Recent Buy: TGH

Jul 29, 2013: Bought 75 shares of TGH at $33.97 per share.

Textainer Group Holdings Ltd. (TGH) leases containers to approximately 400 shipping lines and other worldwide customers.

On Friday I completed a stock analysis of TGH when it was trading at $34.11 per share. I like TGH for its generous yield and impressive earnings and dividend growth history. Also, TGH is my first stock in the services sector, so it increases DivGro's diversification. 

Stock Analysis: TGH

Textainer Group Holdings Ltd. (TGH) is a holding company engaged in the purchasing, management, leasing and resale of marine cargo containers. TGH leases containers to approximately 400 shipping lines and other customers and sells containers to more than 1,000 worldwide customers. 

TGH has a track record of 7 consecutive years of dividend increases. It pays quarterly dividends of $0.46 per share in the months of February, May, August, and November. At the current price of $34.11, TGH yields 5.39%.

Over the past 5 years, TGH has outperformed the S&P 500 handily, returning 128% compared with 21% for the S&P 500. The EPS growth rate over this time period is 19%, while the 5-year dividend growth rate is an impressive 52.14%. 

Recent Buy: CHL

Jul 26, 2013: Bought 47 shares of CHL at $53.27 per share.

China Mobile Limited (CHL) is an investment holding company. The company and its subsidiaries provide mobile telecommunications services to about 700 million customers in China and Hong Kong.

Last month I completed a stock analysis of CHL when it was trading at $51.28 per share. At the time, I didn't have enough cash to purchase shares of CHL. But with a recent bonus deposit and CHL reappearing on my dashboard of top dividend growth candidates, I'm ready to invest in CHL. 

7 Dividend Growth Candidates for July, 2013

Last month I started a new series of posts in which I'm identifying candidates for DivGro. I score stocks in my watch list of dividend growth stocks based on my selection criteria, assigning a star rating to each candidate out of a maximum of 7 stars.  I then compile a dashboard of candidates, sorted by star rating.

Due to my 2-week vacation this month, I'm rather late with this post. I analyze data in Dave Fish's list of US Dividend Champions, which he publishes at the beginning of every month. Rather than using data that are 3 weeks old, I've spent some time to update the data before doing my analysis.

Dividend Increases, Jun/Jul 2013

Once every month I update my watch list of dividend growth stocks to reflect current yields. Current yields rise when dividends increase or when prices decrease. Conversely, current yields fall when dividends fall or prices increase. 

When stocks in my watch list decrease their dividend payments, I generally remove them from my watch list. I'm not really interested in tracking stocks that decrease their dividends. This blog is about dividend growth stocks, not dividend shrink stocks!

I've removed the following stocks from my watch list due to recent dividend decreases: DCM, LINE, and MTGE. 

Quarterly Review, Q2-2013

I've been away for two weeks on a high adventure hike in New Mexico with my youngest son. We had a great time, hiking 65 miles with our backpacks and many more miles on several side hikes. After this break, its time to look at DivGro's performance for the 2^nd quarter of 2013.

The past quarter, I contributed capital funds in the amount of $23,000 to DivGro – two bonus deposits of $10,000 each and three monthly deposits of $1,000 each. I received dividend income in Q2 of $235.34, up from the $138.88 received in Q1.

I purchased shares in five new dividend growth stocks, adding expected dividend income for 2013 of $272.10. Total expected dividend income for 2013 is now $1,000.67. Forward 12-month projected dividend income is $1,146.17.

Monthly Review, June 2013

The second quarter of DivGro has ended and I'll be posting another quarterly review soon. Before doing so, I want to report on happenings in the month of June.

In June, I purchased my 10th dividend growth stock, completing one of my 2013 goals. As for my other 2013 goals, I'm on track to earn at least $750 in dividend income and to average one blog post per week. However, it is too early to tell if DivGro will exceed the performance of the S&P 500 index in total returns.