN First Financial Bankshares, Inc.  47.88 4.82% 18.34 2.61 1.36 2.84% 52%
DNB Dun & Bradstreet Corp. 68.96 5.28% 14.86 4.64 1.40 2.03% 30%
FII Federated Investors Inc 21.35 5.38% 11.18 1.91 0.96 4.50% 50%
JNJ Johnson & Johnson   59.96 5.45% 12.39 4.84 2.16 3.60% 45%
LOW Lowe's Companies Inc 20.28 5.90% 16.62 1.22 0.44 2.17% 36%
TR Tootsie Roll Industries Inc  24.58 6.09% 26.15 0.94 0.32 1.30% 34%
BBT BB&T Corp. 25.20 6.11% 23.77 1.06 0.60 2.38% 57%
UMBF UMB Financial Corp.  36.69 6.13% 15.29 2.40 0.74 2.02% 31%
AWR American States Water Co. 33.24 6.54% 18.57 1.79 1.04 3.13% 58%
WAG Walgreen Co. 28.00 6.63% 13.46 2.08 0.70 2.50% 34%
NTRS Northern Trust Corp.  48.57 6.86% 15.92 3.05 1.12 2.31% 37%
SFNC Simmons First National Corp.  26.25 7.14% 15.35 1.71 0.76 2.90% 44%
CSL Carlisle Companies Inc. 32.75 7.17% 14.06 2.33 0.64 1.95% 27%
MDT Medtronic, Inc. 37.81 7.63% 13.55 2.79 0.90 2.38% 32%
UVV Universal Corp. 37.78 7.70% 6.65 5.68 1.88 4.98% 33%
UFPI Universal Forest Products, Inc.  30.92 8.15% 25.14 1.23 0.40 1.29% 33%
TRH Transatlantic Holdings, Inc. 47.38 8.40% 7.54 6.28 0.84 1.77% 13%
WMT Wal-Mart Stores, Inc. 51.79 8.42% 13.59 3.81 1.21 2.34% 32%
CL Colgate-Palmolive Co. 76.50 8.59% 18.26 4.19 2.12 2.77% 51%
ALL Allstate Corp.   28.98 8.70% 12.60 2.30 0.80 2.76% 35%
HCC HCC Insurance Holdings, Inc. 25.98 8.93% 8.66 3.00 0.54 2.08% 18%
MSA Mine Safety Appliances Co 24.55 9.60% 21.92 1.12 1.00 4.07% 89%
SBSI Southside Bancshares, Inc.  19.08 9.72% 7.23 2.64 0.68 3.56% 26%
HSC Harsco Corp. 23.15 9.92% 19.13 1.21 0.82 3.54% 68%
OMI Owens & Minor, Inc. 28.08 10.03% 14.25 1.97 0.71 2.53% 36%
30 Companies






Watch List Summary
The best performing stock from the previous list was Pfizer (PFE) which rose 11.4%  The worst performing stock was State Auto Financial (STFC) which fell 6.3%.  Because our list has more than a handful of great companies, We urged investors to filter for companies with less than 50% payout ratio. This should minimized the risk of dividend reductions if earnings are to fall by half. If you understand the companies' history and their ability to pay the dividend, then payout ratios in excess of 50% may be considered.

Pitney Bowes (PBI) fell like a rock on Thursday after missing analyst estimates on their earnings along with a a credit rating downgrade from S&P. Strangely, PBI's price action this week replicated last year's price action after they reported their earnings. The New Low team highlighted that price action on July 31, 2009. As a result, we are beginning to dig deeper into the details of this company in light of recent event.

After a heart-stopping drop of 15%, we took a position in Beckman Coulter (BEC). Because we're confident that BEC will fall further, we implemented the first of 3 purchases that we're expecting to make.  We're ready and excited to make the next two purchases if they happened to be triggered at much lower levels.

Johnson & Johnson (JNJ) is still interesting at this level.  Based on IQTrends (http://www.iqtrends.com/), JNJ is undervalued at or near 3.5% yield. With current yield of 3.60%, we suggest readers adding JNJ to your investment watch list.

Once again, we suggest readers use the March 2009 low (or companies' most distressed level in the last 2 years) as the downside projection for investing.  Our view is to embrace the worse case scenario prior to investing.  The November 2008 or March 2009 low fits that description.  Although we use the one year (52-week low) time frame, the past year was nothing but a major bull run and anyone who bought at or near the low could, and should, be taking profits.  It is important to place these companies in your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety.

Next Week:

  • Nasdaq 100 Watch List
  • International Dividend Achievers

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Dividend Achiever Watch List

Posted on July 23, 2010 by | Leave a comment
At the end of the week, our watch list contracted to 30 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 10% of the 52-week low for July 23, 2010. We filtered out companies that has no earning and payout ratio in excess of 100%.  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.

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
BEC Beckman Coulter, Inc. 47.26 0.00% 19.77 2.39 0.72 1.52% 30%
JNJ Johnson & Johnson   57.63 1.35% 11.91 4.84 2.16 3.75% 45%
FRS Frisch's Restaurants, Inc 19.99 2.46% 10.10 1.98 0.52 2.60% 26%
XRAY DENTSPLY International Inc.  29.26 3.39% 15.99 1.83 0.20 0.68% 11%
WST West Pharmaceutical Services, Inc. 35.41 3.48% 15.88 2.23 0.64 1.81% 29%
FII Federated Investors Inc 20.98 3.55% 10.70 1.96 0.96 4.58% 49%
PFE Pfizer Inc 14.58 4.14% 13.50 1.08 0.72 4.94% 67%
NTRS Northern Trust Corp.  47.51 4.53% 14.94 3.18 1.12 2.36% 35%
BDX Becton, Dickinson and Co. 66.89 5.49% 12.84 5.21 1.48 2.21% 28%
FFIN First Financial Bankshares, Inc.  48.49 6.15% 18.79 2.58 1.36 2.80% 53%
XOM Exxon Mobil Corp.   59.72 6.76% 13.60 4.39 1.76 2.95% 40%
UMBF UMB Financial Corp.  36.92 6.80% 16.05 2.30 0.74 2.00% 32%
PAYX Paychex, Inc.  26.64 7.03% 20.18 1.32 1.24 4.65% 94%
MDT Medtronic, Inc. 36.58 7.24% 13.11 2.79 0.90 2.46% 32%
HCC HCC Insurance Holdings, Inc. 25.59 7.30% 8.53 3.00 0.54 2.11% 18%
DNB Dun & Bradstreet Corp. 70.34 7.39% 14.10 4.99 1.40 1.99% 28%
T AT&T Inc 25.54 7.40% 12.71 2.01 1.68 6.58% 84%
STFC State Auto Financial Corp.  16.00 7.96% 17.20 0.93 0.60 3.75% 65%
WMT Wal-Mart Stores, Inc. 51.67 8.16% 13.56 3.81 1.21 2.34% 32%
MSA Mine Safety Appliances Co 24.24 8.21% 21.26 1.14 1.00 4.13% 88%
OMI Owens & Minor, Inc. 27.67 8.42% 14.72 1.88 0.71 2.57% 38%
AROW Arrow Financial Corp.  23.78 8.44% 12.26 1.94 1.00 4.21% 52%
SVU SUPERVALU INC 11.28 8.46% 6.10 1.85 0.35 3.10% 19%
CWT California Water Service Group 36.75 8.70% 19.04 1.93 1.19 3.24% 62%
ITW Illinois Tool Works, Inc. 43.31 9.65% 14.34 3.02 1.24 2.86% 41%
LLY Eli Lilly & Co. 35.17 9.84% 9.06 3.88 1.96 5.57% 51%
LOW Lowe's Companies Inc 21.11 10.23% 17.30 1.22 0.44 2.08% 36%
TRH Transatlantic Holdings, Inc. 48.22 10.32% 7.70 6.26 0.84 1.74% 13%
CTWS Connecticut Water Service, Inc.  22.15 10.75% 18.77 1.18 0.91 4.11% 77%
UFPI Universal Forest Products, Inc.  31.72 10.95% 25.79 1.23 0.40 1.26% 33%
30 Companies






Watch List Summary
The best performing stock from the previous list was Matthews International (MATW) which rose 17%!  The worst performing stock was Johnson & Johnson (JNJ) which fell 4.8%.  Because our list has more than a handful of great companies, I urged investors to filter for companies with less than 50% payout ratio. This should minimized the risk of dividend reduction if earnings are to fall by half. If you understand the companies' history and their ability to pay the dividend, payout ratios in excess of 50% may be considered.
Beckman Coulter (BEC) fell 21% on Friday and broke below its 52-week low. They are now withing 20% of their December 2008 low of $37. The company reported earnings that were 21% less than the analyst estimated. In addition, they took down their full year profit guidance by 10%. Our view is that the price action was not justified and we took a position in the name. We'll detail more about this company in the coming days.
Johnson & Johnson (JNJ) is another name that is getting interesting at this level.  Based on IQTrends (http://www.iqtrends.com/), JNJ is undervalued at or around 3.5% yield. With current yield of 3.75%, we suggest readers add JNJ to your investment opportunities list.
Once again, I suggest readers to use the March 2009 low (or companies' most distressed time) as the downside projection for investing.  Our conservative view is to embrace the worse case scenario prior to investing.  The March 2009 low fits that description.  Although we use the one year (52-week low) time frame, the past year was nothing but a major bull run and anyone who bought at or near the low could, and should, be taking profits.  It is important to place these companies in your own watch list so that when the opportunity arises, you can purchase them with a greater margin of safety.

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Dividend Achiever Watch List

Posted on July 10, 2010 by | Leave a comment
At the end of the week, our watch list contracted to 38 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 10% of the 52-week low for July 9, 2010. 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.

