Monthly Stock Report: 28 February 2019 Kraft Heinz (KHC) Featured

This report is going to center around Kraft Heinz (KHC), one of the world’s largest packaged foods companies, which has fallen from a close of $48.18 on Feb 21 to a close of $33.19 on Feb 28, a 31% decline in 5 days of trading.  This is in response to Kraft Heinz writing down or devaluing some of its core brands by $15 billion dollars and reducing its quarterly dividend from 0.62¢  to 0.40¢.

This move serves to underscore my position about reported earnings, sales, balance sheet values, etc.  They are all subject to accounting gimmicks and unfortunately it’s all perfectly legal.  That means those “reported” earnings everyone gets so bent out of shape over can be made to reflect anything the company wants them to.  Items like the monetary values assigned to the goodwill of brands, which is the value Kraft Heinz restated, are no different.  They are all largely an illusion, accounting ghosts if you will.  Sure some are valid, but some are not.  From the outside looking in, how are we to know which ones are real and which ones are just paper numbers.  Your guess is as good as mine.  Even Warren Buffett now says he overpaid for Kraft Heinz.  If he doesn’t know the real value, how are we supposed to know?  But that doesn’t mean we shouldn’t be investors in stocks in general, especially if we have a long-term view and recognize opportunities when they arise.

This situation is exactly why I look to dividends instead of earnings as the measure of a company.  So to me, what’s more important than the write down of the Kraft and Oscar Meyer brands, is that Kraft Heinz cut their quarterly dividend from .062¢ to 0.40¢.  That is an action involving a real number.  It was a reduction of around 35% which is very close to the 33% decline in the stock price from $48.18 to the recent low of $32.02.  That’s a very close correlation, and viewed in that light, a reaction that actually makes some sense.

The 0.40¢ quarterly dividend gives us a forward dividend of $1.60 which results in a forward yield of 4.8%.  So yes the dividend has been reduced.  But it hasn’t been omitted, or even drastically slashed.  Plus, Kraft Heinz still created lots of money last quarter selling the same products they’ve been selling for years and will continue to sell.  That means people are still buying their products.  I bought some Kraft cheese and Oscar Meyer bacon yesterday myself.  And when I use that up, I’ll buy some more and so will a lot of other folks.

So guess what.  I don’t think Kraft Heinz is going out of business tomorrow or the next day or next month or next year.   Warren Buffet himself said he expects to still be holding Kraft Heinz stock 10 years from now.  So what you have now is a classic “oversold” opportunity to buy stock in a “legacy” type company for 33% of what it was selling for just a week ago, and you’ll receive a 4.8% dividend yield for doing so as well.

Will Kraft Heinz reduce its dividend or write off another value again?  I don’t know and neither does anyone else outside of the company.  They might not even know themselves, but the probability is that they won’t.  Will they keep the dividend where it is in the future while they work their way through this process?  Maybe so.

If you want to see a similar situation all you have to do is go back to the year 2000 and examine the defense products company Lockheed Martin (LMT).   Lockheed Martin cut its quarterly dividend from 0.22¢ to 0.11¢, a 50% reduction.  The issues involved with the reduction were different than Kraft Heinz but the outlook going forward at that point for Lockheed Martin was very similar.  They made defense products that were going to remain in demand all over the world.  In a little over a year the stock had gone from a close of $51.88 to a close of $17.44, a 66% decline.  The company held the dividend at 0.11¢ for several years after that while the company worked through the situation.  Today Lockheed Martin has a quarterly dividend of $2.20 and a stock price of $300. Investing in stocks when they’re “on sale” can be very rewarding if you are patient, have reasonable expectations, and maintain a long-term outlook.

Yes they are two different companies in two different industries in two different sectors.  Apples to oranges maybe.  But it does point out what can happen, especially with a “legacy”, blue-chip level company that has ever reason to remain in business making money for years and years to come.  Was it painful in the short-term?  Yes.  Was it profitable in the long-term?  A stock price of $300 today versus $17.44 in 2001.  You be the judge.

Will this happen for Kraft Heinz?  It’s the future.  No one knows.  Is it a good investment at this price and yield?  That’s for you to decide but Kraft Heinz has a long profitable history and large stable of products that says it very well might be.  It has all the appearances of  one of those situations that falls directly into the Warren Buffett “be fearful when others are greedy and greedy when others are fearful” scenario.   Only time will tell.

 

If Kraft Heinz seems like a reach or has too much uncertainty for you, here are some other companies to consider.

Southern Company (SO), an electric utility, closed at $49.69 with a forward dividend yield of 4.8% that is inline with its 5 year median yield.  The close is only 5% above the 60 month moving average.

Dominion Energy (D), an electric utility, closed at $74.09 with a forward dividend yield of 4.5% that is 15% larger than the 5 year median of 3.9%.   The close is only 1% above the 60 month moving average.

General Mills (GIS), one of the world’s largest packaged foods companies, closed at $47.13 with a forward dividend yield of 4.2% that is 33% larger than the 5 year median of 3.1%.  The close is 14% below the 60 month moving average and a 34% correction from the 5 year high monthly close of $71.89.  General Mills has moved up recently from a 6 year low monthly close of $38.94 in December 2018 but is still firmly in “on sale” territory.  Stock prices of almost all of the packaged foods companies have been under pressure lately.

Exxon Mobil (XOM), one of the world’s largest integrated oil/energy companies, closed at $79.03 with a dividend yield of 4.1% that is 44% larger than the 5 year median of 2.9%.  The close is 7% below the 60 month moving average and a 23% correction from the 5 year high monthly close of $102.41.   Exxon Mobil has moved up recently from an 8 year low monthly close of $68.19 in December 2018 but is still residing in “on sale” territory.

Stock Alert: 31 January 2019

Companies with a 4% or better dividend yield and below the 60 month moving average.

