Thursday, December 31, 2015

Out With The Old

Earlier, I reported closing a tax harvest trade on Qualcomm Inc (NASDAQ:QCOM). Because I still like QCOM, I decided to double down in November and wait 31 days before selling my original shares. In doing so, I took a loss on QCOM for the sake of tax-loss harvesting, but I also grabbed a larger dividend in December and managed to reduce QCOM's cost basis!

In November, I wrote about some big changes coming to DivGro. One change I mentioned was selling stocks I no longer believe should be in my portfolio. I sold PennyMac Mortgage Investment Trust (NYSE:PMT) and Textainer Group Holdings Limited (NYSE:TGH) after both companies cut their dividends. I also mentioned that several other stocks were in my crosshairs but that I'm waiting for one last dividend payment before selling my shares.

With this post, I'm reporting on these trades. I've decided to reduce DivGro's exposure to Energy sector stocks and to get rid of all master limited partnership (MLP) holdings. The losses I'm booking with these trades hurt a lot. On the bright side, though, I've learned a valuable lesson and renewal is liberating!

Completing QCOM Tax-loss Harvesting

In November, I wrote about the other way to harvest tax losses. Instead of selling a losing position
in December to offset capital gains and so limit your tax liability, you could double down by buying an equivalent number of shares in November, wait 31 days and then sell the original position in December before year's end.

I mentioned potentially benefiting from doubling down, including the so-called Santa Clause rally when stock prices generally increase over the final week of trading. Should the market rally, you'll end up with a smaller loss on your original position and gain on the new position.

While reviewing my portfolio, I identified Qualcomm Inc (NASDAQ:QCOM) as a candidate for tax-loss harvesting. At the time, QCOM was trading at $49.10 for an unrealized loss of nearly 25%. One added benefit of doubling down on my QCOM position was that I would have received a larger dividend payment in December.

Wednesday, December 30, 2015

The Blogger's Dividend Growth Portfolio, 2015 Edition

This article originally appeared on The DIV-Net on Wednesday, 23 December 2015.

In January 2013, I joined a growing number of dividend growth investment (DGI) bloggers when I created DivGro. As a starting DGI blogger, I learned a lot by reading other DGI blogs and mimicking what seemed to be good ideas. For me, the best learning came from reviewing the portfolios of DGI bloggers who chose to make their portfolios public.

My blogroll contains over 100 DGI blogs and I include links to public portfolios. Having direct access to public portfolios gives me a quick overview of a blogger's investment philosophy. By now, I know most of the tickers usually found in DGI portfolios, so a quick glance at a public portfolio tells me a lot. Of course, if bloggers choose to include more details than just a list of tickers, that is most useful.

Recently, I updated my blogroll by separating blogs into different categories based on date and activity. New Blogs are blogs that are less than one year old. More established blogs are either Active Blogs (blogs with at least 50 posts in the past year) or Steady Blogs (blogs with fewer than 50 posts in the past year). I also have an Honor Roll containing well-known and popular blogs that contain high quality or inspirational articles.

Friday, December 25, 2015

Recent Transfer: Gilead Sciences, Inc.


Gilead Sciences, Inc (NASDAQ:GILD) is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines. The company’s primary areas of focus include human immunodeficiency virus, liver diseases such as chronic hepatitis C virus infection and chronic hepatitis B virus infection, oncology and inflammation, and serious cardiovascular and respiratory conditions. GILD markets its products through commercial teams and in conjunction with third-party distributors and corporate partners. The company was founded in 1987 and is headquartered in Foster City, California.

GILD only recently started paying dividends. So far, the company has paid 3 quarterly dividends of 43¢ per share. At the current price of about $103.58, the stock yields 1.66%.

Monday, December 21, 2015

7 Dividend Increases, December 7 To December 18, 2015

Includes: BEN • O • PFE • PNR • THG • UBA • WPC 

Summary

  • I monitor dividend increases for stocks on my watch list to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
  • Companies that regularly increase dividends show confidence in future earnings growth potential. 
  • In the past 2 weeks, 7 companies on my watch list announced dividend increases, including 3 holdings in my DivGro portfolio.

Friday, December 18, 2015

Goals for 2016

With a week to go before Christmas, I think it is a good time to set new goals for DivGro for 2016!

2015 has been a busy year for DivGro and I've achieved some challenging goals. I increased projected annual dividend income from $4,900 to about $8,000, some $500 above my 2015 goal. Also, 2015 dividend income stands at $7,700, which easily beats my goal of $6,000 for the year.

I'm on track to achieve several of the other goals I set for 2015, which is great news! Although I'll miss out on a couple of my goals, I consider that as inspiration to try harder next year. Of course, if you easily achieve all the goal you've set, perhaps they were not challenging enough!

Before listing my 2016 goals, I'd like to state some assumptions and commitments:

Thursday, December 17, 2015

Recent Transfer: Union Pacific Corporation


Omaha, Nebraska-based Union Pacific Corporation (NYSE:UNP) operates through its principal operating company, Union Pacific Railroad Company. The company operates the largest public railroad in North America, with 32,000 miles of track linking 23 states in the western two-thirds of the United States. UNP hauls coal, industrial products, intermodal containers, agricultural goods, chemicals, and automotive products. UNP owns a quarter of Mexican railroad Ferromex. The company was founded in 1862.

UNP is a Dividend Challenger with a 9-year streak of annual dividend increases. The company pays quarterly dividends of 55¢ per share in the months of March, June, September and December. At the current price of about $78.10, the stock yields 2.82%.

Tuesday, December 15, 2015

Recent Transfer: Texas Instruments, Inc.


Texas Instruments, Inc. (NASDAQ:TXN) designs, makes and sells semiconductors to electronics designers and manufacturers worldwide. The company operates mainly through two segments, Analog and Embedded Processing. It markets and sells products through a direct sales force and through distributors. TXN was founded in 1930 and is headquartered in Dallas, Texas.

TXN is a Dividend Contender with a 12-year streak of annual dividend increases. The company pays quarterly dividends of 38¢ per share in the months of February, May, August and November. At the current price of about $58, the stock yields 2.62%.