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
FRS Frisch's Restaurants, Inc 19.95 2.26% 10.08 1.98 0.52 2.61% 26%
DNB Dun & Bradstreet Corp. 67.46 2.99% 13.52 4.99 1.40 2.08% 28%
WMT Wal-Mart Stores, Inc. 49.43 4.39% 12.97 3.81 1.21 2.45% 32%
FII Federated Investors Inc 21.24 4.84% 10.84 1.96 0.96 4.52% 49%
XOM Exxon Mobil Corp.   58.78 5.08% 13.39 4.39 1.76 2.99% 40%
PFE Pfizer Inc 14.77 5.50% 13.68 1.08 0.72 4.87% 67%
AROW Arrow Financial Corp.  24.14 5.60% 12.91 1.87 1.00 4.14% 53%
UMBF UMB Financial Corp.  36.62 5.93% 15.92 2.30 0.74 2.02% 32%
MATW Matthews International Corp.  29.69 6.04% 14.34 2.07 0.28 0.94% 14%
FFIN First Financial Bankshares, Inc.  49.32 6.04% 19.12 2.58 1.36 2.76% 53%
GS Goldman Sachs Group, Inc.   138.06 6.61% 5.75 24.01 1.40 1.01% 6%
THFF First Financial Corp. Indiana  26.82 6.77% 14.74 1.82 0.92 3.43% 51%
NTRS Northern Trust Corp.  48.53 6.78% 15.26 3.18 1.12 2.31% 35%
TR Tootsie Roll Industries Inc  24.15 6.86% 25.69 0.94 0.32 1.33% 34%
T AT&T Inc 24.83 7.07% 12.35 2.01 1.68 6.77% 84%
CWT California Water Service Group 36.35 7.51% 18.83 1.93 1.19 3.27% 62%
JNJ Johnson & Johnson   60.54 7.63% 12.72 4.76 2.16 3.57% 45%
SVU SUPERVALU INC 11.21 7.79% 6.06 1.85 0.35 3.12% 19%
WAG Walgreen Co. 28.40 8.15% 13.65 2.08 0.55 1.94% 26%
HSC Harsco Corp. 24.90 8.54% 18.58 1.34 0.82 3.29% 61%
HRB H&R Block, Inc. 14.60 8.63% 10.21 1.43 0.60 4.11% 42%
XRAY DENTSPLY International Inc.  30.22 8.74% 16.51 1.83 0.20 0.66% 11%
HCC HCC Insurance Holdings, Inc. 25.59 8.89% 8.53 3.00 0.54 2.11% 18%
STR Questar Corp. 16.22 9.15% 6.01 2.70 0.52 3.21% 19%
CTWS Connecticut Water Service, Inc.  21.88 9.40% 18.54 1.18 0.91 4.16% 77%
NJR New Jersey Resources Corp. 36.65 9.44% 16.58 2.21 1.36 3.71% 62%
BDX Becton, Dickinson and Co. 69.46 9.54% 13.33 5.21 1.48 2.13% 28%
UFPI Universal Forest Products, Inc.  32.04 9.54% 23.73 1.35 0.40 1.25% 30%
STFC State Auto Financial Corp.  16.24 9.58% 17.46 0.93 0.60 3.69% 65%
LOW Lowe's Companies Inc 20.43 9.72% 16.75 1.22 0.44 2.15% 36%
LLY Eli Lilly & Co. 35.17 9.84% 9.06 3.88 1.96 5.57% 51%
PAYX Paychex, Inc.  26.28 10.23% 19.91 1.32 1.24 4.72% 94%
ADM Archer Daniels Midland Co. 26.72 10.32% 11.00 2.43 0.60 2.25% 25%
BRC Brady Corp. 26.18 10.42% 17.34 1.51 0.70 2.67% 46%
KO Coca-Cola Co 52.40 10.50% 17.24 3.04 1.76 3.36% 58%
ABT Abbott Laboratories 48.03 10.54% 14.09 3.41 1.76 3.66% 52%
NWN Northwest Natural Gas Co. 45.25 10.83% 16.82 2.69 1.66 3.67% 62%
VIVO Meridian Bioscience Inc.  17.77 10.85% 22.49 0.79 0.76 4.28% 96%
38 Companies






*Goldman Sachs isn't a former or current dividend achiever but we feel that it is worth watching because it's a proxy of our financial system.

Watch List Summary

The best performing stock from the previous list was Monsanto (MON) which rose 6.1%.  The worst performing stock was SuperValu (SVU) which fell 6.6%.  Overall, the Dividend Achiever watch list gained 0.8% versus the Dow which was up 0.5%. Because our list has more than a handful of great companies, I urged investors to filter for companies with less than 50% payout ratio. This should minimized the risk of dividend reduction if earnings are to fall by half. If you understand the companies' history and their ability to pay the dividend, payout ratios in excess of 50% may be considered.
Investor flocked to safety as Aaa bond yield fell to 4.88% in June.  This is the lowest yield since February of 1966 (4.78%).  Yield at the December 2008 low, the peak of credit crunch, was at 5.05%.  This allow corporations, those with good balance sheets, to refinance or issue more debts at lower rate.
There are many great names on this list. One in particular is Becton Dickinson (BDX) which last traded at $69.46.  The reason why we like this name is because Warren Buffett added the name in late 2009. We highlighted the company in our watch list in 8/14/09 when BDX was trading at $66.39. After Buffett took position, shares rose to $80 and now have retraced back.  For those who missed the opportunity then have the opportunity now. As an added bonus, BDX is currently paying $0.37 of dividend quarterly compared to $0.33 in 2009. This is 12% above the previous payout. So while stock price have flat line, fundamental improved. While the stock price looks higher at $69, it is cheaper now at $69 because of the dividend yield (2.13% vs 2.00%).
Once again, I suggest readers to use the March 2009 low (or companies' most distressed time) as downside projection for investing.  Our conservative view is to embrace the worse case scenario prior to investing.  March 2009 low fits that description.  Although we use the one year (52 weeks) time frame, the past year was nothing but a major bull run and anyone who bought at or near the low could, and should, be taking profits.  It is important to place these companies in your own watch list so that when opportunity arises, you can purchase them with a greater margin of safety.

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Dividend Achiever Watch List

Posted on June 25, 2010 by | Leave a comment
We've decided to make a slight modification to our criteria for the Dividend Achiever watch list.  Over the past several weeks, the number of companies on our watch list has been exploding.  As we explore the alternative field of investment, we thought that if there are adequate companies in the 10% range then we could use that as our criteria.  Therefore, this week's list (and going forward) will contain Dividend Achievers that are within 10% of the 52-week low.  If this list shirks to a certain size, we'll broaden our range to 20% as usual.

At the end of the week, our watch list contracted to 41 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 10% of the 52-week low for June 25, 2010. 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.

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
WAG Walgreen Co. 26.93 0.00% 12.64 2.13 0.55 2.04% 26%
MON Monsanto Co. 48.27 0.23% 20.11 2.40 1.06 2.20% 44%
SVU SUPERVALU INC 12.00 0.59% 6.49 1.85 0.35 2.92% 19%
XOM Exxon Mobil Corp.   59.10 1.09% 13.46 4.39 1.76 2.98% 40%
HSC Harsco Corp. 25.05 1.58% 18.69 1.34 0.82 3.27% 61%
UMBF UMB Financial Corp.  36.73 1.72% 15.97 2.30 0.74 2.01% 32%
DNB Dun & Bradstreet Corp. 70.48 2.00% 14.12 4.99 1.40 1.99% 28%
FII Federated Investors Inc 21.32 2.40% 10.88 1.96 0.96 4.50% 49%
WMT Wal-Mart Stores, Inc. 48.80 3.06% 12.81 3.81 1.21 2.48% 32%
FFIN First Financial Bankshares, Inc.  49.55 3.53% 19.21 2.58 1.36 2.74% 53%
NTRS Northern Trust Corp.  48.44 3.68% 15.23 3.18 1.12 2.31% 35%
PFE Pfizer Inc 14.64 3.76% 13.56 1.08 0.72 4.92% 67%
FRS Frisch's Restaurants, Inc 20.70 3.97% 10.45 1.98 0.52 2.51% 26%
HRB H&R Block, Inc. 15.55 4.50% 10.58 1.47 0.60 3.86% 41%
CRRC Courier Corp.  12.74 5.29% 13.13 0.97 0.84 6.59% 87%
MATW Matthews International Corp.  29.53 5.46% 14.27 2.07 0.28 0.95% 14%
UFPI Universal Forest Products, Inc.  31.90 5.49% 23.63 1.35 0.40 1.25% 30%
NJR New Jersey Resources Corp. 35.45 5.85% 16.04 2.21 1.36 3.84% 62%
VIVO Meridian Bioscience Inc.  16.98 5.93% 21.49 0.79 0.76 4.48% 96%
LLY Eli Lilly & Co. 33.94 6.00% 8.75 3.88 1.96 5.77% 51%
GS* Goldman Sachs Group, Inc.   139.66 6.37% 5.82 24.01 1.40 1.00% 6%
JNJ Johnson & Johnson   58.70 6.49% 12.33 4.76 2.16 3.68% 45%
KO Coca-Cola Co 50.26 6.53% 16.53 3.04 1.76 3.50% 58%
CTWS Connecticut Water Service, Inc.  21.37 6.85% 18.11 1.18 0.91 4.26% 77%
T AT&T Inc 24.79 6.90% 12.33 2.01 1.68 6.78% 84%
AROW Arrow Financial Corp.  25.28 6.93% 13.52 1.87 1.00 3.96% 53%
CWT California Water Service Group 36.34 7.48% 18.83 1.93 1.19 3.27% 62%
THFF First Financial Corp. Indiana  27.23 7.50% 14.96 1.82 0.92 3.38% 51%
NWN Northwest Natural Gas Co. 44.22 8.30% 16.44 2.69 1.66 3.75% 62%
ABT Abbott Laboratories 47.19 8.61% 13.84 3.41 1.76 3.73% 52%
ADM Archer Daniels Midland Co. 26.34 8.75% 10.84 2.43 0.60 2.28% 25%
BDX Becton, Dickinson and Co. 69.05 8.89% 13.25 5.21 1.48 2.14% 28%
MDU MDU Resources Group Inc. 18.67 9.12% 13.34 1.40 0.63 3.37% 45%
PGN Progress Energy, Inc. 39.28 9.20% 14.44 2.72 2.48 6.31% 91%
HCC HCC Insurance Holdings, Inc. 25.36 9.22% 8.45 3.00 0.54 2.13% 18%
SFNC Simmons First National Corp.  26.78 9.31% 16.33 1.64 0.76 2.84% 46%
VVC Vectren Corp. 23.78 9.79% 15.64 1.52 1.36 5.72% 89%
AWR American States Water Co. 34.27 9.84% 19.15 1.79 1.04 3.03% 58%
AVP Avon Products, Inc. 27.49 9.96% 21.65 1.27 0.88 3.20% 69%
TMP Tompkins Financial Corp. 38.18 10.20% 12.64 3.02 1.36 3.56% 45%
OMI Owens & Minor, Inc. 28.19 10.46% 14.99 1.88 0.71 2.52% 38%
41 Companies






*Goldman Sachs isn't a former or current dividend achiever but we feel that it is worth watching because it's a proxy of our financial system.