Kraft Heinz (KHC) – $48.06 – DY 5.20% – 34% below 60M MA

Dominion Energy (D) – $70.24 – DY 4.76% – 4% below 60M MA

International Business Machines (IBM) – $134.42 – DY 4.67% – 14% below 60M MA

Exxon Mobil (XOM) – $73.28 – DY 4.48% – 14% below 60M MA

General Mills (GIS) – $44.44 – DY 4.41% – 19% below 60M MA

 

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Stock Alert: 31 December 2018

With the S&P 500 moving into bear market territory, there are many stocks making new long term monthly low closes.  The following is a list of those companies which also have a 4% dividend yield or greater.

Kraft Heinz (KHC)$43.04DY 5.8%lowest monthly close in 6 years53% correction from 5 Yr high monthly close41% below 5 Yr moving average

Southern Company (SO) $43.92 – DY 5.5% – 18% correction from 5 Yr high monthly close – 7% below 5 Yr moving average

Intl Business Machines (IBM) – $113.67 – DY 5.5%lowest monthly close in 9 years42% correction from 5 Yr high monthly close28% below 5 Yr moving average

General Mills (GIS)$38.94DY 5.0% – lowest monthly close in 6 years46% correction from 5 Yr high monthly close29% below 5 Yr moving average

Exxon Mobil (XOM)$68.19DY 4.8% – lowest monthly close in 8 years33% correction from 5 Yr high monthly close20% below 5 Yr moving average

Dominion Energy (D)$71.46DY 4.7% – 15% correction from 5 Yr high monthly close – 2% below 5 Yr moving average

Chevron (CVX)$108.79DY 4.1% –  lowest monthly close in 1 year – 1% correction from 5 Yr high monthly close – 1% below 5 Yr moving average

 

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Stock Alert: 30 November 2018

In general, the closer you are to retirement age, the higher your initial dividend yield should be when investing for the purpose of reinvesting dividends.

  • Southern Co (SO) closed at $47.33 with a dividend yield of 5.1% which is 6% higher than the 5 year median of 4.8%.  Southern Co has corrected 12% from the 5 year high monthly close of $53.63 (June 2016), which is greater than the 5 year median correction, and is 1% greater than the 5 year average monthly close of $46.95.  Southern Co has raised its dividend for 17 consecutive calendar years and the 5 year dividend growth rate is 3%, which is equal to the corresponding price growth rate of 3%.  Southern Co is at an attractive entry point for those looking to reinvest dividends.

 

  • Kraft Heinz (KHC) closed at $51.12, which is the lowest monthly close in the last 5 years, and has a dividend yield of 4.9% which is 53% greater than the 5 year median of 3.2%.  Kraft Heinz has corrected 45% from the 5 year high monthly close of $92.20 (May 2018), and is 30% less than the 5 year average monthly close of $72.55, which is greater than the 5 year median.  Kraft Heinz has raised its dividend for 5 consecutive calendar years since its merger, and the 5 year dividend growth rate is 4%, which is greater than the corresponding price growth rate of -1%.  Kraft Heinz has underperformed the SPDR S&P 500 ETF (SPY) by 32% over the last year, and is 29% less than the high-low monthly close buy point of $72.55.  Kraft Heinz has an On Sale Indicator (OSI) rating of 14.4 which is well above the significant threshold level of 9.5.  Kraft Heinz is at a very attractive entry point for those looking to reinvest dividends.

 

  • General Mills (GIS) closed at $42.31 with a dividend yield of 4.6% which is 49% greater than the 5 year median of 3.1%.  General Mills has corrected 41% from the 5 year high monthly close of $71.89 (July 2016), which is greater than the 5 year median correction, and is 23% less than the 5 year average monthly close of $55.00, which is also greater than the 5 year median.  General Mills has underperformed the SPDR S&P 500 ETF (SPY) by 23% over the last year.  General Mills has raised its dividend for 14 consecutive calendar years, and the 5 year dividend growth rate is 5%, which is greater than the corresponding price growth rate of -3%General Mills is at a very attractive entry point for those looking to reinvest dividends.

 

  • Dominion Energy (D) closed at $74.50 with a dividend yield of 4.5% which is 14% higher than the 5 year median of 3.9%.  Dominion Energy has corrected 11% from the 5 year high monthly close of $84.13 (November 2017), and is 2% greater than the 5 year average monthly close of $72.84.  Dominion Energy has raised its dividend for 14 consecutive calendar years and the 5 year dividend growth rate is 8%, which is greater than the corresponding price growth rate of 3%.  Dominion Energy is at an attractive entry point for those looking to reinvest dividends.

 

  • Exxon Mobil (XOM) closed at $79.5 with a dividend yield of 4.1% which is 47% greater than the 5 year median of 2.8%.  Exxon Mobil has corrected 22% from the 5 year high monthly close of $102.41 (April 2014), which is greater than the 5 year median, and is 7% less than the 5 year average monthly close of $86.06, which is also greater than the 5 year median.  Exxon Mobil has raised its dividend for 35 consecutive calendar years, and the 5 year dividend growth rate is 5%, which is greater than the corresponding price growth rate of -3%Exxon Mobil is at an attractive entry point for those looking to reinvest dividends.

 

For those focused on potential above average long-term price appreciation in addition to dividends, the following company closed at its lowest monthly close in 5 years or more with OSI ratings well above the significant level of 9.5.

  • Schlumberger (SLB) – $45.10 – 9 year monthly low close – Div yield 4.4% – OSI 24.5

 

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Stock Alert: 31 October 2018

For those investors with a shorter time frame to retirement age (less than 10 years), the following companies offer dividend yields of 4% or higher.

  • Southern Co (SO) closed at $45.03 with a dividend yield of 5.3% which 12% higher than the 5 year median.  Southern Co has corrected 16% from the 5 year high monthly close of $53.63 (June 2016), which is greater than the 5 year median correction, and is 4% less than the 5 year average monthly close of $46.84.  Southern Co has raised its dividend for 17 consecutive calendar years and the 5 year dividend growth rate is 3%, which is greater than the corresponding price growth rate of 2%.  Southern Co is at an attractive entry point for those looking to reinvest dividends.

