Category Archives: Dividend Achiever Watch List

Prior Year Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from April 20, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The top five companies gained +19.10% outperforming the S&P 500 gain of +8.80% by a wide margin. The largest gain of +43.70% came from Procter & Gamble (PG). One year ago, Procter was trading at 3.70% dividend yield which happens to be in the undervalue range of our 10 year target. Since then the share price has done nothing but rise.

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

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

Below are 27 companies that are on our watch list this week. Continue reading →

Top Five Watch List Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from April 6, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

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

U.S Dividend Watch List: April 5, 2019

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

The market continues to push off against the 2,800 level and rose more than +1% this past week. The number of companies appearing on our watch list this week continues to dwindle. Despite that, we believe that you can find a handful of companies that will fit your own personal investment criteria. Continue reading →

Top Five Watch List Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from March 16, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The top five companies gained +3.10% outperforming the S&P 500 by 0.5%. The top performer with a +30% return on investment is Procter & Gamble (PG). When we look back at the valuation of Procter & Gamble then, we can see (in hindsight) that the stock reached its lower limit of valuation based on dividend yield and altimeter. One can review the 10-year valuation on Procter, you will see that we placed an undervalue price at $75 and the price reached $79 at the time of the posting. By no means are we suggesting that our 10-year valuation is the key to timing the market, we're simply using it as a tool to assess the risk and reward profile of a quality company with a dependable dividend history.

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

Below are companies on our watch list for the week. Continue reading →

Top Five Watch List Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from March 2, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

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

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

It was a good February for the bulls with the S&P 500 gaining more than +2%. The number of stocks on our watch list continue to shrink. Nevertheless, we rely heavily on this list as our starting point for research. Continue reading →

Previous Year Performance Review

In our on-going review of the NLO Dividend Watch List, we have taken the top five stocks on our list from February 16, 2018 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

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

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

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

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

For those who are long the market, it was a great week as the market rose +1.30%. We believe this is a bear market rally that has taken the market back above the 50% retracement level. The next crucial level to look for is 2,800. As always, we suggest utilizing our dividend watch list as a starting point in the search for quality companies. Continue reading →

2018 started out strong but the bear took over at year end. We look forward to a new year and hope to produce quality investments from the dividend watch list below. Continue reading →

Following Dow Theory primary trend change to bearish trend, the market staged a minor rally or a secondary reaction to close the week. As a result of a new trend, we saw a spike in the number of companies trading near their respective 52-week low.

The number of companies on our watch list rose 13% higher than two weeks prior. A primary bear market is upon us so be selective with when and how you enter the market. It is still our strategy to start with quality companies from the list below. Continue reading →

The market continues to struggle to find its footing and fell further this week. The S&P 500 broke through the crucial support at 2,650 and closed the week at 2,599. At this rate, we may see a Dow Theory bear market confirmation if the Dow break below 23,500 level.

Our watch list expanded tremendously through this correction. The best approach, one which we will follow, is to watch this market unfold. Utilize the watch list to identify potential long investments that you could see yourself holding through a bear market or at least 3-5 years out. Be patient and choose your entry point wisely. Continue reading →

The S&P 500 was down 1.3% for the week. One positive sign was the fact that the market didn't close below 2,700 level. From the technical perspective, a 2,800 level is a crucial one for the upward bias to continue. If the market can break above that level, the all-time high would likely be the next stop. Below are companies that are on our watch list for this week. Continue reading →

Top Five Watch List Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from November 3, 2017 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

Prior Year Performance Review

The best performing stock was Nordstrom (JWN) which gained 72.7%. A year ago, Nordstrom failed to go private after failing to secure funding. Our team thought this would be a prudent time to take a finer look at this major retailer. Below is an except from our watch list.

Despite such draw back, we are curious if this could be an opportunity for value investors to buy in. Our team are not proposing to go long at this level but one should be ready to accumulate at the right price point. The stock yield 3.8% but payout 70% of its earning which is relatively high and leave company with small margin of safety. Perhaps halting a dividend or reducing it could provide a better entry point.

U.S. Dividend Watch List: November 2, 2018

The volatility in the market continued and S&P 500 gained some ground this week and rebounded 1.5%. Here is a list of companies that are on our watch list for the week. Continue reading →

What a week that was with both the Dow and S&P losing nearly -4%. From the peak of 2,940 on the S&P, the market fell -6% but that was less than the pullback we saw at the beginning of the year when S&P fell a little over -10% with similar duration.

While similar, there is one major difference between the two and that is interest rates. The 10-Year T-bill rate rose 18% since the end of January. Our followers will know that we will utilize Dow Theory as a gauge for market direction. Until a change of market direction is upon us, we will utilize the watch list below as a starting point to find investment opportunities. Continue reading →

Previous Year Performance Review

In our ongoing review of the NLO Dividend Watch List, we have taken the top five stocks on our list from September 22, 2017 and have checked the performance one year later. The top five companies on that list can be seen in the table below.

The top five companies didn't do as well as the market rising only 10.4%. Biggest hold back of that gain came from SCANA Corp (SCG) which lost 36.9%. This is what we said about SCANA a year ago.

Trading at the yearly low is an electric utility company, SCANA Corp (SCG). Based out of South Carolina, SCANA is a 7.9B company that has been around since 1924. Our team know little about this company but one important fact loom over this company. There is a class action lawsuit on its executives that they have violated federal securities laws. While we can't fully recommend that our reader consider it for assessment until the smoke is clear, we will keep the company on our list until further noticed.

The best performer was Atlantic Tele-Network (ATNI) which gained 42.7% in one year. Our team, however, didn't know much about the company and was focused on two household names, JM Smucker (SJM) and Hormel Foods (HRL) which gained 5.3% and 28.0% respectively.

U.S Dividend Watch List: September 21, 2018

If you missed our commentary on Dow Theory this month, I suggest one go back and review it. It may seems strange at this level to put money to work but investing should always be forward looking proposition. Positioning yourself in this market will be key and we always position ourself with high quality company utilizing the dividend achiever approach as a proxy for quality. As such, here are the company on our watch list this week. Continue reading →