Tuesday, June 2, 2015

Monthly Review: May 2015

Time again to review the past month's activities relating to DivGro, my portfolio of dividend growth stocks. With work becoming more demanding, I'm finding less time to explore new ideas with DivGro.

I've been studying REITs (real estate investment trusts) in order to develop more appropriate selection criteria – and I just haven't found the time to conclude that research. In the next few months, I'm hoping to fine-tune my selection criteria and the way I evaluate stocks. I feel this is necessary, as DivGro now contains 45 stocks and my focus will soon shift to adding more to existing holdings, rather than adding more holdings.

In May 2015, I received dividend income totaling $444, an increase of 35% over last May's income of $330. For comparison, last month's dividend income was $412.

DivGro's market value increased to $153,444 and the portfolio is delivering an average yield on cost (YoC) of 4.41%. Projected monthly dividend income (PMDI) increased to $520 from $496 last month. It is exciting to see PMDI finally cross the $500 mark. One of my goals for 2015 is to earn $6,000 in dividend income, which averages to $500 per month...

I purchased shares of two different stocks in May:
  • I added shares to my original position in Omega Healthcare Investors Inc (NYSE: OHI), a REIT that invests in income-producing healthcare facilities in the United States. 
  • I also initiated a position in Macquarie Infrastructure Company LLC (NYSE:MIC), a company that owns, operates and invests in a diversified portfolio of infrastructure businesses.
  • Purchases
  • Dividends
    • 2015-05-01: Cash Dividend Receipt T: $70.50
    • 2015-05-01: Cash Dividend Receipt DE: $18.00
    • 2015-05-08: Cash Dividend Receipt GD: $24.15
    • 2015-05-15: Cash Dividend Receipt OHI: $11.70
    • 2015-05-15: Return of Capital ETP: $101.50
    • 2015-05-15: Cash Dividend Receipt VNR: $21.15
    • 2015-05-15: Cash Dividend Receipt O: $9.48
    • 2015-05-18: Return of Capital APU: $110.40
    • 2015-05-20: Cash Dividend Receipt CAT: $42.00
    • 2015-05-27: Cash Dividend Receipt TGH: $35.25
  • Deposits
    • 2015-05-28: Passive Income Cash Deposit: 303.03
    • 2015-05-28: June Cash Deposit: 2500.00

Changes in Projected Annual Dividend Income:
  • The purchase of 75 OHI shares added $162.00.
  • The purchase of 30 MIC shares added $128.40.
  • ACE's dividend increase added $1.92.
  • Projected annual dividend income (31 May 2015): $6,241.09.

Dividend Summary:
  • Dividend income last month: $412.13
  • Dividend income this month: $444.13
  • Total dividend income year-to-date: $2,194.08

Apr 30, 2015
DOW: 17,840.52S&P 500: 2,085.51 10-YR BOND: 2.05%
May 31, 2015
DOW: 18,010.68S&P 500: 2,107.39 10-YR BOND: 2.10%

In May, the Dow gained 0.95% and the S&P 500 gained 1.05%. In comparison, DivGro dropped 2.04%. I'm not overly concerned with DivGro's relative performance to the market. My focus is dividend income and growth, with a longterm time horizon.

Portfolio: click on the triangle to see a snapshot of DivGro's state on 31 May 2015.

Goals Progress: Below is a chart showing the progress I'm making on my 2015 goals. Notice that I'm updating two goals. Instead of 24 premium articles for Seeking Alpha, I'm now aiming to do 36. And instead of 12 DivNet articles, I'm aiming to write 6. As a result of this change, 6 more of my planned 104 articles in 2015 will appear on other sites, with links from my blog. The lagger goal remains my weight loss goal, although I've made some progress over last month. I'll continue to work harder on that one!

Looking Ahead: I have enough funds for a single purchase in June. I'll be looking at the top 10 stocks in this month's edition of my 10 Dividend Growth Stock series of articles for candidates. The end of this month will mark the halfway point of 2015, so'll be writing another quarterly review. The last month of every quarter is great as far as dividend income is concerned, so I'm hoping for another record month in June!

As always, I've updated my Performance page with the latest results. It provides a central place for reviewing DivGro's status and performance relative to the markets and to prior months.

Thanks for reading and take care, everybody!


  1. Nice work, FerdiS. Really like those purchases. Looks like another strong month for you.

    Keep it up!

    1. Thanks, R2R -- a good month, indeed. OHI has been popular in the DGI community lately. MIC is relatively unknown, but I like its fundamentals and dividend growth rate.

      Take care

  2. Looks very fine. nice work. keep up with your work.

    1. Thanks, My Dividends -- nice of you to stop by and comment. Please visit again soon!

  3. Great Stuff. Keep it up!

    I too bought OHI last month. My next buy will be either WPC or NSC this Friday.

