On the first Friday of every month, we will screen our database for the 10 companies with the highest dividend yield that are suitable for the enterprising investor.Â These 10 companies will be placed in a mock portfolio and rebalanced to have a 10% allocation to each company.Â The starting value of the portfolio is $100,000.00.Â Dividends will be reinvested in the portfolio.
To see the portfolio, you can view this google spreadsheet.
This month’s screen resulted in the following companies being targeted.
- Psychemedics Corp (PMD) – 23.38%
- B&G Foods Inc (BGS) – 8.45%
- National Presto Industries (NPK) – 6.10%
- International Shipholding Corp (ISH) – 5.79%
- Bristol-Myers Squibb (BMY) – 5.51%
- Olin Corp (OLN) – 5.12%
- E.I. du Pont de Nemours and Co (DD) – 4.91%
- Pfizer Inc (PFE) – 4.70%
- Merck & Co. (MRK) – 4.65%
- Philip Morris International Inc (PM) – 4.52%
The big change is that General Electric is not in the portfolio, which significantly affected the return thus far.Â General Electric was dropped from the portfolio because in its latest valuation, it did not pass the tests for the enterprising investor.Â I believe that if you would not purchase the company today, it has no place in your portfolio.
No dividends were received this month, but some are on the horizon for November.
The following mock transactions were made this month:
- Bought 164 shares of PMD for $887.24.
- Bought 10 shares of BGS for $78.10.
- Sold 3 shares of BMY for $65.40, loss of 3.2%.
- Sold 35 shares of ISH for $1,160.25, gain of 7.6%.
- Sold 4 shares of NPK for $347.72, gain of 0.5%.
- Sold 39 shares of PFE for $664.17, gain of 2.9%
- Sold 9 shares of DD for $286.38, loss of 1.0%.
- Sold 609 shares of GE for $8,684.34, loss of 13.2%.
- Sold 5 shares of MRK for $154.65, loss of 2.2%.
- Bought 57 shares of OLN for $870.39.
- Bought 202 shares of PM for $9,566.72.
During the month of October (and since inception as the portfolio began at the beginning of October), the portfolio returned a loss of 3.38% versus a 0% change on the Dow Jones Industrial Average and a loss of 1.98% on the S&P 500.
Photo provided by Acomment.