The investing strategy which focuses on Dogs of the Dow was popularized by Michael Higgins in his book, "Beating the Dow". The strategy's simplicity is one of its most attractive attributes. The Dogs of the Dow strategy is very simple to implement:1) Take the 30 stocks that make up the DJIA
2) Rank in yield from highest to lowest on January 1
3) Buy the 10 stocks in equal weight
The premise of this investment style is that the Dow laggards, which are temporarily out-of-favor stocks, are still good companies because they are still included in the DJIA; therefore, holding on to them is a smart idea, in theory.
Once these companies rebound and the market has revalued them properly (or so you hope), you can sell them and replenish your portfolio with other good companies that are temporarily out of favor.
Companies in the Dow have historically been very stable companies that can weather any market decline with their solid balance sheets and strong fundamentals.
Furthermore, because there is a committee perpetually tinkering with the DJIA's components, you can rest assured that the DJIA is made up of good, solid companies.
Today I like to enlarge this concept by looking at the Dogs of the Dividend Champions as of January 2016.
Attached you can also find a list with more fundamentals of the 20 top yielding Dividend Champions as of January 04, 2016.
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Here are the 10 Dogs of Dividend Achievers in detail...
HCP -- Yield: 5.91%
HCP (NYSE:HCP) employs 170 people, generates revenue of $2,266.28 million and has a net income of $893.19 million. The current market capitalization stands at $17.78 billion.HCP’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,799.50 million. The EBITDA margin is 79.40% (the operating margin is 58.35% and the net profit margin 39.41%).
Financials: The total debt represents 45.67% of HCP assets and the total debt in relation to the equity amounts to 90.91%. Due to the financial situation, a return on equity of 8.31% was realized by HCP.
Twelve trailing months earnings per share reached a value of $0.51. Last fiscal year, HCP paid $2.18 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 75.27, the P/S ratio is 7.85 and the P/B ratio is finally 1.64. The dividend yield amounts to 5.91%.
Stock Charts:
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| Long-Term Stock Price Chart of HCP (HCP) |
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| Long-Term Dividend Payment History of HCP (HCP) |
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| Long-Term Dividend Yield History of HCP (HCP) |
AT&T -- Yield: 5.58%
AT&T (NYSE:T) employs 281,240 people, generates revenue of $132,447.00 million and has a net income of $6,518.00 million. The current market capitalization stands at $211.69 billion.AT&T’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $32,139.00 million. The EBITDA margin is 24.27% (the operating margin is 8.87% and the net profit margin 4.92%).
Financials: The total debt represents 27.61% of AT&T assets and the total debt in relation to the equity amounts to 91.47%. Due to the financial situation, a return on equity of 6.89% was realized by AT&T.
Twelve trailing months earnings per share reached a value of $0.86. Last fiscal year, AT&T paid $1.84 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 40.16, the P/S ratio is 1.60 and the P/B ratio is finally 1.99. The dividend yield amounts to 5.58%.
Stock Charts:
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| Long-Term Stock Price Chart of AT&T (T) |
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| Long-Term Dividend Payment History of AT&T (T) |
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| Long-Term Dividend Yield History of AT&T (T) |
Mercury General -- Yield: 5.33%
Mercury General (NYSE:MCY) employs 4,400 people, generates revenue of $3,011.77 million and has a net income of $177.95 million. The current market capitalization stands at $2.57 billion.Mercury General’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $804.37 million. The EBITDA margin is 26.71% (the operating margin is 8.30% and the net profit margin 5.91%).
Financials: The total debt represents 6.30% of Mercury General assets and the total debt in relation to the equity amounts to 15.46%. Due to the financial situation, a return on equity of 9.62% was realized by Mercury General.
Twelve trailing months earnings per share reached a value of $0.55. Last fiscal year, Mercury General paid $2.46 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 85.41, the P/S ratio is 0.85 and the P/B ratio is finally 1.37. The dividend yield amounts to 5.33%.
Stock Charts:
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| Long-Term Stock Price Chart of Mercury General (MCY) |
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| Long-Term Dividend Payment History of Mercury General (MCY) |
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| Long-Term Dividend Yield History of Mercury General (MCY) |
Universal Health -- Yield: 5.16%
Universal Health (NYSE:UHT) employs people, generates revenue of $59.79 million and has a net income of $51.55 million. The current market capitalization stands at $666.43 million.Universal Health’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40.45 million. The EBITDA margin is 67.66% (the operating margin is 86.23% and the net profit margin 86.23%).
Financials: The total debt represents 49.70% of Universal Health assets and the total debt in relation to the equity amounts to 104.19%. Due to the financial situation, a return on equity of 27.85% was realized by Universal Health.
Twelve trailing months earnings per share reached a value of $2.70. Last fiscal year, Universal Health paid $2.52 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 18.54, the P/S ratio is 11.15 and the P/B ratio is finally 3.25. The dividend yield amounts to 5.16%.
Stock Charts:
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| Long-Term Stock Price Chart of Universal Health (UHT) |
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| Long-Term Dividend Payment History of Universal Health (UHT) |
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| Long-Term Dividend Yield History of Universal Health (UHT) |
Helmerich & Payne -- Yield: 5.14%
Helmerich & Payne (NYSE:HP) employs 6,727 people, generates revenue of $3,165.44 million and has a net income of $422.27 million. The current market capitalization stands at $5.77 billion.Helmerich & Payne’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $1,310.28 million. The EBITDA margin is 41.39% (the operating margin is 21.35% and the net profit margin 13.34%).
Financials: The total debt represents 7.43% of Helmerich & Payne assets and the total debt in relation to the equity amounts to 10.85%. Due to the financial situation, a return on equity of 8.58% was realized by Helmerich & Payne.
