Sunday, May 15, 2016

May 2016 Watchlist


On my journey to financial independence and early retirement I take a look at stocks every month that fit my screening outlined in the DFG Stock Screen.  Whether my savings allows me to purchase another great dividend growth stock or not I enjoy seeing what companies show up in the list every month.  Some have been in there for many months now and some are brand new.

This month we have a few newcomers to the list. 

Ameriprise Financial Inc.
Ameriprise Financial, Inc., through its subsidiaries, provides various financial products and services to individual and institutional clients in the United States and internationally

Donegal Group Inc.
Donegal Group Inc., an insurance holding company, provides property and casualty insurance to businesses and individuals in the Mid-Atlantic, Midwestern, New England, and southern states. It operates through four segments: Investment Function, Personal Lines of Insurance, Commercial Lines of Insurance, and Investment in DFSC. 

Best Buy Company Inc.
Best Buy Co., Inc. operates as a retailer of technology products, services, and solutions in the United States, Canada, and Mexico. The company operates through two reportable segments, Domestic and International. 

Cracker Barrel Old Country Store Inc.
Cracker Barrel Old Country Store, Inc. develops and operates the Cracker Barrel Old Country Store concept in the United States. The company's Cracker Barrel stores consist of a restaurant with a gift shop. 

The Gap Inc.
The Gap, Inc. operates as an apparel retail company worldwide. It offers apparel, accessories, and personal care products for men, women, and children under the Gap, Banana Republic, Old Navy, Athleta, and Intermix brands.

Qualcomm Inc.
QUALCOMM Incorporated develops, designs, manufactures, and markets digital communications products and services in China, South Korea, Taiwan, the United States, and internationally.

Cummins Inc.
(This was not on last's month but in a previous screen.)
Cummins Inc. designs, manufactures, distributes, and services diesel and natural gas engines, and engine-related component products.

I understand why GPS, BBY and CBRL have shown up this week.  Consumer spending may not be as strong but this creates a buying opportunity who believe that these companies can continue to grow and increase dividends.  GAP and Best Buy have a tough battle to face though against the online giant Amazon.



The remaining companies have been repeats including ORI, NUS, and SPAN (new last month).  ORI has had a good year as people flock to this champion of 35 years. Even though the stock has gone up it still looks like a good buy looking at the numbers.  The only downside to it is slow dividend and earnings growth (Chowder is at -5.5).

I still need to find time to research SPAN especially as it is still presenting itself in my list again.  It is a smaller company but does have a 17 year history of dividend growth.

Below you can see how the screen has been doing since the beginning of the month.  As of this writing it hasn't done so well but as a DGI I am more interested about the companies long term growth of earnings and dividend.  Being down just creates more opportunities to pick up one of these companies with a decent yield.

 


Well that is all the time I have this Sunday morning before the kids start to wake up.  I am going to cook them scrambled eggs and double chocolate chip muffins for breakfast.  Nothing like eating that and reading up on some good post from other bloggers on Sunday.

Let me know if any of these companies look appealing (or not) to you.

Happy investing all,

Dividend Family Guy

2 comments:

  1. There's certainly some names I don't recognize on the list. SPAN does look interesting, for better or for worse though I usually tend to screen out any stock that small. QCOM on the other hand I've had my eye on for a bit as it's a bargain in terms of it's historical PE ratio and dividend yield. They just need to get back to earnings growth before I buy.

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    1. Yeah the chip business is tough. Just look at poor AMD. Intel still pays a dividend but for how much longer? Thanks for stopping buy.
      Cheers,
      DFG

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