Sunday, December 13, 2015

Recent Transfer: Pfizer Inc


Headquartered in New York and founded in 1849, Pfizer Inc (NYSE:PFE) is one of the world's largest pharmaceutical firms, with annual sales of about $50 billion. The company is engaged in discovering, developing and manufacturing of healthcare products. Prescription drugs and vaccines account for almost 90% of PFE's sales. Top sellers include the meningitis vaccine Prevnar 13, the impotence drug Viagra, and Lyrica for epilepsy and some forms of neuropathic pain. The company sells products globally with international sales accounting for about 60% of total sales.

PFE just recently made a comeback to the CCC-list, a list of dividend growth stocks with at least 5 consecutive years of dividend increases. PFE was dropped from the CCC list in 2009 following a dividend cut. At the time, the company was a Dividend Champion with a 41-year streak of dividend increases. Of course, now PFE is a Dividend Challenger.

Tuesday, December 8, 2015

15 Dividend Increases, November 23 To December 4, 2015

Includes: BDX • CHRW • DFT • DIS • EMN • ENB • ERIE • GGG • HRL • LG • MKC • MRK • SJI • VAL • WEC

Summary

  • Companies that regularly increase dividends show confidence in future earnings growth potential. 
  • I monitor dividend increases for stocks in my watch list of dividend growth stocks to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
  • This week, 15 companies on my watch list announced dividend increases, including one of the stocks I hold in my DivGro portfolio.

Monday, December 7, 2015

Recent Transfer: Toronto-Dominion Bank

The Toronto-Dominion Bank (NYSE:TD) is a Canadian chartered bank that provides a wide range of financial and banking services in North America and internationally. Services include checking and savings accounts, credit cards, mortgage and student loans, trusts, wills, estate planning, investment management services and financial and advisory services. In October 2015, TD had more than 24 million customers and assets totaling C$1.1 trillion. TD was founded in 1855 and is headquartered in Toronto.

TD is the 7th stock that I'm transferring from my portfolio at Scottrade to DivGro. So far, I've transferred Coca Cola (NYSE:KO), Proctor & Gamble (NYSE:PG), Kimberly-Clark (NYSE:KMB), AbbView (NYSE:ABBV), Dominion Resources (NYSE:D) and W.P. Carey (NYSE:WPC).

In the process, I've added $597.33 to DivGro's projected annual dividend income and $686.09 in past dividends to DivGro's total dividend tally.

Friday, December 4, 2015

Monthly Review, November 2015

In my Q3-2015 quarterly review, I wrote that I have some big plans for the coming months.

Foremost, I started merging the holdings in my Scottrade account with my DivGro holdings, an ongoing process that will continue throughout December and into the new year. This is an exciting endeavor, as I'm adding some solid dividend paying stocks and increasing DivGro's projected annual dividend income in the process.

Also, I got rid of some stocks that no longer belong in my portfolio. I sold all my shares of PennyMac (PMT) and Textainer (TGH) after both companies announced dividend cuts. In December, I plan to sell more stocks that I believe no longer should be in my portfolio.

Tuesday, December 1, 2015

Recent Transfer: W.P. Carey, Inc.


Founded in 1973 and based in New York, W.P. Carey, Inc. (NYSE:WPC) is an independent equity REIT (real estate investment trust) engaged in providing long-term sale-leaseback and build-to-suit financing for companies. WPC primarily invests in commercial properties that are generally triple-net leased to single corporate tenants including office, warehouse, industrial, logistics, retail, hotel, R&D, and self-storage properties.

I'm proceeding with the transfer of stocks from my portfolio at Scottrade to DivGro. So far, I've transferred Coca Cola (NYSE:KO), Proctor & Gamble (NYSE:PG), Kimberly-Clark (NYSE:KMB), AbbView (NYSE:ABBV) and Dominion Resources (NYSE:D).

So far, these transfers have added $444.53 to DivGro's projected annual dividend income.

Sunday, November 29, 2015

Blogroll Page Reorganized

Earlier this year, I updated my blogroll page by adding a section to identify Dormant Blogs. These are blogs that are no longer being updated because the blogger lost interest or decided to take a break from blogging.

That update was done in response to a reader who shared his frustration about blogrolls that contained links to inactive blogs, or worse, stale links that no longer link to blogs at all. While stale links should most definitely be removed, I don't think removing links to dormant blogs is a good idea.

A blog may become dormant due to unavoidable circumstances, or just because a blogger wants to take a break. Unless the blogger announces his or her intent to stop blogging, either temporarily or permanently, how would I know to remove the link from my blogroll or to move it to the dormant section?

Friday, November 27, 2015

Recent Buy: HCP Inc.

This article originally appeared on The DIV-Net on Friday, 27 November 2015.

6 Nov 2015: Bought 75 shares of HCP at $34.00 per share.

Formed in 1985 and based in Irvine, California, HCP, Inc (NYSE:HCP) is an independent hybrid REIT (real estate investment trust). The company invests primarily in properties serving the healthcare industry in the United States, including sectors such as senior housing, life science, medical office, hospital and skilled nursing. HCP acquires, develops, leases, manages and disposes of healthcare real estate and provides financing to healthcare providers.

HCP is a Dividend Champion with an impressive track record of 30 consecutive years of dividend increases. The company pays quarterly dividends of 56.5¢ per share in the months of February, May, August and November.

Thursday, November 26, 2015

The Other Way To Harvest Tax Losses

Tax-loss harvesting is a strategy to offset capital gains and so limit tax liability. It is usually done by intentionally selling a losing position to limit the recognition of short-term capital gains, which are taxed at higher federal income tax rates.

Even if a taxpayer does not have capital gains to offset, tax-loss harvesting can be beneficial. Up to $3,000 of a realized loss can be used to offset the taxpayer's income in the given tax year. Additional capital losses can be carried over and used in subsequent tax years.

