Monday, September 15, 2014

Dividend Increases, September 1-15, 2014

I'm pleased when stocks in my watch list of dividend growth stocks announce dividend increases, even if I don't own the stocks in question. It reaffirms that those stocks belong in my watch list. Also, it prompts me to take a good look at them. Companies that regularly increase dividends, show confidence in their ability to pay those increasing dividends.

Another reason for monitoring dividend increase announcements is to see if stocks I own will be changing their dividend payments. If so, I make Yield on Cost (YoC) adjustments and update DivGro's projected annual dividend income. This month, one of DivGro's holdings, Philip Morris International Inc (PM), announced a dividend increase of 6.38%.

Friday, September 12, 2014

My Dynamic Watch List

I maintain a watch list of dividend growth stocks that I update at least once a month, sometimes more frequently. It contains all of DivGro's holdings, as well as a subset of David Fish's CCC stocks. Currently, there are 183 stocks in the watch list. The watch list is organized by sector using GICS sector names.

I reference the watch list every month when compiling a dashboard of the best dividend growth stocks. September's dashboard has HP, XOM, and PMT in the top spots. I use the dashboard to compile a list of candidates, one per sector, for further research. Until DivGro is nicely diversified by sector, I'll continue to bias my purchases to sectors that are under-represented.

Monday, September 8, 2014

Stock Analysis: MAT

Founded in 1945 and headquartered in El Segundo, CA., Mattel Inc. (MAT) is the world's largest manufacturer of toys and games. The company makes toys under the brands Mattel, American Girl, Barbie, Batman, Dora the Explorer, Fisher Price, Hot Wheels, Matchbox, Sesame Street, View-Master, Winnie the Pooh, Yu-Gi-Oh, and many more. The company sells directly to retailers and wholesalers, and through agents and distributors in countries where it has no direct presence.

MAT is a Dividend Challenger with 5 consecutive years of dividend increases. The company's 5-year compound annual growth rate (CAGR) is 13.9%. It pays quarterly dividends of $0.38 per share in the months of March, June, September, and December. At the current price of $35.10, MAT yields an impressive 4.33%.

Monday, September 1, 2014

10 Dividend Growth Stocks for September, 2014

Every month, I use David Fish's CCC list to search for stocks trading at a discount to fair value. The CCC list is updated monthly and contains all U.S.-listed stocks that have raised their dividends for at least five consecutive years. The accompanying spreadsheet provides key statistics of all the CCC stocks and is a wonderful resource for dividend growth investors.

This month's list contains 553 stocks. I use a series of filters to reduce the number of stocks to about 200 candidates, which, along with DivGro's holdings, form my watch list. Until DivGro is nicely diversified, I'll continue to search for the best available candidates by sector and bias my purchases to sectors that are under-represented. 

Sunday, August 31, 2014

Monthly Review, August 2014

At the end of every month, I review the month's actions with regards 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 prior months and the markets.

In August, I added two new stocks, PM and DE. DivGro now has 34 different holdings, so I'm almost at my goal of 36 holdings balanced across the 10 sectors in my watch list. In the next few months, I need to add three stocks in the Consumer Discretionary sector, and one each in Consumer Staples, Financials, Industrials, Materials and Utilities.

Saturday, August 30, 2014

Dividend Increases, August 16-31, 2014

After last month's nosedive on the last trading day, the S&P 500 crossed 2,000 while the Dow is back above 17,000. The markets closed on a high note despite the U.K. raising their terrorist alert level to Severe in fear of possible ISIS attacks in Britain and Russia's apparent invasion of the Ukraine. And, the Middle East remains a mess.

I wonder if these geopolitical factors eventually will take a toll on the markets. Many commentators suggest that a significant correction is imminent. The thing is, as long as everyone is calling for a significant correction, it likely won't happen. Stocks probably will continue to climb the wall of worry.

Either way, as dividend growth investors, these issues shouldn't influence our thinking too much. As I said last month, dividends are not affected by stock market volatility, at least not the kind of dividends we're after...

Tuesday, August 26, 2014

New Blogroll Page

I've been working on an extensive blogroll focusing on dividend growth investing (DGI) and other forms of passive income generation. There is a surprising number of blogs out there and I find it fascinating to scan them from time-to-time to see what others think about these topics. Sometimes, someone else's unique way of thinking spawns new ideas in my mind...

There is a wealth of information in such a large collection of blogs. Of course, it requires work to combine and distill the information. In February, I did such an exercise and wrote my most popular post so far. I compiled a spreadsheet containing the combined holdings of 20 publicly available portfolios, counting the number of appearances of each ticker. The 4 most popular dividend growth stocks, based on this composite view, were MCD, CVX, JNJ and KO.

Friday, August 15, 2014

Dividend Increases, August 1-15, 2014

Time again to report on dividend increases announced for stocks in my watch list. One of the stocks I own (WAG) announced a 7.14% increase. As a result, WAG's Yield on Cost (YoC) and DivGro's projected annual dividend income will be adjusted.

I monitor dividend increase announcements as a way to identify new candidates for purchase. When companies announce dividend increases, they show confidence in being able to pay increased dividends. Companies that make aggressive increases pique my interest and I usually take some time to look them over.

Tuesday, August 12, 2014

What is a Liebster Award?

Today, Passive Income Pursuit nominated DivGro for a Liebster Award. After feeling honored to have been nominated, I had to Google "Liebster Award" to find out what this was all about. Sopphey Says it is "kind of like a chain letter" in which one blogger nominates 5 other bloggers to answer 5 questions; and then nominates 5 more bloggers for a Liebster Award, with a new set of 5 questions to answer...

Apparently, Liebster is German for dearest, an adjective than means most loved or cherished or a noun that is an affectionate form of address to a much-loved person. Although I'd like to claim those definitions, The Free Dictionary's definitions are probably more appropriate: greatly valued; precious; highly esteemed or regarded...

Saturday, August 9, 2014

Recent Buy: DE

Aug 8, 2014: Bought 30 shares of DE at $86.23 per share.

Founded in 1837, Deere & Company (DE) is engaged in the production and distribution of agricultural and forestry equipment, construction equipment and engines, worldwide. A credit subsidiary, John Deere Capital Corporation, is one of the largest equipment finance companies in the United States with more than 2.4 million accounts.

DE is a Dividend Contender with a streak of 11 years of dividend increases. It pays quarterly dividends in February, May, August and November. The current dividend is 60¢ per share, so starting yield on cost is 2.78%. DE's 5-year dividend growth rate is 13.43%.