Thanksgiving Week 2021
Since this is Thanksgiving Week 2021, I am not providing commentary for the Week in Review. Instead, you can read the chart or table of the week, dividend news, market summary, and economic news below. I will resume providing commentary after Thanksgiving 2021, next Sunday. First, however, I provide a detailed screener of the best S&P 500 Dividend Growers below in the Chart of Table of the week section.
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Chart or Table of the Week
As a bonus for Thanksgiving Week 2021, today I highlight the S&P 500 Best Dividend Growers screener in Stock Rover*. I modified the screener to increase the trailing 5-year dividend growth rate to greater than 8%. The criteria for dividend yield, 5-year dividend growth rate, 5-year EPS growth rate are seen in the chart below. The criteria are weighted as well, with emphasis on dividend yield. There are 27 stocks out of a universe of more than 7,500 stocks that pass the list. The screenshot below is from Stock Rover*.
The 27 stocks are seen in the screenshot below from Stock Rover*. I can click on each stock and pull up the chart and insight panels for all 27 stocks. For example, I am showing the deep dive information for Lockheed Martin (LMT), which I am long. The stock is undervalued, trading below its 50-day and 200-day EMA, and the yield is over 3%. There is more information in the analysis, but I will leave it up to you to try it out yourself. The screenshot below is from Stock Rover*.
Dividend Increases and Reinstatements
I have created a searchable list of dividend increases and reinstatements. I update this list weekly. In addition, you can search for your stocks by company name, ticker, and date.
Dividend Cuts and Suspensions List
I updated my dividend cuts and suspensions list at the end of October 2021. The number of companies on the list has risen to 538. Thus, we are well over 10% of companies that pay dividends, having cut or suspended them since the start of the COVID-19 pandemic.
There were seven new companies added to the list this past month. The seven companies were International Paper (IP), CatchMark (CTT), Permian Basin Royalty Trust (PBT), Permianville Royalty Trust (PVL), San Juan Basin Royalty Trust (SJT), PermRock Royalty Trust (PRT), and Sprague Resources (SRLP).
Dow Jones Industrial Averages (DJIA): 35,602 (-1.38%)
NASDAQ: 16,057 (+1.24%)
S&P 500: 4,698 (+0.32%)
The S&P 500 is trading at a price-to-earnings ratio of 29.6X, and the Schiller P/E Ratio is about 39.6X. These two metrics were down the past three weeks. Note that the long-term means of these two ratios are 15.9X and 16.8X, respectively.
I continue to believe that the market is overvalued at this point. I view anything over 30X as overvalued based on historical data. The S&P 500’s valuation came down as the index companies reported solid earnings for the second consecutive quarter.
S&P 500 PE Ratio History
Shiller PE Ratio History
Stock Market Volatility – CBOE VIX
The CBOE VIX measuring volatility was up 1.5 points this past week to 17.91. The long-term average is approximately 19 to 20. The CBOE VIX measures the stock market’s expectation of volatility based on S&P 500 index options. It is commonly referred to as the fear index.
Fear & Greed Index
I also track the Fear & Greed Index. The Index is now in Extreme Greed at a value of 69. The Index is down 14 points this past week. This Index is a tool to track market sentiment. There are seven indicators in the Index that are measured on a scale of 0 to 100. The Index is calculated by taking the equally-weighted average of each indicator.
These seven indicators in the Index are Put and Call Options, Junk Bond Demand, Market Momentum, Market Volatility, Stock Price Strength, Stock Price Breadth, and Safe Haven Demand.
Market Momentum indicates Extreme Greed.
Junk Bond Demand indicates Extreme Greed.
Put and Call Options are signaling Extreme Greed.
Safe Haven Demand is in Greed.
Stock Price Breadth indicates Greed.
Stock Price Strength is signaling Neutral.
Market Volatility is set at Neutral.
The US Commerce Department reported retail, and food services sales increased 1.7% to a record $638.2B in October, after an upwardly revised 0.8% in September. Retail sales are 16.3% higher than a year ago. Total sales for August 2021 through October 2021 were up 15.4% year-over-year. Sales increased at electronics and appliance stores (+3.8%), hardware stores (+2.8%), department stores (+2.2%), sporting goods (+1.5%), grocery stores (+1.1%), gas stations (+3.9%), and auto dealerships (+1.8%). However, sales at food services and drinking places were flat, but pharmacies (-0.6%) and clothing stores (-0.7%) posted modest declines.
The US Census Bureau reported new residential building permits rose 4.0% in October to a seasonally adjusted 1.650M. New residential building permits are 3.4% above October 2020. Single-family permits rose 2.7% from a revised September number of 1.041M, and multifamily permits increased 6.5% to 528K. All regions saw an increase in permits led by the Midwest (+8.3%), West (+8.1%), Northeast (+4.8%), and South (+0.9%).
The US Labor Department reported a slight decrease in initial jobless claims for the week ending November 13. The seasonally adjusted initial claims were 268,000, a decrease of 1,000 from the previous week’s upwardly revised number. The four-week moving average was 272,750, a decrease of 5,750 from last week’s revised average. This number is the lowest average since March 2020s 225,500 reading.
Thanks for reading Thanksgiving Week 2021 – Week in Review!
You can also look at Thanksgiving week 2020.
Here are my recommendations:
If you are unsure how to invest in dividend stocks or are just getting started with dividend investing. Please take a look at my review of the Simply Investing Report. I also provide a review of the Simply Investing Course. Note that I am an affiliate of Simply Investing.
If you are interested in an excellent resource for DIY dividend growth investors. I suggest reading my Review of The Sure Dividend Newsletter. Note that I am an affiliate of Sure Dividend.
If you want a leading investment research and portfolio management platform with all the fundamental metrics, screens, and analysis tools you need. Read my Review of Stock Rover. Note that I am an affiliate of Stock Rover.
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Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.