To discourage tax-loss harvesting, the IRS (Internal Revenue Service) disallows taxpayers from claiming losses on so-called wash sales. Investors have to wait 31 days before repurchasing an investment sold at a loss. The wash rule also prohibits buying anything substantially similar, including options to buy the stock.

Tuesday, November 24, 2015

Recent Transfer: Dominion Resources, Inc.

Founded in 1909 and headquartered in Richmond, Virginia, Dominion Resources, Inc. (NYSE:D) produces and distributes energy, natural gas and related services to customers primarily in the easter region of the United States. Operations are conducted through various subsidiaries, including Virginia Electric and Power Company.

This is the fifth transfer of a stock from my portfolio at Scottrade to DivGro. I'm providing details of past transactions, including buys and dividends received. I'm also explaining why I like the stock and why I want to be a shareholder. These posts are not very elaborate, as I want to complete the process as soon as possible. Later, I'll do a thorough stock analysis of each transferred stock.

Sunday, November 22, 2015

Recent Transfer: AbbVie Inc.



AbbVie Inc. (NYSE:ABBV) is a world-wide, research-based biopharmaceutical company that develops and markets products to treat conditions such as chronic autoimmune diseases, including rheumatoid arthritis, psoriasis and Crohn's disease; hepatitis C; human immunodeficiency virus (HIV); endometriosis; thyroid disease; Parkinson's disease; complications associated with chronic kidney disease and cystic fibrosis, and other health conditions. ABBV was incorporated in 2012 and is based in North Chicago, Illinois.

I'm busy transferring stocks from my portfolio at Scottrade to DivGro. So far, I've transferred Coca Cola (NYSE:KO), Proctor & Gamble (NYSE:PG), and Kimberly-Clark (NYSE:KMB), adding $269.21 to DivGro's projected annual dividend income. In the process, I'm detailing past transactions and giving reasons for being a shareholder.

8 Dividend Increases, November 16 To November 20, 2015

Includes: BF.B • BOBE • JCI • LANC • PEP • SU • SYBT • SYY

Summary

  • I monitor dividend increases for stocks in my watch list to identify candidates for further analysis and possible investment. 
  • In the past week, 8 companies on my watch list announced dividend increases.
  • Dividend increases that exceed the rate of inflation are great for dividend growth investors.

Thursday, November 19, 2015

Recent Transfer: Kimberly-Clark Corporation


Kimberly-Clark Corporation (NYSE:KMBis engaged in the manufacturing and marketing of a range of products made from natural and synthetic fibers using advanced technologies in fibers, non-wovens and absorbency. Key brands include Huggies, Kleenex, Scott, Cottonelle, WypAll, Kimberly-Clark and On-Q. The company was founded in 1872 and is headquartered in Dallas, Texas.

I'm in the process of transferring stocks in my portfolio at Scottrade to DivGro. So far, I've transferred Coca Cola (NYSE:KO) and Proctor & Gamble (NYSE:PG). In each of these transfer posts I'm providing details of past transactions and I'm explaining why I'm a shareholder. Later, I'll be doing a thorough analysis on each stock.

Tuesday, November 17, 2015

Recent Transfer: The Procter & Gamble Company


Headquartered in Cincinnati, Ohio, The Procter & Gamble Company (NYSE:PGis focused on providing branded consumer packaged goods in more than 180 countries. The company was incorporated in Ohio in 1905, having been built from a business founded in 1837 by William Procter and James Gamble. PG currently competes in 37 product categories and has five reportable segments: Beauty, Grooming, Health Care, Fabric Care and Home Care, and Baby Care and Family Care.

I'm busy transferring stocks in my portfolio at Scottrade to DivGro. On Sunday, I transferred The Coca Cola Company (NYSE:KO) and today is PG's turn. In each of these posts I'll be providing details of past transactions and explain why I'm a shareholder. Additionally, I'm doing a thorough analysis of each stock to determine fair value.

Monday, November 16, 2015

6 Dividend Increases, November 9 To November 13, 2015

Includes: ADP • MCD • MDU • PRU • RGLD • ROK

Summary

  • Monitoring dividend increases for stocks in my watch list of dividend growth stocks allows me to identify candidates for further analysis.
  • Another reason I monitor dividend increases is to track yield on cost and projected annual dividend income for stocks in my portfolio, DivGro.
  • This week, 6 companies in my watch list announced dividend increases. One of these stocks, MCD, is a DivGro holding.

Sunday, November 15, 2015

Recent Transfer: The Coca Cola Company

The Coca Cola Company (NYSE:KO) is the world's largest beverage company and the leading producer and marketer of soft drinks. Along with Coca-Cola, recognized as the world's best-known brand, KO markets four of the world's top five soft drink brands, including diet Coke, Fanta and Sprite. KO was founded in 1886 and is headquartered in Atlanta, Georgia.

I'm busy transferring stocks in my portfolio at Scottrade to DivGro. In the process, I'll be providing details about past transactions and explain why I'm a shareholder. Please look for my upcoming stock analysis of KO.

Tuesday, November 10, 2015

Changes Are Coming!

As I mentioned in my Q3-2015 quarterly review, I have some big plans for the months ahead.

I'm selling stocks I no longer believe should be in my portfolio. Last week, I sold PennyMac Mortgage Investment Trust (NYSE:PMT) because the company cut its dividend by 23%. I also sold Textainer Group Holdings Limited (NYSE:TGH) after the company cut its dividend by nearly 50%. Several additional stocks are in my crosshairs, but I'm waiting for one last dividend payment from these stocks before selling.

The other plan I alluded to concerns the holdings in my Scottrade portfolio, which used to be a mixture of speculative and dividend paying stocks. While the portfolio performed quite well for me, speculation requires much more time and attention than I can afford at this time. On the other hand, the long-term strategy of dividend growth investing requires upfront work to select candidates that trade at or below fair value, but less work afterwards.

