Thursday, November 20, 2014

Recent Buy: BBL

Nov 20, 2014: Bought 57 shares of BBL at $50.20 per share.

BHP Billiton is a diversified natural resources company and one of the world's largest producers of major commodities, including aluminum, coal, copper, iron ore, manganese, nickel, silver and uranium. BHP Billiton is a dual listed company comprising of BHP Billiton Limited (BHP) and BHP Billiton Plc (BBL). I'm buying shares in BBL, offered as American Depository Receipt (ADR) shares on the NYSE.

BBL is an existing holding, so I'm adding shares following substantial recent weakness in the stock price. I first initiated a position in June 2013, buying 43 shares at $58.39 per share and with an initial yield on cost (YoC) of 3.90%. With this buy, I'm averaging down to a per share price of $53.72. This time, initial YoC is a very respectable 4.94%.

Wednesday, November 19, 2014

Stock Analysis: Exxon Mobil Corporation

Exxon Mobil Corporation (XOM) is the world's largest publicly traded international oil and gas company. Founded in 1882 and based in Irving, Texas, XOM is engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other-energy related businesses. Approximately 83% of Exxon's earnings come from its operations outside the United States.

XOM is a Dividend Champion with 32 consecutive years of dividend increases. The company pays dividends of 69¢ per share in the months of March, June, September, and December. At the current share price of $95.11, XOM yields a respectable 2.9%. The five-year dividend growth rate is 9.68%.

From November 2004 through November 2014, XOM outperformed the S&P 500 by 14%, reaching an all-time high $104.76 on 29 July 2014. Since then, the stock price has dropped about 10%.

Please read the rest of this stock analysis and the conclusion I reach at Seeking Alpha. 

Sunday, November 16, 2014

Recent Buy: HP

Nov 11, 2014: Bought 29 shares of HP at $85.57 per share.

Helmerich & Payne (HP) is a contract drilling company headquartered in Tulsa, Oklahoma. The company is engaged in the drilling of oil and gas wells for exploration and production companies. It has a fleet of 328 land rigs in the U.S., 32 international land rigs and nine offshore platform rigs. Another 24 rigs is scheduled to be completed, including HP-designed and operated FlexRigs under long-term contracts with customers.

HP is a Dividend Champion with an impressive 42-yr streak of dividend increases. It pays quarterly dividends in March, June, September and December. Initial yield on cost is 3.21%.

Wednesday, November 12, 2014

Dividend Increases, October 16-31, 2014

I'm rather late in reporting on dividend increases for the last half of October. My source for dividend information, dividend.com, is experiencing a system issue that is not allowing premium users to filter dividend increases by date. So far, my requests to have the issue fixed have not been addressed, which is rather disappointing. I'll probably cancel my subscription.

Out of necessity, I've developed an alternative method to find and report on dividend increases. This took some time, but I'm happy that I won't be depending on a service that is rather unresponsive to customer's requests and suggestions. (Twice, I've suggested a feature that would be significantly improve functionality and would be trivial to add, yet it remains "under consideration").

Along with this change in process, I'll be changing the frequency and format of these posts. Rather than posting twice a month, I'll report on dividend increases weekly. Doing so will allow me to do the work over weekends, which will be more convenient anyway. I'm still working on the new format, so look out for my next post on dividend increases!

Tuesday, November 4, 2014

Monthly Review, October 2014

Every month, I review the past month's activities relating to DivGro, my portfolio of dividend growth stocks. At the same time, I update my blog's Performance page, which provides a central place for reviewing DivGro's status and performance relative to the markets and to prior months.

After selling two stocks in September due to dividend cuts, I had the luxury of having enough funds for three buys. I decided to add to my position in SDRL and I opened new positions in AVA and T. These buys increased DivGro's projected annual dividend income to $5,226. As a consequence, I've achieved one of my 2014 goals, namely to increase DivGro's projected annual dividend income to $4,800.

I'm close to achieving my other goal of reaching $3,600 in dividend income. At the end of October, dividend income totaled $3,163, so I'm only 12% away from achieving that goal.

