• Subscribe
  • Log In
  • Home
  • Daily Diary
  • Asset Class
    • U.S. Equity
    • Fixed Income
    • Global Equity
    • Commodities
    • Currencies
  • Sector
    • Basic Materials
    • Consumer Discretionary
    • Consumer Staples
    • Energy
    • Financial Services
    • Healthcare
    • Industrials
    • Real Estate
    • Technology
    • Telecom Services
    • Transportation
    • Utilities
  • Latest
    • Articles
    • Video
    • Columnist Conversations
    • Best Ideas
    • Stock of the Day
  • Street Notes
  • Authors
    • Bruce Kamich
    • Doug Kass
    • Jim "Rev Shark" DePorre
    • Helene Meisler
    • Jonathan Heller
    • - See All -
  • Options
  • RMPIA
  • Switch Product
    • Action Alerts PLUS
    • Quant Ratings
    • Real Money
    • Real Money Pro
    • Retirement
    • Stocks Under $10
    • TheStreet
    • Top Stocks
    • TheStreet Smarts
  1. Home
  2. / Investing
  3. / Consumer Discretionary

Boeing, Corning Are Winning in My Dividend Plus Buyback Portfolio

Brinker International? Not so much.
By JONATHAN HELLER
Jul 19, 2017 | 11:15 AM EDT
Stocks quotes in this article: BA, GLW, WYN, EAT, WEN, HOG, TRV, VLO, AMP, MSI, KSS, AIZ, LM, TKR

Three months in, it's time to check in on the progress (or lack thereof) of my Growing Dividends with Stock Buybacks Portfolio. While it is way too soon to make a call as to the efficacy of this screen, it is important to monitor. The premise was that the combination of stock buybacks and growing dividends could be a powerful one, under the right circumstances.

To be included, companies had to meet the following criteria:

  • Minimum Market Cap: $2 billion
  • Minimum dividend yield: 2%
  • Reduction in shares outstanding 3-year average of 5% or more
  • Minimum 5-year dividend growth of 5% or more

After three months, the fourteen names that made the cut are up an average of 6.4%, just marginally better than the S&P 500's 5.1% return during the same period. Obviously, this performance has been observed in an up market, and I am usually skeptical about any screens I've developed until they've been through a flat or, down market. That's the true test, in my view.

All but two names in the tracking portfolio are in positive territory over the past three months. The winners include Boeing (BA) (+17.1%), Corning (GLW) (+16.8%), and Wyndham Worldwide Corp (WYN) (+16.7%).

Restaurant name Brinker International (EAT) (-16.1%), which is the parent company of Chili's, On the Border, and Maggiano's, is the worst performer. Restaurant stocks are coming under increasing pressure following solid performance overall coming out of the 2008 market meltdown. Some of the damage done to Brinker recently was in the form of a downgrade by JP Morgan (from overweight to neutral) on June 15, which sent shares down 10%. EAT remains one of the cheaper names in the sector, trading at 11x next year's consensus earnings estimates. It is also one of the highest yielding, at 3.7%.

Despite EAT's rough treatment, shares of Wendy's (WEN) are up 14%, and now trade near a 13-year high. Admittedly, I've never been able to figure this one out. I owned it for several years after the merger with Triarc (then parent of Arby's) in 2008, but finally gave up. Arby's was a disaster, and was ultimately jettisoned. Wendy's, which yields 1.8%, does not appear cheap at 27x next year's consensus estimates. Unfortunately, as much as I've been unable to figure the stock out, I can't seem to get enough of their overpriced, but delicious, Dave's Double cheeseburgers.

Harley Davidson (HOG) (-14%) has also had a rough run, with some of the damage occurring yesterday after the company announced second-quarter earnings. While earnings beat expectations by $0.10 ($1.48 versus $1.38), revenue ($1.58 billion) narrowly missed by $10 million. What upset investors, however, was softness in motorcycle sales and lowered guidance on full-year motorcycle shipments. Shares ended the day down 6%. HOG currently trades at 12x next year's consensus estimates, and yields 2.81%.

Rounding out performance:

  • Travelers (TRV) , +4%
  • Valero Energy (VLO) , +5.2%
  • Ameriprise Financial (AMP) , +6.3%
  • Motorola Solutions (MSI) , +7%
  • Kohl's (KSS) , +2.3%
  • Assurant (AIZ) , +11.7%
  • Legg Mason (LM) , +6.9%
  • Timken (TKR) , +12%
Get an email alert each time I write an article for Real Money. Click the "+Follow" next to my byline to this article.

At the time of publication, Heller was long GLW, although positions may change at any time.

TAGS: Investing | U.S. Equity | Consumer Discretionary | Consumer Staples | Technology | Transportation | Stocks | How-to | Markets

More from Consumer Discretionary

Let's See How Ulta Looks in the Mirror After Earnings

Bruce Kamich
May 26, 2023 2:30 PM EDT

The shares are down sharply after the retailer reported its latest earnings.

As e.l.f. Beauty Stock Surges, Here's My New Strategy

Bruce Kamich
May 25, 2023 1:34 PM EDT

ELF reported an earnings beat as the business seems very resilient.

Bearish Bets: 3 Stocks You Should Think About Shorting This Week

Bob Lang
May 21, 2023 10:30 AM EDT

These recently downgraded names are displaying both quantitative and technical deterioration.

Match Shares Are Searching for a Strong Connection With Buyers

Bruce Kamich
May 19, 2023 10:57 AM EDT

The stock has been in a persistent downtrend the past 12 months.

I'm Taking a Swing at Topgolf Callaway From the Rough

Ed Ponsi
May 18, 2023 10:15 AM EDT

The shares of the golf-focused recreation company are approaching a support level from which it has bounced back a few times.

Real Money's message boards are strictly for the open exchange of investment ideas among registered users. Any discussions or subjects off that topic or that do not promote this goal will be removed at the discretion of the site's moderators. Abusive, insensitive or threatening comments will not be tolerated and will be deleted. Thank you for your cooperation. If you have questions, please contact us here.

Email

CANCEL
SUBMIT

Email sent

Thank you, your email to has been sent successfully.

DONE

Oops!

We're sorry. There was a problem trying to send your email to .
Please contact customer support to let us know.

DONE

Please Join or Log In to Email Our Authors.

Email Real Money's Wall Street Pros for further analysis and insight

Already a Subscriber? Login

Columnist Conversation

  • 01:51 PM EDT JAMES "REV SHARK" DEPORRE

    This Weekend on Real Money

    Adjusting Your Trading Approach to Shifting Market...
  • 06:54 PM EDT CHRIS VERSACE

    AAP Podcast: A Tongue -- and a Market -- Twister: 'Get a Debt Deal Done'

    Listen in as the Action Alerts PLUS Podcast tackle...
  • 12:07 PM EDT STEPHEN GUILFOYLE

    Selling Some of This Surging AI-Related Stock

    This isn't the only name in the Stocks Under $10 p...
  • See More

COLUMNIST TWEETS

  • A Twitter List by realmoney
About Privacy Terms of Use

© 1996-2023 TheStreet, Inc., 225 Liberty Street, 27th Floor, New York, NY 10281

Need Help? Contact Customer Service

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data & Company fundamental data provided by FactSet. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by FactSet Digital Solutions Group.

TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

FactSet calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.

Compare Brokers

Please Join or Log In to manage and receive alerts.

Follow Real Money's Wall Street Pros to receive real-time investing alerts

Already a Subscriber? Login