 

  • Dominion Energy (D) closed at $71.42 with a dividend yield of 4.7% which is 19% higher than the 5 year median.  Dominion Energy has corrected 15% from the 5 year high monthly close of $84.13 (November 2017), and is 2% less than the 5 year average monthly close of $72.68.  Dominion Energy has raised its dividend for 14 consecutive calendar years and the 5 year dividend growth rate is 8%, which is greater than the corresponding price growth rate of 2%.  Dominion Energy is at an attractive entry point for those looking to reinvest dividends.

 

  • General Mills (GIS) closed at $43.80 with a dividend yield of 4.5% which is 44% greater than the 5 year median.  General Mills has corrected 39% from the 5 year high monthly close of $71.89 (July 2016), which is greater than the 5 year median correction, and is 21% less than the 5 year average monthly close of $55.14, which is also greater than the 5 year median.  General Mills has raised its dividend for 14 consecutive calendar years, and the 5 year dividend growth rate is 5%, which is greater than the corresponding price growth rate of -3%General Mills is at a very attractive entry point for those looking to reinvest dividends.

 

  • Kraft Heinz (KHC) closed at $54.97, which is the lowest monthly close in the last 4 years, and has a dividend yield of 4.5% which is 43% greater than the 5 year median of 3.2%.  Kraft Heinz has corrected 40% from the 5 year high monthly close of $92.20 (May 2018), and is 24% less than the 5 year average monthly close of $72.58, which is greater than the 5 year median.  Kraft Heinz has raised its dividend for 5 consecutive calendar years since its merger, and the 5 year dividend growth rate is 4%, which is greater than the corresponding price growth rate of 0%.  Kraft Heinz has underperformed the SPDR S&P 500 ETF (SPY) by 26% over the last 5 years, and is 24% less than the high-low monthly close buy point of $72.27.  Kraft Heinz has an On Sale Indicator (OSI) rating of 12.5 which is well above the significant threshold level of 9.5.  Kraft Heinz is at an extremely attractive entry point for those looking to reinvest dividends.

 

  • Exxon Mobil (XOM) closed at $79.68 with a dividend yield of 4.1% which is 48% greater than the 5 year median of 2.8%.  Exxon Mobil has corrected 22% from the 5 year high monthly close of $102.41 (April 2014), which greater than the 5 year median, and is 7% less than the 5 year average monthly close of $86.06, which ia also greater than the 5 year median.  Exxon Mobil has raised its dividend for 35 consecutive calendar years, and the 5 year dividend growth rate is 5%, which is greater than the corresponding price growth rate of -2%Exxon Mobil is at an attractive entry point for those looking to reinvest dividends.

 

  • Chevron (CVX) closed at $111.65 with a dividend yield of 4.0% which is 12% greater than the 5 year median.  Chevron has corrected 14% from the 5 year high monthly close of $130.55 (June 2014), and is 2% greater than the 5 year average monthly close of $109.87.  Chevron has raised its dividend for 31 consecutive calendar years, and the 5 year dividend growth rate is 2%, which is greater than the corresponding price growth rate of -1%Chevron is at an attractive entry point for those looking to reinvest dividends.

 

For those investors with a longer time frame to retirement age (10 years or more), the following companies offer dividend yields of 3% or higher.

  • Kimberly Clark (KMB) closed at $104.30 with a dividend yield of 3.8% which is 28% greater than the 5 year median.  Kimberly Clark has corrected 24% from the 5 year high monthly close of $137.48 (June 2016), and is 10% less than the 5 year average monthly close of $116.47, which is greater than the 5 year median.  Kimberly Clark has raised its dividend for 45 consecutive calendar years, and the 5 year dividend growth rate is 5%, which is greater than the corresponding price growth rate of -1%Kimberly Clark is at an attractive entry point for those looking to reinvest dividends.

 

  • Kellogg (K) closed at $65.48 with a dividend yield of 3.4% which is 13% greater than the 5 year median.  Kellogg has corrected 21% from the 5 year high monthly close of $82.71 (July 2016), and is 4% less than the 5 year average monthly close of $68.29.  Kellogg has raised its dividend for 13 consecutive calendar years, and the 5 year dividend growth rate is 4%, which is greater than the corresponding price growth rate of 1%.  Kellogg is at an attractive entry point for those looking to reinvest dividends.

 

  • Cummins (CMI) closed at $136.69 with a dividend yield of 3.3% which is 62% greater than the 5 year median of 2.1%.  Cummins has corrected 27% from the 5 year high monthly close of $188.00 (January 2018), and is 2% less than the 5 year average monthly close of $139.19.  Cummins has raised its dividend for 12 consecutive calendar years, and the 5 year dividend growth rate is 13%, which is greater than the corresponding price growth rate of 1%.  Cummins is at an attractive entry point for those looking to reinvest dividends.

 

  • J M Smucker (SJM) closed at $108.32 with a dividend yield of 3.1% which is 28% greater than the 5 year median.  Smucker has corrected 30% from the 5 year high monthly close of $154.16 (July 2016), and is 7% less than the 5 year average monthly close of $116.69.  Smucker has raised its dividend for 18 consecutive calendar years, and the 5 year dividend growth rate is 8%, which is greater than the corresponding price growth rate of -1%J M Smucker is at an attractive entry point for those looking to reinvest dividends.

 

For those looking for potential above average long-term price appreciation in addition to dividends, the following companies closed at their lowest monthly close in 5 years or more with OSI ratings well above the significant level of 9.5.