Twelve trailing months earnings per share reached a value of $3.86. Last fiscal year, Helmerich & Payne paid $2.75 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.87, the P/S ratio is 1.82 and the P/B ratio is finally 1.18. The dividend yield amounts to 5.14%.
Stock Charts:
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| Long-Term Stock Price Chart of Helmerich & Payne (HP) |
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| Long-Term Dividend Payment History of Helmerich & Payne (HP) |
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| Long-Term Dividend Yield History of Helmerich & Payne (HP) |
Bowl America -- Yield: 4.78%
Bowl America (NYSEMKT:BWL.A) employs 250 people, generates revenue of $23.12 million and has a net income of $1.64 million. The current market capitalization stands at $73.49 million.Bowl America’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $3.16 million. The EBITDA margin is 13.68% (the operating margin is 8.24% and the net profit margin 7.09%).
Financials: The total debt represents 0.00% of Bowl America assets and the total debt in relation to the equity amounts to 0.00%. Due to the financial situation, a return on equity of 5.86% was realized by Bowl America.
Twelve trailing months earnings per share reached a value of $0.35. Last fiscal year, Bowl America paid $0.68 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 41.13, the P/S ratio is 3.18 and the P/B ratio is finally 2.72. The dividend yield amounts to 4.78%.
Stock Charts:
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| Long-Term Stock Price Chart of Bowl America (BWL.A) |
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| Long-Term Dividend Payment History of Bowl America (BWL.A) |
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| Long-Term Dividend Yield History of Bowl America (BWL.A) |
Chevron -- Yield: 4.76%
Chevron (NYSE:CVX) employs 64,700 people, generates revenue of $199,941.00 million and has a net income of $19,310.00 million. The current market capitalization stands at $169.31 billion.Chevron’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $40,359.00 million. The EBITDA margin is 20.19% (the operating margin is 11.79% and the net profit margin 9.66%).
Financials: The total debt represents 10.46% of Chevron assets and the total debt in relation to the equity amounts to 17.94%. Due to the financial situation, a return on equity of 12.65% was realized by Chevron.
Twelve trailing months earnings per share reached a value of $4.60. Last fiscal year, Chevron paid $4.21 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.54, the P/S ratio is 0.85 and the P/B ratio is finally 1.09. The dividend yield amounts to 4.76%.
Stock Charts:
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| Long-Term Stock Price Chart of Chevron (CVX) |
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| Long-Term Dividend Payment History of Chevron (CVX) |
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| Long-Term Dividend Yield History of Chevron (CVX) |
National Retail Properties -- Yield: 4.34%
National Retail Properties (NYSE:NNN) employs 64 people, generates revenue of $434.85 million and has a net income of $179.78 million. The current market capitalization stands at $5.45 billion.National Retail Properties’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $383.17 million. The EBITDA margin is 88.12% (the operating margin is 61.23% and the net profit margin 41.34%).
Financials: The total debt represents 35.34% of National Retail Properties assets and the total debt in relation to the equity amounts to 56.48%. Due to the financial situation, a return on equity of 6.07% was realized by National Retail Properties.
Twelve trailing months earnings per share reached a value of $1.22. Last fiscal year, National Retail Properties paid $1.65 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 32.93, the P/S ratio is 12.54 and the P/B ratio is finally 2.11. The dividend yield amounts to 4.34%.
Stock Charts:
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| Long-Term Stock Price Chart of National Retail Properties (NNN) |
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| Long-Term Dividend Payment History of National Retail Properties (NNN) |
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| Long-Term Dividend Yield History of National Retail Properties (NNN) |
Questar -- Yield: 4.31%
Questar (NYSE:STR) employs 1,745 people, generates revenue of $1,189.30 million and has a net income of $226.50 million. The current market capitalization stands at $3.41 billion.Questar’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $640.60 million. The EBITDA margin is 53.86% (the operating margin is 34.09% and the net profit margin 19.04%).
Financials: The total debt represents 38.37% of Questar assets and the total debt in relation to the equity amounts to 130.85%. Due to the financial situation, a return on equity of 18.53% was realized by Questar.
Twelve trailing months earnings per share reached a value of $1.25. Last fiscal year, Questar paid $0.75 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 15.60, the P/S ratio is 2.86 and the P/B ratio is finally 2.74. The dividend yield amounts to 4.31%.
Stock Charts:
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| Long-Term Stock Price Chart of Questar (STR) |
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| Long-Term Dividend Payment History of Questar (STR) |
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| Long-Term Dividend Yield History of Questar (STR) |
MDU Resources Group -- Yield: 4.09%
MDU Resources Group (NYSE:MDU) employs 8,451 people, generates revenue of $4,670.56 million and has a net income of $291.16 million. The current market capitalization stands at $3.58 billion.MDU Resources Group’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $889.59 million. The EBITDA margin is 19.05% (the operating margin is 10.45% and the net profit margin 6.23%).
Financials: The total debt represents 26.82% of MDU Resources Group assets and the total debt in relation to the equity amounts to 66.84%. Due to the financial situation, a return on equity of 9.93% was realized by MDU Resources Group.
Twelve trailing months earnings per share reached a value of $0.95. Last fiscal year, MDU Resources Group paid $0.72 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 19.32, the P/S ratio is 0.77 and the P/B ratio is finally 1.14. The dividend yield amounts to 4.09%.
Stock Charts:
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| Long-Term Stock Price Chart of MDU Resources Group (MDU) |
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| Long-Term Dividend Payment History of MDU Resources Group (MDU) |
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| Long-Term Dividend Yield History of MDU Resources Group (MDU) |
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| 20 Dogs Of The Dividend Champions, January 2016 (click to enlarge) |
