Friday, November 15, 2013

Dividend Increases, Oct/Nov 2013

Mid-month every month I provide a summary of recent dividend adjustments for stocks in my watch list. I do this to keep track of yield on cost (YoC) for stocks I own, and to monitor changes that might influence my assessment of a stock's attractiveness. If a stock's dividend payment is decreased, I'll remove it from my watch list. If I happen to own shares in a stock that announces a dividend decrease, I'll consider selling my shares.

The main goal of DivGro is to generate a reliable and growing dividend income stream. Reliable income comes from stable companies that can be counted on to pay the same, or increasing, dividends over time. In order to do so consistently, these companies must grow their earnings sufficiently to afford their growing dividend payments.

Regular dividend increases are important for a dividend growth portfolio. The main goal of DivGro is to generate a reliable and growing dividend income stream. Reliable income comes from stable companies that not only pay dividends regularly, but can be counted on to pay the same (or increasing) dividends over time. Of course, I prefer companies that increase their dividends over time. To do so, these companies must grow their earnings sufficiently to continue to afford their growing dividend payments.

The following table provides a summary of recent dividend increases for stocks in my watch list, sorted by the last column, %Increase. Dividend amounts are annualized.

Dividend Increases: Oct 16 - Nov 15, 2013

Company

Ticker
Price
(Nov 15)
Previous
Dividend
New
Dividend
Current
Yield

%Increase
Seagate Technology PLC STX 48.94 1.52 1.72 3.51% +13.16
Public Storage PSA 162.41 5.00 5.60 3.45% +12.00
Automatic Data Processing ADP 77.33 1.74 1.92 2.48% +10.34
United Technologies Corporation UTX 108.59 2.14 2.36 2.17% +10.28
Westwood Holdings Group, Inc. WHG 55.74 1.60 1.76 3.16% +10.00
Texas Instruments Incorporated TXN 42.55 1.12 1.20 2.82% +7.14
AFLAC Incorporated AFL 67.48 1.40 1.48 2.19% +5.71
BOK Financial Corporation BOKF 62.36 1.52 1.60 2.57% +3.57
Sunoco Logistics Partners L.P. SXL 69.59 2.40 2.52 3.62% +5.00
Emerson Electric Co. EMR 67.97 1.64 1.72 2.53% +4.88
SYSCO Corporation SYY 33.70 1.12 1.16 3.44% +4.88
United Bankshares, Inc. UBSI 30.40 1.24 1.28 4.21% +3.23
El Paso Pipeline Partners, L.P. EPB 41.32 2.52 2.60 6.29% +3.17
Main Street Capital Corporation MAIN 31.31 1.92 1.98 6.32% +3.13
Alliance Holdings GP, L.P. AHGP 56.50 3.14 3.23 5.72% +2.87
Energy Transfer Equity, L.P. ETE 70.11 2.62 2.69 3.84% +2.67
Kinder Morgan Inc KMI 35.35 1.60 1.64 4.64% +2.50
Targa Resources Partners LP NGLS 51.34 2.86 2.93 5.71% +2.45
Kinder Morgan Energy Partners LP KMP 82.00 5.28 5.40 6.59% +2.27
Universal Corp UVV 50.78 2.00 2.04 4.02% +2.00
Alliance Resource Partners, L.P. ARLP 74.98 4.61 4.70 6.27% +1.95
Williams Partners, L.P. WPZ 50.38 3.45 3.51 6.97% +1.74
Spectra Energy Partners, LP SEP 44.34 2.04 2.07 4.66% +1.47
Vectren Corp VVC 35.10 1.42 1.44 4.10% +1.41
Energy Transfer Partners LP ETP 53.13 3.58 3.62 6.81% +1.26
Teva Pharmaceutical Industries Ltd TEVA 38.28 1.09 1.11 2.90% +1.26
Buckeye Partners, L.P. BPL 67.40 4.25 4.30 6.38% +1.18
Exterran Partners, L.P. EXLP 29.94 2.09 2.11 7.05% +0.96
Mercury General Corporation MCY 47.47 2.45 2.46 5.18% +0.41
Sturm, Ruger & Company RGR 74.25 2.60 2.32 3.12% -10.77
Vodafone Group Plc VOD 37.24 2.09 1.09 2.94% -47.55

Highlighted are stocks I own in DivGro.

AFL's dividend increase of 5.71% raises current yield to 2.19%. The next quarterly dividend of 37c per share will be payed on November 14, to shareholders of record on October 29. This increase adds $4 to DivGro's projected annual dividend income, and raises yield on cost to 2.96%.

ETP's distribution increase of 1.26% raises current yield to 6.81%. The next quarterly distribution of 90.5c per unit will be payed on February 10, 2014, to shareholders of record on January 9, 2014. This increase adds $4.50 to DivGro's projected annual dividend income, and raises yield on cost to 7.63%.

Because RGR decreased its dividend, I'm removing it from my watch list.

VOD is a semi-annual dividend payer with a pattern of paying one larger and one smaller dividend every year. The pattern of payments since 2010 looks like this:
( $0.85  $0.45 )   ( $0.97  $0.47 )   ( $0.99  $0.51 )   ( $1.04  $0.56 )
In reality, VOD is increasing its dividend by 6.67% over last year.

Full Disclosure: Long AFL, ETP

2 comments :

  1. great list. How do you come up with this? do you go one by one?

    ReplyDelete
    Replies
    1. Thanks. I compile the list from a screening feature available at Dividend.com. You have to be a subscriber. Unfortunately, there's no easy way to screen my watch list in one go. So there's some manual work I have to do. Takes about 2 hours to do a month's worth of announcements...

      Delete

Contact Form

Name

Email *

Message *

Follow by Email