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11 Dividend Stocks That Meet Hedge Fund`s Requirement
live (public) 0.86% December 16
As we continue to look for ideas for dividend bearing stocks, a Kapitall
interview of Neil Hennessy, Portfolio Manager and Chief Investment
Officer of The Hennessy Mutual Funds, was interesting. He said one of
his investing strategies was to choose companies
with price to sales ratios below 1.5.
Rebecca Lipman used this as a starting point
to create a list that meets the following requirements:
- Price to Sales ratio below 1.5 (One dollar of sales in return for at least $1.50 in sales)
- Dividend yields between 3-7%
- Net institutional buying in the current quarter
- Market cap above $300 million
I am always interested in a blind filter to see how it performs. I think
that $300M is pretty much the lowest you would ever want to go in
looking for a dividend bearing stock and all of these are going to be
small cap stocks.
- Energy Transfer Equity, L.P. (ETE): Midstream, intrastate, and interstate transportation and storage of natural gas. Market cap at $8.9B. Dividend yield at 6.27%.
- Cinemark Holdings Inc. (CNK): Motion picture business. Market cap at $2.57B. Dividend yield at 3.75%.
- DCP Midstream Partners LP (DPM): Processing, transporting, storing, and selling natural gas in the United States. Market cap at $1.83B. Dividend yield at 5.71%.
- UIL Holdings Corporation (UIL): Operates in the energy sector in the United States. Market cap at $1.7B. Dividend yield at 5.16%.
- SUPERVALU Inc. (SVU): Operates retail food stores in the United States. Market cap at $1.29B. Dividend yield at 5.76%. Net institutional purchases in the current quarter at 18.2M shares, which represents about 8.66% of the company’s float of 210.07M shares.
- MDC Holdings Inc. (MDC): Engages in homebuilding and financial services businesses in the United States. Market cap at $1.24B. Dividend yield at 3.87%.
- Genesis Energy LP (GEL): Operates in the oil and gas industry in the Gulf Coast area of the United States. Market cap at $1.23B. Dividend yield at 5.78%.
- Spreadtrum Communications Inc. (SPRD): Operates as a fabless semiconductor company for wireless communications and mobile television markets. Market cap at $606.34M. Dividend yield at 3.03%.
- Maiden Holdings, Ltd. (MHLD): Provides non-catastrophe inland marine and property coverage reinsurance in the United States and Europe. Market cap at $595.09M. Dividend yield at 3.88%.
- FutureFuel Corp. (FF): Specialty chemicals and bio-based products primarily in the United States. Market cap at $428.08M. Dividend yield at 3.86%.
- Hot Topic Inc. (HOTT): Operates as a mall- and Web-based specialty retailer in the United States. Market cap at $417.01M. Dividend yield at 3.23%.
None of these are big companies and we have four energy companies in the
mix: Energy Transfer. In order for this not to be unbalanced, I will
halve the amount of money invested in each of the energy companies so
that we diversify into the different companies without overloading the
selection from the energy sector.
It will be interesting to measure them with our dividend
bearing ETF portfolio:
Asset | Fund in this portfolio | Price change* | Percentage |
---|---|---|---|
Asset1 | ETE (Energy Transfer Equity L.P) | 1.75% | 1.57% |
Asset1 | DPM (Desert Peak Minerals Inc.) | 0.63% | 3.15% |
Asset1 | UIL (UIL Holdings Corp) | 6.40% | |
Asset1 | GEL (Genesis Energy LP) | 3.87% | 7.44% |
Asset1 | CNK (Cinemark Holdings Inc) | 0.59% | 18.04% |
Asset1 | SVU (SUPERVALU INC) | 0.74% | 1.48% |
Asset1 | MDC (MDC Holdings Inc) | 2.03% | 4.03% |
Asset1 | MHLD (Maiden Holdings Ltd) | 0.07% | 13.73% |
CASH | CASH (CASH) | 0.0% | 44.16% |
* Day change on 12/16/2015.
Since 05/07/2008
Name | YTD* Return |
1Yr AR** |
3Yr AR** |
5Yr AR** |
10Yr AR** |
15Yr AR** |
---|---|---|---|---|---|---|
11 Dividend Stocks That Meet Hedge Fund`s Requirement | -8.3% | -5.6% | 9.6% | 11.1% | N/A | |
VFINX (Vanguard (S&P 500) Index) | 7.9% | 27.1% | 8.5% | 13.8% | 12.5% | 14.6% |
VBINX (Vanguard Balance (60% stocks/40% bonds) | 3.5% | 15.3% | 2.8% | 7.9% | 7.7% | 9.7% |
* YTD: Year to Date
** AR: Annualized Return
Last 1 Week* | 1 Yr | 3 Yr | 5 Yr | 10 Yr | Since 05/07/2008 |
2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Annualized Return(%) | -0.8 | -5.6 | 9.6 | 11.1 | NA | 8.6 | -8.3 | -2.1 | 42.3 | 16.0 | 11.0 | 27.0 | 39.1 | -35.5 |
Sharpe Ratio | NA | -0.5 | 0.82 | 0.63 | NA | 0.33 | -0.75 | -0.2 | 3.3 | 0.81 | 0.4 | 1.23 | 1.2 | -0.67 |
Draw Down(%) | NA | 17.3 | 17.3 | 20.8 | NA | 54.1 | 17.3 | 8.2 | 4.4 | 7.9 | 20.8 | 18.4 | 21.7 | 54.1 |
Standard Deviation(%) | NA | 11.3 | 11.7 | 17.6 | NA | 25.5 | 11.1 | 10.4 | 12.8 | 19.7 | 27.7 | 22.0 | 32.5 | 53.4 |
Treynor Ratio | NA | -0.11 | 0.17 | 0.14 | NA | 0.09 | -0.17 | -0.04 | 0.59 | 0.16 | 0.13 | 0.29 | 0.4 | -0.37 |
Alpha | NA | -0.03 | 0.01 | 0.01 | NA | 0.02 | -0.04 | -0.03 | 0.07 | 0.01 | 0.05 | 0.05 | 0.06 | 0.0 |
Beta | NA | 0.52 | 0.58 | 0.77 | NA | 0.91 | 0.5 | 0.53 | 0.71 | 1.02 | 0.87 | 0.92 | 0.97 | 0.98 |
RSquared | NA | 0.5 | 0.4 | 0.45 | NA | 0.62 | 0.48 | 0.35 | 0.38 | 0.44 | 0.53 | 0.58 | 0.66 | 0.77 |
Sortino Ratio | NA | -0.67 | 1.18 | 0.88 | NA | 0.46 | -0.97 | -0.25 | 5.75 | 1.12 | 0.56 | 1.7 | 1.69 | -0.91 |
Yield(%) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
Dividend Growth(%) | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
*: NOT annualized;YTD: Year to Date
**Inception: starting from 05/07/2008