Friday, October 20, 2017

Quarterly Review, Q3-2017

This is the 19th quarterly review of DivGro, my portfolio of dividend growth stocks. Soon I'll complete my fifth year of dividend growth investing (DGI).

In my Q2-2013 quarterly review, I wrote about a high adventure hike in New Mexico with my youngest son. While hiking down into a valley with heavy backpacks, I can't help but think that I'll have to climb back up again. Riding with the bulls give me a similar feeling. I can't help but think that we'll be challenged with a bear market, sooner or later.

Somehow, I feel that my DGI strategy wouldn't be fully vetted until I've survived a bear market!

With that somewhat sobering thought, let's look at what happened with DivGro in Q3-2017.

Wednesday, October 18, 2017

10 Dividend Growth Stocks For October 2017

David Fish maintains a list of stocks with at least five consecutive years of higher dividend payments. Colloquially called the CCC list, it contains more than 800 dividend growth stocks trading on U.S. exchanges. While the CCC list and the accompanying spreadsheet is a wonderful source for dividend growth investors, analyzing so many stocks would be nearly impossible.

My monthly 10 Dividend Growth Stocks series identifies 10 CCC stocks worthy of further research. I select stocks from the CCC list, rank them, and assign a 7-star rating to each stock. It would be too demanding to rank all the CCC stocks, so I use different screens every month to trim the CCC list to a smaller number of candidates.

With the markets trading at all-time highs, I thought it might be interesting to repeat last October's selection process, namely to focus on stocks I believe to be trading at or below fair value.

Sunday, October 15, 2017

11 Dividend Increases: October 9-13, 2017

Companies that regularly increase dividends show confidence in future earnings growth potential.

One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

Recently, eleven companies on my watch list decided to increase their dividends, including two of the stocks I own.

Two stocks announced double-digit dividend increases.

Wednesday, October 11, 2017

Monthly Review: September 2017

Welcome to the September review of DivGro, my portfolio of dividend growth stocks! With these monthly reviews, I share updates to my portfolio and provide a summary of dividends collected.

DivGro's projected annual dividend income (PADI) increased to $16,655, well above my 2017 goal of $14,400! One reason that I exceeded my PADI goal so early in the year is the success of my options trades, which allowed me to invest an additional $11,000 in funds into dividend growth stocks.

I just love quarter-ending months! September was another record-setting month for DivGro with dividend income totaling $2,245. This amount exceeded the previous record (June 2017) by about 8% and represents a year over year increase of about 80%!

Sunday, October 8, 2017

3 Dividend Increases: October 2-6, 2017

Companies can only increase their dividends regularly if earnings grow sufficiently.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

Recently, three companies on my watch list announced dividend increases.

Saturday, October 7, 2017

Options Update: September 2017

In June 2016, I started trading options for income by leveraging DivGro, my dividend growth portfolio. I sell covered calls and secured puts on dividend stocks I own or would like to own. The options income I collect flows back into DivGro, just like dividends. It provides extra cash to buy more dividend growth stocks.

I write monthly options update articles to keep track of my options trades. Each update serves as a status report on the open options and the obligations I have. I also report on new trades and I provide a running tally of DivGro's options income to date.

Through September 2017, I've collected options income totaling $18,773. Of that total, $10,135 is secured, meaning I no longer have any obligations to fulfill. That represents extra money I can use to buy dividend growth stocks.

Thursday, October 5, 2017

Recent Additions To Existing Positions (Part 3)

Today I'm presenting Part 3 of Recent Additions to Existing Positions about trades I executed last week. With these trades, I'm adding shares to existing DivGro positions rather than opening new positions.

In Part 1, I discussed adding shares to two Consumer Staples stocks, CVS Health (CVS) and Walgreens Boots Alliance (WBA) — two stocks that are trading well below fair value.

Part 2 covered Valero Energy (VLO)  and Omega Healthcare Investors (OHI). VLO is an Energy sector stock yielding 3.6%, while OHI is a REIT yielding about 8%.

In Part 3 I'm presenting the final pair of additions, two Information Technology sector stocks with great growth prospects.

Tuesday, October 3, 2017

Recent Additions To Existing Positions (Part 2)

This is Part 2 of an article covering trades I executed last week. With these trades, I'm adding shares to existing DivGro positions rather than opening new positions.

Part 1 presented two Consumer Staples stocks, CVS Health (CVS) and Walgreens Boots Alliance (WBA). These stocks are trading well below my fair value estimates, yet both have good growth prospects and offer extremely safe dividends.

In Part 2, I'm presenting a high-yielding REIT and an Energy sector stock. Finally, Part 3 will present two Information Technology stocks with solid growth prospects.

Monday, October 2, 2017

Recent Additions To Existing Positions (Part 1)

In September's DivGro Pulse article, I identified several existing DivGro positions that I wanted to increase. This article (in three parts) presents a summary of trades I executed last week to boost these positions.

Part 1 presents two Consumer Staples stocks that have been impacted by Amazon's buying of Whole Foods and speculation that the e-commerce titan might be looking into launching a drug delivery and online pharmacy business.

Part 2 will present two more additions, one high-yielding REIT, and one Energy sector. Finally, Part 3 will present two Information Technology stocks with great growth prospects.

