Tuesday, February 9, 2016

Recent Buy: The Walt Disney Company

2016-02-03: Bought 27 shares of DIS at $95.43 per share.

The Walt Disney Company (NYSE:DIS), more commonly known as Disney, is a diversified international family entertainment company based in Burbank, California. 

Founded on October 16, 1923, by Walt Disney and Roy O. Disney, the company established itself as a leader in the American animation industry before diversifying into live-action film production, television, and theme parks. Today, Disney operates in five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.

DIS currently pays a dividend of 71¢ per share semi-annually. At the current price of $92.11, the stock yields 1.54%. The company has a 6-year streak of dividend increases.

Monday, February 8, 2016

Another Home Run With DivGro

It has been a while since I celebrated my first home run with DivGro.

I call it a home run when an investment crosses the 100% profit mark. When that happens, you could sell half your shares and play with the house's money. Of course, that kind of thinking is a remnant of my days as a speculator. Selling half of a doubler ensures that you'll likely end up in the black. It also lets your winners ride.

Dividend growth investing is a bit different. The strategy is to invest in companies that pay and regularly increase dividends and trade at or below fair value. In theory, a company that increases its dividend every year can do so sustainably only if it grows earnings sufficiently. If that happens, the market should reward the company by bidding up the share price.

Sunday, February 7, 2016

12 Dividend Increases, February 1-February 5, 2016

Summary

  • This past week, 12 companies on my watch list announced dividend increases, including 3 of the stocks I hold in my DivGro portfolio. 
  • I monitor dividend increases for stocks in my watch list to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
  • Companies that regularly increase dividends show confidence in the potential growth of future earnings.

Wednesday, February 3, 2016

Recent Transfer: Nuveen Premium Income Municipal Fund 2, Inc.

Nuveen Premium Income Municipal Fund 2, Inc. (NYSE:NPM) is a diversified closed-end investment company. The fund's objective is to seek current income exempt from regular federal income tax. A secondary investment objective is the enhancement of portfolio value.

Since November 2015, I have been transferring stocks from my portfolio at Scottrade to DivGro. Altogether, I've transferred 16 stocks and added $1,934.02 to DivGro's projected annual dividend income.

I have 3 more transfers to go, but these will be closed-end funds rather than stocks.

Monday, February 1, 2016

Recent Transfer: Main Street Capital Corporation

Main Street Capital Corporation (NYSE:MAIN) is a principal investment firm that provides customized debt and equity financing to lower middle market companies and debt capital to middle market companies. The company invest primarily in secured debt investments, equity investments, warrants, and other securities of companies based in the United States. MAIN was founded in 1997 and is based in Houston, Texas.

MAIN pays dividends monthly and has a 5-year streak of dividend increases. The current annual dividend of yield is $2.18, which means the stock yields 7.48% (at a price of $28.89).

Sunday, January 31, 2016

Recent Buy: Ford Motor Company

2016-01-26: Bought 280 shares of F at $12.24 per share.
2016-01-29: Bought 150 shares of F at $11.77 per share.

Founded in 1903 and based in Dearborn, Michigan, Ford Motor Company (NYSE:F) manufactures and distributes automobiles worldwide. The company has around 62 plants across the world and offers vehicles primarily under the Ford and Lincoln brand names. Ford sells its products through distributors and dealers, as well as through dealerships to fleet customers. The company provides vehicle financing products through a wholly owned subsidiary, Ford Motor Credit Company LLC.

I already own 170 shares of Ford, which I bought in November 2014 at an initial yield on cost (YoC) of 3.96%. YoC for the 2 buys is 4.9% and 5.1%, respectively, and the average YoC of my Ford holding is 4.64%.

17 Dividend Increases, January 25-January 29, 2016

Includes: AIT • AJG • BKH • CINF • CNI • CPT • ETH • GMT • HCN • HCP • NP • NWBI • PAG • PII • PX • SXL • TMP  

Summary

  • I monitor dividend increases for stocks in my watch list of dividend growth stocks to identify candidates for further analysis.
  • Another reason I monitor dividend increases is to make yield on cost adjustments for stocks in DivGro, my portfolio of dividend growth stocks.
  • This week, 17 companies on my watch list announced dividend increases, including one of the stocks I own.

Tuesday, January 26, 2016

12 Dividend Increases: January 18 To January 22, 2016

Includes: ATR • BRO • CMS • CNP • D • FAF • FIBK • INTC • LLTC • TLLP • WAFD • WES 

Summary

  • Companies that regularly increase dividends show confidence in the potential growth of future earnings.
  • I monitor dividend increases for stocks in my watch list to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
  • In the past week, 12 companies on my watch list announced dividend increases, including two of the stocks I hold in my DivGro portfolio.

Sunday, January 24, 2016

10 Dividend Growth Stocks for January 2016

Includes: CMI • EMR • HP • IBM • LAZ • LOW • PII • TROW • VIAB • VLO 

Summary

  • After several months on hiatus, I'm restarting my monthly 10 Dividend Growth Stocks series.
  • Every month, I'll rank a selection of the CCC stocks to identify top candidates worthy of further analysis.
  • This article explains the selection process, which trims the CCC list of more than 750 dividend growth stocks to a more manageable number of candidates.
  • I rank the remaining stocks based on fundamental analysis and a multi-stage dividend discount model and assign a 7-star rating to each of the top ranked stocks.
  • The article reveals January's top 10 ranked stocks.

Tuesday, January 19, 2016

12 Dividend Increases: December 20, 2015-January 15, 2016

Includes: ATR • BRO • CMS • CNP • D • FAF • FIBK • INTC • LLTC • TLLP • WAFD • WES 

Summary

  • I monitor dividend increases for stocks in my watch list of dividend growth stocks to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
  • Recently, 12 companies on my watch list announced dividend increases, including 3 of the stocks I hold in my DivGro portfolio. 
  • Companies that regularly increase dividends show confidence in future earnings growth potential.

Saturday, January 16, 2016

Quarterly Review, Q4-2015

This is the 12th quarterly review of DivGro, concluding 3 years of dividend growth investing and blogging. Soon I'll post an annual review of my portfolio's performance in 2015.

In my previous quarterly review (Q3-2015) I talked about big plans for Q4-2015, including selling stocks I no longer believe should be in my portfolio and merging the holdings of my Scottrade portfolio with those in DivGro. So I'll be reporting on those moves as well as DivGro's performance in Q4-2015.

Sunday, January 10, 2016

Monthly Review: December 2015

The new year started with increased volatility in the stock market. The first week of trading ended with a wave of late selling, pushing the market to its worst weekly performance since 2011. The dismal start to 2016 follows on concerns about China's economy slowing down. Both the S&P 500 and the Dow Jones are down by 6% for the week, while the Nasdaq declined more than 7%.

For dividend growth investors, the declining market should offer some great buying opportunities. I'm looking forward to deploying some of the cash available in my DivGro portfolio. In January and February, I'll continue to transfer holdings from my Scottrade account to DivGro. In the process, I'm adding some solid dividend paying stocks and increasing DivGro's projected annual dividend income.

In this post, I'd like to review DivGro's performance in the month of December 2015. Later this month, I'll write quarterly and annual reviews as well. I'll be updating DivGro's Performance page so
readers can review DivGro's status and performance relative to the market and to prior months.

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