  • Anheuser Busch InBev (BUD) – 6 year low $73.98 – Div yield 5.7% – OSI 18.8
  • Colgate-Palmolive (CL) – 5 year low $59.55 – Div yield 2.8% – OSI 13.5
  • Intl Business Machines (IBM) – 9 year low $115.43 – Div yield 5.4% – OSI 20.9
  • Schlumberger (SLB) – 9 year low $51.31 – Div yield 3.9% – OSI 23.2
  • AT&T (T) – 6 year low $30.68 – Div yield 6.5% – OSI 12.4

 

Create your own Dividend Collection Machine

Stock Alert: 12 October 2018

***  The S&P 500 corrected approximately 8% over the last 7 trading sessions from its high of 2940.91 on September 21, 2018.   While not into true correction territory of 10% or less, the low of the day on October 11 was very close.   These types of corrections often present long-term dividend investors with attractive entry points on a multitude of stocks.  Here are a few of those companies.

 

Southern Co (SO)

  • Closed at $43.58 with a dividend yield of 5.5% that is 16% greater than the 5 year median of 4.8%.
  • Southern Co has underperformed the S&P 500 ETF (SPY) by 11% over the last 12 months and is 8% below the 5 year high-low close buy point of $47.13.
  • Closing price is 7% below the 5 year moving average and has corrected 19% from the highest monthly close in the last 5 years of $53.63 (July 2016).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 3% over the last 5 years and is greater than the compounding price growth rate of 1%.
  • On Sale Indicator (OSI) is 4.6 (9.5 or > is significant) which greater than the median over the last 5 years.
  • Southern Co is at an attractive entry point for those looking to reinvest dividends.

 

Anheuser Busch In Bev (ADR)  (BUD)

  • BUD continues to move lower, closing at $84.34 with a dividend yield of 5.1% that is 63% greater than the 5 year median of 3.2%.
  • BUD has underperformed the S&P 500 ETF (SPY) by 26% over the last 12 months and is 23% below the 5 year high-low close buy point of $109.62.
  • The close is the lowest monthly close in the last 5 years.
  • Closing price is 25% below the 5 year moving average and has corrected 36% from the highest monthly close in the last 5 years of $131.68 (July 2016).  Both of these readings are very significant.
  • The dividend has grown at a compounding rate of 2% over the last 5 years and is greater than the compounding price rate of -4%.
  • The On Sale Indicator (OSI) is 13.1 which is 131% greater than the median over the last 5 years.  This is a very significant reading.
  • BUD is at a very attractive entry point for those looking for above average long term price appreciation potential.  **Investors should check with their brokerage company to determine if BUD is eligible for automatic reinvesting before investing for the purpose of dividend reinvesting.

 

Colgate Palmolive  (CL)

  • Closed at $62.54 with a dividend yield of 2.7% that is 16% greater than the 5 year median of 2.3%.
  • Colgate has underperformed the S&P 500 ETF (SPY) by 12% over the last 12 months and is 9% below the 5 year high-low close buy point of $68.80.
  • The close is the lowest monthly close in the last 4 years.
  • Closing price is 9% below the 5 year moving average and has corrected 18% from the highest monthly close in the last 5 years of $76.36 (May 2017).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 4% over the last 5 years and is greater than the compounding price rate of -1%.
  • The On Sale Indicator (OSI) is 8.7 which is 103% greater than the median over the last 5 years.  This is a very significant reading.
  • Colgate Palmolive is at a very attractive entry point for those looking for above average long term price appreciation potential.  Colgate Palmolive is also at a reasonable entry point for those looking to reinvest dividends for 20 years or more.

 

Dominion Energy  (D)

  • Closed at $71.37 with a dividend yield of 4.7% that is 19% greater than the 5 year median of 3.9%.
  • Dominion has underperformed the S&P 500 ETF (SPY) by 10% over the last 12 months and is 3% below the 5 year high-low close buy point of $73.94.
  • Closing price is 2% below the 5 year moving average and has corrected 15% from the highest monthly close in the last 5 years of $84.13 (November 2017).
  • The dividend has grown at a compounding rate of 8% over the last 5 years and is greater than the compounding price rate of 2%.
  • The On Sale Indicator (OSI) is 1.7.
  • Dominion Energy is at an attractive entry point for those looking to reinvest dividends.

 

General Mills (GIS)

  • Closed at $43.10 with a dividend yield of 4.5% that is 46% greater than the 5 year median of 3.1%.
  • General Mills has underperformed the S&P 500 ETF (SPY) by 22% over the last 12 months and is 25% below the 5 year high-low close buy point of $57.09.
  • Closing price is 22% below the 5 year moving average and has corrected 40% from the highest monthly close in the last 5 years of $71.89 (July 2016).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 5% over the last 5 years and is greater than the compounding price rate of -3%.
  • The On Sale Indicator (OSI) is 8.2 which greater than the median over the last 5 years.
  • General Mills is at an attractive entry point for those looking to reinvest dividends.

 

Kraft Heinz (KHC)

  • Closed at $54.24 with a dividend yield of 4.56% that is 45% greater than the 5 year median of 3.2%.
  • Kraft Heinz has underperformed the S&P 500 ETF (SPY) by 28% over the last 12 months and is 25% below the 5 year high-low close buy point of $72.27.
  • The close is the lowest monthly close in the last 4 years.
  • Closing price is 25% below the 5 year moving average and has corrected 41% from the highest monthly close in the last 5 years of $92.20 (May 2017).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 4% over the last 5 years and is greater than the compounding price rate of 0%.
  • The On Sale Indicator (OSI) is 12.6 which is 64% greater than the median over the last 5 years.  This is a significant reading.
  • Kraft Heinz is at a very attractive entry point for those looking to reinvest dividends and for those looking for long term price appreciation potential as well.