Watch List Summary
The best performing stock from last week's list was Shenandoah Telecom (SHEN) which rose 7.9%.  The worst performing stock was Walgreen (WAG) which fell 10.5%.  Overall, the Dividend Achiever watch list lost 2.4% versus the Dow which was down 2.95%. Because our list has more than a handful of great companies, I urged investors to filter for companies with less than 50% payout ratio. This should minimized the risk of dividend reduction if earnings are to fall by half. If you understand the companies' history and their ability to pay the dividend, payout ratios in excess of 52% may be considered.

With Aaa bond ratings falling to 4.96%, I expected more companies to pass the first criteria of Graham's stock selection. But nothing has changed materially. Supervalue (SVU), Eli Lilly (LLY), Goldman Sachs (GS), and HCC Insurance Holdings (HCC) are the companies with an earnings yield that exceeds twice the Aaa bond rate and payout ratio less than 50%.

Another company we'd like to highlight is Walgreen (WAG).  The recent sell-off brought the yield up to 2.04%.  Although that doesn't appear to be like much, WAG highest yield was 2.36% (in 1989).  Using current dividend figure and the highest yielding period for WAG, shares would be at $23.30 or 13.5% down from current price. Since the company started paying dividend in 1985, they have increase their payout every year at an annual rate of  12.7%.

Once again, I suggest readers to use the March 2009 low (or companies' most distressed time) as downside projection for investing.  Our conservative view is to embrace the worse case scenario prior to investing.  March 2009 low fits that description.  Although we use the one year (52 weeks) time frame, the past year was nothing but a major bull run and anyone who bought at or near the low could, and should, be taking profits.  It is important to place these companies in your own watch list so that when opportunity arises, you can purchase them with a greater margin of safety.

Related Article:
Benjamin Graham's Stock Selection Criteria

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Dividend Achiever Watch List

Posted on June 18, 2010 by | Leave a comment
At the end of the week, our watch list contracted to 69 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 20% of the 52-week low for June 18, 2010. 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.
Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
UMBF UMB Financial Corp.  37.38 2.98% 16.25 2.30 0.74 1.98% 32%
UFPI Universal Forest Products, Inc.  31.34 3.64% 23.21 1.35 0.40 1.28% 30%
FRS Frisch's Restaurants, Inc 20.73 4.12% 10.47 1.98 0.52 2.51% 26%
FFIN First Financial Bankshares, Inc.  50.07 4.62% 19.41 2.58 1.36 2.72% 53%
MON Monsanto Co. 50.39 4.63% 21.00 2.40 1.06 2.10% 44%
GS* Goldman Sachs Group, Inc.   138.18 5.24% 5.76 24.01 1.40 1.01% 6%
HSC Harsco Corp. 25.99 5.39% 19.40 1.34 0.82 3.16% 61%
DNB Dun & Bradstreet Corp. 73.23 5.98% 14.68 4.99 1.40 1.91% 28%
HRB H&R Block, Inc. 15.80 6.18% 10.75 1.47 0.60 3.80% 41%
FII Federated Investors Inc 22.15 6.39% 11.30 1.96 0.96 4.33% 49%
SHEN Shenandoah Telecom 16.68 7.20% 15.16 1.10 0.32 1.92% 29%
AROW Arrow Financial Corp.  25.44 7.61% 13.60 1.87 1.00 3.93% 53%
NTRS Northern Trust Corp.  50.30 7.66% 15.82 3.18 1.12 2.23% 35%
THFF First Financial Corp. Indiana  27.27 7.66% 14.98 1.82 0.92 3.37% 51%
JNJ Johnson & Johnson   59.18 7.78% 12.43 4.76 2.16 3.65% 45%
SVU SUPERVALU INC 12.86 7.80% 6.95 1.85 0.35 2.72% 19%
PFE Pfizer Inc 15.21 7.80% 14.08 1.08 0.72 4.73% 67%
WAG Walgreen Co. 30.09 7.89% 14.13 2.13 0.55 1.83% 26%
XOM Exxon Mobil Corp.   63.10 7.94% 14.37 4.39 1.76 2.79% 40%
LLY Eli Lilly & Co. 34.61 8.09% 8.92 3.88 1.96 5.66% 51%
CTWS Connecticut Water Service, Inc.  21.63 8.15% 18.33 1.18 0.91 4.21% 77%
CWT California Water Service Group 36.66 8.43% 18.99 1.93 1.19 3.25% 62%
WMT Wal-Mart Stores, Inc. 51.55 8.87% 13.53 3.81 1.21 2.35% 32%
NJR New Jersey Resources Corp. 36.52 9.05% 16.52 2.21 1.36 3.72% 62%
AWR American States Water Co. 34.12 9.36% 19.06 1.79 1.04 3.05% 58%
T AT&T Inc 25.43 9.66% 12.65 2.01 1.68 6.61% 84%
HCC HCC Insurance Holdings, Inc. 25.54 9.99% 8.51 3.00 0.54 2.11% 18%
KO Coca-Cola Co 52.31 10.87% 17.21 3.04 1.76 3.36% 58%
VVC Vectren Corp. 24.11 11.31% 15.86 1.52 1.36 5.64% 89%
SFNC Simmons First National Corp.  27.32 11.51% 16.66 1.64 0.76 2.78% 46%
TMP Tompkins Financial Corp. 38.69 11.67% 12.81 3.02 1.36 3.52% 45%
MDU MDU Resources Group Inc. 19.13 11.81% 13.66 1.40 0.63 3.29% 45%
PGN Progress Energy, Inc. 40.34 12.15% 14.83 2.72 2.48 6.15% 91%
ABT Abbott Laboratories 48.77 12.24% 14.30 3.41 1.76 3.61% 52%
ADM Archer Daniels Midland Co. 27.19 12.26% 11.19 2.43 0.60 2.21% 25%
BEC Beckman Coulter, Inc. 60.25 12.28% 25.21 2.39 0.72 1.20% 30%
VIVO Meridian Bioscience Inc.  18.00 12.29% 22.78 0.79 0.76 4.22% 96%
BDX Becton, Dickinson and Co. 71.32 12.47% 13.69 5.21 1.48 2.08% 28%
MATW Matthews International Corp.  31.56 12.71% 15.25 2.07 0.28 0.89% 14%
OMI Owens & Minor, Inc. 28.77 12.74% 15.30 1.88 0.71 2.47% 38%
NWN Northwest Natural Gas Co. 46.12 12.96% 17.14 2.69 1.66 3.60% 62%
CRRC Courier Corp.  13.77 13.80% 14.20 0.97 0.84 6.10% 87%
PBI Pitney Bowes Inc   23.23 13.98% 12.10 1.92 1.46 6.28% 76%
XRAY DENTSPLY International Inc.  31.72 14.14% 17.33 1.83 0.20 0.63% 11%
UGI UGI Corp. 26.50 14.32% 12.10 2.19 1.00 3.77% 46%
BCR CR Bard, Inc. 80.30 14.55% 16.98 4.73 0.72 0.90% 15%
AVP Avon Products, Inc. 28.74 14.96% 22.63 1.27 0.88 3.06% 69%
MGEE MGE Energy Inc.  36.94 15.22% 16.94 2.18 1.47 3.98% 67%
TR Tootsie Roll Industries Inc  25.28 15.28% 26.89 0.94 0.32 1.27% 34%
WTR Aqua America Inc 17.77 15.46% 22.49 0.79 0.58 3.26% 73%
WEYS Weyco Group, Inc.  24.07 15.61% 19.57 1.23 0.64 2.66% 52%
SBSI Southside Bancshares, Inc.  20.11 15.64% 7.56 2.66 0.68 3.38% 26%
FPL FPL Group, Inc. 52.51 15.94% 11.88 4.42 2.00 3.81% 45%
WGL WGL Holdings, Inc. 35.24 16.04% 15.19 2.32 1.51 4.28% 65%
CL Colgate-Palmolive Co. 80.59 16.07% 19.70 4.09 2.12 2.63% 52%
SIAL Sigma-Aldrich Corp.  53.21 16.18% 18.16 2.93 0.64 1.20% 22%
RNST Renasant Corp.  14.24 16.24% 18.74 0.76 0.68 4.78% 89%
STFC State Auto Financial Corp.  17.67 16.94% 19.00 0.93 0.60 3.40% 65%
ATO Atmos Energy Corp. 28.67 17.45% 13.78 2.08 1.34 4.67% 64%
CTBI Community Trust BanCorp., Inc.  26.06 17.65% 15.60 1.67 1.20 4.60% 72%
APD Air Products & Chemicals, Inc. 71.54 18.21% 17.93 3.99 1.96 2.74% 49%
CLX Clorox Co. 65.07 18.50% 15.31 4.25 2.20 3.38% 52%
PAYX Paychex, Inc.  28.33 18.83% 21.46 1.32 1.24 4.38% 94%
SJW SJW Corp. 24.59 19.20% 28.59 0.86 0.68 2.77% 79%
TRH Transatlantic Holdings, Inc. 49.46 19.24% 7.90 6.26 0.84 1.70% 13%
WST West Pharmaceutical Services, Inc. 37.81 19.46% 16.96 2.23 0.64 1.69% 29%
MDT Medtronic, Inc. 38.87 20.04% 13.93 2.79 0.82 2.11% 29%
PNY Piedmont Natural Gas Co., Inc. 27.03 20.13% 12.75 2.12 1.12 4.14% 53%
PX Praxair, Inc. 81.17 20.81% 19.85 4.09 1.80 2.22% 44%
69 Companies






*Goldman Sachs isn't a former or current dividend achiever but we feel that it is worth watching because it's a proxy of our financial system.

