Monday, February 29, 2016

Dividend income & raises February 2016

February was a great month. Several dividend raises, multiple stocks paid dividends and best of all: it was a much bigger paycheck than last years February!

T - $23.52
PG - $8.62
OHI - $18.81
CAT - $9.24

Total February (gross): $60.19

Comparison with last year
February 2016: $60.19
February 2015: $22.56

This is a 267% YoY increase. Nothing to complain about, I would say.

Dividend raises

This section of the monthly dividend update is my favorite.
What's not to like about receiving these increasing paychecks, right?

On February 17th, TROW increaseed their quarterly dividend from $0.52 to $0.54.
This is a 3.85% increase. Due to this change, my YOC is now at 2.83%.

On February 18th, KO increased their quarterly dividend from $0.33 to $0.35.
This is a 6.06% increase. Due to this change, my YOC is now at 3.39%.

On February 18th, WMT increased their quarterly dividend from $0.49 to $0.50.
This is a 2.04% increase. Due to this change, my YOC is now at 3.43%.

How was your February?

Thanks for reading.

Thursday, February 11, 2016

Recent buy - February 2016

Archer Daniels Midland (ADM)
Buy 23 shares @ $36.60 at 12/31/2015

My last purchase of last year was ADM.
This large agricultural processor has shown a substantial decline last year.
With their 52-week high at $53.31, the discount I got was 31%.

As this is a Dividend Champion, the potential discount that presented itself, was reason for me to dig deeper into this company. Their business is pretty straightforward. They manufacture seeds for many different agricultural products like corn, grain and oilseeds. They have been doing this for over a century.

The decline in the stock price is a result of declining commodity prices, strong dollar and a weak Q3 earning report. However, is this still a quality company, worth investing in?

My answer would be yes. As we have seen in recent weeks, many DGI bloggers agree.

Crunch some numbers
ADM has increased their dividends for 40 years in a row. At $36.60 the yield is 3.01%, which is a little under my portfolio average of 3.9%. However, this minor flaw is compensated by the amazing growth numbers of ADM.

DGR-1: 16.7%
DGR-3: 17%
DGR-5: 13.3%
DGR-10: 12.7%

All double digits! This is not very common amongst Dividend Aristocrats.
As a matter of fact, only 17 of the 108 Champions show growth numbers of over 10% in all 4 categories.

From a valuation point of view, ADM has an EPS of 39% with a P/E of 12.3, which should leave more than enough room for future growth.

This looked like an offer I could not resist!

Omega Healthcare Investors Inc. (OHI)
Buy 12 shares @ $27.87 at 2/10/2016

This REIT was on sale, yesterday and earlier today! It traded at a 9% discount, so I added some shares right away.
This purchase reduced my average purchase price from $35.49 to $33.46, increasing the YOC from 6.31% to 6.69%.

Abbott Laboratories (ABT)
Buy 15 shares @ $37.28 at 2/10/2016

Abbott develops and produces healthcare products. It is one of the largest healthcare companies in the US.

At $37.28 ABT is trading at a 28% discount rate, compared to their 52-week high.
The dividend payout is $1.04 annually, which puts their yield at a smaller than average of 2.79%. They have been raisng their dividends for more than 42 consecutive years.

David Fish decided to remove them from his CCC list, after they split the company into ABT and ABBV, back in 2012, but ABT's dividend strategy did not change one bit.

This is a new position.

Wells Fargo & Co. (WFC)
Buy 5 shares @ $46.95 at 2/10/2016

I liked WFC a lot at $51.32, what's not to like at $46.95? Their business did not change.
This is an addition to a current position.

Due to this purchase I averaged down on WFC.
My average purchase price is now at $50.03 with an YOC of 3%.

My portfolio has been updated to reflect these changes.
What do you think of these purchases?

Thanks for reading!

Thursday, February 4, 2016

Dividend income - January 2016

April was not the most lucrative month of all times, but every penny helps.

Dividend income

GE $9.20
WMT $6.37
Total $15.57 (net $13.23)

Despite the small amount of dividends received, it's still a 100% increase, as I did not receive any dividends in January last year.

Dividend raise

Over the last couple of weeks, I received several dividend raises! That's one of the best parts of this strategy, as we all know. All I did was waking up in the morning to receive these raises. They are small, but steady.

T raised their annual dividend from $1.88 to $1.92. +2.13%
OHI raised their annual dividend from $2.24 to $2.28. +1.79%

Thanks for reading!