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
|Seagate Technology PLC||STX||48.94||1.52||1.72||3.51%||+13.16|
|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|
|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|
|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|
|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|
|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