Watch List Summary

The best performing stock from last week's list was Archer Daniels (ADM) which rose 6%.  The worst performing stock was Universal Forest Products (UFPI) which fell 7.7%.  Overall, the Dividend Achiever watch list gained 2.1% versus the Dow which was up 2.3%. Because our list has more than a handful of great companies, I urged investors to filter through company with maximum of 50% payout ratio. This should minimized the risk of dividend reduction. If you understand the companies history and their ability to pay dividend, payout ratio in excess of 50% may be considered.

Take a closer look at our top 10 companies on the list. These companies combined for an average payout ratio of 37% and 8% earning yield.

Readers should use the March 2009 low (or companies' most distress time) as a base case for investing.  Our conservative view is to embrace the worse case scenario prior to investing.  March 2009 low fits that description.  Although we use the one year (52 weeks) time frame, the past year was nothing but major bull run and anyone who bought at or near the low can be taking profit.  It's important to place these companies in your own watch list so that when opportunities arise, you can purchase them with greater margin of safety.

Email our team here.

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Dividend Achiever Watch List

Posted on June 11, 2010 by | Leave a comment
At the end of the week, our watch list contracted to 72 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 20% of the 52-week low for June 11, 2010. 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.

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
SVU SUPERVALU INC 12.24 2.60% 6.62 1.85 0.35 2.86% 19%
FRS Frisch's Restaurants, Inc 20.55 3.21% 10.38 1.98 0.52 2.53% 26%
CWT California Water Service Group 34.91 3.25% 18.09 1.93 1.19 3.41% 62%
GS* Goldman Sachs Group, Inc.   135.64 3.31% 5.65 24.01 1.40 1.03% 6%
UMBF UMB Financial Corp.  37.58 3.53% 16.34 2.30 0.74 1.97% 32%
NJR New Jersey Resources Corp. 34.81 3.94% 15.75 2.21 1.36 3.91% 62%
DNB Dun & Bradstreet Corp. 71.84 3.97% 14.40 4.99 1.40 1.95% 28%
FFIN First Financial Bankshares, Inc.  49.92 4.30% 19.35 2.58 1.36 2.72% 53%
AWR American States Water Co. 32.68 4.74% 18.26 1.79 1.04 3.18% 58%
SHEN Shenandoah Telecom 16.34 5.01% 14.85 1.10 0.32 1.96% 29%
LLY Eli Lilly & Co. 33.67 5.15% 8.68 3.88 1.96 5.82% 51%
HSC Harsco Corp. 25.99 5.39% 19.40 1.34 0.82 3.16% 61%
WAG Walgreen Co. 29.48 5.70% 13.84 2.13 0.55 1.87% 26%
XOM Exxon Mobil Corp.   61.86 5.82% 14.09 4.39 1.76 2.85% 40%
CTWS Connecticut Water Service, Inc.  21.17 5.85% 17.94 1.18 0.91 4.30% 77%
ADM Archer Daniels Midland Co. 25.64 5.86% 10.55 2.43 0.60 2.34% 25%
THFF First Financial Corp. Indiana  26.84 5.96% 14.75 1.82 0.92 3.43% 51%
AROW Arrow Financial Corp.  25.10 6.17% 13.42 1.87 1.00 3.98% 53%
MON Monsanto Co. 51.23 6.37% 21.35 2.40 1.06 2.07% 44%
HRB H&R Block, Inc. 15.86 6.59% 10.79 1.47 0.60 3.78% 41%
NTRS Northern Trust Corp.  49.93 6.87% 15.70 3.18 1.12 2.24% 35%
FII Federated Investors Inc 22.25 6.87% 11.35 1.96 0.96 4.31% 49%
SFNC Simmons First National Corp.  26.21 6.98% 15.98 1.64 0.76 2.90% 46%
VVC Vectren Corp. 23.21 7.16% 15.27 1.52 1.36 5.86% 89%
HCC HCC Insurance Holdings, Inc. 24.89 7.19% 8.30 3.00 0.54 2.17% 18%
JNJ Johnson & Johnson   58.46 7.19% 12.28 4.76 2.16 3.69% 45%
WMT Wal-Mart Stores, Inc. 50.86 7.41% 13.35 3.81 1.21 2.38% 32%
PGN Progress Energy, Inc. 38.84 8.01% 14.28 2.72 2.48 6.39% 91%
VIVO Meridian Bioscience Inc.  17.35 8.23% 21.96 0.79 0.76 4.38% 96%
NWN Northwest Natural Gas Co. 44.25 8.38% 16.45 2.69 1.66 3.75% 62%
ABT Abbott Laboratories 47.20 8.63% 13.84 3.41 1.76 3.73% 52%
T AT&T Inc 25.29 9.06% 12.58 2.01 1.68 6.64% 84%
MDU MDU Resources Group Inc. 18.68 9.18% 13.34 1.40 0.63 3.37% 45%
KO Coca-Cola Co 51.65 9.47% 16.99 3.04 1.76 3.41% 58%
BDX Becton, Dickinson and Co. 69.69 9.90% 13.38 5.21 1.48 2.12% 28%
PFE Pfizer Inc 15.46 10.27% 14.31 1.08 0.72 4.66% 67%
FPL FPL Group, Inc. 50.00 10.40% 11.31 4.42 2.00 4.00% 45%
MATW Matthews International Corp.  30.96 10.57% 14.96 2.07 0.28 0.90% 14%
WTR Aqua America Inc 17.05 10.79% 21.58 0.79 0.58 3.40% 73%
BEC Beckman Coulter, Inc. 59.32 10.90% 24.82 2.39 0.72 1.21% 30%
PBI Pitney Bowes Inc   22.64 11.09% 11.79 1.92 1.46 6.45% 76%
TMP Tompkins Financial Corp. 38.59 11.39% 12.78 3.02 1.36 3.52% 45%
WGL WGL Holdings, Inc. 33.84 11.43% 14.59 2.32 1.51 4.46% 65%
XRAY DENTSPLY International Inc.  31.20 12.27% 17.05 1.83 0.20 0.64% 11%
AVP Avon Products, Inc. 28.09 12.36% 22.12 1.27 0.88 3.13% 69%
MGEE MGE Energy Inc.  35.70 12.55% 16.38 2.18 1.47 4.12% 67%
TRH Transatlantic Holdings, Inc. 46.69 12.56% 7.46 6.26 0.84 1.80% 13%
UGI UGI Corp. 26.14 12.77% 11.94 2.19 1.00 3.83% 46%
WEYS Weyco Group, Inc.  23.55 13.11% 19.15 1.23 0.64 2.72% 52%
SJW SJW Corp. 23.37 13.28% 27.17 0.86 0.68 2.91% 79%
STFC State Auto Financial Corp.  17.17 13.60% 18.46 0.93 0.60 3.49% 65%
TR Tootsie Roll Industries Inc  24.82 13.70% 26.40 0.94 0.32 1.29% 34%
BCR CR Bard, Inc. 80.07 14.22% 16.93 4.73 0.68 0.85% 14%
ATO Atmos Energy Corp. 27.88 14.22% 13.40 2.08 1.34 4.81% 64%
SBSI Southside Bancshares, Inc.  19.87 14.26% 7.47 2.66 0.68 3.42% 26%
PNY Piedmont Natural Gas Co., Inc. 25.78 14.58% 12.16 2.12 1.12 4.34% 53%
APD Air Products & Chemicals, Inc. 69.43 14.72% 17.40 3.99 1.96 2.82% 49%
SIAL Sigma-Aldrich Corp.  52.66 14.98% 17.97 2.93 0.64 1.22% 22%
PX Praxair, Inc. 77.78 15.76% 19.02 4.09 1.80 2.31% 44%
CL Colgate-Palmolive Co. 79.15 15.85% 19.35 4.09 2.12 2.68% 52%
MSEX Middlesex Water Company  15.40 17.02% 20.81 0.74 0.72 4.68% 97%
MSA Mine Safety Appliances Co 25.68 18.07% 22.53 1.14 1.00 3.89% 88%
CTAS Cintas Corp.  25.30 18.78% 23.64 1.07 0.48 1.90% 45%
MDT Medtronic, Inc. 38.13 18.90% 13.67 2.79 0.82 2.15% 29%
PAYX Paychex, Inc.  28.36 18.96% 21.48 1.32 1.24 4.37% 94%
UFPI Universal Forest Products, Inc.  33.96 19.16% 25.16 1.35 0.40 1.18% 30%
SYBT S.Y. BanCorp., Inc.  23.61 19.24% 19.51 1.21 0.68 2.88% 56%
CHRW C.H. Robinson Worldwide, Inc.  58.21 19.43% 27.20 2.14 1.00 1.72% 47%
BRC Brady Corp. 27.50 19.57% 18.21 1.51 0.70 2.55% 46%
CLX Clorox Co. 64.18 19.92% 15.10 4.25 2.20 3.43% 52%
WABC Westamerica BanCorp.  54.47 19.93% 17.29 3.15 1.44 2.64% 46%
ED Consolidated Edison, Inc.  43.13 20.14% 13.15 3.28 2.38 5.52% 73%
72 Companies






*Goldman Sachs isn't a former or current dividend achiever but we feel that it is worth watching because it's a proxy of our financial system.
Watch List Summary
The best performing stock from last week's list was Avon Products (AVP) which rose 9.2%.  The worst performing stock was Goldman Sachs (GS) which fell 4.6%.  Overall, the Dividend Achiever watch list gained 2% versus the Dow which was up 2.8%. Because our list has more than a handful of great companies, I urged investors to filter through company with maximum of 50% payout ratio. This should minimized the risk of dividend reduction. If you understand the companies history and their ability to pay dividend, payout ratio in excess of 50% may be considered.

Supervalu (SVU) is now on the top of our list. Although appear to be somewhat risky, the company have taken actions to strengthen its balance sheet. One of method was to cut the dividend. The current yield of 2.86% exceed the 2.5% yield over the past five years. Anyone interested in more research on SVU can refer to our observation on January 6, 2010 article. Nothing material has changed except the chart. Also note that after nine days of issuing an observation, the stock rose 11% and we issued a sell on January 15, 2010.