 

Pentair PLC  (PNR)

  • Closed at $39.00 with a dividend yield of 2.4% that is 13% greater than the 5 year median of 2.1%.
  • Pentair has underperformed the S&P 500 ETF (SPY) by 14% over the last 12 months and is 9% below the 5 year high-low close buy point of $42.96
  • The close is the lowest monthly close in the last year.
  • Closing price is 9% below the 5 year moving average and has corrected 28% from the highest monthly close in the last 5 years of $54.27 (February 2014).
  • The dividend has grown at a compounding rate of 7% over the last 5 years and is greater than the compounding price rate of -3%.
  • The On Sale Indicator (OSI) is 4.7 which is 3% greater than the median over the last 5 years.  This is a significant reading.
  • Pentair is at an attractive entry point for those looking for above average long term price appreciation potential.  **Investors should check with their brokerage company to determine if Pentair is eligible for automatic reinvesting before investing for the purpose of dividend reinvesting.

 

PPG Industries  (PPG)

  • Closed at $95.09 with a dividend yield of 2.0% that is 18% greater than the 5 year median of 1.7%.
  • PPG has underperformed the S&P 500 ETF (SPY) by 15% over the last 12 months and is 8% below the 5 year high-low close buy point of $103.21.
  • The close is the lowest monthly close in the last year.
  • Closing price is 9% below the 5 year moving average and has corrected 20% from the highest monthly close in the last 5 years of $118.73 (January 2018).
  • The dividend has grown at a compounding rate of 9% over the last 5 years and is greater than the compounding price rate of 1%.
  • The On Sale Indicator (OSI) is 3.9.
  • PPG is at an attractive entry point for those looking for above average long term price appreciation potential.  PPG is also at a reasonable entry point for those looking to reinvest dividends for 20 years or more.

 

Exxon Mobil (XOM)

  • Closed at $81.38 with a dividend yield of 4.0% that is 44% greater than the 5 year median of 2.8%.
  • Exxon has underperformed the S&P 500 ETF (SPY) by 2% over the last 12 months and is 8% below the 5 year high-low close buy point of $88.38.
  • Closing price is 5% below the 5 year moving average and has corrected 21% from the highest monthly close in the last 5 years of $102.41 (April 2014).
  • The dividend has grown at a compounding rate of 5% over the last 5 years and is greater than the compounding price rate of -2%.
  • The On Sale Indicator (OSI) is 2.6.
  • Exxon Mobil is at an attractive entry point for those looking to reinvest dividends.

 

*** For those who are more risk tolerant and looking primarily for price appreciation potential, Schlumberger (SLB), the world’s largest oilfield services company, closed at the lowest monthly close in 8 years. 

  • Closed at $59.33 with a dividend yield of 3.4% that is 101% greater than the 5 year median of 1.7%.
  • Schlumberger has underperformed the S&P 500 ETF (SPY) by 14% over the last 12 months and is 34% below the 5 year high-low close buy point of $89.44, which is very significant.
  • The close is the lowest monthly close in the last 8 years.
  • Closing price is 26% below the 5 year moving average and has corrected 50% from the highest monthly close in the last 5 years of $117.95 (June 2014).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 13% over the last 5 years and is greater than the compounding price rate of -9%.
  • The On Sale Indicator (OSI) is 17.5 which is 117% greater than the median over the last 5 years.  This is a very significant reading.
  • Schlumberger is at a very attractive entry point for those looking for above average long term price appreciation potential.

 

Create your own Dividend Collection Machine

Stock Alert: 29 September 2018

Realty Income (O)

  • Closed at $56.89 with a dividend yield of 4.6% that is equal to the 5 year median.
  • Realty Income has underperformed the S&P 500 ETF (SPY) by 3% over the last 12 months.
  • Closing price is 9% above the 5 year moving average and has corrected 20% from the highest monthly close in the last 5 years of $71.47 (July 2016).
  • The dividend has grown at a compounding rate of 7% over the last 5 years.
  • On Sale Indicator (OSI) is 1.2 (9.5 or > is significant).
  • Realty Income is at a reasonable entry point for those looking to reinvest dividends.

 

Southern Co (SO)

  • Closed at $43.60 with a dividend yield of 5.5% that is 16% greater than the 5 year median of 4.8%.
  • Southern Co has underperformed the S&P 500 ETF (SPY) by 17% over the last 12 months and is 7% below the 5 year high-low close buy point of $47.13.
  • Closing price is 7% below the 5 year moving average and has corrected 19% from the highest monthly close in the last 5 years of $53.63 (July 2016).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 3% over the last 5 years and is greater than the compounding price growth rate of 1%.
  • On Sale Indicator (OSI) is 4.5 which greater than the median over the last 5 years.
  • Southern Co is at an attractive entry point for those looking to reinvest dividends.

 

** Recent negative quarterly sales reports from packaged food companies have continued the downward pressure on stock prices in this portion of the consumer staples sector.  As a result, several of the companies are at attractive entry points.

 

General Mills (GIS)

  • Closed at $42.92 with a dividend yield of 4.6% that is 47% greater than the 5 year median of 3.1%.
  • General Mills has underperformed the S&P 500 ETF (SPY) by 28% over the last 12 months and is 25% below the 5 year high-low close buy point of $57.09.
  • Closing price is 22% below the 5 year moving average and has corrected 40% from the highest monthly close in the last 5 years of $71.89 (July 2016).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 5% over the last 5 years and is greater than the compounding price rate of -2%.
  • The On Sale Indicator (OSI) is 8.3 which greater than the median over the last 5 years.
  • General Mills is at an attractive entry point for those looking to reinvest dividends.

 

Anheuser Busch In Bev (ADR)  (BUD)

  • Closed at $87.57 with a dividend yield of 4.9% that is 57% greater than the 5 year median of 3.2%.
  • BUD has underperformed the S&P 500 ETF (SPY) by 29% over the last 12 months and is 22% below the 5 year high-low close buy point of $112.45.
  • The close is the lowest monthly close in the last 5 years.
  • Closing price is 23% below the 5 year moving average and has corrected 33% from the highest monthly close in the last 5 years of $131.68 (July 2016).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 2% over the last 5 years and is greater than the compounding price rate of -2%.
  • The On Sale Indicator (OSI) is 12.6 which is 120% greater than the median over the last 5 years.  This is a very significant reading.
  • BUD is at a very attractive entry point for those looking for above average long term price appreciation potential.  **Investors should check with their brokerage company to determine if BUD is eligible for automatic reinvesting before investing for dividend reinvesting purposes.

