A look back at Share Picks USA recent performance

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A look back at Share Picks USA recent performance

Published Date: 2018-06-14 | Source: Share Picks USA | Author: Bruce Ingram | Comments

A look back at Share Picks USA recent performance

Recently I have been struggling to find value in Dividend Growth Stocks for the growth portfolio.

So instead of writing about a specific share I decided to take a backward look at how the shares are performing since publication on Share Picks USA. I also briefly discuss the difference between Dividend Growth and Dividend Income portfolios.

Below is a table summarizing the $ price changes as of 12th June 2018 of shares discussed in this forum.

An image of dollar price changes graph

Reality Income Corp and UPS are the top gainers. Johnson & Jonson and Starbucks showed the biggest declines. On average the shares have increased 4.13% since publication.

These figures do not take into account any dividend distributions.

Dividend Growth Shares or Dividend Income Shares?

Recently the above topic was raised by one of the readers.

A local brokerage that sells USA shares in South Africa found that the average age of customers buying USA shares was below 40 years old.

For this reason, my articles are biased to shares with a long-term growth potential as opposed to shares with higher income.

As a general rule companies that pay higher dividends have lower growth. This is due to the fact that the high dividend payers re-invest less of their profits back into the company to create long term growth, they pay out more of their profits in the form of dividends. I classify a high dividend paying company as one that pays out higher than say 4% dividends. Typically, high dividend payers are companies that have more or less saturated their market and have limited growth potential. Generally, these are companies in the Consumer Staples sector such as Phillip Morris (5.68% dividend), Utility companies such as Southern Company (5.52% dividend) etc. Lower dividend payers with higher growth potential would typically be in the following sectors: Industrial, Energy, IT, Pharmaceutical, Health Care etc.

The US market is still in a state of flux and I believe still overpriced. I will continue to seek Dividend Growth shares that are undervalued for discussion on this forum.


Disclaimer: Please note that I am not a Registered Financial Planner. The articles I write are based on my own personal research and for my own use and is not to be construed as financial planning advice. At all times readers are urged to exercise caution when investing in any financial instruments, to do their own research


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