Readers should use the March 2009 low (or companies' most distress time) as a base case for investing.  Our conservative view is to embrace the worse case scenario prior to investing.  March 2009 low fits that description.  Although we use the one year (52 weeks) time frame, the past year was nothing but major bull run and anyone who bought at or near the low can be taking profit.  It's important to place these companies in your own watch list so that when opportunities arise, you can purchase them with greater margin of safety.

Email our team here.

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Dividend Achiever Watch List

Posted on June 4, 2010 by | Leave a comment
At the end of the week, our watch list contracted to 80 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 20% of the 52-week low for June 4, 2010. 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.

Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
VIVO Meridian Bioscience Inc.  17.18 0.06% 21.75 0.79 0.76 4.42% 96%
CWT California Water Service Group 34.67 0.38% 17.96 1.93 1.19 3.43% 62%
LLY Eli Lilly & Co. 32.37 1.09% 8.34 3.88 1.96 6.05% 51%
CTWS Connecticut Water Service, Inc.  20.30 1.15% 17.20 1.18 0.91 4.48% 77%
FFIN First Financial Bankshares, Inc.  48.54 1.42% 18.81 2.58 1.36 2.80% 53%
MON Monsanto Co. 49.02 1.79% 20.43 2.40 1.06 2.16% 44%
UMBF UMB Financial Corp.  37.00 1.82% 16.09 2.30 0.74 2.00% 32%
XOM Exxon Mobil Corp.   59.53 1.82% 13.56 4.39 1.76 2.96% 40%
FII Federated Investors Inc 21.80 1.96% 11.12 1.96 0.96 4.40% 49%
DNB Dun & Bradstreet Corp. 70.49 2.01% 14.13 4.99 1.40 1.99% 28%
NJR New Jersey Resources Corp. 34.32 2.48% 15.53 2.21 1.36 3.96% 62%
ADM Archer Daniels Midland Co. 24.83 2.50% 10.22 2.43 0.60 2.42% 25%
AVP Avon Products, Inc. 25.73 2.92% 20.26 1.27 0.88 3.42% 69%
AROW Arrow Financial Corp.  24.35 3.00% 13.02 1.87 1.00 4.11% 53%
SHEN Shenandoah Telecom Co. 16.13 3.66% 14.66 1.10 0.32 1.98% 29%
VVC Vectren Corp. 22.52 3.97% 14.82 1.52 1.36 6.04% 89%
T AT&T Inc 24.17 4.23% 12.02 2.01 1.68 6.95% 84%
FRS Frisch's Restaurants, Inc 20.78 4.37% 10.49 1.98 0.52 2.50% 26%
SVU SUPERVALU INC 12.68 4.53% 6.85 1.85 0.35 2.76% 19%
NTRS Northern Trust Corp.  49.01 4.91% 15.41 3.18 1.12 2.29% 35%
HSC Harsco Corp. 25.88 4.95% 19.31 1.34 0.82 3.17% 61%
NWN Northwest Natural Gas Co. 42.96 5.22% 15.97 2.69 1.66 3.86% 62%
THFF First Financial Corp. Indiana  26.71 5.45% 14.68 1.82 0.92 3.44% 51%
MDU MDU Resources Group Inc. 18.08 5.67% 12.91 1.40 0.63 3.48% 45%
HRB H&R Block, Inc. 15.73 5.71% 10.70 1.47 0.60 3.81% 41%
PFE Pfizer Inc 14.76 5.85% 13.67 1.08 0.72 4.88% 67%
AWR American States Water Co. 33.05 5.93% 18.46 1.79 1.04 3.15% 58%
GS* Goldman Sachs Group, Inc.   142.25 6.00% 5.92 24.01 1.40 0.98% 6%
BEC Beckman Coulter, Inc. 56.29 6.15% 23.55 2.39 0.72 1.28% 30%
JNJ Johnson & Johnson   58.01 6.36% 12.19 4.76 2.16 3.72% 45%
HCC HCC Insurance Holdings, Inc. 24.70 6.37% 8.23 3.00 0.54 2.19% 18%
SFNC Simmons First National Corp.  26.07 6.41% 15.90 1.64 0.76 2.92% 46%
WMT Wal-Mart Stores, Inc. 50.40 6.44% 13.23 3.81 1.21 2.40% 32%
ABT Abbott Laboratories 46.53 7.09% 13.65 3.41 1.76 3.78% 52%
FPL FPL Group, Inc. 48.63 7.37% 11.00 4.42 2.00 4.11% 45%
PGN Progress Energy, Inc. 37.67 7.54% 13.85 2.72 2.48 6.58% 91%
PBI Pitney Bowes Inc   21.98 7.85% 11.45 1.92 1.46 6.64% 76%
KO Coca-Cola Co 51.27 8.67% 16.87 3.04 1.76 3.43% 58%
WGL WGL Holdings, Inc. 33.06 8.86% 14.25 2.32 1.51 4.57% 65%
ATO Atmos Energy Corp. 26.50 9.14% 12.74 2.08 1.34 5.06% 64%
WEYS Weyco Group, Inc.  22.75 9.27% 18.50 1.23 0.64 2.81% 52%
MGEE MGE Energy Inc.  34.25 9.74% 15.71 2.18 1.47 4.29% 67%
APD Air Products & Chemicals, Inc. 66.55 9.96% 16.68 3.99 1.96 2.95% 49%
WTR Aqua America Inc 16.93 10.01% 21.43 0.79 0.58 3.43% 73%
UGI UGI Corp. 25.51 10.05% 11.65 2.19 1.00 3.92% 46%
TMP Tompkins Financial Corp. 38.17 10.17% 12.64 3.02 1.36 3.56% 45%
PX Praxair, Inc. 74.12 10.31% 18.12 4.09 1.80 2.43% 44%
BDX Becton, Dickinson and Co. 70.08 10.52% 13.45 5.21 1.48 2.11% 28%
WAG Walgreen Co. 30.84 10.58% 14.48 2.13 0.55 1.78% 26%
SIAL Sigma-Aldrich Corp.  50.69 10.67% 17.30 2.93 0.64 1.26% 22%
STFC State Auto Financial Corp.  16.76 10.92% 18.02 0.93 0.60 3.58% 65%
SBSI Southside Bancshares, Inc.  19.31 11.04% 7.26 2.66 0.68 3.52% 26%
PNY Piedmont Natural Gas Co., Inc. 25.01 11.16% 11.80 2.12 1.12 4.48% 53%
MATW Matthews International Corp.  31.36 11.99% 15.15 2.07 0.28 0.89% 14%
TR Tootsie Roll Industries Inc  24.50 12.23% 26.06 0.94 0.32 1.31% 34%
BCR CR Bard, Inc. 78.97 12.65% 16.70 4.73 0.68 0.86% 14%
CL Colgate-Palmolive Co. 77.24 13.06% 18.89 4.09 2.12 2.74% 52%
XRAY DENTSPLY International Inc.  31.46 13.19% 17.19 1.83 0.20 0.64% 11%
TRH Transatlantic Holdings, Inc. 45.33 13.33% 7.24 6.26 0.84 1.85% 13%
SJW SJW Corp. 23.52 14.01% 27.35 0.86 0.68 2.89% 79%
CHRW C.H. Robinson Worldwide, Inc.  55.90 14.68% 26.12 2.14 1.00 1.79% 47%
MHP McGraw-Hill Cos., Inc. 27.34 16.09% 11.16 2.45 0.94 3.44% 38%
SYBT S.Y. BanCorp., Inc.  23.03 16.31% 19.03 1.21 0.68 2.95% 56%
CVX Chevron Corp. 71.28 17.08% 10.82 6.59 2.88 4.04% 44%
PAYX Paychex, Inc.  27.97 17.32% 21.19 1.32 1.24 4.43% 94%
CTAS Cintas Corp.  25.01 17.42% 23.37 1.07 0.48 1.92% 45%
CTBI Community Trust BanCorp., Inc.  26.05 17.61% 15.60 1.67 1.20 4.61% 72%
PEP PepsiCo Inc. 61.44 17.90% 15.59 3.94 1.92 3.13% 49%
ED Consolidated Edison, Inc.  41.66 17.92% 12.70 3.28 2.38 5.71% 73%
WABC Westamerica BanCorp.  53.63 18.08% 17.03 3.15 1.44 2.69% 46%
BANF BancFirst Corp.  37.17 18.11% 16.67 2.23 0.92 2.48% 41%
MDT Medtronic, Inc. 38.00 18.49% 13.62 2.79 0.82 2.16% 29%
KMB Kimberly-Clark Corp. 60.18 19.36% 13.49 4.46 2.64 4.39% 59%
BMS Bemis Co Inc 27.95 19.39% 21.50 1.30 0.92 3.29% 71%
HGIC Harleysville Group Inc.  31.20 19.59% 11.35 2.75 1.30 4.17% 47%
BMI Badger Meter, Inc. 39.04 19.83% 17.99 2.17 0.48 1.23% 22%
BRC Brady Corp. 27.66 20.26% 18.32 1.51 0.70 2.53% 46%
CFR Cullen/Frost Bankers, Inc. 52.42 20.26% 17.30 3.03 1.80 3.43% 59%
HRL Hormel Foods Corp. 40.50 20.39% 14.84 2.73 0.84 2.07% 31%
CLX Clorox Co. 63.07 20.41% 14.84 4.25 2.20 3.49% 52%
80 Companies




*Goldman Sachs isn't a former or current dividend achiever but we feel that it is worth watching because it's a proxy of our financial system.

Watch List Summary

The best performing stock from last week's list was Hormel (HSC) which rose 1.8%.  The worst performing stock was State Auto Financial (STFC) which fell 7.3%.  Overall, the Dividend Achiever watch list lost 2.6% versus the Dow which was down only 1.8%. Because our list has more than a handful of great companies, I urged investors to filter through company with maximum of 50% payout ratio. This should minimized the risk of dividend reduction. If you understand the companies history and their ability to pay dividend, payout ratio in excess of 50% may be considered.

Readers should use the March 2009 low (or companies' most distress time) as a base case for investing.  Our conservative view is to embrace the worse case scenario prior to investing.  March 2009 low fits that description.  Although we use the one year (52 weeks) time frame, the past year was nothing but major bull run and anyone who bought at or near the low can be taking profit.  It's important to place these companies in your own watch list so that when opportunities arise, you can purchase them with greater margin of safety.