    1. Thanks, FFdividend -- I've been looking at WPC myself, but not in enough detail to be able to commit. Good luck with your purchase decision!

  4. That's one heck of an increase year over year - congrats! Hope you have a great June.


    1. Thanks, Dividend Empire -- indeed, 35% is great. I'm most excited about finally crossing the $500 mark for projected monthly dividend income. If everything stays the same, that's a perpetual income of $500 a month... not bad!

  5. I am an OHI owner myself and its flirting with my buy price. Great progress on your portfolio. I have searched your site extensively and I cant seem to find and email, PM or offline avenue to message you? Is there one? Would like to query you on something.

    1. Hi Mike -- I think OHI is a good by at this level. Thanks for commenting.

      My apologies for hiding my email and other contact information. I want to encourage people to post messages so everyone could benefit and take part in the conversation.

      Having said that, you're right... sometimes there are good reasons to keep things private. So, I've added a Contact Page to my blog. Please feel free to reach out that way.

    2. My first attempt at setting up a contact form was unsuccessful -- test messages to myself never reached my inbox (or junk folder). The new blogger-based contact form on the Contact Page works well. Please use that to send me an email.

  6. Hi DivGro,

    Nice monthly update, things are looking good man. Like the buy in OHI. Keep it up, will be following along.

    Best regards

    1. Hi Dividend Beginner -- thanks for visiting. These monthly updates are fun and a good way to keep track of things. The regularity helps me stay disciplined.


  7. FerdiS,

    Great month there with $444 in dividend income spread across that large group. The yoy and mom increases are excellent considering you are churning out very significant annual dividend income. Nice job picking up OHI. It has been purchased by many DGI bloggers recently. Keep up the great work and we appreciate you sharing your income, best time of the month in our book.

    All the best.


    1. Yes, $444 is really nice. I'm hoping to have a new record month in June, since the last month of each quarter is the best dividend income month. You're right, OHI has been quite popular, recently. In fact, REITs in general have been quite popular. Thanks for you kind words -- I hope to continue sharing in this way for a long time...


  8. Hi Ferdi,

    That's another great month for you.
    Congratulations on hitting that monthly $500 passive income mark. That's huge.

    Hitting that in just 2,5 years is very nice.

    OHI looks very appealing to me. Their yield is extremely high and the growth is not even bad.
    My exposure to the Finance sector is small as well, so I will definiately do some research, as its current trading price is low as well.

    Thanks for sharing.

    Best wishes, DfS

    1. Hi DfS -- thanks for stopping by.

      Hitting the $500 income mark is a nice milestone. Its been a great journey so far and I hope to see many more such milestones in the next few years. Blogging about this journey has definitely inspired me to stick to it, and encouragement from the DGI blogging community has certainly helped a lot!

      I agree with your feelings about OHI. Its a nice REIT with a great yield and good growth prospects. Good luck in your research and in deciding to invest or not.

      Take care!

  9. Great progress in dividend income. Is your projected dividend income what you would receive in dividends this year? Thta is quite good though. Good job, keep it up. I need to stop focusing on options and shift back to dividends more, or have it balanced.

    1. Projected annual dividend income is what I expect to receive in dividends in the next 12 months (or in perpetuity if dividends stay at current levels). I do options, too, but its more of a side-line thing.

  10. That passive income is true cash that you earned without doing anything. Capital fluctuation means a lot less when holding the stocks for longer terms. Great job Ferdis!

    1. "Passive" is somewhat relative, I think. Many DGI bloggers are quite active, researching candidate stocks and managing their portfolios based diligently. I guess the point is, if one should stop to be so active, the income will still flow...

      Thanks for commenting!

  11. Looking good Ferdi! The dividend income is racking up and you've made a few purchases to increase your forward looking dividend. Keep up the good work.

    1. Thanks Tawcan! Going for some big numbers this year, and I'm progressing well towards my goals.

  12. Great dividend income for the month of May with nice year over year growth. Like you, in the last month or so I started getting into REITs and am curious to learn about how you plan to screen and select potential buys in the space. For now, I have opened my IRA with HCP, HCN and VTR. I like other smaller health REIT plays as well but will wait to buy into those. Thanks for sharing.

    1. Yes! I like the May dividend income and it bodes really well for June, since end-of-quarter months are great months for dividend income... As far as REITs are concerned, I'm not yet ready to commit to a particular filter. But, here's what I'm thinking about: I want a higher yield for MLPs and I'll think I'll be looking for a higher yield for REITs also (but not for the same reason -- MLPs irritate me at tax time!). Also, I'll be looking at P/FFO instead of P/E, AFFO instead of earnings, etc.


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