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 How to Assess Dividend Quality and The Chowder Ruleand a live spreadsheet of my DivGro Portfolio.

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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 These are blogs that are no longer being updated because the blogger lost interest or decided to take a break from blogging.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


  • 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


  • 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 


  • 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 


  • 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.

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