Sunday, November 8, 2015

15 Dividend Increases, November 2 To November 6, 2015

Includes: ANDE • BPL • CLNY • EMCI • EMR • ENB • EVR • HON • KIM • MHLD • MIC • SIX • UBSI • UVV • VVC 

Summary

  • I monitor dividend increases for stocks in my watch list of dividend growth stocks to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
  • This week, 15 companies on my watch list announced dividend increases, including one of the stocks I hold in my DivGro portfolio. 
  • Companies that regularly increase dividends show confidence in future earnings growth potential.

Thursday, November 5, 2015

Recent Sell: Textainer Group Holdings Limited

Nov 4, 2015: Sold 75 shares of TGH at $14.94 per share.

On Monday, I sold all my shares of PennyMac Mortgage Investment Trust (NYSE:PMT) because the company cut its dividend. Today, I'm announcing another sell: Textainer Group Holdings Limited (NYSE:TGH), which shocked investors with a dividend cut of nearly 50%.

On Tuesday, 3 November, TGH reported weak third-quarter results, with falling rental rates, lower utilization and significant weakness in container resale proceeds being the main culprits. The near-term future does not look good, either. CEO Phillip Brewer noted that factors such as weak demand and lower rental rates will continue to impact TGH.

Tuesday, November 3, 2015

Recent Sell: PennyMac Mortgage Investment Trust

Nov 2, 2015: Sold 120 shares of PMT at $14.81 per share.

Yesterday, I sold all my shares of PennyMac Mortgage Investment Trust (NYSE:PMT) because the mortgage REIT (real estate investment trust) cut its dividend from 61¢ per share to 47¢ per share. In announcing the cut, PMT's chairman and CEO, Stanford L. Kurland said: "PMT's objective is to distribute its income through quarterly dividends that reflect the earnings per share we expect from the present investment portfolio.” 

While PMT's reduced dividend still represents a 12.63% yield, I no longer believe the investment should be in my portfolio. This sell removes $292.80 from DivGro's projected annual dividend income.

Monday, November 2, 2015

Recent Buy: ConocoPhillips

 Investor Relations
30 October 2015: Bought 47 shares of COP at $53.93 per share.

ConocoPhillips (NYSE:COP) is an American multinational energy corporation with headquarters in Houston. Created in 2002 through a merger of Conoco Inc and Phillips Petrolium Company, COP became the 5th largest integrated oil company in the world. In 2012, COP spun off its downstream assets to Phillips 66 (NYSE:PSX), with the intent of maximizing shareholder value. COP was founded in 1917.

My buy price of $53.93 results in an initial yield on cost (YoC) of 5.49%. This buy adds $139.12 to DivGro's projected annual dividend income, which now totals $7,047.

Sunday, November 1, 2015

13 Dividend Increases, October 26 To October 30, 2015

Includes: AFL • BOKF • ETP • IRM • LECO • PFS • SASR • STAG • STON • UBSH • VLO • WEN 

Summary

  • I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
  • For dividend growth investors, regular dividend increases are important. I prefer dividend increases that match or exceed the rate of inflation.
  • In the last week, 13 companies on my watch list announced dividend increases.

Saturday, October 31, 2015

Monthly Review: October 2015

I wrote my monthly review for September 2015 less than a week ago and here we have the October review already! I'm catching up with my blog admin, so hopefully I'll have some time for more interesting articles in the days and weeks to come...

As I mentioned in my Q3-2015 quarterly review, I have some big plans for the months ahead. I'm planning to sell some stocks I no longer believe should be in my portfolio and I'm planning to merge the holdings in my Scottrade account with my DivGro holdings. More on that later!

Dividend income in October was a little disappointing. One of my stocks, PennyMac Mortgage Investment Trust (NYSE:PMT), cut its dividend by 23%. I will probably sell my PMT shares in the coming week. Also, I no longer own shares of Baxter International Inc (NYSE:BAX), which would have paid a dividend in October.

Wednesday, October 28, 2015

Quarterly Review, Q3-2015

The third quarter of 2015 has been volatile, yet quite quiet for DivGro. The market correction in August saw the S&P 500 drop from its 52-week high of 2,135 down to 1,868 – or about 12.5%. As I write this article, the S&P 500 sits at 2,066, so much of the losses have been recovered.

For longterm investors, market corrections create opportunities to buy shares of great companies at deflated prices. While it feels weird to celebrate a market correction because your portfolio may show losses, those losses usually are temporary and certainly unrealized unless you sell.

For dividend income investors, the situation is rosier. As long as the fundamentals of your stocks do not change, market corrections have no impact on your dividend income. Dividends are paid per share, independent of the current share price. In fact, when prices drop, you could use dividend income or fresh capital to buy more shares at a discount.

Monday, October 26, 2015

17 Dividend Increases, October 19 To October 23, 2015

Includes: ATR • CASS • CCLP • DOW • ENLC • GLP • GRC • HUB-B • HEP • KMI • MSM • NGL • OKE • PB • SCL • TRGP • VFC

Summary

  • I track dividend increases for stocks in my watch list to identify candidates for further analysis and possible investment. 
  • For dividend growth investors, regular dividend increases are important. Companies that regularly increase their dividends show confidence in future earnings growth potential.
  • In the past week, 17 companies on my watch list announced dividend increases.

12 Dividend Increases, September 21 To October 16, 2015

Includes: CLC • CTAS • EV • GEL • IP • LMT • OGE • OHI • PAA • TOO • WEC • YUM

Summary

  • For dividend growth investors, regular dividend increases are important. Dividend increases that match or exceed the rate of inflation are preferred.
  • I track dividend increases for stocks in my watch list to identify candidates for further analysis and possible investment.
  • In the period, 12 companies on my watch list announced dividend increases.

Sunday, October 25, 2015

Monthly Review: September 2015

After spending 6 wonderful weeks with my parents, including an amazing cruise to Alaska on the Norwegian Jewel, I'm slowly catching up on my DivGro admin. Once again, my monthly review post is quite late – and less than a week away from needing to write another monthly review!

Compounding matters, I've been quite busy at work and things won't improve on that front until at least April Fool's day 2016! Fortunately, I love my work and wouldn't want to change what I'm doing at all! So, I'll just have to squeeze some time out of my leisure time to keep up with this blog!

