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%.

Markets:

Mar 31, 2014	DOW: 16,457.66 S&P 500: 1,872.34 10-YR BOND: 2.72%
Jun 30, 2014	DOW: 16,826.60 S&P 500: 1,960.23 10-YR BOND: 2.52%

In the quarter ending June 2014, the Dow Jones Industrial Average increased by 2.24% while the S&P 500 increased by 4.69%. In comparison, DivGro's value increased by a whopping 8.10% (when measured by internal rate of return (IRR) for Q2-2014)!

At the end of Q2-2014, DivGro's market value of $104,153, which represents a simple return of 20.41% on $86,500 invested. Of course, the simple return does not take into account the timing and size of cash deposits as IRR does. DivGro's IRR since inception is 39.04%.

Here is a spreadsheet summarizing DivGro's performance for Q2-2014:

Dividend Adjustments:

• New buys DLR, SDRL, PMT, and WMT added $790.08 in projected annual dividend income.
• ETP increased its distribution to 93.7¢ per unit, adding $6.00 to DivGro's projected annual dividend income. Yield on Cost (YoC) of ETP is now 7.89%.
• APU approved a distribution increase of 4.76%, or 88¢ per unit, adding $19.20 to DivGro's projected annual dividend income. YoC of APU is now 8.33%.
• JNJ raised its quarterly dividend to 70¢ per share, an increase of about 6%. This raises DivGro's projected annual dividend income by $4.80. YoC of JNJ is now 3.21%.
• CVX increased its quarterly dividend by 7¢ to $1.07 per share, adding $7.00 to DivGro's projected annual dividend income. YoC is now 3.90%. 
• XOM new quarterly dividend is 69¢ per share. The increased amount adds $7.20 to DivGro's projected annual dividend income. YoC is now 3.24%. 
• TRV declared a new dividend of 55¢ per share, an increase of 10%, raising DivGro's projected annual dividend income by $5.80. YoC of TRV is 2.55%.
• ACE announced a 3.17% increase in its quarterly dividend, from 63¢ per share to 65¢ per share. The increase raises DivGro's projected annual dividend income by $1.92. YoC is now 2.53%.
• BAX declared a quarterly dividend of 52¢ per share, increasing their quarterly dividend by 6.12%. YoC is now 3.07%.
• SDRL declared a new quarterly dividend of $1 per share, adding $5.76 to projected annual dividend income. 
• TGT raised its quarterly dividend by 21% to 52¢ per share. YoC is now 3.31% and projected annual dividend income increased by $14.40.
• CAT's regular quarterly dividend increased by 17% to 70¢ per share. The increase adds $12 to projected annual dividend income. YoC of CAT is now 3.34%.
• NTT's 2013 fiscal year dividend decreased 7.14% from that of 2012. The final dividend was slightly more than expected, so I'm increasing projected annual dividend income by $4. YoC is now 3.70%. 
• SNP paid a dollar equivalent of $2.173 per share, which caused the projected annual dividend income to go down slightly by $1.51. YoC is now 4.30%.

Dividends Received:

• Total for Q2 of 2014: $891.78 (up from $580.67 for Q1 of 2014)
• Total year-to-date: $1472.45

Dividend Details 2014-04-01: Cash Dividend Receipt PNNT:  $60.20 2014-04-01: Cash Dividend Receipt BAX:  $18.30 2014-04-10: Cash Dividend Receipt MO:  $36.00 2014-04-14: Cash Dividend Receipt VNR:  $37.80 2014-04-17: Cash Dividend Receipt ACE:  $15.12 2014-05-01: Return of Capital ETP:  $93.50 2014-05-07: Return of Capital APU:  $105.60 2014-05-09: Cash Dividend Receipt GD: $21.70 2014-05-15: Cash Dividend Receipt VNR:  $37.80 2014-05-22: Cash Dividend Receipt CAT:  $18.00 2014-05-28: Cash Dividend Receipt TGH:  $35.25 2014-05-30: Cash Dividend Receipt PRE:  $18.09 2014-06-02: Cash Dividend Receipt INTC:  $27.00 2014-06-02: Cash Dividend Receipt AFL:  $18.50 2014-06-02: Cash Dividend Receipt COP:  $26.22 2014-06-10: Cash Dividend Receipt XOM:  $20.17 2014-06-10: Cash Dividend Receipt TGT:  $17.20 2014-06-10: Cash Dividend Receipt CVX:  $26.75 2014-06-10: Cash Dividend Receipt JNJ:  $21.00 2014-06-12: Cash Dividend Receipt WAG:  $13.86 2014-06-12: Cash Dividend Receipt MSFT:  $22.40 2014-06-13: Cash Dividend Receipt VNR:  $37.80 2014-06-13: Cash Dividend Receipt MDP:  $23.79 2014-06-19: Cash Dividend Receipt SDRL:  $72.00 2014-06-26: Cash Dividend Receipt SNP:  $67.37 Outlook For Q3-2014: I'm planning on continuing to diversify DivGro's holdings across the sectors in my watch list, which is one of my goals for 2014. For the remainder of the year, my focus would be on adding stocks in Consumer Discretionary (4), Consumer Staples (2), Industrials (2), Information Technology (1) and Materials (1) sectors.