Tuesday, July 1, 2014

Quarterly Review, Q2-2014

Its been a busy quarter! We bought a new house and moved in; we're turning our previous home into a rental property; and we traveled to South Africa to visit our families and to hike the Otter Trail.

I'm really looking forward to hiking the Otter Trail again. We did it in 2001 with our oldest son, who couldn't make it this time around. But I'm taking his two brothers, along with some of their cousins and uncles.

Before tackling the Otter Trail, I'd like to report on the second quarter performance of DivGro. This quarter, I contributed capital funds in the amount of $7,500 to DivGro. Dividend income in Q2 totaled $892, up significantly from $581 received in Q1-2014. I added four dividend growth stocks, DLR, SDRL, PMT and WMT. Projected annual dividend income increased from $3,508 to $4,390, an increase of 25.14%.

Mar 31, 2014
DOW: 16,457.66S&P 500: 1,872.3410-YR BOND: 2.72%
Jun 30, 2014
DOW: 16,826.60S&P 500: 1,960.2310-YR BOND: 2.52%

In the quarter ending June 2014, the Dow Jones Industrial Average increased by 2.24% while the S&P 500 increased by 4.69%. In comparison, DivGro's value increased by a whopping 8.10% (when measured by internal rate of return (IRR) for Q2-2014)!

At the end of Q2-2014, DivGro's market value of $104,153, which represents a simple return of 20.41% on $86,500 invested. Of course, the simple return does not take into account the timing and size of cash deposits as IRR does. DivGro's IRR since inception is 39.04%.

Here is a spreadsheet summarizing DivGro's performance for Q2-2014:

Dividend Adjustments:
  • New buys DLR, SDRL, PMT, and WMT added $790.08 in projected annual dividend income.
  • ETP increased its distribution to 93.7¢ per unit, adding $6.00 to DivGro's projected annual dividend income. Yield on Cost (YoC) of ETP is now 7.89%.
  • APU approved a distribution increase of 4.76%, or 88¢ per unit, adding $19.20 to DivGro's projected annual dividend income. YoC of APU is now 8.33%.
  • JNJ raised its quarterly dividend to 70¢ per share, an increase of about 6%. This raises DivGro's projected annual dividend income by $4.80. YoC of JNJ is now 3.21%.
  • CVX increased its quarterly dividend by 7¢ to $1.07 per share, adding $7.00 to DivGro's projected annual dividend income. YoC is now 3.90%
  • XOM new quarterly dividend is 69¢ per share. The increased amount adds $7.20 to DivGro's projected annual dividend income. YoC is now 3.24%. 
  • TRV declared a new dividend of 55¢ per share, an increase of 10%, raising DivGro's projected annual dividend income by $5.80. YoC of TRV is 2.55%.
  • ACE announced a 3.17% increase in its quarterly dividend, from 63¢ per share to 65¢ per share. The increase raises DivGro's projected annual dividend income by $1.92. YoC is now 2.53%.
  • BAX declared a quarterly dividend of 52¢ per share, increasing their quarterly dividend by 6.12%. YoC is now 3.07%.
  • SDRL declared a new quarterly dividend of $1 per share, adding $5.76 to projected annual dividend income. 
  • TGT raised its quarterly dividend by 21% to 52¢ per share. YoC is now 3.31% and projected annual dividend income increased by $14.40.
  • CAT's regular quarterly dividend increased by 17% to 70¢ per share. The increase adds $12 to projected annual dividend income. YoC of CAT is now 3.34%.
  • NTT's 2013 fiscal year dividend decreased 7.14% from that of 2012. The final dividend was slightly more than expected, so I'm increasing projected annual dividend income by $4. YoC is now 3.70%
  • SNP paid a dollar equivalent of $2.173 per share, which caused the projected annual dividend income to go down slightly by $1.51. YoC is now 4.30%.
Dividends Received:
  • Total for Q2 of 2014: $891.78 (up from $580.67 for Q1 of 2014)
  • Total year-to-date: $1472.45
Dividend Details
  • 2014-04-01: Cash Dividend Receipt PNNT:  $60.20
  • 2014-04-01: Cash Dividend Receipt BAX:  $18.30
  • 2014-04-10: Cash Dividend Receipt MO:  $36.00
  • 2014-04-14: Cash Dividend Receipt VNR:  $37.80
  • 2014-04-17: Cash Dividend Receipt ACE:  $15.12
  • 2014-05-01: Return of Capital ETP:  $93.50
  • 2014-05-07: Return of Capital APU:  $105.60
  • 2014-05-09: Cash Dividend Receipt GD: $21.70
  • 2014-05-15: Cash Dividend Receipt VNR:  $37.80
  • 2014-05-22: Cash Dividend Receipt CAT:  $18.00
  • 2014-05-28: Cash Dividend Receipt TGH:  $35.25
  • 2014-05-30: Cash Dividend Receipt PRE:  $18.09
  • 2014-06-02: Cash Dividend Receipt INTC:  $27.00
  • 2014-06-02: Cash Dividend Receipt AFL:  $18.50
  • 2014-06-02: Cash Dividend Receipt COP:  $26.22
  • 2014-06-10: Cash Dividend Receipt XOM:  $20.17
  • 2014-06-10: Cash Dividend Receipt TGT:  $17.20
  • 2014-06-10: Cash Dividend Receipt CVX:  $26.75
  • 2014-06-10: Cash Dividend Receipt JNJ:  $21.00
  • 2014-06-12: Cash Dividend Receipt WAG:  $13.86
  • 2014-06-12: Cash Dividend Receipt MSFT:  $22.40
  • 2014-06-13: Cash Dividend Receipt VNR:  $37.80
  • 2014-06-13: Cash Dividend Receipt MDP:  $23.79
  • 2014-06-19: Cash Dividend Receipt SDRL:  $72.00
  • 2014-06-26: Cash Dividend Receipt SNP:  $67.37
Outlook For Q3-2014: I'm planning on continuing to diversify DivGro's holdings across the sectors in my watch list, which is one of my goals for 2014. For the remainder of the year, my focus would be on adding stocks in Consumer Discretionary (4), Consumer Staples (2), Industrials (2), Information Technology (1) and Materials (1) sectors. 


