So, I recently wrote a series of articles on picking the best dividend paying stocks. These articles covered what dividends are, why you want dividend paying stocks in your portfolio, and how to actually pick the best dividend paying stocks.
I thought I would do a quick check-in to see how the stocks I had identified as the best dividend paying stocks were performing compared to the S&P-500. The method I used to pick that can be found in part-3 of the series if you’d like to follow along.
Read on to see if the basket of the best dividend paying stocks is beating the S&P-500.
What Are The Results so Far?
So, there were nine stocks that were flagged on 8/7/13 as being good deals using the value investing principles of Benjamin Graham. If you would have bought an equal weight of these nine stocks (say $1,000 in each of the nine) you’d be ahead 6.32% of the S&P-500 return as of 9/5/13.
Here’s the table with the details.
|Name||Symbol||% Return||Dividend||TOTAL % Return|
|CNOOC Limited (ADR)||CEO||13.71%||1.45%||15.16%|
|Newmont Mining Corp||NEM||17.98%||0.79%||18.77%|
|Reliance Steel & Aluminum||RS||-1.67%||0.46%||-1.21%|
|Compania da Minas Buenaventura SA (ADR)||BVN||6.70%||0.00%||6.70%|
|Average for Best Dividend Paying Stocks||4.27%|
Update List of Best Dividend Paying Stocks for September 2013
Using the same method I outlined here, the following is a list of the best dividend paying stocks for September 2013. Let’s see if there are any repeats:
|CNOOC Limited (ADR)||CEO||An investment holding company specializing in crude oil and natural gas.|
|Reliance Steel & Aluminum||RS||A metals service center company.|
|Compania da Minas Buenaventura SA (ADR)||BVN||A gold and silver mining company.|
|Newmont Mining Corp||NEM||A gold producing company.|
|Diamond Offshore Drilling Inc||DO||A global offshore oil and gas drilling contractor.|
|Helmerich & Payne, Inc.||HP||Engaged in contract drilling of oil and gases wells for others and this business.|
|Kennametal Inc.||KMT||A supplier of tooling, engineered components and advanced materials consumed in production processes.|
As you can see CEO, RS, BVN, and NEM are still on the list. Notice that 3/4 repeats are all gold/metals mining companies. This make sense to me since gold is down 8% in the past week, so they’ve come back down into a better value range. I’ll check back in on these next month to see how they fared compared to the S&P-500.
Of course, no one would really buy these best dividend paying stocks and plan to sell them a month later. Also since there were so many gold stocks on the list, I’m sure this skewed the results since gold popped just about the time I performed the check-in. Anyways, I thought I would just take some time to point out that these stocks had done so well compared to the S&P-500 in just a month. I found it pretty neat that value investing can still work well!
Update: I ran the list with the closing prices as of 9/13/13 and it shows that the basket of the best dividend paying stocks highlighted in August would have returned 1.8% more than the S&P-500 (if you include dividends). Not too shabby!