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Saturday, December 6, 2014

Monthly Review, November 2014

November was a tough month for DivGro as one of my holdings, Seadrill Ltd (NYSE:SDRL) suspended its dividend. Following the dividend suspension announcement, the stock price plunged and has been sliding ever since. I am still contemplating next steps, which most probably would involve selling all or some of my shares.

I've had some good news to counterbalance the SDRL fiasco. Intel Corporation (NASDAQ:INTC) announced a dividend increase, which justifies my earlier decision to hold onto my shares. Many dividend growth investors got rid of their INTC shares because the company failed to raise its dividend for eleven straight quarters. I'm glad I did not sell my shares! INTC has been doing great since I bought 120 shares in January 2013. The stock price has increased 76% and I've received dividends equaling 7.42%.

This month, I added shares to my BHP Billiton (NYSE:BBL) holding and I opened a new position in Helmerich & Payne (NYSE:HP). These buys increased DivGro's projected annual dividend income by $221. Unfortunately, SDRL's dividend suspension caused projected annual dividend income to drop to $4,777, below my 2014 goal of $4,800. I'm hoping to make up the $23 difference with my upcoming December purchase.

I'm close to achieving another goal, that of reaching $3,600 in dividend income in 2014. DivGro's year-to-date dividend income is $3,465. I expect December to be a record month for dividend income, so I'm confident that I'll reach this goal before year-end. The addition of HP means that DivGro now has 36 different holdings, taking care of that goal for the year!

DivGro now has a market value of $118,314, up 2.1% from October's market value. The portfolio is delivering an average yield on cost of 4.61%. Projected monthly income is $398, down from $436 at the end of October.

INTC is the only DivGro holding that received a dividend hike in November. The 6.67% raise is quite welcome, though it doesn't make up for SDRL's loss of $688 in annual dividend income. In November, DivGro earned a total of $302 in dividend income, down from October's total of $355. As mentioned above, I expect December to be a record month!

  • Purchases
  • Dividends
    • 2014-11-01: Return of Capital ETP: $97.50
    • 2014-11-03: Cash Dividend Receipt DE: $18.00
    • 2014-11-06: Return of Capital APU: $105.60
    • 2014-11-14: Cash Dividend Receipt GD: $21.70
    • 2014-11-14: Cash Dividend Receipt VNR: $37.80
    • 2014-11-20: Cash Dividend Receipt CAT: $21.00
  • Deposits
    • 2014-11-20: Bonus Cash Deposit: $850.
    • 2014-11-28: DECEMBER Cash Deposit: $2,500.

Changes in Projected Annual Dividend Income:
  • The purchase of 29 HP shares added $79.75.
  • The purchase of 57 BBL shares added $141.36.
  • INTC's dividend increase added $7.20.
  • SDRL's dividend suspension removed $688.
  • Projected annual dividend income (30 November 2014): $4,777.39.

Dividend Summary:
  • Dividend income last month: $355.07
  • Dividend income this month: $301.60
  • Total dividend income year-to-date: $3,465.08

Oct 3, 2014
DOW: 17,390.52S&P 500: 2,001.20 10-YR BOND: 2.34%
Nov 30, 2014
DOW: 17,828.24S&P 500: 2,067.56 10-YR BOND: 2.19%

In November, the Dow gained 2.52% and the S&P 500 gained 3.32%. In comparison, DivGro dropped 0.67%. DivGro underperformed primarily due to SDRL's poor performance.

Portfolio: The following spreadsheet shows the state of DivGro on 30 November 2014:
Looking Ahead: I have enough funds for a single purchase in December. I'll be looking at the sector winners in my upcoming December dashboard post for a candidate. I'm looking forward to writing a post on my goals for 2015, as I've been thinking a lot about what those should be. Expected dividend income for December should push me over the $3,600 level for 2014, which would complete all my goals for 2014!


  1. Looks like a good month. Bummer on SDRL, but good news with INTC. I have a small foothold in INTC and I'm happy to hear the news. I'm sure you'll reach your goals for December.
    Have a good one!

    1. Thanks for stopping by, FinancialDummy! Yeah, I invested in SDRL with a tinge of uncertainty, knowing that it was a risky move. Sometimes, those moves pay off handsomely; other times they don't, like with SDRL. Glad about INTC, though!

  2. Hi, DivGro,

    A pair of weeks ago I thought seriously about opening a positiion in Helmerich&Payne but, at the end, I didn't buy it. The reason was that, although the dividend was increased for a lot of years, only the two last ones (with increases of 364% and 102%) lead the yield to a reasonable percentage

    Do you think HP will maintain and increase the dividend over the next years?. This enormous increases seems like an extraordinary dividend...

    Regards from Spain!

    1. Thanks for visiting from Spain, Cazadividendos! Indeed, HP has had large increases in the past few years. The thing is, some companies grow rapidly and while they can effectively grow by reinvesting earnings, they tend to do so. At some point, though, they transition into a phase where growth is limited, in which case earnings are best distributed to shareholders. When that transition happens, dividends can rise quickly after which they will stabilize and start matching more closely the EPS growth.

  3. Definitely sucks about Seadrill... I'd imagine ESV won't be too far behind. I'm hoping they can hold on through these depressed oil prices.

    Otherwise, you've continue to build a monster. Here we are just a couple years after you started your journey, and you are sitting on a solid 4-digit income stream and one that is now large enough to show some visible compounding on its own going forward. The side income from the blog and SA is just a bonus! Keep on grinding and moving forward.

    1. Yes, I'm very happy with the progress made in two years -- certainly its been faster than I originally anticipated. This community has certainly helped to keep me going, so thanks for your regular comments!


  4. Sorry about the SDRL dividend. At least your dividend income goal for the year will still be met. I like the HP buy. I think it is an underrated stock. Even into 2015 oil weakness I think they'll be able to continue to raise their dividends. Look forward to a string 2014 finish and a solid 2015.

    1. Hi DivHut -- win some, lose some, as I've said... I'm OK with it. Some would say that kind of risk/reward profile do not belong in a dividend growth portfolio. But I think a small number of such stocks can make a big difference. In this case, it didn't pay off. And, I'm still going to meet my goals, so I'm happy about that!

      Take care!

  5. Nice looking portfolio. A few years from now that little dip in projected monthly dividend income won't mean much. You're diversifying into enough companies that a cut or two won't hurt too much. Thanks for the update on Intel. While I don't own it, I did get my brother to buy it (I'm basically his personal fee free financial guy); he's been doing great with it from a capital gains perspective, but it is sure nice to see the dividends start to increase again!

    1. Hi Scott -- I agree, the dip looks bad now but it will scale away in years to come :-)

      Yes, I'm quite happy with INTC's total return and really glad to see the increase happening again. Hopefully, they'll continue to grow earnings sufficiently to continue growing the dividend!


  6. SDRL is up .16% in after hours. That should take some of the sting out.

    1. Bear markets all ways give you a chance to get out, if you let them.

    2. Yes. But I think SDRL will continue to slump a while before it recovers. (At least I hope it recovers...).


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