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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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