Look for my Q3-2015 quarterly review in the next few days... first though, here's September's review.

Sunday, October 18, 2015

Recent Buy: Exxon Mobil


 Investor Relations

Sep 25, 2015: Bought 35 shares of XOM at $73.27 per share.

ExxonMobil Corp. (NYSE:XOM) is the world's largest publicly traded international oil and gas company. Founded in 1882 and based in Irving, TX, XOM is engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses. More than 80% of Exxon's earnings come from its operations outside the United States.

My buy price of $73.27 results in an initial yield on cost (YoC) of 3.99%.

Wednesday, September 30, 2015

Recent Buy: Philip Morris International



Sep 25, 2015: Bought 34 shares of PM at $81.27 per share.

Headquartered in New York City, Philip Morris International Inc (NYSE:PM) is the leading international tobacco company, with 7 of the world's top 15 international brands, including Marlboro, the number one cigarette brand worldwide. The company’s products are sold in more than 180 markets outside of the United States. PM was incorporated in 1987.

PM is a Dividend Challenger with a streak of 7 consecutive years of dividend increases. It pays quarterly dividends of $1.02 per share in the months of March, June, September and December.

Tuesday, September 22, 2015

Monthly Review: August 2015

In January 2014, I wrote a post on the balcony of our mini suite on the Norwegian Epic, en route to the Caribbean. My wife and I were celebrating our 28th anniversary by taking our first ever cruise as a married couple.

Last week we did our second cruise, this time an Alaskan cruise on the Norwegian Jewel. What an amazing experience! Alaska sure is a beautiful state! What made this cruise even more special is that we were accompanied by my parents and celebrating their 80th and 79th birthdays!

So, this post reflecting on August's portfolio performance is somewhat late...

Monday, September 21, 2015

7 Dividend Increases, September 7 To September 18, 2015

Includes: AIZ • ATNI • MSFT • O • PM • TXN • WPC

Summary

  • I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
  • In the past 2 weeks, 7 companies on my watch list announced dividend increases, including 3 holdings in my DivGro portfolio. 
  • Companies that regularly increase dividends show confidence in future earnings growth potential.

Wednesday, September 9, 2015

8 Dividend Increases, August 16 To September 4, 2015

Includes: BANF • BNS • EAT • HRS • ITC • NJR • SLH • VZ

Summary

  • For dividend growth investors, regular dividend increases are important. Dividend increases that match or exceed the rate of inflation are preferred.
  • I track dividend increases for stocks in my watch list to identify candidates for further analysis and possible investment.
  • In the last 3 weeks, 8 companies on my watch list announced dividend increases.

Thursday, September 3, 2015

Recent Buy: Apple Inc

This article originally appeared on The DIV-Net on Wednesday, 2 September 2015. 

Jul 30, 2015: Bought 22 shares of AAPL at $121.98 per share.
Aug 10, 2015: Bought 22 shares of AAPL at $118.43 per share.

Headquartered in Cupertino, California, Apple Inc (NASDAQ:AAPL) designs, manufactures, and markets mobile communication and media devices, personal computers, and portable digital music players. The company also sells a variety of related software, services, peripherals, networking solutions, and third-party digital content. AAPL was founded in 1977.

Monday, August 31, 2015

Monthly Review: July 2015

Regular readers of my blog probably have noticed a slowdown in the number of posts in August. The reason for the slowdown is that my work has required more of my time than usual. Furthermore, the little remaining free time has gone into landscaping work at our house – some hard, physical work that served as a great distraction from the mental work I do on a daily basis.

On this last day of August, I want to post my monthly review for July. It is a long overdue post, but, as they say, rather late than never!

Monday, August 17, 2015

16 Dividend Increases, August 3 To August 14, 2015

Includes: CAE • DOV • HSY • IFF • ITW • IVZ • KLAC • MAIN • MIC • MON • NDSN • PPL • RBA • RECN • SMG • WTR 

Summary

  • In the last 2 weeks, 16 companies on my watch list of dividend growth stocks announced dividend increases. 
  • I monitor dividend increases for stocks in my portfolio to track yield on cost and to update projected annual dividend income.
  • Regular dividend increases indicate an expectation of future earnings growth. I use this process to help identify candidates for further analysis.

Tuesday, August 11, 2015

Recent Buy: Stag Industrial Inc




Jul 29, 2015: Bought 140 shares of STAG at $18.94 per share.

Founded on July 21, 2010 and based in Boston, Massachusetts, Stag Industrial Inc (NYSE:STAG) is a real estate investment trust focused on the acquisition and operation of single-tenant, industrial properties throughout the United States. STAG’s portfolio consists of 265 properties in 37 states with 242 tenants.

STAG is not yet a CCC stock, having only paid and raised dividends for 4 consecutive years. The company pays monthly dividends of 11.5¢ per share. At my buy price, the stock yields 7.29%.

Thursday, August 6, 2015

Recent Sell: Baxter and Baxalta

Aug 4, 2015: Sold 37 shares of BAX at $40.55 per share.
Aug 4, 2015: Sold 37 shares of BXLT at $37.57 per share.  


Yesterday, I reported selling all my shares of Partnerre Ltd (NYSE:PRE) because it is being acquired by Italy's Exor SpA (OTCPK:EXOSF). I sold my shares because EXOSF does not have a track record of paying dividends. PRE performed wonderfully well for me over the 27 months I owned shares, returning 58% (or 26% annualized).

Today, I'm reporting two more sells. After receiving an unsolicited takeover offer from an Ireland based competitor, the share price of drug maker Baxalta (NYSE:BXLT) jumped nearly 20% higher in early morning trading, eventually closing 12% higher after heavy trading. Furthermore, Baxter International (NYSE:BAX) announced a quarterly dividend of only 11.5¢ per share, significantly down from the 52¢ per share the company paid before the spin-off of BXLT.

Wednesday, August 5, 2015

Recent Sell: PartnerRe Ltd

Aug 4, 2015: Sold 27 shares of PRE at $139.03 per share.

