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Dividend Duchess: April 2020 Stock Picks And Volatility Tutorial

Published Thu, 16 Apr 2020 03:57:54 -0400 on Seeking Alpha

Each month, I have an investing lesson with my 5th grade daughter. This culminates in a stock purchase for her "Dividend Duchess" Portfolio.
We fund this account with my Seeking Alpha Contributor earnings and Lucy chips in 20% of her allowance.
We use some basic screens, easy for an 11-year old to implement - starting with Dividend Champions and Contenders that she recognizes and understands.
Read on to see her stock pick for April 2020.
Tuning Out The Noise
Welcome to the 6th update of Lucy's Dividend Duchess Portfolio! As we track my daughter's investing journey from scratch, I'm stoked to see her financial acumen increasing quickly each month. Examining how COVID-19 is affecting the economic climate is a fantastic learning opportunity for Lucy. She's enduring paper losses, and understands they aren't "real" unless she sells. And why would she want to sell? She owns an ever-growing basket of great companies. We are tuning out the panic, focusing on what we can control, and sticking to the plan.
Choosing the highest quality businesses to invest in is more important than ever. Every day, there is potential for businesses to cut or halt dividend payments. It's paramount to invest in companies that have proven themselves time and again, by continuing to pay and grow their dividends. Lucy is developing a thick skin, and keeping emotion out of her stock picks by focusing solely on the numbers. At the ripe age of 11, she's already dealing with her first bear market and it'll make the next one easier to bear, pun intended. Let's take a look at the April portfolio update and her stock pick for the month!
Dividend Duchess Goals
Lucy coined her account the Dividend Duchess Portfolio. Pretty snazzy. Previous articles provide some context and are available here. Our goals will morph over time, but for now, we're keeping it super simple:
Purchase one new business every month for the first year, and eventually build a portfolio of 20-30 stocks.... Read more

Stock name Last trade   P/E Earnings/Share Dividend/Share Dividend yield
3M 170.58   20.6 8.28 5.76 3.41
UNITED PARCEL SERVICE 122.56   22.4 5.47 3.84 3.14
JOHNSON & JOHNSON 130.43   21.6 6.03 3.80 2.93
PEPSICO 137.29   15.2 9.02 3.82 2.81
WILLIAMS-SONOMA 67.26   15.4 4.38 1.92 2.77
TEXAS INSTRUMENTS 130.22   23.8 5.47 3.08 2.42
HOME DEPOT 233.80   23.3 10.04 5.44 2.33
UNION PACIFIC 167.71   19.9 8.42 3.88 2.32
MCDONALDS 212.15   27.9 7.61 4.64 2.21

3M - MMM
3M - MMM  

Older articles featuring 3m (MMM):
3M Board Declares Quarterly Dividend
First-Half 2020 Dividend Checkup - Dividend Growth, Cuts, And Postponements
10 Dividend Growth Stocks For August 2020
Iron Mountain's 8.4% Yield Is A Slam Dunk Below $30
Nicholas Ward's Dividend Growth Portfolio: July 2020 Update
5 Safe And Cheap Dividend Stocks To Invest In (August 2020)
All Weather Dividends: 8 Hot Buys For Sizzling Hot August
The Best 3 Dividend Blue-Chips Retirees Can Safely Buy In August
The Retiree's Dividend Portfolio - Jane's June Update: Record Dividends During COVID-19
The 14 Best High-Yield Dividend Aristocrats Retirees Can Safely Buy Right Now