Lanny’s March Dividend Stock Watch List

I am ready for this winter to be over.  Also, I am ready for the market increase to be over, as well!  The dividend stock watch list has been harder and harder to put together, takes more time and more digging.  Also, sometimes – there just isn’t a right investment that fits your metrics or appetite.  Therefore, here is my best shot at putting together my March Dividend Stock Watch List!

Dividend Stock Watch List

I wanted to keep my list tight, especially after Kraft (KHC) cut their dividend.  My focus is even sharper.  I am now looking at underweight positions in my current portfolio, not just by stock, but by industry.  Further, I wanted sound metrics across the board, from a financial standpoint, based on fundamentals.  Further, using my new format, where I’ll discuss a few quick metrics from our screener, in order to efficiently show why they are on my radar.

1.) Armanino Foods of Distinction (AMNF) – Who is this company, as I know they are a micro-type stock?  Well, I purchased them back in June of 2018. They are producers of Pesto, Pasta and Meatballs.  What Can I say?  I am Italian and that should be a reason, in and of itself.  However, if reviewing them across our screener, here are my reasons:

a.) Their yield is greater than a savings account and short-term CD at 2.80%, with limited risk.

b.) Dividend growth rate has been solid, with 2018’s increase at 12.50%, which really adds power to the above average dividend yield.  The dividend factor stands at over 15%, if you are reinvesting those divvies!

c.) Their price to earnings, based on expected earnings of $0.24 at a price of $3.22, ratio is 13.40 (below the market) and their payout ratio is one to smile about, at a low 37.5%.  Therefore, those strong dividend increases are surely to come.

If you want a more thorough analysis, I reviewed them on Seeking Alpha, here (Armanino Analysis).  I tried not to think only with my stomach and heritage when reviewing them, I promise!

 

2.) United Parcel Services, Inc. (UPS) – I last purchased UPS back on December 14, 2018, just before year-end.  Further, Bert has scooped them up a few times as well.  The link has details on who they are and what they do, but we pretty much know who the Brown truck is.  Why are they on my watch list, outside of marching towards their dividend aristocrat status?  Here are my reasons:

a.) Their yield is greater than a savings account and short-term CD at 3.48%, as well as my portfolio yield, on average.

b.) Dividend growth rate is solid and they recently announced a 5.49%, keeping their dividend growth streak alive.  Combined with that yield, they are right around that 9% dividend factor, if you are reinvesting.

c.) Their price to earnings, based on expected earnings of $7.56 at a price of $110.36, ratio is 14.60 (below the market) and their payout ratio is smack dead in the middle of 50%.

Therefore, what’s not to love?  You now know why they are on my dividend stock watch list.  Their growth rate wasn’t as strong as I had hoped, which falls in line with Bert’s, “Slowing Dividend Growth…” article.  Sadly, their ex-date was 2/25/2019 – so I/you have time to pick them up before their next dividend!

Dividend Stock Watch List Conclusion

All current positions in my portfolio, which I love.  Further, their payout ratios are sound, price to earnings are fair and what they “do” will be around.  We all love Italian food (biased) and the shipping of products has been relentlessly increasing – as online shopping in particular is NOT going anywhere, that’s for sure.  I am trying to get back to normalcy and make moves where it makes sense, part of me – getting back to basics, one could say.

Loving these 2 above, as much as I am?  I hope so.  Who else are you watching?  I know there are a few popular names out there, but I rarely/never see these ones being mentioned.  Thank you for the feedback and reviewing my dividend stock watch list!  As always, good luck and happy investing!

-Lanny

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12 thoughts on “Lanny’s March Dividend Stock Watch List

  1. I just added some UNP in mid/late Feb and hope to see its share price continue down. The yield isn’t great at just over 2% but the moat on the business is very strong. After the strong rebound in the markets in January there’s not nearly as many value opportunities out there. AMNF is interesting and I just might have to take a look at them. KHC could be interesting too but it’s now a stock that pays a dividend rather than a dividend growth stock. Looking forward to seeing what you pick up.

    • JC –

      Oh nice, UNP has been doing really well. AMNF is a small little company, they just re-vamped their site, but they also have strong as heck metrics. KHC… tough these days, tough..

      -Lanny

  2. I’m not familiar with AMNF but obviously familiar with UPS. I’ll be getting my tax refund soon Lanny and I might add to my dividend portfolio with some of the money. If I do, I might start new positions rather than building existing ones. I’m not sure, but reviewing watchlists like yours is helpful in giving me ideas in terms of what to look for.

    • DP –

      Nice job on the refund and deploying that into income producing assets, that’s what it’s all about. Hard finding value out there. Thoughts on CVS? Could be one to look at.

      -Lanny

  3. Interesting list, Lanny! AMNF is certainly one I haven’t seen often in the community, outside of here and as a holding of Jason Fieber. I’ll have to look into it more.

  4. I’ve looked at UPS and Fedex but haven’t pulled the trigger yet. AMNF I never heard of but I’ll take a look to see what they’re all about. Thanks for the tips/updates. Cheers. D4J

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