Yesterday I sold all my shares of Partnerre Ltd (NYSE:PRE), a company that provides reinsurance services around the world.

PRE recently agreed to be acquired by Italy's Exor SpA (OTCPK:EXOSF) in a deal worth $6.9 billion (or $140.50 per share). The agreement brings to an end the takeover drama for the Pembroke, Bermuda-based company and dashes the hopes of a merger with Axis Capital Holdings Ltd (NYSE:AXS). AXS will receive a $315 million termination fee from PRE.

Tuesday, August 4, 2015

6 Dividend Increases, July 27 To July 31, 2015

Includes: ARLP • BPL • CHSP • EXLP • RAI • SU 

Summary

  • I track dividend increases for stocks in my watch list to identify candidates for further analysis and possible investment. 
  • For dividend growth investors, regular dividend increases are important. Dividend increases that match or exceed the rate of inflation are preferred.
  • Last week, 6 companies on my watch list announced dividend increases.

Tuesday, July 28, 2015

13 Dividend Increases, July 20 To July 24, 2015

Includes: CCLP • ENLC • ETP • GLP • HEP • K • MWE • MXIM • NGL • NGLS • RSG • SWK • TRGP

Summary

    • Last week, 13 companies on my watch list of dividend growth stocks announced dividend increases. 
    • Several of these companies are MLPs that raise their dividends by smaller amounts every quarter. 
    • I monitor dividend increases for stocks in my portfolio to track yield on cost and to update projected annual dividend income.

    Sunday, July 26, 2015

    Recent Buy: Qualcomm Inc



    Jul 16, 2015: Bought 38 shares of QCOM at $64.43 per share.

    Founded in July 1985 and headquartered in San Diego, California, Qualcomm In (NASDAQ:QCOM) designs and manufactures innovative digital wireless communications products and services based on the company's CDMA digital technology. The company also licenses many of its 5,700+ patents and intellectual property to wireless equipment manufacturers.

    QCOM is a Dividend Contender with a track record of 13 consecutive years of dividend increases. It pays quarterly dividends of 48¢ per share in the months of March, June, September and December.

    The company is the Information Technology sector winner and 4th ranked stock in the July 2015 edition of my 10 Dividend Growth Stocks article series. My buy price of $64.43 results in an initial yield on cost (YoC) of 2.98%.

    Thursday, July 23, 2015

    My 3 Loyal Sons: How A Wacky Idea Inspired My Sons To Invest In Stocks

    Eighteen months ago, I gave my sons a different kind of Christmas present. I gave them seed money, provided they each open an account at Loyal3.com and commit to buying $30 in shares (of any stock that Loyal3 trades), every month, for 30 years. That's about a dollar a day and the equivalent they each spend on a data plan for their iPhones.

    To my delight, my sons accepted the terms and started investing in January 2014, each choosing one stock from those offered at Loyal3.

    At the end of last year, I turned the tables on my sons and asked them for a different kind of Christmas present. I asked 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 the next year and their future as investors.

    Monday, July 20, 2015

    6 Dividend Increases, July 13-17, 2015

    Includes: CMI • COP • KMI • OHI • SJM • UNM

    Summary

    • I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
    • This week, 6 companies on my watch list announced dividend increases, including 3 holdings in my DivGro portfolio. 
    • Companies that regularly increase dividends show confidence in future earnings growth potential. 

    Wednesday, July 15, 2015

    Baxter Spins-Off Baxalta

    On 1 July 2015, Baxter (BAX) spun-off Baxalta (BXLT) and distributed shares of BXLT to holders of BAX shares. Shareholders of BAX on record as of the close of business on 17 June 2015 received one share of BXLT for every share of BAX held.

    I bought 37 shares of BAX in December 2013 at a price of $67.71 per share. Consequently, I received 37 shares of BXLT as a result of the spin-off. With this addition, DivGro now contains 47 shares.

    I've decided to hold onto these BXLT shares rather than sell them. I like the financial objectives of both companies. BAX intends to accelerate profit growth over the next 5 years through geographic expansion and new product introduction. BXLT will focus on growth, led by personalized treatments for patients with rare diseases in hematology, immunology and oncology.

    Tuesday, July 14, 2015

    6 Dividend Increases, June 29-July 10, 2015

    Includes: DUK • GEL • PAA • R • WBA • WRK

    Summary

    • In the past 2 weeks, 6 companies on my watch list of dividend growth stocks announced dividend increases.
    • I monitor dividend increases for stocks in my portfolio to track yield on cost and to update projected annual dividend income. 
    • Regular dividend increases indicate an expectation of future earnings growth. I use this process to identify candidates for further analysis.

    Sunday, July 12, 2015

    Overdue Dividend Increases

    David Fish maintains one of the best resources for dividend growth investors, the so-called CCC list. The list is updated monthly and contains all U.S.-listed stocks that have increased their dividends for at least 5 consecutive years. The acronym CCC stands for the 3 categories of stocks in the list, divided 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).

    In compiling the CCC list, Fish gets a chance to see which companies are approaching the anniversaries of their previous dividend increase announcements. Since many companies raise their dividends about the same time every year, he is alerted when dividend increases are not announced as expected.

    Friday, July 10, 2015

    10 Dividend Growth Stocks for July 2015

    Includes: ADM • CNQ • CNS • GPS • JNJ • MIC • OGE • QCOM • RS • TRV • TXN • VLO • VZ

    Every month I rank a selection of David Fish's CCC list to identify suitable dividend growth stocks for further analysis. The list contains all U.S.-listed stocks that have raised their dividends for at least 5 consecutive years. It is a wonderful resource worth checking out! The latest list (dated 6/30/15) contains 726 stocks.

    Ranking so many stocks would be a daunting task. To simplify things, I apply a series of filters to reduce the list to a more manageable number of stocks. I assign a star-rating to each stock out of a maximum 7 stars. The rating is based on the dividend discount model and fundamental analysis.

    I have an ongoing goal of balancing my DivGro portfolio across all 10 GICS (Global Industry Classification Standard) sectors, so I'm careful to retain a minimum number of stocks per sector. Later I present the 10 sector winners.

