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.
( $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
great list. How do you come up with this? do you go one by one?
ReplyDeleteThanks. 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...
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