3 DGR Portfolio - Beat The Market - Year 2 Selections

Plus a shared spreadsheet with the full dataset and analysis.

20 Chosen Stocks For Year #2

Here are the 20 stocks my model chose for year 2 (the redemption year!).

1. Nvidia NVDA 0.00%↑

2. Wingstop WING 0.00%↑

3. Ubiquiti UI 0.00%↑

4. Lam Research LRCX 0.00%↑

5. MSCI MSCI 0.00%↑

6. Monolithic Power Systems MPWR 0.00%↑

7. Mastercard MA 0.00%↑

8. KLA Corporation KLAC 0.00%↑

9. ResMed RMD 0.00%↑

10. Interparfums IPAR 0.00%↑

11. Rollins ROL 0.00%↑

12. Microsoft MSFT 0.00%↑

13. Zoetis ZTS 0.00%↑

14. Booz Allen Hamilton Holding BAH 0.00%↑

15. Old Dominion ODFL 0.00%↑

16. Qualcomm QCOM 0.00%↑

17. Houlihan Lokey HLI 0.00%↑

18. Badger Meter BMI 0.00%↑

19. Universal Display OLED 0.00%↑

20. WD-40 Company WDFC 0.00%↑

There was a total of 76 stocks selected by the screener and I followed the same method that was laid out in the prior article to make my selections.

Here are the average metrics for the selected stocks from the final list (with the averages for all stocks in parentheses for comparison):

• Dividend Yield: 1.17% (1.36%)

• Payout Ratio: 31.92% (31.30%)

• DGR 1Y: 23.60% (18.19%)

• DGR 3Y: 18.05% (15.46%)

• DGR 5Y: 17.03% (14.83%)

• ROIC: 32.83% (27.76%)

• ROCE: 36.43% (32.21%)

• Gross Margin 5Y: 59.51% (50.30%)

• Revenue 5Y: 15.84% (10.84%)

• EPS 5Y: 24.65% (19.82%)

• Total Return CAGR: 20.84% (17.30%)

• Expected Return: 17.97% (7.53%)

I will re-allocate the current 3 DGR portfolio that has a little more than $8k in capital, equally amongst the newly selected stocks when the stock market opens tomorrow. These positions will be held for a full 12 months and then I will analyze how the strategy performed.

Here is a link to the spreadsheet that includes the full dataset and the analysis.

https://docs.google.com/spreadsheets/d/1NlOl9d_FYwbgTiWhWsRbYa3TE4xx1q7j4qMJwigmzV8/edit?usp=sharing

Please don’t request access to edit the spreadsheet. If you would like to make any edits please create a copy of the spreadsheet, save it in your own google drive and that will be your own version that you can change anyway you want.

A full breakdown of Year 1 will be sent out sometime in the next week.