Monday, November 3, 2014

10 Dividend Growth Stocks for November, 2014

One of my goals for 2014 is to balance DivGro's holdings across all 10 sectors in my watch list. Rather than targeting an equal number of holdings in each sector, I prefer to target a distribution proportional to the number of candidates in each sector of my watch list. The reason for not targeting an equal number of holdings in each sector is that there are many more dividend growth candidates in the Financials and Energy sectors, for example, than in the Materials and Telecommunication Services sectors.

I have a dynamic watch list, which means that the ideal sector distribution changes from month-to-month. I update my watch list every month when David Fish's CCC list is updated. The CCC list contains all U.S.-listed stocks that have raised their dividends for at least five consecutive years. David Fish distinguishes between Dividend Champions (25 or more years), Dividend Contenders (10-24 years), and Dividend Challengers (5-9 years).

Thursday, October 30, 2014

A Giant Home Run with General Dynamics Corporation

Last night, the San Francisco Giants beat the Kansas City Royals 3-2 in game 7 of the World Series, giving the Giants their third World Series championship in five seasons. Apart from Madison Bumgarner's stunning performance, I enjoyed the fact that two of the Wild Card teams ended up playing in the World Series. The Giants scored a total of 30 runs (versus the Royals' 27) in the series, of which only two were home runs.

So what does this have to do with dividend growth investing? Well, on Tuesday, I scored my first home run with DivGro when General Dynamics Corporation (GD) crossed the 100% profit mark!

Sunday, October 26, 2014

Recent Buy: T

Oct 23, 2014: Bought 75 shares of T at $33.64 per share.

Incorporated on October 5, 1983 and based in Dallas, Texas, AT&T Inc. (T) is a holding company providing telecommunication services in the United States and worldwide. Services include wireless communications, local exchanges, long-distance services, data/broadband and internet services and many other services. In March 2014, the company completed the acquisition of prepaid wireless provider Leap Wireless International Inc.

T is a Dividend Champion with an impressive 30-yr streak of dividend increases. It pays quarterly dividends in February, May, August and November. Initial yield on cost is 5.47%.

Friday, October 24, 2014

Recent Buy: AVA

Oct 22, 2014: Bought 75 shares of AVA at $34.12 per share.

Incorporated in 1889 and headquartered in Spokane, Washington, Avista Corporation (AVA) is a diversified energy company engaged in the generation, transmission and distribution of energy in North America. Avista Utilities is an operating division of AVA that comprises of its regulated utility operations. It serves customers in Washington, Idaho and Oregon and contributes over 90% of earnings. In July 2014, AVA acquired Alaska Energy and Resources Company.

AVA is a Dividend Contender with a 12-yr streak of dividend increases. It pays quarterly dividends in March, June, September and December. Initial yield on cost is 3.72%. For a company in the Utilities sector, AVA has a solid 5-year dividend growth rate of 12.07%.

Wednesday, October 22, 2014

The Bloggers' Dividend Growth Portfolio

Today, Seeking Alpha published my first premium article! Here is an excerpt of the introduction:
A while ago, I expanded DivGro's blogroll to include nearly 100 blogs. There is a special section highlighting active blogs that are at least one year old. I provide short descriptions to tell readers what each blog is about. Additionally, I include links to the public portfolios of blogs in my blogroll. These links are marked with a ¶. 
With a little work it is possible to get an interesting, composite view of dividend growth investing from public DGI portfolios. Earlier this year, I used 20 different portfolios to create a list of popular dividend growth stocks. On that occasion, the four most popular dividend growth stocks were McDonald's (NYSE:MCD), Chevron (NYSE:CVX), Johnson & Johnson (NYSE:JNJ) and Coca-Cola (NYSE:KO). 
The purpose of this article is to repeat the exercise, but this time with the much more comprehensive list of blogs in my blogroll.
Please head on over to Seeking Alpha to read The Bloggers' Dividend Growth Portfolio: Popular Dividend Growth Stocks Trading On U.S. Exchanges.