Dividend Increases, June 15-30, 2014

The first half of 2014 is behind us! Before I post my next monthly and quarterly reports, I'd like to report on dividend increases announced for stocks in my watch list.

This information helps me track the yield on cost (YoC) of stocks I own, as I need to make YoC adjustments when dividends increases (or decreases) are announced. I also use the information to properly track DivGro's projected annual dividend income.

Tracking your DGI Portfolio

Last month, All About Interest posted a nice article about using Google Docs for your portfolio. In his article he describes several ways to import data into a Google Docs spreadsheet. The easiest and most convenient way is to use the GoogleFinance function, which fetches current and historical stock information from Google Finance.

The purpose of this post is to explain the content of the above-mentioned article for readers that are not so technically inclined. I'm not presenting anything new here, except for a sample spreadsheet containing the necessary formulas.

Dividend Increases, June 1-15, 2014

Twice a month I report the dividend increases announced for stocks in my watch list. I compile this information to see if any dividend increases have been announced for DivGro stocks. If so, I make yield on cost (YoC) and projected annual dividend income adjustments. Last week, two of the stocks I own (TGT and CAT) announced substantial dividend increases!

Another reason to monitor dividend increase announcements it to identify new candidates for purchase. When companies announce dividend increases, they show confidence in being able to pay those increased dividends. Significant increases pique my interest – I usually take some time to research the company or companies that make such aggressive moves.

Recent Buy: WMT

Jun 13, 2014: Bought 34 shares of WMT at $75.42 per share.

Wal-Mart Stores, Inc. (WMT) is the world's largest retailer. Based in Bentonville, Arkansas and founded in 1945, WMT is a multinational retailer consisting of more than 11,300 stores under 71 banners in 27 countries. It is the biggest private employer in the world with over two million employees.

WMT is a Dividend Champion with an impressive streak of 41 years of dividend increases. It pays quarterly dividends in January, April, July and October. The current dividend is 48¢ per share, so starting yield on cost is 2.55%. WMT's 5-year dividend growth rate is a solid 14.15%.

A glimpse of six figures...

This morning when I checked my account balance, it had crossed the six figure mark for the briefest of time! Six figures! After having started DivGro about 18 months ago, this is certainly a great milestone to reach.

In the 18 months of managing DivGro, my deposits totaled $84,000. DivGro has earned near $2,500 in dividend income, so my capital gains are approaching $13,500. I'm quite pleased with DivGro's performance and I'm on track to meeting my goals for 2014.

10 Dividend Growth Stocks for June, 2014

This year, I've shifted focus to balance my portfolio holdings across all 10 sectors in my watch list. Rather than search for the best available candidates, I search for the best available candidates by sector. DivGro has at least 2 holdings per sector, except for Materials, in which I have a single holding. I'll continue to bias purchases with the goal to improve DivGro's diversification, but only if I can identify candidates with good dividend yields and strong dividend growth rates trading at a discount to fair value.

Monthly Review: May 2014

In the month of May I added only one new stock to DivGro. The good news is that I had another good month as far as dividend income is concerned: I earned $330, compared with $126 earned in May 2013, an increase of 162%!