    Monday, July 6, 2015

    Quarterly Review, Q2-2015

    Unbelievably, we're at the midway point of 2015! Its time again for a quarterly review, my 10th since starting on this journey in January 2013. In this article, I'll give an overview of my investments and dividend income in Q2-2015 and I'll report on DivGro's recent performance.

    The second quarterly review each year is important, since it represents the halfway mark of goals you've set for the year. I have some fairly challenging goals for 2015 and I'll review my progress towards achieving them.

    In my previous quarterly review (Q1-2015), I mentioned reaching 200,000 page views on DivGro and 150,000 page views on Seeking Alpha. Well, I'm happy to say that those numbers are now 260,000 and 200,000, respectively. I'd like to thank all my readers for their continued support and engaging conversations... I've learned a tremendous amount from your comments and questions!

    Friday, July 3, 2015

    Added Real Estate Sector To My Watch List

    I maintain a dynamic watch list of dividend growth stocks and update it monthly when David Fish updates the CCC stocks. My watch list contains a subset of the CCC stocks, which I obtain by applying a series of filters to the CCC stocks. Included in the watch list are all my DivGro holdings, some of which are not in the CCC list.

    My watch list is organized by sector based on the GICS sector names. GICS is a 4-tiered, hierarchical classification system. It consists of 10 sectors, 24 industry groups, 67 industries, and 156 sub-industries. Each company is assigned a single GICS classification at the sub-industry level according to its principal business activity.

    Wednesday, July 1, 2015

    Monthly Review: June 2015

    This is my 30th monthly review post, which means DivGro is now 2.5 years old. What a journey it has been! Thanks to the interaction I've had with my readers (and fellow-minded bloggers), I've learned a lot about dividend growth investing – a big THANKS for that!

    When I started this blog, I wrote down some overall goals in my blog's About page, along with various strategies and stock selection criteria. It is interesting to look back at what I had written then, and to compare it with what I know now...

    Tuesday, June 30, 2015

    6 Dividend Increases, June 15-26, 2015

    Includes: DIS • DTE • JW.A • O • USB • WPC

    Summary

    • I monitor dividend increases for stocks in my portfolio to make yield on cost adjustments for stocks I own and to identify dividend growth candidates for further analysis. 
    • Companies that regularly increase their dividends show confidence in future earnings growth. 
    • In the past 2 weeks, 6 companies on my watch list of dividend growth stocks announced dividend increases.

    Tuesday, June 23, 2015

    Recent Sell: South32 Ltd

    Jun 23, 2015: Sold 40 shares of SOUHY at $7.10 per share.

    Today I sold all 40 shares of South32 Ltd ADR (OTCMKTS:SOUHY) that I received when the company spun-off from BHP Billiton plc (NYSE:BBL). The 40 shares represented a small portion (only about 11%) of my regular position size. Regular readers will know that I prefer to buy shares in lots of about $2,500, so dealing with an outlier like SOUHY would have been bothersome.

    I bought 100 shares of BBL in two lots, on 4 June 2013 (43 shares at $58.39 per share) and on 20 November 2014 (57 shares at $50.20 per share). Currently, BBL is trading at about $43 per share. The company announced its demerger plans on 19 August 2014. The spin-off was completed in May, although I received my 40 spin-off shares of SOUHY on 9 June.

    Harley-Davidson: Dividend Stock Analysis

    Harley-Davidson Inc (NYSE:HOG) is an American manufacturer of cruiser and touring motorcycles. Founded in 1903 and headquartered in Milwaukee, Wisconsin, HOG designs, manufactures, and sells heavyweight touring, custom and performance motorcycles as well as a complete line of motorcycle parts, accessories and general merchandise.

    HOG is ranked 3rd in the June 2015 edition of my 10 Dividend Growth Stocks article series. The company has a 5-year streak of consecutive dividend increases and pays quarterly dividends of 31¢ per share in the months of March, June, September and December.

    Tuesday, June 16, 2015

    9 Dividend Increases, June 1-12, 2015

    Includes: AWH • CAT • CB • CBRL • CL • FLO • GRMN • NFG • TGT

    Summary

    • In the past 2 weeks, 9 companies on my watch list of dividend growth stocks announced dividend increases.
    • I monitor dividend increases for stocks in my portfolio to make yield on cost adjustments and to track projected annual dividend income. 
    • Regular dividend increases indicate an expectation of future earnings growth. I use this process to identify candidates for further analysis.

    Monday, June 15, 2015

    Recent Buy: Reliance Steel & Aluminum

    Jun 12, 2015: Bought 40 shares of RS at $63.98 per share.

    Founded in 1939 and headquartered in Los Angeles, California, Reliance Steel & Aluminum (NYSE:RSis one of the largest metals service center companies in the United States. The company provides metals processing services and distributes a line of approximately 100,000 metal products, including alloy, aluminum, brass, copper, carbon steel, stainless steel, titanium and specialty steel products, to customers in a broad range of industries. 

    RS is the Materials sector winner and is ranked 2nd in the June 2015 edition of my 10 Dividend Growth Stocks article series. The company has a 5-year streak of consecutive dividend increases and pays quarterly dividends of 40¢ per share in the months of March, June, September and December. What impresses me most is the company's 5-yr dividend growth rate of 28.5%!

    Wednesday, June 10, 2015

    10 Dividend Growth Stocks for June 2015

    Includes: ADM • CAH • GLW • GPS • HCI • HOG • NEE • NOV • MIC • QCOM • RS • TESS • UNP • VZ

    Once a month, I rank a selection of David Fish's CCC stocks to identify top candidates for further analysis. The list of CCC stocks is updated monthly and contains all U.S.-listed stocks that have paid increasing dividends for at least 5 consecutive years.

    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 5/29/15) contains 722, with 105 Champions, 251 Contenders, and 366 Challengers.

