Watchlist: CCC Super Select

I just developed another watch list. I’m particularly proud of this one, because it’s so extensive.

I paid a guy on Fiverr to do a datascrape for me. He captured balance sheet, cash-flow and historical valuation data from Morningstar for all 824 dividend champions, contenders and challengers (the CCC list). Well, we didn’t capture data for all of them there were six that didn’t have data on M*.

So the universe of stocks was virtually the entire CCC list. Then I filtered by:

  1. Dividend Cushion Ratio > 0.95
  2. Current yield > 5 yr historic yield
  3. Industry not equal to “Banking”
  4. 1yr, 3yr and 5yr DGR is greater than the “market implied” reverse DDM DGR (assuming 10% discount…so historic DGR > 0.1-yield)

That’s it.

It’s worth noting that 154 of the CCC stocks had some kind of error with one of those 4 equations. The most common was that they had only been paying a dividend for 5 years so Morningstar doesn’t have a 5 yr average yet.

Another fairly common problem was companies who wouldn’t separate out their cash positions from total assets on their balance sheets…this screws up the dividend cushion ratio calculation.

Anyway, we started with 824 stocks, and there was some kind of issue that prevented me running my calculations on 160 of them.

So the initial “universe” of stocks was 624.

79 passed those 4 tests.

The google sheet is published on my watchlist page. The tab labelled “All CCC” has all the data and calculations on it.

The tab labelled CCC Super Select is a copy of the filtered stocks (as of 7/24/17…when yields change, the parameters for filters #2 and 4 change).

For previous watch lists, I would filter the CCC list by some parameter and THEN I’d look up the cash flow and balance sheet data manually. It was super tedious, so I would try to limit the universe of stocks before doing it. It cost $73, but a robot did most of the tedious stuff. I just had to format in a usable way.

I’m pretty excited about this one.

Here’s the list of the 79 stocks that passed, sorted by yield:

Name

Symbol

Industry

ConsecutiveYears of Increases

Dividend

Share Price 07/24/17

Yield 07/24/17

Waddell & Reed Financial Inc.

WDR

Financial Services

6

1.84

$20.60

8.93%

Macy’s Inc.

M

Retail-Apparel

6

1.51

$22.76

6.63%

Seagate Technology plc

STX

Technology-Hardware

6

2.52

$39.89

6.32%

Black Box Corp.

BBOX

Technology-Hardware

6

0.48

$7.95

6.04%

Kohl’s Corp.

KSS

Retail-Dept. Stores

7

2.2

$39.51

5.57%

BT Group plc

BT

Telecommunications

7

1.02

$20.13

5.07%

Target Corp.

TGT

Retail-Discount

50

2.48

$54.16

4.58%

Westwood Holdings Group Inc.

WHG

Financial Services

15

2.48

$57.79

4.29%

Qualcomm Inc.

QCOM

Telecomm Equipment

15

2.28

$53.19

4.29%

Valero Energy Corp.

VLO

Oil&Gas

7

2.8

$67.85

4.13%

Steelcase Inc.

SCS

Furniture/Bldg. Prod.

7

0.51

$13.65

3.74%

Armanino Foods of Distinction Inc.

AMNF

Food Processing

11

0.08

$2.18

3.67%

Cisco Systems Inc.

CSCO

Telecomm Equipment

7

1.16

$31.86

3.64%

Lazard Limited

LAZ

Financial Services

10

1.64

$47.93

3.42%

Finish Line Inc. (The)

FINL

Retail-Apparel

10

0.44

$13.21

3.33%

Resources Connection Inc.

RECN

Financial Services

7

0.44

$13.23

3.33%

First American Financial Corp.

FAF

Insurance

7

1.36

$46.29

2.94%

VF Corp.

VFC

Apparel

44

1.68

$58.80

2.86%

National Healthcare Corp.

NHC

Healthcare Facilities

14

1.92

$68.12

2.82%

Interpublic Group of Companies Inc.

IPG

Advertising

5

0.72

$25.69

2.80%

Principal Financial Group Inc.

PFG

Financial Services

9

1.84

$66.48

2.77%

Legg Mason Inc.

LM

Financial Services

7

1.12

$40.52

2.76%

Foot Locker Inc.

FL

Retail-Apparel

7

1.24

$45.23

2.74%

Boeing Company

BA

Aerospace/Defense

6

5.68

$212.14

2.68%

CVS Health Corp.

CVS

Retail-Drugstores

14

2

$77.13

2.59%

Amgen Inc.

AMGN

Biotechnology

7

4.6

$181.11

2.54%

United Fire Group Inc.

UFCS

Insurance

5

1.12

$44.37

2.52%

SpartanNash Company

SPTN

Food Wholesale

7

0.66

$26.64

2.48%

Ethan Allen Interiors Inc.

ETH

Home Furnishings

7

0.76

$30.75

2.47%

Texas Instruments

TXN

Technology-Hardware

13

2

$80.97

2.47%

Cummins Inc.

CMI

Machinery

11

4.1

$166.67

2.46%

Home Depot Inc.

HD

Retail-Home Improv.

8

3.56

$144.96

2.46%

Hubbell Inc.

HUBB

Industrial Equipment

9

2.8

$116.43

2.40%

Magna International Inc.

MGA

Auto Parts

7

1.1

$47.50

2.32%

Computer Services Inc.

CSVI

Technology-Services

45

1.12

$49.00

2.29%

Travelers Companies

TRV

Insurance

13

2.88

$126.24

2.28%

OTC Markets Group Inc.

OTCM

Financial Services

7

0.56

$24.80

2.26%

Kroger Company

KR

Retail-Grocery

12

0.5

$23.25

2.15%

Tiffany & Company

TIF

Retail-Jewelry

15

2

$93.48

2.14%

Movado Group Inc.

MOV

Jewelry

6

0.52

$24.70

2.11%

Kaiser Aluminum Corp.

KALU

Aluminum

6

2

$97.73

2.05%

Hormel Foods Corp.

HRL

Food Processing

51

0.68

$33.28

2.04%

Robert Half International Inc.

RHI

Business Services

14

0.96

$47.29

2.03%

TJX Companies Inc.

TJX

Retail-Apparel

21

1.25

$67.01

1.87%

Inter Parfums Inc.

IPAR

Consumer Goods

8

0.68

$36.90

1.84%

Ingersoll-Rand plc

IR

Machinery

6

1.6

$91.14

1.76%

Oxford Industries Inc.

OXM

Apparel

6

1.08

$62.27

1.73%

Starbucks Corp.

SBUX

Restaurants

7

1

$58.05

1.72%

Franklin Resources

BEN

Financial Services

37

0.8

$46.67

1.71%

Hartford Financial Services Group Inc.

HIG

Insurance

7

0.92

$53.70

1.71%

Broadcom Limited

AVGO

Technology-Hardware

7

4.08

$253.11

1.61%

UnitedHealth Group Inc.

UNH

Health Care Services

8

3

$191.01

1.57%

AmerisourceBergen Corp.

ABC

Drugs

12

1.46

$93.20

1.57%

Flir Systems Inc.

FLIR

Scientific Instruments

7

0.6

$38.29

1.57%

Monro Muffler Brake Inc.

MNRO

Automotive

13

0.72

$46.80

1.54%

Scripps Networks Interactive Inc.

SNI

Media

7

1.2

$78.34

1.53%

Tyson Foods Inc.

TSN

Food Processing

6

0.9

$61.59

1.46%

Walt Disney Company

DIS

Entertainment

7

1.56

$106.94

1.46%

Standard Motor Products Inc.

SMP

Auto Parts

8

0.76

$52.30

1.45%

Carlisle Companies

CSL

Rubber and Plastics

40

1.4

$99.53

1.41%

Estee Lauder Companies Inc.

EL

Personal Products

7

1.36

$97.65

1.39%

Lear Corp.

LEA

Auto Parts

7

2

$143.68

1.39%

Factset Research System Inc.

FDS

Financial Services

19

2.24

$166.86

1.34%

Costco Wholesale

COST

Retail-Wholesale

14

2

$151.26

1.32%

Interface Inc.

TILE

Carpeting

7

0.24

$18.85

1.27%

US Physical Therapy Inc.

USPH

Health Care Services

7

0.8

$62.75

1.27%

Gildan Activewear Inc.

GIL

Apparel

7

0.37

$30.22

1.22%

Nike Inc.

NKE

Apparel

15

0.72

$58.93

1.22%

Ross Stores Inc.

ROST

Retail-Apparel

23

0.64

$53.13

1.20%

Morningstar Inc.

MORN

Technology-Software

7

0.92

$80.09

1.15%

A.O. Smith Corp.

AOS

Industrial Equipment

24

0.56

$55.16

1.02%

Intuit Inc.

INTU

Technology-Software

6

1.36

$135.71

1.00%

Primoris Services Corp.

PRIM

Construction

6

0.22

$24.72

0.89%

Perrigo Company plc

PRGO

Drugs

15

0.64

$76.37

0.84%

Southwest Airlines Co.

LUV

Airline

6

0.5

$59.91

0.83%

Standex International Inc.

SXI

Industrial Equipment

6

0.64

$93.00

0.69%

MasterCard Inc.

MA

Financial Services

6

0.88

$129.69

0.68%

Winmark Corp.

WINA

Retail-Specialty

8

0.44

$132.05

0.33%

HEICO Corp.

HEI

Aerospace/Defense

10

0.16

$78.28

0.20%

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