For those of you not familiar with my 10 x 10 x CCC series, please see David Van Knapp’s article. It talks about creating a portfolio that in yielding 10% or more yield-on-cost (YOC). Based on this concept, every quarter I publish a “10 x 10 x CCC Shopping List.”
The one list has grown to two. List #1 uses the most recent data available, which is the 1-year growth rate. List #2 will use the most conservative dividend growth rate among all published dividend growth rates (1-, 3-, 5- and 10-year).
PLEASE NOTE: for the lists below, I am not accounting for inflation when considering yield-on-cost. I am using a simple “plug in” on rounded-down numbers.
NEW ON THE LIST:
· BHP Billiton Ltd (BHP)
· Vanguard Natural Resources (VNR)
· El Paso Pipeline Partners (EPB)
· Lorillard, Inc. (LO)
· Arch Coal, Inc. (ACI)
· Western Gas Partners, LP (WES)
DROPPED FROM LIST:
· Intel Corporation (INTC) – yield too low (below 3%)
· Microsoft Corporation (MSFT) – yield too low (below 3%)
· Cheviot Financial Corporation (CHEV) – dividend cut
· Chunghwa Telecom (CHT)
· Eaton Vance (EV) - yield too low (below 3%)
· Shaw Communications - no longer meets 10 x 10 x CCC
· Evercore Partners - yield too low (below 3%)
Here are your choices for 2Q 2012:
10 by 10 x CCC Shopping List:
MOST RECENT DATA (1-year growth rate)
MOST RECENT DATA (1-year growth rate)
Initial Yield | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% | ||
Annual Growth Rate | |||||||||||
4% | 8 yrs | 5 yrs | 2 yrs | 1 yr | |||||||
VNR | STON | NRGY | |||||||||
DX | |||||||||||
PNNT | |||||||||||
5% | 10 yr | 8 yrs | 4 yrs | 2 yrs | 1 yr | ||||||
BPL | APU | VGR | |||||||||
TOO | |||||||||||
TAC | |||||||||||
6% | 8 yrs | 6 yrs | 3 yrs | 1 yr | 1 yr | ||||||
TGP | |||||||||||
7% | 10 yr | 7 yrs | 5 yrs | 3 yrs | 1 yr | 1 yr | |||||
NGLS UNS | TCAP | ||||||||||
8% | 9 yrs | 6 yrs | 4 yrs | 3 yrs | 1 yr | 1 yr | |||||
SEP | ETE | ||||||||||
9% | 8 yrs | 6 yrs | 4 yrs | 2 yrs | 1 yr | 1 yr | |||||
MO | |||||||||||
WPZ | |||||||||||
10% | 10 yr | 7 yrs | 5 yrs | 4 yrs | 2 yrs | 1 yr | 1 yr | ||||
AVA | GEL | ||||||||||
ACI | |||||||||||
11% | 9 yrs | 7 yrs | 5 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | ||||
CMLP | |||||||||||
12% | 8 yrs | 6 yrs | 5 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | ||||
AZN | |||||||||||
13% | 13 | 10 yr | 8 yrs | 6 yrs | 4 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | ||
UGI | ARLP | OHI | |||||||||
14% | 12 | 9 yrs | 7 yrs | 5 yrs | 4 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | ||
STR | |||||||||||
PRE | |||||||||||
WES | |||||||||||
15% + | 9 yrs | 7 yrs | 5 yrs | 4 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | |||
BHP | MDP | RAI | |||||||||
COP | NVS | AHGP | |||||||||
NTT | LMT | NCMI | |||||||||
DLR | TGH | EPB | |||||||||
DRI | DCM | ||||||||||
HAS | SRE | ||||||||||
SOMH | STRA | ||||||||||
TWGP | CMS | ||||||||||
CEO | LO | ||||||||||
RCI | BIP | ||||||||||
RTN | |||||||||||
EOC | |||||||||||
WMB | |||||||||||
BBL | |||||||||||
WEC | |||||||||||
10 by 10 x CCC Shopping List:
CONSERVATIVE DATA (lowest choice from 1-, 3-, 5- and 10-yr growth rates)
CONSERVATIVE DATA (lowest choice from 1-, 3-, 5- and 10-yr growth rates)
Initial Yield | 2% | 3% | 4% | 5% | 6% | 7% | 8% | 9% | 10% |
Annual Growth Rate | |||||||||
4% | 8 yrs | 5 yrs | 2 yrs | 1 yr | |||||
VNR | DX | ||||||||
PNNT | |||||||||
5% | 10 yr | 8 yrs | 4 yrs | 2 yrs | 1 yr | ||||
BPL | VGR | ||||||||
TOO | |||||||||
6% | 8 yrs | 6 yrs | 3 yrs | 1 yr | 1 yr | ||||
ETE | |||||||||
7% | 10 yr | 7 yrs | 5 yrs | 3 yrs | 1 yr | 1 yr | |||
NGLS | TCAP | ||||||||
GEL | |||||||||
8% | 9 yrs | 6 yrs | 4 yrs | 3 yrs | 1 yr | 1 yr | |||
SEP | OHI | ||||||||
RAI | |||||||||
ACI | |||||||||
9% | 8 yrs | 6 yrs | 4 yrs | 2 yrs | 1 yr | 1 yr | |||
MO | |||||||||
BDMS | |||||||||
10% | 10 yr | 7 yrs | 5 yrs | 4 yrs | 2 yrs | 1 yr | 1 yr | ||
MDP | NCMI | ||||||||
11% | 9 yrs | 7 yrs | 5 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | ||
CMLP | |||||||||
12% | 8 yrs | 6 yrs | 5 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | ||
TGH | ARLP | ||||||||
AZN | |||||||||
13% | 10 yr | 8 yrs | 6 yrs | 4 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | |
DCM | |||||||||
BBL | |||||||||
BHP | |||||||||
14% | 9 yrs | 7 yrs | 5 yrs | 4 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | |
HAS | BIP | ||||||||
WES | |||||||||
15% + | 9 yrs | 7 yrs | 5 yrs | 4 yrs | 3 yrs | 2 yrs | 1 yr | 1 yr | |
NTT | NVS | AHGP | |||||||
DLR | LMT | EPB | |||||||
DRI | LO | ||||||||
RCI | CMS | ||||||||
TWGP | STRA | ||||||||
EOC | |||||||||
