Category Archives: NLO Dividend Watch List

The market picked up steam this week as the S&P 500 rose to its all-time high and push YTD gain to 2%. We will keep an eye out for Nasdaq to see if it can achieve all-time high level of 16,000. Despite strong up swing, there are more companies showing up on our watch list. Continue reading →

December has been a strong month thus far and this Santa Claus rally could push the market to all-time high by end of 2023. This rally pushed many companies our of our range for the watch list. As a result, the number of companies reduced dramatically from a month ago. Below is the last dividend watch list for the year. Continue reading →

It has been a strong November for the market as major indexes rebounded toward year end. S&P 500 is approaching 4,600 level and up nearly 20% for the year. Nasdaq rose 37% YTD. The weakest area is small cap with Russell 2000 up only 3%. Continue reading →

It was a tough week for the market as the market continue to give back gains for the year. The S&P 500 was down 2.4% for the week. The number of companies on our watch list continue to grow and you will find many Aristocrats that is trading near historical valuation metrics like P/E or P/B. Below is the watch list for week. Continue reading →

The market rebounded this week risking nearly 2% for the week. YTD, the S&P 500 is up 18% and the Nasdaq is up 35%. Since 1985, the Nasdaq ended the year higher at 35% or higher 7 times (18% of the time). Will have to wait and see how 2023 will end. Below is the dividend watch list for the week. Continue reading →

The S&P 500 ended the week at all-time highs and the Nasdaq reached its all-time high on Thursday. However, the Dow Jones Industrial Average and Transports are lagging and have not exceed their peak. Despite the overall strong market, we believe there are pocket of opportunity in our Dividend Watch list below. Continue reading →

We begin by reviewing the performance of last year’s list. The table below highlight various fundamental strategies and their performance using the top 5 companies.

Focusing on the worse performing group, high yield, we see that 5 highest yielding companies lost nearly half of their value. The largest drop of 78% was Alliance Resource Partners (ARLP). At the time of write up, Alliance was trading at $15.47 with dividend yield 14%, figure that appears too good to be true. The stock is now trading around $3.50.

Invesco (IVZ) was trading at $24.10 in 2018 and $15.70 in 2019. Dividend yield in 2019 was at 7.9%, however, that yield didn’t last as Invesco cut its dividend by half. Now the stock is around $10.75 and dipped as low as $6.38 in March of this year. The observation (and perhaps lesson) is to not chase the highest yield as that could be very costly to your portfolio.

On the opposite end of this strategy are low yielding stocks which gained 16.6% for the year. Leading the way for this strategy was Rollins (ROL) with yield of 1.3% at the time of publication. This yield isn’t anything to get excited about but a gain of 68% in one year certainly is.

Second on the performance list is Quaker Chemical (KWR) with yield of 0.9% last year. The stock gained 23% in one year.

If this appears to be counter intuitive to you, then it should. As value investors, we're taught to focus on low P/E, low P/B, or high yield. Our data indicate the opposite might be worth considering.

U.S. Dividend Watch List: August 28, 2020

The market, S&P 500, broke out to all-time high, leaving us a little excitement. There are a handful of companies on our dividend watch list this week. Continue reading →