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Dividend Achiever Watch List

Posted on May 28, 2010 by | Leave a comment
At the end of the week, our watch list contracted to 66 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 20% of the 52-week low for May 28, 2010. 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.
Symbol Name Price % Yr Low P/E EPS (ttm) Div/Shr Yield Payout Ratio
VIVO Meridian Bioscience Inc.  17.48 1.10% 22.13 0.79 0.76 4.35% 96%
FII Federated Investors Inc 22.21 1.88% 11.33 1.96 0.96 4.32% 49%
LLY Eli Lilly & Co. 32.79 2.40% 8.45 3.88 1.96 5.98% 51%
XOM Exxon Mobil Corp.   60.46 3.42% 13.77 4.39 1.76 2.91% 40%
ADM Archer Daniels Midland Co. 25.27 4.34% 10.40 2.43 0.60 2.37% 25%
T AT&T Inc 24.30 4.79% 12.09 2.01 1.68 6.91% 84%
CTWS Connecticut Water Service, Inc.  20.80 5.00% 17.63 1.18 0.91 4.38% 77%
SHEN Shenandoah Telecom 16.93 5.16% 15.39 1.10 0.32 1.89% 29%
FRS Frisch's Restaurants, Inc 20.95 5.22% 10.58 1.98 0.52 2.48% 26%
DNB Dun & Bradstreet Corp. 72.99 5.63% 14.63 4.99 1.40 1.92% 28%
MON Monsanto Co. 50.87 5.63% 21.20 2.40 1.06 2.08% 44%
AVP Avon Products, Inc. 26.49 5.96% 20.86 1.27 0.88 3.32% 69%
CWT California Water Service Group 35.83 6.04% 18.56 1.93 1.19 3.32% 62%
VVC Vectren Corp. 23.05 6.42% 15.16 1.52 1.36 5.90% 89%
WMT Wal-Mart Stores, Inc. 50.56 6.78% 13.27 3.81 1.21 2.39% 32%
UMBF UMB Financial Corp.  38.95 7.18% 16.93 2.30 0.74 1.90% 32%
GS* Goldman Sachs Group, Inc.   144.26 7.50% 6.01 24.01 1.40 0.97% 6%
NWN Northwest Natural Gas Co. 43.97 7.69% 16.35 2.69 1.66 3.78% 62%
AROW Arrow Financial Corp.  25.48 7.78% 13.63 1.87 1.00 3.92% 53%
HCC HCC Insurance Holdings, Inc. 25.07 7.97% 8.36 3.00 0.54 2.15% 18%
FFIN First Financial Bankshares, Inc.  50.24 8.00% 19.47 2.58 1.36 2.71% 53%
JNJ Johnson & Johnson   58.30 8.24% 12.25 4.76 2.16 3.70% 45%
NJR New Jersey Resources Corp. 35.45 8.31% 16.04 2.21 1.36 3.84% 62%
BEC Beckman Coulter, Inc. 57.44 8.32% 24.03 2.39 0.72 1.25% 30%
NTRS Northern Trust Corp.  50.81 8.75% 15.98 3.18 1.12 2.20% 35%
PFE Pfizer Inc 15.23 9.25% 14.10 1.08 0.72 4.73% 67%
MDU MDU Resources Group Inc. 18.70 9.29% 13.36 1.40 0.63 3.37% 45%
ABT Abbott Laboratories 47.56 9.46% 13.95 3.41 1.76 3.70% 52%
FPL FPL Group, Inc. 49.93 10.25% 11.30 4.42 2.00 4.01% 45%
SFNC Simmons First National Corp.  26.36 10.29% 16.07 1.64 0.76 2.88% 46%
HSC Harsco Corp. 27.21 10.34% 20.31 1.34 0.82 3.01% 61%
WEYS Weyco Group, Inc.  22.99 10.42% 18.69 1.23 0.64 2.78% 52%
KO Coca-Cola Co 51.40 10.87% 16.91 3.04 1.76 3.42% 58%
SVU SUPERVALU INC 13.47 11.05% 7.28 1.85 0.35 2.60% 19%
PGN Progress Energy, Inc. 38.59 11.08% 14.19 2.72 2.48 6.43% 91%
PBI Pitney Bowes Inc   22.64 11.09% 11.79 1.92 1.46 6.45% 76%
AWR American States Water Co. 34.37 11.52% 19.20 1.79 1.04 3.03% 58%
THFF First Financial Corp. Indiana  28.35 11.92% 15.58 1.82 0.92 3.25% 51%
BDX Becton, Dickinson and Co. 71.30 12.44% 13.69 5.21 1.48 2.08% 28%
UGI UGI Corp. 26.14 12.77% 11.94 2.19 1.00 3.83% 46%
WTR Aqua America Inc 17.45 13.39% 22.09 0.79 0.58 3.32% 73%
APD Air Products & Chemicals, Inc. 69.06 14.11% 17.31 3.99 1.96 2.84% 49%
PNY Piedmont Natural Gas Co., Inc. 25.41 14.61% 11.99 2.12 1.12 4.41% 53%
TR Tootsie Roll Industries Inc  25.04 14.70% 26.64 0.94 0.32 1.28% 34%
HRB H&R Block, Inc. 16.08 14.86% 10.94 1.47 0.60 3.73% 41%
WAG Walgreen Co. 32.04 14.88% 15.04 2.13 0.55 1.72% 26%
TMP Tompkins Financial Corp. 39.82 14.94% 13.19 3.02 1.36 3.42% 45%
PX Praxair, Inc. 77.60 15.49% 18.97 4.09 1.80 2.32% 44%
BCR CR Bard, Inc. 80.97 15.51% 17.12 4.73 0.68 0.84% 14%
MATW Matthews International Corp.  32.38 15.64% 15.64 2.07 0.28 0.86% 14%
ATO Atmos Energy Corp. 27.12 15.70% 13.04 2.08 1.34 4.94% 64%
MGEE MGE Energy Inc.  35.32 16.34% 16.20 2.18 1.47 4.16% 67%
SIAL Sigma-Aldrich Corp.  53.32 16.42% 18.20 2.93 0.64 1.20% 22%
SBSI Southside Bancshares, Inc.  20.25 16.44% 7.61 2.66 0.68 3.36% 26%
XRAY DENTSPLY International Inc.  32.43 16.70% 17.72 1.83 0.20 0.62% 11%
RNST Renasant Corp.  14.38 17.39% 18.92 0.76 0.68 4.73% 89%
WGL WGL Holdings, Inc. 33.85 17.49% 14.59 2.32 1.51 4.46% 65%
MHP McGraw-Hill Cos., Inc. 27.80 18.05% 11.35 2.45 0.94 3.38% 38%
HRL Hormel Foods Corp. 39.80 18.31% 14.58 2.73 0.84 2.11% 31%
SYBT S.Y. BanCorp., Inc.  23.44 18.38% 19.37 1.21 0.68 2.90% 56%
DBD Diebold, Inc. 28.98 18.87% 40.25 0.72 1.08 3.73% 150%
CHRW C.H. Robinson Worldwide, Inc.  58.11 19.22% 27.15 2.14 1.00 1.72% 47%
STFC State Auto Financial Corp.  18.08 19.66% 19.44 0.93 0.60 3.32% 65%
PAYX Paychex, Inc.  28.54 19.71% 21.62 1.32 1.24 4.34% 94%
BRO Brown & Brown, Inc. 19.60 20.10% 18.67 1.05 0.31 1.58% 30%
KMB Kimberly-Clark Corp. 60.70 20.39% 13.61 4.46 2.64 4.35% 59%
66 Companies






*Goldman Sachs isn't a former or current dividend achiever but I feel that it is worth watching because it could be the proxy of our financial system.

Watch List Summary

The best performing stock from last week's list was Harsco (HSC) which rose 4.9%.  The worst performing stock was Monsanto (MON) which fell 7.4% after the company guided down their earning outlook and free-cash flow. Looks like Barron's article on 5/17/10 was a little early (although the firm did reduced their price target from $90 to $65). Strange stuff if you ask me. Although there was plenty of volatility in the market, last week watch list and the Dow ended the week virtually flat.

Readers should use the March 2009 low (or companies' most distress time) as a base case for investing.  Our conservative view is to embrace the worse case scenario prior to investing.  March 2009 low fits that description.  Although we use the one year (52 weeks) time frame, the past year was nothing but major bull run and anyone who bought at or near the low can be taking profit.  It's important to place these companies in your own watch list so that when opportunities arise, you can purchase them with greater margin of safety. 
Email our team here.

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Dividend Achiever Watch List

Posted on May 21, 2010 by | 1 comment
At the end of the week, our watch list contracted to 59 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 20% of the 52-week low for May 21, 2010. 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.

