Your 10 x 10 x CCC Shopping List for 2Q 2012

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)

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)

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