This report highlights last month’s top performers and features a stock from the current portfolio. June’s Dividend Growth Stocks Model Portfolio was made available to members on June 27, 2018.
Recap from May’s Picks
Our Dividend Growth Stocks Model Portfolio outperformed the S&P 500 last month. The Model Portfolio rose 1.1% on a price return basis and 1.4% on a total return basis. The S&P 500 fell 0.6% on a price return basis and 0.1% on a total return basis. The portfolio’s best performing stock was Best Buy (BBY), which was up 8%. Overall, 18 out of the 30 Dividend Growth Stocks outperformed the S&P last month.
The long-term success of our model portfolio strategies highlights the value of our Robo-Analyst technology[1], which scales our forensic accounting expertise (featured in Barron’s) across thousands of stocks[2].
The methodology for this model portfolio mimics an All-Cap Blend style with a focus on dividend growth. Selected stocks earn an Attractive or Very Attractive rating, generate positive free cash flow (FCF) and economic earnings, offer a current dividend yield >1%, and have a 5+ year track record of consecutive dividend growth. This model portfolio is designed for investors who are more focused on long-term capital appreciation than current income, but still appreciate the power of dividends, especially growing dividends.
Featured Stock from June: JPMorgan Chase & Company (JPM: $104/share)
JPMorgan Chase & Company (JPM), a global financial services company, is the featured stock from June’s Dividend Growth Stocks Model Portfolio.
Since 2010, JPM has grown after-tax profit (NOPAT) by 6% compounded annually to $26 billion in 2017. NOPAT has increased further, to $28 billion over the last twelve months (TTM). JPM’s NOPAT margin has increased from 15% in 2010 to 24% TTM while its return on invested capital (ROIC) has improved from 7% to 10%.