    I apply a series of filters to reduce the number of stocks to a more manageable number. The filters are designed to remove unlikely candidates from consideration. They are based on things like yield, growth rate, P/E and PEG ratio, and dividend increase history. I'm careful to retain a minimum number of stocks for each of the 10 GICS (Global Industry Classification Standard) sectors.

    Tuesday, June 2, 2015

    Monthly Review: May 2015

    Time again to review the past month's activities relating to DivGro, my portfolio of dividend growth stocks. With work becoming more demanding, I'm finding less time to explore new ideas with DivGro.

    I've been studying REITs (real estate investment trusts) in order to develop more appropriate selection criteria – and I just haven't found the time to conclude that research. In the next few months, I'm hoping to fine-tune my selection criteria and the way I evaluate stocks. I feel this is necessary, as DivGro now contains 45 stocks and my focus will soon shift to adding more to existing holdings, rather than adding more holdings.

    Monday, June 1, 2015

    11 Dividend Increases, May 18-29, 2015

    Includes: ACE • BG • DCI • EXR • HPQ • JPM • LOW • NOC • STAG • TIF • WMB

    Summary

    • I monitor dividend increases for stocks on my watch list to make yield on cost adjustments for stocks I own and to identify dividend growth candidates for further analysis.
    • Companies that regularly increase their dividends show confidence in future earnings growth potential.
    • In the past 2 weeks, 11 companies on my watch list announced dividend increases.

    Sunday, May 31, 2015

    Stock Analysis: Lowe's Companies

    Dividend Champion Lowes Companies (NYSE:LOW) is a home improvement retailer. The company offers a complete line of products for maintenance, repair, remodeling, and home decorating. LOW also offers installation services through independent contractors in various product categories; extended protection plans; and in-warranty and out-of-warranty repair services. The company was founded in 1946 and is based in Mooresville, North Carolina.

    LOW is ranked 7th in the May 2015 edition of my 10 Dividend Growth Stocks article series. The company has an impressive 52-year streak of consecutive dividend increases and pays quarterly dividends of 23¢ per share in the months of February, May, August and November.

    Wednesday, May 20, 2015

    Recent Buy: Macquarie Infrastructure Company

    May 19, 2015: Bought 30 shares of MIC at $85.97 per share.

    Macquarie Infrastructure Company LLC (NYSE:MIC) owns, operates and invests in a diversified portfolio of infrastructure businesses that provides basic services, facilities and technology to businesses and individuals in the United States. The Company's businesses consist of bulk liquid terminals, an airport services business, a gas processing and distribution business, and a portfolio of contracted power and energy investments.

    MIC is the Industrials sector winner and is ranked 14th in the May 2015 edition of my 10 Dividend Growth Stocks article series. The company has a 5-year streak of consecutive dividend increases. It pays quarterly dividends of $1.07 per share in the months of March, June, September and December.

    Monday, May 18, 2015

    10 Dividend Increases, May 4-15, 2015

    Includes: AIX • CAH • CLX • CPK • KEY • MIC • PEP • POR • TU • VTR

    Summary

    • I track dividend increases for stocks in my watch list to identify candidates for further analysis and possible investment. 
    • For dividend growth investors, regular dividend increases are important. Dividend increases that match or exceed the rate of inflation are preferred.
    • In the past 2 weeks, 10 companies on my watch list announced dividend increases. All increases exceed the current rate of inflation.

    Sunday, May 10, 2015

    10 Dividend Growth Stocks for May 2015

    Includes: ADM • AMP • BDX • CMP • CNQ • GPS • LOW • MGA • MIC • NJR • QCOM • TRV • VLO • WMT • TU 

    David Fish's CCC list is a great resource for dividend growth investors. The list is updated every month and contains all U.S.-listed stocks that have raised their dividends for at least 5 consecutive years. The latest list (dated 4/30/15) contains 707 stocks.

    Ranking so many stocks would be a daunting task. To simplify things, I apply a series of filters to reduce the list to a more manageable number of stocks. Because I have an ongoing goal of balancing my DivGro portfolio across all 10 GICS (Global Industry Classification Standard) sectors, I'm careful to retain a minimum number of stocks per sector.

    Ranking involves using a proprietary system based on the dividend discount model and fundamental analysis. I assign a star-rating to each stock out of a maximum of 7 stars.

    Thursday, May 7, 2015

    Stock Analysis: Archer Daniels Midland

    This article originally appeared on The DIV-Net on 6 May 2015.

    Founded in 1898 and headquartered in Chicago, Illinois, Dividend Champion Archer Daniels Midland Company (NYSE:ADM) is engaged in the processing of oilseeds, corn, wheat, cocoa, and other agricultural commodities. The company manufactures protein meal, vegetable oil, corn sweeteners, flour, and other value-added food and feed ingredients, as well as biodiesel and ethanol.

    ADM is the Consumer Staples sector winner and 7th ranked stock in the April 2015 edition of my 10 Dividend Growth Stocks article series. The company has an impressive 40-year streak of consecutive dividend increases and pays quarterly dividends of 28¢ per share in the months of March, June, September and December.

    Monthly Review, April 2015

    At the end of every month, I review my portfolio of dividend growth stocks and update my blog's Performance page.

    In April 2015, I received dividend income totaling $412, an increase of 147% over last April's total dividend income of $167.

    DivGro's market value increased to $149,697 and the portfolio is delivering an average yield on cost (YoC) of 4.32%. Projected monthly dividend income increased to $496 from $467 last month.

    Monday, May 4, 2015

    15 Dividend Increases, April 27-May 1, 2015

    Includes: AHGP • APU • ARLP • AWK • BPL • ETP • GMLP • GWW • IBM • IVZ • PSA • STI • UGI • WFC • XOM

    Dividend growth investors like to invest in companies that regularly increase their dividends and show confidence in their ability to grow earnings over time.

    I monitor dividend increases for stocks on my watch list because I track the yield on cost (YoC) of holdings in DivGro, my portfolio of dividend growth stocks. Another reason to monitor dividend increases is to identify candidates for further analysis and for possible inclusion in DivGro.

    In the past two weeks, 15 of the companies on my watch list announced dividend increases.

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