  1. Nice review. your doing great.

    1. Thanks, FFdividend! Hope you're doing well, too!


  2. Great job on Q2 and enjoy the hike!

    1. Thanks, deardividend! I'm looking forward to the hike, though it seems like the weather is not going to be cooperating... I'm hoping the forecast turns out to be wrong and we wont be experiencing showers and cold weather as predicted!

  3. Great job during Q2! Some great purchases and some really good dividend increases. Your forward dividend income is pretty awesome with around $105k in value. And your IRR compared to the S&P was great too. Keep up the good work and enjoy the backpacking/hiking you'll be doing. I would love to do a hike along the Rocky Mountains but just don't have the time yet. One day!

    1. Thanks for stopping by, PIP... Yes, this month DivGro did surprisingly well compared with the S&P 500. I, too, would love to do a Rocky Mountains hike. Don't wait too long... one has to make time for these adventures!

      Take care!

  4. Nice review DivGro! And great purchases this past quarter...3 of 4 already have nice gains. And the gains far exceed the roughly $20 loss you currently have in WMT. Keep up the great work.

    Wishing you continued success and growth! AFFJ

    1. Indeed, nice gains and I'm not at all concerned that WMT is about even to where I bought it. Overall, the portfolio is doing quite well and I'm quite happy with the performance.

      Thanks for the kind words -- I hope you're own journey will be very successful!

  5. You had a solid quarter! Congrats on the new house and rental property. I think rental properties give some nice diversity to equities. Keep up the good work and have fun on your hike!

    1. Thanks, AAI -- the hike is over and it was an amazing experience. I'll write about it a little later. We're hoping to get tenants into the rental property in August. Hopefully the renovations are done by then...


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