Symbol Name Price % Yr Low P/E EPS Div/Shr Yield Payout Ratio
MON Monsanto Co. 54.95 2.10% 22.90 2.40 1.06 1.93% 44%
HSC Harsco Corp. 25.94 2.45% 19.36 1.34 0.82 3.16% 61%
ADM Archer Daniels Midland Co. 25.41 2.58% 10.46 2.43 0.60 2.36% 25%
LLY Lilly (Eli) & Co. 33.12 2.89% 8.54 3.88 1.96 5.92% 51%
VIVO Meridian Bioscience Inc.  17.99 3.93% 22.77 0.79 0.76 4.22% 96%
XOM Exxon Mobil Corp.   60.88 4.14% 13.87 4.39 1.76 2.89% 40%
FII Federated Investors Inc 22.65 4.86% 11.56 1.96 0.96 4.24% 49%
GS Goldman Sachs Group, Inc.   140.62 5.00% 5.86 24.01 1.40 1.00% 6%
MDU MDU Resources Group Inc. 17.98 5.27% 12.84 1.40 0.63 3.50% 45%
FRS Frisch's Restaurants, Inc 21.00 5.47% 10.61 1.98 0.52 2.48% 26%
DNB Dun & Bradstreet Corp. 73.33 6.12% 14.70 4.99 1.40 1.91% 28%
VVC Vectren Corp. 22.71 6.17% 14.94 1.52 1.36 5.99% 89%
T AT&T Inc 24.85 7.16% 12.36 2.01 1.68 6.76% 84%
HCC HCC Insurance Holdings, Inc. 24.74 7.19% 8.25 3.00 0.54 2.18% 18%
CWT California Water Service Group 36.10 7.79% 18.70 1.93 1.19 3.30% 62%
UMBF UMB Financial Corp.  39.33 8.23% 17.10 2.30 0.74 1.88% 32%
WMT Wal-Mart Stores, Inc. 51.37 8.49% 13.88 3.70 1.21 2.36% 33%
BEC Beckman Coulter, Inc. 56.54 8.84% 23.66 2.39 0.72 1.27% 30%
SVU SUPERVALU INC 13.23 9.07% 7.15 1.85 0.35 2.65% 19%
SHEN Shenandoah Telecom 17.57 9.13% 15.97 1.10 0.32 1.82% 29%
UGI UGI Corp. 25.39 9.53% 11.59 2.19 1.00 3.94% 46%
CTWS Connecticut Water Service, Inc.  21.43 9.67% 18.16 1.18 0.91 4.25% 77%
ABT Abbott Laboratories 46.94 9.67% 13.77 3.41 1.76 3.75% 52%
WTR Aqua America Inc 16.91 9.88% 21.41 0.79 0.58 3.43% 73%
AWR American States Water Co. 33.87 9.90% 18.92 1.79 1.04 3.07% 58%
AVP Avon Products, Inc. 26.66 9.94% 20.99 1.27 0.88 3.30% 69%
NWN Northwest Natural Gas Co. 43.69 10.24% 16.24 2.69 1.66 3.80% 62%
FFIN First Financial Bankshares, Inc.  51.34 10.36% 19.90 2.58 1.36 2.65% 53%
PBI Pitney Bowes Inc   22.51 10.45% 11.72 1.92 1.46 6.49% 76%
PFE Pfizer Inc 15.40 10.47% 14.26 1.08 0.72 4.68% 67%
NJR New Jersey Resources Corp. 35.36 10.50% 16.00 2.21 1.36 3.85% 62%
APD Air Products & Chemicals, Inc. 66.94 10.61% 16.78 3.99 1.96 2.93% 49%
WEYS Weyco Group, Inc.  23.10 10.95% 18.78 1.23 0.64 2.77% 52%
NTRS Northern Trust Corp.  51.88 11.04% 16.31 3.18 1.12 2.16% 35%
KO Coca-Cola Co 51.59 11.28% 16.97 3.04 1.76 3.41% 58%
FPL FPL Group, Inc. 50.59 11.70% 11.45 4.42 2.00 3.95% 45%
AROW Arrow Financial Corp.  25.66 11.71% 13.72 1.87 1.00 3.90% 53%
THFF First Financial Corp. Indiana  28.43 12.24% 16.43 1.73 0.90 3.17% 52%
BDX Becton, Dickinson and Co. 71.49 12.74% 13.72 5.21 1.48 2.07% 28%
SFNC Simmons First National Corp.  27.01 13.01% 16.47 1.64 0.76 2.81% 46%
JNJ Johnson & Johnson   60.88 13.03% 12.79 4.76 2.16 3.55% 45%
BCR CR Bard, Inc. 79.57 13.70% 16.82 4.73 0.68 0.85% 14%
PGN Progress Energy, Inc. 38.46 13.96% 14.14 2.72 2.48 6.45% 91%
ATO Atmos Energy Corp. 26.80 14.33% 12.88 2.08 1.34 5.00% 64%
PX Praxair, Inc. 77.10 14.75% 18.85 4.09 1.80 2.33% 44%
TMP Tompkins Financial Corp. 40.22 16.09% 13.32 3.02 1.36 3.38% 45%
SBSI Southside Bancshares, Inc.  20.27 16.56% 7.62 2.66 0.68 3.35% 26%
BRO Brown & Brown, Inc. 19.10 17.00% 18.19 1.05 0.31 1.62% 30%
PNY Piedmont Natural Gas Co., Inc. 25.35 17.09% 11.96 2.12 1.12 4.42% 53%
SYBT S.Y. BanCorp., Inc.  23.28 17.58% 19.24 1.21 0.68 2.92% 56%
SIAL Sigma-Aldrich Corp.  52.87 17.83% 18.04 2.93 0.64 1.21% 22%
HRB H&R Block, Inc. 16.37 18.28% 11.14 1.47 0.60 3.67% 41%
WAG Walgreen Co. 33.10 18.68% 15.54 2.13 0.55 1.66% 26%
XRAY DENTSPLY International Inc.  33.06 18.96% 18.07 1.83 0.20 0.60% 11%
WGL WGL Holdings, Inc. 34.02 18.99% 14.66 2.32 1.51 4.44% 65%
MATW Matthews International Corp.  32.78 19.11% 15.84 2.07 0.28 0.85% 14%
BMI Badger Meter, Inc. 38.94 19.52% 17.94 2.17 0.48 1.23% 22%
HGIC Harleysville Group Inc.  31.37 20.24% 11.41 2.75 1.30 4.14% 47%
RNST Renasant Corp.  14.74 20.33% 19.39 0.76 0.68 4.61% 89%
59 Companies






Watch List Summary
The best performing stock from last week's list was Monsanto (MON) which rose 0.6% after a positive note from Barron's on 5/17/10.  The worst performing stock was Shenandoah Telecommunication (SHEN) which fell 9%. Overall, the Dividend Achiever watch list lost 3.8% versus the Dow which lost 4%.
Again, I ran a new filter through this list using Graham rule of earning yield being higher than twice the AAA bond yield (5.29%). The result is that 5 companies passed the test. That's 8% of the companies on the list. Let me remind you that this is only one criteria out of ten. I'll do an analysis on this issue for the up-coming article.
Readers should use the March 2009 low (or companies' most distress time) as a base case for investing.  Our conservative view is to embrace the worse case scenario prior to investing.  March 2009 low fits that description.  Although we use the one year (52 weeks) time frame, the past year was nothing but major bull run and anyone who bought at or near the low can be taking profit.  It's important to place these companies in your own watch list so that when opportunities arise, you can purchase them with greater margin of safety.

Email our team here.

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Dividend Achiever Watch List

Posted on May 14, 2010 by | Leave a comment
At the end of the week, our watch list contracted to 42 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 20% of the 52-week low for May 14, 2010. 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.

Symbol Name Price % Yr Low P/E EPS Dividend Yield Payout Ratio
MON Monsanto Co. 54.61 0.98% 22.75 2.40 1.06 1.94% 44%
LLY Eli Lilly & Co. 33.92 5.37% 8.74 3.88 1.96 5.78% 51%
FRS Frisch's Restaurants, Inc 21.01 5.52% 10.61 1.98 0.52 2.48% 26%
FII Federated Investors Inc 23.16 7.22% 11.82 1.96 0.96 4.15% 49%
HSC Harsco Corp. 27.56 7.99% 20.57 1.34 0.82 2.98% 61%
VIVO Meridian Bioscience Inc.  18.73 8.20% 23.71 0.79 0.76 4.06% 96%
DNB Dun & Bradstreet Corp. 74.98 8.51% 15.06 4.98 1.40 1.87% 28%
XOM Exxon Mobil Corp.   63.60 8.79% 14.49 4.39 1.76 2.77% 40%
ADM Archer Daniels Midland Co. 26.77 9.31% 11.02 2.43 0.60 2.24% 25%
T AT&T Inc 25.40 9.53% 12.64 2.01 1.68 6.61% 84%
WMT Wal-Mart Stores, Inc. 52.12 10.07% 14.09 3.70 1.21 2.32% 33%
GS Goldman Sachs Group, Inc.   143.23 11.08% 5.97 24.01 1.40 0.98% 6%
HCC HCC Insurance Holdings, Inc. 25.74 11.53% 8.58 3.00 0.54 2.10% 18%
VVC Vectren Corp. 23.95 11.97% 14.60 1.64 1.36 5.68% 83%
SVU SUPERVALU Inc. 13.64 12.45% 7.37 1.85 0.35 2.57% 19%
ABT Abbott Laboratories 48.50 13.45% 14.22 3.41 1.76 3.63% 52%
BEC Beckman Coulter, Inc. 58.85 13.54% 24.62 2.39 0.72 1.22% 30%
NTRS Northern Trust Corp.  53.18 13.83% 16.72 3.18 1.12 2.11% 35%
PBI Pitney Bowes Inc   23.34 14.52% 12.16 1.92 1.46 6.26% 76%
UMBF UMB Financial Corp.  41.66 14.64% 18.03 2.31 0.74 1.78% 32%
FFIN First Financial Bankshares, Inc.  53.69 15.44% 20.81 2.58 1.36 2.53% 53%
BDX Becton, Dickinson and Co. 73.26 15.53% 14.06 5.21 1.48 2.02% 28%
APD Air Products & Chemicals, Inc. 69.57 15.85% 17.44 3.99 1.96 2.82% 49%
PX Praxair, Inc. 77.90 15.94% 19.05 4.09 1.80 2.31% 44%
PFE Pfizer Inc 16.20 16.21% 15.00 1.08 0.72 4.44% 67%
CTWS Connecticut Water Service, Inc.  22.64 16.34% 19.03 1.19 0.91 4.02% 76%
FPL FPL Group, Inc. 52.71 16.38% 11.93 4.42 2.00 3.79% 45%
CWT California Water Service 39.06 16.63% 20.24 1.93 1.19 3.05% 62%
MDU MDU Resources Group Inc. 19.44 16.76% 13.89 1.40 0.63 3.24% 45%
WTR Aqua America Inc 17.97 16.76% 22.75 0.79 0.58 3.23% 73%
NWN Northwest Natural Gas Co. 46.76 17.99% 17.38 2.69 1.66 3.55% 62%
PGN Progress Energy, Inc. 40.00 18.52% 14.71 2.72 2.48 6.20% 91%
JNJ Johnson & Johnson   63.97 18.77% 13.44 4.76 2.16 3.38% 45%
BCR CR Bard, Inc. 82.70 19.44% 17.48 4.73 0.68 0.82% 14%
WEYS Weyco Group, Inc.  24.92 19.69% 20.26 1.23 0.64 2.57% 52%
BRO Brown & Brown, Inc. 19.52 19.73% 18.59 1.05 0.31 1.59% 30%
AROW Arrow Financial Corp.  27.51 19.76% 14.71 1.87 1.00 3.64% 53%
ATO Atmos Energy Corp. 28.11 19.92% 13.51 2.08 1.34 4.77% 64%
SHEN Shenandoah Telecom 19.32 20.00% 30.19 0.64 0.32 1.66% 50%
SFNC Simmons First National Corp.  28.69 20.04% 17.49 1.64 0.76 2.65% 46%
THFF First Financial Corp. Indiana  30.49 20.37% 17.62 1.73 0.90 2.95% 52%
MRK Merck & Co., Inc 32.88 34.92% 7.10 4.63 1.52 4.62% 33%
42 Companies






Watch List Summary

The best performing stock from last week's list was Shenandoah Telecommunication (SHEN) which rose 14%. The worst performing stock was Monsanto (MON) which fell 7.6%. Overall, the Dividend Achiever watch list gained 2.6% versus the Dow which was up 2.25%.

