Wednesday, January 27, 2016

Data Mining The CCC List: Part 2 - The Contenders


In the beginning stages of building a portfolio, company and sector allocation shouldn't be much of a concern. On a $25,000 portfolio an additional $2,000 purchase would represent a 7% weight in the now $27,000 portfolio. At those portfolio levels a purchase can drastically alter the weight given to a specific company or sector.

However, my portfolio is now hovering around the $170k level and as such I think it's much more important to take allocation into account. One idea that I had was to look into the CCC list that David Fish so graciously updates to see if there's any guidance it can provide in regards to allocation for a dividend growth portfolio.

This is Part 2 of my series on data mining the CCC list. You can find Part 1 which covered the Challengers here.

In order to qualify as a Contender on the CCC list a company must have grown dividends each year for at least the past 10 years. Ten years is a significant amount of time in the business world and is generally long enough for at least one full economic/market cycle to come full circle. If a company was able to continue growing dividends throughout the financial crisis in 2008/9 I'm interested.

Continue reading the article on Seeking Alpha.


Image provided by renjith krishnan via FreeDigitalPhotos.net

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