Dividend Increases, July 16-31, 2014

On the last day of July, the markets took a significant nosedive. The Dow shed more than 300 points and the S&P 500 tumbled nearly 2%. Argentina's second default in 12 years is being blamed, along with fears that yesterday's strong GDP numbers could move the Fed to start raising interest rates.

As dividend growth investors, days like today shouldn't bother us too much. Dividends are not affected by stock market volatility. In fact, lower prices mean greater opportunities to pick up bargains!

Taking a Break

No, I'm not taking a break from DivGro. The title of this post is an encouragement to take a break; to enjoy life; to smell the roses...

We've just returned from a wonderful vacation in South Africa, where I hiked the Otter Trail with two of my sons. It was an amazing experience, despite some difficulty we experienced crossing the Bloukrans river. I took the photo to the left on the morning of the last day of our hike.

After our hike, one of my sons bungy-jumped off the Bloukrans bridge, the world's highest commercial bungy jumping site! We also had day visits to two national parks, Addo Elephant National Park and Kruger National Park. At Kruger, we were fortunate to see Africa's Big Five game animals in a single day, which is quite rare!

Dividend Increases, July 1-15, 2014

Twice monthly I report on dividend increases announced for stocks in my watch list, 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. Recently, one of the stocks I own (COP) announced a 5.8% dividend increase.

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 increased dividends. Companies that make aggressive increases pique my interest and I usually take some time to research them.

Recent Buy: IBM

Jul 11, 2014: Bought 14 shares of IBM at $187.91 per share.

Incorporated in 1911 and headquartered in Armonk, New York, International Business Machines (IBM) is an information technology company engaged in the development and manufacturing of advanced computer systems, software, storage systems and microelectronics.

IBM is a Dividend Contender with a streak of 19 years of dividend increases. It pays quarterly dividends in March, June, September and December. The current dividend is $1.10 per share, so starting yield on cost is 2.34%. IBM's 5-year dividend growth rate is a solid 14.26%.

Midway Review of 2014 Goals

With 2014 halfway over, I want to review the goals I've set for 2014 and where I stand. Doing so not only helps to monitor progress, but allows me to make strategic adjustments if necessary.

I've set some challenging yet attainable goals for 2014. Of the four goals, three are easily measurable and my progress at the midway point can be expressed in percentage terms. As for the fourth goal, I've made good enough progress to give myself a passing grade. 

10 Dividend Growth Stocks for July, 2014

Each month, in an effort to balance my portfolio holdings across all 10 sectors in my watch list, I search for the best available candidates by sector. My purchases since January have diversified DivGro to 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.

Quarterly Review, Q2-2014

Its been a busy quarter! We bought a new house and moved in; we're turning our previous home into a rental property; and we traveled to South Africa to visit our families and to hike the Otter Trail.

I'm really looking forward to hiking the Otter Trail again. We did it in 2001 with our oldest son, who couldn't make it this time around. But I'm taking his two brothers, along with some of their cousins and uncles.

Before tackling the Otter Trail, I'd like to report on the second quarter performance of DivGro. This quarter, I contributed capital funds in the amount of $7,500 to DivGro. Dividend income in Q2 totaled $892, up significantly from $581 received in Q1-2014. I added four dividend growth stocks, DLR, SDRL, PMT and WMT. Projected annual dividend income increased from $3,508 to $4,390, an increase of 25.14%.

Monthly Review, June 2014

I'm in South Africa, preparing for another adventurous hike. A year ago, I mentioned our high adventure hike in New Mexico, a 65 miler over 11 days. This time around, we're hiking about 27 miles over 5 days, starting July 3. I'll report on our adventure later this month.

Before we hike, I'd like to report on the month of June. I added one new stock, WMT, and set a new record for monthly dividend income of $395! Compared with $109 earned in June 2013, this months income represents an increase of 262%! Also, DivGro crossed the 6-figure mark this month!