Wednesday, December 31, 2014

Dividend Increases, December 8-31, 2014

My last post for 2014 and it happens to the 100th post of the year!

I wanted to finish out this year by reporting on recent dividend increase announcements for stocks in my watch list. Since my last post about dividend increases, only a handful of stocks announced increases. I own only one of these stocks, AT&T Inc (NYSE:T).

I monitor dividend increases for stocks in my watch because it is a convenient way to identify dividend growth candidates. Companies that increase their dividends regularly show confidence in future earnings growth. Another reason is that I track the yield on cost (YoC) of stocks in DivGro. When dividends increase, I make YoC adjustments and update DivGro's projected annual dividend income.

Saturday, December 27, 2014

How Loyal Have You 3 Been?

Last year, I gave my three sons a different kind of Christmas present. I gave each of them seed money to open a Loyal3 account if they would commit to buying $30 in shares every month, for 30 years – about a dollar a day. They accepted the gift and started investing in January, each choosing one stock from the 50 or so offered at Loyal3.

This year, I turned the tables on them by asking for a different kind of Christmas present. I wanted them to e-mail me an update of their accounts and to do a little reflection on their first year as stock owners. I also wanted to nudge them into thinking about next year and their future as investors.

Sunday, December 21, 2014

Goals for 2015

Happy Solstice Day! Today, the sun stands still in declination, having reached the highest position for an observer on the South Pole. For us in the Northern Hemisphere, today is Winter Solstice. The day is as short as it will be all year long (9 hours 33 minutes in San Francisco where I live).

Solstice day is a great day to set new goals for DivGro for 2015!

In my previous post, I reviewed my 2014 goals and reported that I've achieved all of them, essentially. The one goal I haven't achieved yet is one that I updated on 11 July 2014, to write 100 posts for DivGro instead of 72. This is my 98th post, so I'm confident that I'll achieve that goal, too.

Before listing my 2015 goals, I'd like to state some assumptions and commitments:

Thursday, December 18, 2014

Reviewing my 2014 Goals

I've been thinking about setting new goals for 2015. Before doing so, though, I'd like to review my 2014 goals.

I believe in setting stretching yet attainable goals. It is not useful to entertain goals that are impossible or even nearly so. On the other hand, setting goals that are simply attainable will not require special effort, nor would one feel a great sense of satisfaction in accomplishing them

Stretching goals demand extra effort and focus. They require commitment, patience, and constant monitoring. Sometimes, when progress is not sufficient, they require changing your approach entirely.

Wednesday, December 17, 2014

Recent Buy: CVX

Dec 16, 2015: Bought 25 shares of CVX at $102.97 per share.

Founded in 1984 and based in San Ramon, California, CVX is a multinational energy corporation involved in all aspects of the oil and gas industries, including exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation. CVX is the fifth largest integrated energy company in the world and conducts business in approximately 180 countries.

Chevron is a Dividend Champion with a track record of 27 consecutive years of dividend increases. It pays quarterly dividends of $1.07 per share in the months of March, June, September and December.

Friday, December 12, 2014

10 Dividend Growth Stocks for December 2014

Includes: ARLPBBLBDXCPACMSCVXHMNHPIBMKKRNUSPMTTUFS 

Every month, I use David Fish's CCC list to search for stocks trading at a discount to fair value. The CCC list is updated monthly and contains all U.S.-listed stocks that have raised their dividends for at least five consecutive years. The accompanying spreadsheet provides key statistics of all CCC stocks and is a wonderful resource for dividend growth investors.

The CCC list is divided into three categories based on the number of consecutive years of increases: Dividend Champions (25 or more years), Dividend Contenders (10-24 years), and Dividend Challengers (5-9 years). The latest list (dated 11/28/14) contains 589 stocks, with 105 Champions, 246 Contenders, and 238 Challengers.

Considering 589 stocks every month would be a daunting task. So, I apply a series of filters to reduce the CCC list to a more manageable number of candidates. With an ongoing goal of balancing my portfolio across all 10 GICS (Global Industry Classification Standard) sectors, I'm careful to retain a minimum number of stocks per sector.

To see the top 10 stocks and the 10 sector winners, please read this article at Seeking Alpha.

Tuesday, December 9, 2014

Dividend Increases, December 1-5, 2014

My watch list contains a subset of David Fish's CCC list. I use a series of filters to trim down the CCC list to a more manageable number of stocks (currently 288 stocks). I monitor dividend increases for stocks in my watch list to help identify dividend growth candidates worthy of consideration. Companies that increase dividends regularly show confidence in their future earnings growth potential.

In the first week of December, the following stocks in my watch list announced dividend increases. The table is sorted by last column, %Increase, and dividends are annualized:

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%.

Friday, December 5, 2014

Dividend Increases, November 2014

Last time I reported on dividend increases, I mentioned that I wanted to increase the frequency and format of these posts. My idea is to post dividend increases weekly (on weekends) so information would be timely and potentially actionable. I'm still working on a way to do this effectively, so this post is a catch-up post until I get the process in place.

I monitor dividend increases for stocks in my watch list for two reasons. First, it is a convenient way to identify dividend growth candidates because companies that increase dividends regularly show confidence in future earnings growth. Second, I track the yield on cost (YoC) of stocks I own. When dividends increase, I make YoC adjustments and update DivGro's projected annual dividend income. 

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