Thursday, December 18, 2014

Reviewing my 2014 Goals

I've been thinking about setting new goals for 2015. Before doing so, though, I'd like to review my 2014 goals.

I believe in setting stretching yet attainable goals. It is not useful to entertain goals that are impossible or even nearly so. On the other hand, setting goals that are simply attainable will not require special effort, nor would one feel a great sense of satisfaction in accomplishing them

Stretching goals demand extra effort and focus. They require commitment, patience, and constant monitoring. Sometimes, when progress is not sufficient, they require changing your approach entirely.

Wednesday, December 17, 2014

Recent Buy: CVX

Dec 16, 2015: Bought 25 shares of CVX at $102.97 per share.

Founded in 1984 and based in San Ramon, California, CVX is a multinational energy corporation involved in all aspects of the oil and gas industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. CVX is the fifth largest integrated energy company in the world and conducts business in approximately 180 countries.

Chevron is a Dividend Champion with a track record of 27 consecutive years of dividend increases. It pays quarterly dividends of $1.07 per share in the months of March, June, September and December.

Friday, December 12, 2014

10 Dividend Growth Stocks for December 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 CCC stocks and is a wonderful resource for dividend growth investors.

The CCC list is divided into three categories based on the number of consecutive years of increases: Dividend Champions (25 or more years), Dividend Contenders (10-24 years), and Dividend Challengers (5-9 years). The latest list (dated 11/28/14) contains 589 stocks, with 105 Champions, 246 Contenders, and 238 Challengers.

Considering 589 stocks every month would be a daunting task. So, I apply a series of filters to reduce the CCC list to a more manageable number of candidates. With an ongoing goal of balancing my portfolio across all 10 GICS (Global Industry Classification Standard) sectors, I'm careful to retain a minimum number of stocks per sector.

To see the top 10 stocks and the 10 sector winners, please read this article at Seeking Alpha.

Tuesday, December 9, 2014

Dividend Increases, December 1-5, 2014

My watch list contains a subset of David Fish's CCC list. I use a series of filters to trim down the CCC list to a more manageable number of stocks (currently 288 stocks). I monitor dividend increases for stocks in my watch list to help identify dividend growth candidates worthy of consideration. Companies that increase dividends regularly show confidence in their future earnings growth potential.

In the first week of December, the following stocks in my watch list announced dividend increases. The table is sorted by last column, %Increase, and dividends are annualized:

Saturday, December 6, 2014

Monthly Review, November 2014

November was a tough month for DivGro as one of my holdings, Seadrill Ltd (NYSE:SDRL) suspended its dividend. Following the dividend suspension announcement, the stock price plunged and has been sliding ever since. I am still contemplating next steps, which most probably would involve selling all or some of my shares.

I've had some good news to counterbalance the SDRL fiasco. Intel Corporation (NASDAQ:INTC) announced a dividend increase, which justifies my earlier decision to hold onto my shares. Many dividend growth investors got rid of their INTC shares because the company failed to raise its dividend for eleven straight quarters. I'm glad I did not sell my shares! INTC has been doing great since I bought 120 shares in January 2013. The stock price has increased 76% and I've received dividends equaling 7.42%.

Friday, December 5, 2014

Dividend Increases, November 2014

Last time I reported on dividend increases, I mentioned that I wanted to increase the frequency and format of these posts. My idea is to post dividend increases weekly (on weekends) so information would be timely and potentially actionable. I'm still working on a way to do this effectively, so this post is a catch-up post until I get the process in place.

I monitor dividend increases for stocks in my watch list for two reasons. First, it is a convenient way to identify dividend growth candidates because companies that increase dividends regularly show confidence in future earnings growth. Second, I track the yield on cost (YoC) of stocks I own. When dividends increase, I make YoC adjustments and update DivGro's projected annual dividend income. 

Saturday, November 29, 2014

Win Some, Lose Some

My Cousin Vinny is one of my favorite movies. Dale Launer's 1991 screenplay is brought to life by great performances from Joe Pesci, Marisa Tomei and Fred Gwynne. Tomei won the Academy Award for Best Supporting Actress for her role. There is some wonderful dialog in the movie, including two passages at different times containing the title of this post. The first takes place between the title character Vinny Gambini (Pesci), who is pretending to be an experienced trial lawyer, and Judge Chamberlain Haller (Gwynn):
Judge: How long have you been practicing?
Vinny: Ooh, about six, uh... almost sixteen years.
Judge: Any murder cases?
Vinny: Quite a few. Yes.
Judge: What was the outcome?
Vinny: Um, you know. Win some, lose some.
Judge: This is not the forum to be cavalier.

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%.