Except for the high-yielding REIT, these buys have a relatively small impact on DivGro's projected dividend income. But every bit helps!

Saturday, September 30, 2017

Dividend Increases: September 25-29, 2017

Companies can only raise their dividends regularly if earnings grow sufficiently.

Monitoring dividend increases for stocks on my watch is one way to identify candidates for further analysis.

In the past week, five companies on my watch list announced dividend increases, including one of the stocks I own.

Wednesday, September 27, 2017

DivGro Pulse: September 2017

I've been rather busy this month, so September's edition of my monthly pulse article series is a little later than usual.

In these pulse articles, I focus on strategy and I monitor the health of DivGro, my portfolio of dividend growth stocks. I update the fair value estimates of stocks in DivGro and use the information to identify undervalued stocks suitable for further investment.

Additionally, I review the recent performance of stocks to see if any of them are performing poorly. If so, I need to take appropriate action.

Updating the fair value estimates for every stock in my portfolio takes several hours. I perform a multi-stage Dividend Discount Model analysis, a Gordon Growth Model analysis, and an analysis of dividend safety. My final fair value estimate also considers fair value estimates and price targets available elsewhere, such as those from Morningstarfinbox.io, and S&P Capital IQ.

Monday, September 25, 2017

A Quick Reminder

On Saturday I wrote about a special subscription offered by Mike McNeil of Dividend Stocks Rock.

In the article, I reviewed Dividend Stocks Rock and shared some of the cool features being offered, including model portfolios, a stock ranking system with buy, sell, or hold recommendations, stock cards providing concise stock reviews, and a premium newsletter published twice a month.

Because the offer expires today (which happens to be my birthday!), I wanted to write this quick reminder to try out Dividend Stocks Rock before the offer expires at midnight tonight.

Sunday, September 24, 2017

7 Dividend Increases: September 18-22, 2017

Companies that regularly increase dividends show confidence in the potential growth of future earnings.

I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis.

Recently, seven companies on my watch list declared dividend increases, including two of the stocks I own.

Saturday, September 23, 2017

A Special Offer from Dividend Stocks Rock

I've been corresponding with Mike McNeil for a while now and his guest post How to invest $100,000 in dividend growth stocks is the most popular guest post on DivGro so far.

For those of you that don't know, Mike is the owner and portfolio manager at Dividend Stocks Rock and he authors two other blogs about dividend investing, The Dividend Guy and Dividend Monk.

In this article, I'm reviewing Dividend Stocks Rock and relaying a special subscription offer from Mike, valid only through Monday, 25 September 2017. He has a 60-day no questions asked reimbursement policy, so you have plenty of time to evaluate Dividend Stocks Rock with no risk to you.

Dividend Stocks Rock provides various tools and model portfolios for investors wanting to manage their own portfolio. Additionally, Dividend Stocks Rock offers a stock ranking system with buy, sell, or hold recommendations; stock cards providing concise stock reviews; trade alerts announcing buys and sells; and a premium newsletter published twice monthly.

Wednesday, September 20, 2017

10 Dividend Growth Stocks For September 2017

David Fish updates and publishes the CCC list every month. The list is a wonderful source for dividend growth investors. It contains more than 800 companies trading on U.S. exchanges with at least 5 consecutive years of increased dividend payments. The accompanying spreadsheet provides fundamental data.

With my monthly 10 Dividend Growth Stocks series, I identify 10 stocks worthy of further research. To create the list, I trim the CCC list to a manageable number of stocks, rank the trimmed list, and assign a 7-star rating to each stock.

Sunday, September 17, 2017

6 Dividend Increases: September 11-15, 2017

Companies that regularly increase dividends show confidence in the potential growth of future earnings.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

This week, six companies on my watch list announced dividend increases, including one of the stocks I hold in my portfolio.

Sunday, September 10, 2017

4 Dividend Increases: August 28-September 8, 2017

Companies can only increase their dividends regularly if earnings grow sufficiently.

I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis.

In the past two weeks, four companies on my watch list decided to increase their dividends, including one of the stocks I hold in my portfolio.

Friday, September 8, 2017

Monthly Review: August 2017

Welcome to the August review of DivGro, my portfolio of dividend growth stocks! The goal of these monthly reviews is to share updates to my portfolio and to provide a summary of dividends collected.

DivGro's projected annual dividend income (PADI) increased to $15,353, which means I can expect to receive $1,279 in dividend income per month, on average, in perpetuity.

Of course, with a statement like that, I'm assuming that nothing will change! In actual fact, as a dividend growth investor, I expect the companies I've invested in to continue to pay and to increase dividends! Also, until I retire, I hope to continue to reinvest the dividends I collect... so DivGro's PADI should continue to grow through dividend growth and through compounding.

Friday, September 1, 2017

Options Update: August 2017

My goal with DivGro is to generate a reliable and growing dividend income stream. I invest mainly in quality dividend growth stocks with a track record of paying and regularly increasing dividends.

In June 2016, I started trading options to boost my income from dividends. I sell covered calls and secured puts on dividend stocks I own or would like to own. The options income I collect flows back into DivGro, just like dividends. It provides extra cash to buy more dividend growth stocks.

Through July 2017, I've collected options income totaling about $16,400. