New Changes to My DSPP: Adding 1 and Removing 3 Stocks

It has been a while since I revamped my DSPP (direct stock purchase plan) monthly investment plan last November. I was forced to cancel monthly contribution to BDX last month due to its newly imposed high fees, but did not make any other significant changes. Until now. Here is the revised monthly DSPP monthly investment plan:

Ticker	Rating	DGI	Shiller PE	Yield	Payout Ratio	Monthly Invest	Sector	Sector Total	Sector Percent
NVS	A1	D	19.38	3.61%	0.70	$200.00	Healthcare	$400.00	13.79%
SNY	A2	D	16.64	4.48%	0.75	$200.00
KDP	A2	C	41.01	2.53%	1.04	$200.00	Staples	$400.00	13.79%
GIS	A1	B	16.38	4.31%	0.71	$200.00
XOM	B+1	A	11.72	4.18%	0.49	$300.00	Energy	$300.00	10.34%
AFL	D	A	14.71	2.25%	0.33	$200.00	Financial	$600.00	20.69%
RLI	D	A	26.96	1.16%	0.31	$200.00
TSS	D	D	52.76	0.55%	0.29	$200.00
UNP	A2	C	27.98	1.96%	0.55	$200.00	Industrial	$400.00	13.79%
VMI	D	D	19.79	1.09%	0.22	$200.00
YORW	D	B	35.12	2.25%	0.79	$200.00	Utility	$200.00	6.90%
AYI	D	D	30.98	0.38%	0.12	$200.00	Discretionary	$400.00	13.79%
OMC	B2	C	16.62	3.57%	0.59	$200.00
BMS	B2	A	25.16	2.49%	0.63	$200.00	Material	$200.00	6.90%
Total			24.90	2.54%	0.63	$2,900.00		$2,900.00	100.00%
Rating	$	%			DGI	$	%
A	$1,000	34%			A	$900.00	31%
B	$700	24%			B	$400.00	14%
C	$0	0%			C	$600.00	21%
D	$1,200	41%			D	$1,000.00	34%
Total	$2,900	100%			Total	$2,900.00	100%
Rating is based on Morningstar as follows:
A=Wide Moat; B=Narrow Moat; C=No Moat; D=Not rated by Morningstar
+=Exemplary; [blank]=Standard; -=Poor stewardship
1=Low; 2=Medium; 3=High; 4=Very High uncertainty
DGI (Dividend Growth Investing) as follows:
A=25+ years of higher dividends;
B=10-24 years of higher dividends;
C=5-9 years of higher dividends;
D= less than 5 years of higher dividends.

New Stock Added:
1. Total System Services (TSS). This is a high growth stock with a very low payout ratio and dividend yield of only 0.55%. I had watched it for some time now, wishing for a correction, only to see the stock keep going up and up. No one know when the correction may come, and the stock is too great to pass, so I guess I may as well start building a position now at $200 each month. This DSPP is not fee-free however, but the current fee structure, charging 6 cents per share, is low enough for me to buy in.

Stocks Eliminated:
1. Emerson Electric (EMR). Growth has been stagnant and the yield of 2.6% is too high for my taste now. I have more than enough dividend to cover my expenses; more dividends at this point will only add to my tax burden. I was reluctant to give up this dividend aristocrat but it is time.

2. Sonoco Products (SON). Ditto. 3.0% yield is even worse. Also, this stock is rated "no moat" by Morningstar, which is another argument for its elimination.

3. Bryn Mawr Bank Corp (BMTC). I actually still like this stock a lot, and its dividend yield of 2.1% is not too bad, but with the addition of TSS, another financial stock, my financial sector allocation was getting too heavy and something had to give. BMTC was the least attractive of the four, so it had to go. My current financial sector allocation of 21% is still the largest, but it would have been 26% had I kept BMTC.

Other Changes Implemented:
1. My monthly allocation to Aflac (AFL) is reduced from $400 to $200. I did this mainly to limit my financial sector exposure. Also, AFL is flying high right now, so tapping on the brakes a bit seems prudent.

2. My monthly allocation to Acuity Brands (AYI) is reduced from $500 to $200. Though I still like AYI's current valuation and growth potentials, $500 is disproportionately high compared to other stocks in my monthly plan, so I can reducing it to keep it in step.

Other Changes Considered but not Implemented:
I considered eliminating Sanofi (SNY) and Novartis (NVS) due to their stagnant growth and high dividend, but decided to leave them alone for now, given that they are highly rated and I cannot find any good healthcare DSPP to replace them. I did not want to eliminate the healthcare sector altogether.

The overall monthly contribution is now just $2900. That's okay as I currently contribute about $2500 to M1 Finance, where I have a higher quality portfolio. Any extra money I have left as a result of this change will go to my brokerage accounts where I will most likely buy zero and low yield stocks.