 

Kraft Heinz (KHC)

  • Closed at $55.11 with a dividend yield of 4.5% that is 42% greater than the 5 year median of 3.2%.
  • Kraft Heinz has underperformed the S&P 500 ETF (SPY) by 32% over the last 12 months and is 24% below the 5 year high-low close buy point of $72.27.
  • The close is the lowest monthly close in the last 4 years.
  • Closing price is 24% below the 5 year moving average and has corrected 40% from the highest monthly close in the last 5 years of $92.20 (May 2017).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 4% over the last 5 years and is greater than the compounding price rate of 1%.
  • The On Sale Indicator (OSI) is 12.4 which is 63% greater than the median over the last 5 years.  This is a significant reading.
  • Kraft Heinz is at a very attractive entry point for those looking to reinvest dividends and for those looking for long term price appreciation potential as well.

 

J M Smucker (SJM)

  • Closed at $102.61 with a dividend yield of 3.3% that is 35% greater than the 5 year median of 2.5%.
  • J M Smucker has underperformed the S&P 500 ETF (SPY) by 19% over the last 12 months and is 18% below the 5 year high-low close buy point of $125.28.
  • The close is the lowest monthly close in the last 3 years.
  • Closing price is 12% below the 5 year moving average and has corrected 33% from the highest monthly close in the last 5 years of $154.16 (July 2016).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 8% over the last 5 years and is greater than the compounding price rate of 0%.
  • The On Sale Indicator (OSI) is 9.6 which is 59% greater than the median over the last 5 years.  This is a significant reading.
  • J M Smucker is at a very attractive entry point for those looking to reinvest dividends.

 

*** For those who are more risk tolerant and looking primarily for price appreciation potential, Schlumberger (SLB), the world’s largest oilfield services company, closed at the lowest monthly close in 6 years. 

  • Closed at $60.92 with a dividend yield of 3.3% that is 97% greater than the 5 year median of 1.7%.
  • Schlumberger has underperformed the S&P 500 ETF (SPY) by 17% over the last 12 months and is 32% below the 5 year high-low close buy point of $90.02.
  • The close is the lowest monthly close in the last 6 years.
  • Closing price is 24% below the 5 year moving average and has corrected 48% from the highest monthly close in the last 5 years of $117.95 (June 2014).  Both of these readings are significant.
  • The dividend has grown at a compounding rate of 13% over the last 5 years and is greater than the compounding price rate of -7%.
  • The On Sale Indicator (OSI) is 15.2 which is 89% greater than the median over the last 5 years.  This is a very significant reading.
  • Schlumberger is at a very attractive entry point for those looking for above average long term price appreciation potential.

 

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Stock Alert: 2 September 2018

Anheuser-Busch InBev (ADR) (BUD)

  • Closed at $93.23 with a dividend yield of 4.6% that is 48% greater than the 5 year median of 3.1%.
  • The closing price was the lowest close in the last 5 years.
  • BUD has under performed the S&P 500 ETF (SPY) by 27% over the last 12 months and is 17% less than the 5 year high-low close midpoint of $112.51.
  • Closing price is 18% below the 5 year moving average and has corrected 29% from the 5 year high monthly close.  Both are significantly greater their 5 year median values.
  • The dividend has grown at a compounding rate of 2% over the last 5 years and has outpaced price growth.
  • On Sale Indicator (OSI) is 11.7 which is 120% greater than the 5 year median of 5.3.
  • All of these factors point to dividends “on sale.”

 

General Mills (GIS)

  • Closed at $46.01 with a dividend yield of 4.3% that is 37% greater than the 5 year median of  3.1%.
  • GIS has under performed the S&P 500 ETF (SPY) by 25% over the last 12 months and is 19% less than the 5 year high-low close midpoint of $57.09.
  • Closing price is 17% below the 5 year moving average and has corrected 36% from the 5 year high monthly close.  Both are significantly greater their 5 year median values.
  • The dividend has grown at a compounding rate of 5% over the last 5 years and has outpaced price growth.
  • On Sale Indicator (OSI) is 7.3 which is 39% greater than the 5 year median of 5.3.
  • All of these factors point to dividends “on sale.”

 

Exxon Mobil (XOM)

  • Closed at $80.17 with a dividend yield of 4.1% that is 47% greater than the 5 year median of  2.8%.
  • XOM has under performed the S&P 500 ETF (SPY) by 11% over the last 12 months and is 9% less than the 5 year high-low close midpoint of $88.38.
  • Closing price is 7% below the 5 year moving average and has corrected 22% from the 5 year high monthly close.
  • The dividend has grown at a compounding rate of 5% over the last 5 years and has outpaced price growth.
  • On Sale Indicator (OSI) is 4.9 which is 4% greater than the 5 year median of 4.7.
  • All of these factors point to dividends “on sale.”

 

Kraft Heinz (KHC)

  • Closed at $58.27 with a dividend yield of 4.3% that is 35% greater than the 5 year median of  3.2%.
  • KHC has under performed the S&P 500 ETF (SPY) by 36% over the last 12 months and is 19% less than the 5 year high-low close midpoint of $71.98.
  • Closing price is 20% below the 5 year moving average and has corrected 37% from the 5 year high monthly close.
  • The dividend has grown at a compounding rate of 5% over the last 5 years and has outpaced price growth.
  • The dividend has grown at a compounding rate of 5% over the last 5 years and has outpaced price growth.
  • On Sale Indicator (OSI) is 7.6 which is 2% greater than the 5 year median of 7.5.
  • All of these factors point to dividends “on sale.”