I ran a new filter through this list using Graham rule of earning yield being higher than twice the long-term rate which I use 10 years T-bill. The result is that 19 companies passed the test. That's 40% of the companies on the list!

Again, I reiterate readers to use this list to your advantage. There are (and will be) great companies paying nice dividends with low payout ratios. Place these companies in your own watch list so that when opportunities arise, you can purchase them with greater margin of safety.
Email our team here.

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Dividend Achiever Watch List

Posted on May 7, 2010 by | 1 comment
At the end of the week, our watch list ballooned to 62 companies. Here is the watch list which ranks current and former Dividend Achievers that are within 20% of the 52-week low for May 7, 2010. 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.

Symbol Name Price % Yr Low P/E EPS Div/Shr Yield Payout Ratio
MON Monsanto Co. 59.09 3.14% 24.62 2.40 1.06 1.79% 44%
HSC Harsco Corp. 26.38 3.37% 19.69 1.34 0.82 3.11% 61%
FRS Frisch's Restaurants, Inc 20.77 4.32% 10.49 1.98 0.52 2.50% 26%
SHEN Shenandoah Telecom 16.95 5.28% 26.48 0.64 0.32 1.89% 50%
VIVO Meridian Bioscience Inc.  18.29 5.66% 23.15 0.79 0.76 4.16% 96%
ADM Archer Daniels Midland Co. 25.94 6.97% 10.67 2.43 0.60 2.31% 25%
HCC HCC Insurance Holdings, Inc. 24.71 7.06% 7.95 3.11 0.54 2.19% 17%
DNB Dun & Bradstreet Corp. 74.10 7.24% 14.88 4.98 1.40 1.89% 28%
THFF First Financial Corp. Indiana  27.19 7.34% 15.72 1.73 0.90 3.31% 52%
LLY Lilly (Eli) & Co. 34.62 7.55% 8.92 3.88 1.96 5.66% 51%
OTTR Otter Tail Corp.  20.10 7.89% 28.31 0.71 1.19 5.92% 168%
T AT&T Inc 25.10 8.24% 12.49 2.01 1.68 6.69% 84%
CWT California Water Service Group 36.26 8.27% 18.79 1.93 1.19 3.28% 62%
VVC Vectren Corp. 23.25 8.70% 14.18 1.64 1.36 5.85% 83%
FII Federated Investors Inc 23.53 8.94% 12.01 1.96 0.96 4.08% 49%
XOM Exxon Mobil Corp.   63.70 8.96% 14.51 4.39 1.76 2.76% 40%
NWN Northwest Natural Gas Co. 43.50 9.77% 15.37 2.83 1.66 3.82% 59%
WEYS Weyco Group, Inc.  22.87 9.85% 20.60 1.11 0.64 2.80% 58%
SVU SUPERVALU INC 13.40 10.47% 7.24 1.85 0.35 2.61% 19%
WMT Wal-Mart Stores, Inc. 52.40 10.67% 14.16 3.70 1.21 2.31% 33%
FFIN First Financial Bankshares, Inc.  51.44 10.72% 19.94 2.58 1.36 2.64% 53%
CTWS Connecticut Water Service, Inc.  21.39 10.77% 17.97 1.19 0.91 4.25% 76%
NTRS Northern Trust Corp.  51.80 10.87% 16.29 3.18 1.12 2.16% 35%
MDU MDU Resources Group Inc. 18.47 10.93% 13.10 1.41 0.63 3.41% 45%
UHT Universal Health Realty Income 32.30 11.03% 20.84 1.55 2.40 7.43% 155%
UMBF UMB Financial Corp.  40.36 11.06% 17.47 2.31 0.74 1.83% 32%
TMP Tompkins Financial Corp. 38.60 11.41% 12.78 3.02 1.36 3.52% 45%
GS* Goldman Sachs Group, Inc.   142.99 11.66% 5.96 24.01 1.40 0.98% 6%
WTR Aqua America Inc 17.39 13.00% 22.58 0.77 0.58 3.34% 75%
SPH Suburban Propane Partners L.P. 44.10 13.08% 11.28 3.91 3.36 7.62% 86%
FPL FPL Group, Inc. 51.22 13.09% 11.59 4.42 2.00 3.90% 45%
AROW Arrow Financial Corp.  25.96 13.20% 13.88 1.87 1.00 3.85% 53%
STT State Street Corp. 41.34 13.73% -10.08 -4.10 0.04 0.10% -1%
ABT Abbott Laboratories 48.72 13.96% 14.29 3.41 1.76 3.61% 52%
BXS BanCorp.South Inc. 20.19 15.04% 27.28 0.74 0.88 4.36% 119%
PGN Progress Energy, Inc. 38.83 15.05% 14.33 2.71 2.48 6.39% 92%
PBI Pitney Bowes Inc   23.53 15.46% 12.26 1.92 1.46 6.20% 76%
NJR New Jersey Resources Corp. 35.76 15.54% 29.80 1.20 1.36 3.80% 113%
BEC Beckman Coulter, Inc. 60.12 15.99% 25.15 2.39 0.72 1.20% 30%
SYBT S.Y. BanCorp., Inc.  22.98 16.06% 18.99 1.21 0.68 2.96% 56%
TR Tootsie Roll Industries Inc  25.42 16.45% 27.33 0.93 0.32 1.26% 34%
BRO Brown & Brown, Inc. 19.01 16.48% 18.10 1.05 0.31 1.63% 30%
ATO Atmos Energy Corp. 27.33 16.60% 12.15 2.25 1.34 4.90% 60%
AWR American States Water Co. 36.12 17.20% 22.30 1.62 1.04 2.88% 64%
NUE Nucor Corp. 44.90 17.32% -187.08 -0.24 1.44 3.21% -600%
PX Praxair, Inc. 78.88 17.40% 19.29 4.09 1.80 2.28% 44%
SFNC Simmons First National Corp.  28.07 17.45% 17.12 1.64 0.76 2.71% 46%
BMI Badger Meter, Inc. 38.41 17.89% 17.70 2.17 0.48 1.25% 22%
HGIC Harleysville Group Inc.  30.76 17.90% 11.19 2.75 1.30 4.23% 47%
MATW Matthews International Corp.  32.51 18.13% 15.71 2.07 0.28 0.86% 14%
JNJ Johnson & Johnson   63.31 18.25% 13.30 4.76 2.16 3.41% 45%
SBSI Southside Bancshares, Inc.  20.61 18.51% 7.75 2.66 0.65 3.15% 24%
PFE Pfizer Inc 16.46 18.84% 13.38 1.23 0.72 4.37% 59%
APD Air Products & Chemicals, Inc. 70.98 19.09% 17.79 3.99 1.96 2.76% 49%
DBD Diebold, Inc. 28.92 19.26% 40.17 0.72 1.08 3.73% 150%
MLM Martin Marietta Materials, Inc. 88.14 19.46% 46.15 1.91 1.60 1.82% 84%
UGI UGI Corp. 26.47 19.72% 12.09 2.19 0.80 3.02% 37%
BCR CR Bard, Inc. 82.97 19.83% 17.54 4.73 0.68 0.82% 14%
CTAS Cintas Corp.  25.54 19.91% 23.87 1.07 0.48 1.88% 45%
MGEE MGE Energy Inc.  35.32 20.05% 15.98 2.21 1.47 4.16% 67%
BMS Bemis Co Inc 27.70 20.28% 21.47 1.29 0.92 3.32% 71%
WGL WGL Holdings, Inc. 34.44 20.46% 15.31 2.25 1.51 4.38% 67%
62 Companies

*Goldman Sachs isn't a former or current dividend achiever but I feel that it is worth watching because it could be the proxy of our financial system.


Watch List Summary

The best performing stock from last week's list was Simmons First National (SFNC) which was at break-even. The worst performing stock was Harsco (HSC) which fell 14.8%. Overall, the Dividend Achiever watch list lost 4.9% versus the Dow which was down 5.7%.

Never before have we seen this many companies on our watch list. Part of the reason could be because the 52-week time frame now ranges from May 2009 to May 2010. You may remember that when the market bottomed in March 2009, I suggest that investors look at the company's performance at its worse possible level, which in many cases was the March 2009 low. 
Use this list to your advantage. There are (and will be) great companies paying nice dividends with low payout ratios. Place these companies in your own watch list so that when opportunities arise, you can purchase them with a greater margin of safety.
Market Commentary
As you may have noticed from our watch list, the market took a turn similar to what happened in January when the Dow retraced about 7% from the peak. At the close of Friday at 10,380, we've pulled back 7% from the closing high. It is interesting to note that in January, the Greek tragedy was already known so this shouldn't have surprised us. Our only concern at this point is, will the Dow fail to hold above the 150-day moving average which has been a strong support level for the market since July. (see chart below)

After seeing what took place on Thursday, I have increased my requirement for a margin of safety in new investment stakes. For example, I may look at companies that are within 15% of a new low instead of 20%. In considering companies to buy or sell, I would aim for a deeper discount (lower price) if I plan to buy and take smaller "fair profits" if I plan to sell. Remember, the market isn't cheap by any standard. With the latest figures I calculated, based on the Friday close, the Dow is now trading at 15x trailing earnings and 11x forward earnings. This assume 36% earning growth for the Dow. On a yield basis, the Dow is trading at 2.76%. Using the Thursday low, the yield was close to 3%. - Art

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