 

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Stock Alert: 31 July 2018

Southern Company (SO)   $48.60   •  Div $2.40  •  DY 4.9%

  • Southern Company has raised its dividend 17 consecutive calendar years
  • Dividend yield of 4.9% is greater than the 5 year median of 4.8%
  • 5 year dividend growth rate is 3% and greater than the price growth rate of 2%
  • Monthly close is 3% above the 5 year high-low midpoint of $47.13
  • Monthly close is 4% above the 5 year average monthly close of $46.70
  • 9% correction from the 5 year high monthly close of $53.63
  • OSI (On Sale Indicator) is 0.5 (oversold level 9.5 or >)

 

Realty Income (O)   $55.77   •  Div $2.64  •  DY 4.7%

  • Realty Income has raised its dividend 24 consecutive calendar years
  • Dividend yield of 4.7% is in line with the 5 year median of 4.7%
  • 5 year dividend growth rate is 4% and less than the price growth rate of 5%
  • Monthly close is 3% above the 5 year high-low midpoint of $54.40
  • Monthly close is 8% above the 5 year average monthly close of $51.69
  • 22% correction from the 5 year high monthly close of $71.47
  • OSI is 1.4

 

Dominion Energy (D)   $71.71   •  Div $3.34  •  DY 4.7%

  • Dominion Energy has raised its dividend 14 consecutive calendar years
  • Dividend yield of 4.7% is 19% greater than the 5 year median of 3.9%
  • 5 year dividend growth rate is 8% and greater than the price growth rate of 4%
  • Monthly close is 6.5% above the 5 year high-low midpoint of $71.24
  • Monthly close is 1% below the 5 year average monthly close of $72.21
  • 15% correction from the 5 year high monthly close of $84.13
  • OSI is 1.5

 

IBM (IBM)   $144.93   •  Div $6.28  •  DY 4.3%

  • IBM has raised its dividend 22 consecutive calendar years
  • Dividend yield of 4.3% is 105% greater than the 5 year median of 2.1%
  • 5 year dividend growth rate is 11% and greater than the price growth rate of -6%
  • Monthly close is 10% below the 5 year high-low midpoint of $160.63
  • Monthly close is 10% below the 5 year average monthly close of $161.57
  • 10% is in line with the 5 year median of 10%
  • 26% correction from the 5 year high monthly close of $196.47
  • OSI is 5.7

 

General Mills (GIS)   $46.06   •  Div $1.96  •  DY 4.3%

  • General Mills has raised its dividend 14 consecutive calendar years
  • Dividend yield of 4.3% is 37% greater than the 5 year median of 3.1%
  • 5 year dividend growth rate is 8% and greater than the price growth rate of -2%
  • Monthly close is 19% below the 5 year high-low midpoint of $57.09
  • Monthly close is 17% below than the 5 year average monthly close of $55.39
  • 17% is greater than the 5 year median of 8%
  • 36% correction from the 5 year high monthly close of $71.89
  • OSI is 7.3 and has moved away from last month’s 10.3 oversold level

 

Exxon Mobil (XOM)   $81.51   •  Div $3.28  •  DY 4.0%

  • Exxon Mobil has raised its dividend 35 consecutive calendar years
  • Dividend yield of 4.0% is 46% greater than the 5 year median of 2.8%
  • 5 year dividend growth rate is 5% and greater than the price growth rate of -3%
  • Monthly close is 8% below the 5 year high-low midpoint of $88.38
  • Monthly close is 6% below than the 5 year average monthly close of $86.56
  • 20% correction from the 5 year high monthly close of $102.41
  • OSI is 2.6

 

Kraft Heinz (KHC)   $60.25   •  Div $2.50  •  DY 4.1%

  • Kraft Heinz has raised its dividend 5 consecutive calendar years since its merger
  • Dividend yield of 4.1% is 30% greater than the 5 year median of 3.2%
  • 5 year dividend growth rate is 5% and greater than the price growth rate of 1%
  • Monthly close is 16% below the 5 year high-low midpoint of $71.98
  • Monthly close is 17% below than the 5 year average monthly close of $72.42
  • 17% is greater than the 5 year median of 15%
  • 35% correction from the 5 year high monthly close of $92.20
  • OSI is 7.1, up from 4.5 the previous month (9.5 or > oversold)

 

CVS Health (CVS)   $64.86   •  Div $2.00  •  DY 3.1%

  • CVS Health has raised its dividend 14 consecutive calendar years
  • Dividend yield of 3.1% is 115% greater than the 5 year median of 1.4%
  • 5 year dividend growth rate is 17% and significantly greater than the price growth rate of 1%
  • Monthly close is 23% below the 5 year high-low midpoint of $84.61
  • Monthly close is 22% below the 5 year average monthly close of $83.17
  • 22% significantly greater than the 5 year median of 8%
  • 42% correction from the 5 year high monthly close of $112.47
  • 42% correction is greater than the 5 year median of 40%
  • OSI is 11.4, placing CVS Health into oversold territory (9.5 or >)

 

Create your own Dividend Collection Machine

Stock Alert: 29 June 2018

Southern Company (SO) – $46.31 – Div $2.40 – DY 5.2%

  • Southern Company has raised its dividend 17 consecutive calendar years
  • Dividend yield of 5.2% is 9% greater than the 5 year median of 4.7%
  • 5 year dividend growth rate is 3% and is greater than the price growth rate of 1%
  • Monthly close is 2% less than 5 year high low buy point of $47.13
  • Monthly close is 1% below than the 5 year average monthly close of $46.63
  • 14% correction from the 5 year high monthly close of $53.63
  • 14% correction is greater than the 5 year median of 12%
  • OSI (On Sale Indicator) is 1.4 (oversold level is 9.5 or >)

 

Realty Income (O) – $53.79 – Div $2.64 – DY 4.9%

  • Realty Income has raised its dividend 24 consecutive calendar years
  • Dividend yield of 4.9% is 4% greater than the 5 year median of 4.7%
  • 5 year dividend growth rate is 4% and is less than the price growth rate of 5%
  • Monthly close is 1% less than 5 year high low buy point of $54.40
  • Monthly close is 4% above the 5 year average monthly close of $51.49
  • 25% correction from the 5 year high monthly close of $71.47
  • OSI is 2.0

 

Dominion Energy (D) – $68.18 – Div $3.34 – DY 4.9%

  • Dominion Energy has raised its dividend 14 consecutive calendar years
  • Dividend yield of 4.9% is 25% greater than the 5 year median of 3.9%
  • 5 year dividend growth rate is 8% and is greater than the price growth rate of 4%
  • Monthly close is 4% less than 5 year high low buy point of $70.47
  • Monthly close is 5% below than the 5 year average monthly close of $72.01
  • 19% correction from the 5 year high monthly close of $84.13
  • OSI is 2.4

 

IBM (IBM) – $139.70 – Div $6.28 – DY 4.5%

  • IBM has raised its dividend 22 consecutive calendar years
  • Dividend yield of 4.5% is 113% greater than the 5 year median of 2.1%
  • 5 year dividend growth rate is 11% and is greater than the price growth rate of -6%
  • Monthly close is 13% less than 5 year high low buy point of $160.63
  • Monthly close is 14% below than the 5 year average monthly close of $162.40
  • 14% is greater than the 5 year median of 10%
  • 29% correction from the 5 year high monthly close of $196.47
  • OSI is 8.3 and near the oversold level of 9.5

 

General Mills (GIS) – $44.26 – Div $1.96 – DY 4.4%

  • General Mills has raised its dividend 14 consecutive calendar years
  • Dividend yield of 4.4% is 43% greater than the 5 year median of 3.1%
  • 5 year dividend growth rate is 8% and is greater than the price growth rate of -2%
  • Monthly close is 22% less than 5 year high low buy point of $57.09
  • Monthly close is 20% below than the 5 year average monthly close of $55.49
  • 24% is significantly greater than the 5 year median of 7%
  • 38% correction from the 5 year high monthly close of $71.89
  • 38% correction is greater than the 5 year median of 34%
  • OSI is 10.9 which significantly greater than the median of 5.2 and higher than the oversold level of 9.5

 

Anheuser Busch InBev ADR (BUD) – $100.76 – Div $4.96 – DY 4.4%

  • 5 year dividend growth rate is 2% and is greater than the price growth rate of -6%
  • Dividend yield of 4.6% is 51% greater than the 5 year median of 3.1%
  • 5 year dividend growth rate is 2% and is equal to the price growth rate of 2%
  • Monthly close is 9% less than 5 year high low buy point of $110.97
  • Monthly close is 11% below than the 5 year average monthly close of $113.40
  • 11% is significantly greater than the 5 year median of 4%
  • 23% correction from the 5 year high monthly close of $131.68
  • OSI is 8.5 and near the oversold level of 9.5
  • **ADRs may not be eligible for automatic dividend reinvesting

 

Exxon Mobil (XOM) – $82.73 – Div $3.28 – DY 4.0%

  • Exxon Mobil has raised its dividend 35 consecutive calendar years
  • Dividend yield of 4.0% is 45% greater than the 5 year median of 2.7%
  • 5 year dividend growth rate is 5% and is greater than the price growth rate of -2%
  • Monthly close is 6% less than 5 year high low buy point of $88.38
  • Monthly close is 4% below than the 5 year average monthly close of $86.56
  • 19% correction from the 5 year high monthly close of $102.41
  • OSI is 2.4

 

Kraft Heinz (KHC) – $62.82 – Div $2.50 – DY 4.0%

  • Kraft Heinz has raised its dividend 5 consecutive calendar years since its merger
  • Dividend yield of 4.0% is 25% greater than the 5 year median of 3.2%
  • 5 year dividend growth rate is 5% and is greater than the price growth rate of 2%
  • Monthly close is 13% less than 5 year high low buy point of $71.98
  • Monthly close is 13% below than the 5 year average monthly close of $72.36
  • 32% correction from the 5 year high monthly close of $92.20
  • OSI is 4.5

 

Kimberly Clark (KMB) – $105.34 – Div $4.00 – DY 3.8%

  • Kimberly Clark has raised its dividend 45 consecutive calendar years
  • Dividend yield of 3.8% is 26% greater than the 5 year median of 3.0%
  • 5 year dividend growth rate is 5% and is greater than the price growth rate of 2%
  • Monthly close is 9% less than 5 year high low buy point of $115.48
  • Monthly close is 9% below than the 5 year average monthly close of $115.58
  • 9% is greater than the 5 year median of 5%
  • 23% correction from the 5 year high monthly close of $137.48
  • OSI is 5.2 which is greater than the 5 year median of 3.9

 

Procter & Gamble (PG) – $78.06 – Div $2.87 – DY 3.7%

  • Procter & Gamble has raised its dividend 61 consecutive calendar years
  • Dividend yield of 3.7% is 17% greater than the 5 year median of 3.1%
  • 5 year dividend growth rate is 4% and is greater than the price growth rate of 0%
  • Monthly close is 4% less than 5 year high low buy point of $81.47
  • Monthly close is 5% below than the 5 year average monthly close of $82.59
  • 5% is greater than the 5 year median of 4%
  • 15% correction from the 5 year high monthly close of $92.27
  • OSI is 4.1 which is equal to the 5 year median of 4.1

 

Cummins Inc (CMI) – $133.00 – Div $4.327 – DY 3.2%

  • Cummins has raised its dividend 12 consecutive calendar years
  • Dividend yield of 3.2% is 62% greater than the 5 year median of 2.0%
  • 5 year dividend growth rate is 17% and is greater than the price growth rate of 4%
  • Monthly close is 4% less than 5 year high low buy point of $138.01
  • Monthly close is 4% below than the 5 year average monthly close of $138.15
  • 29% correction from the 5 year high monthly close of $188.00
  • OSI is 4.3

 

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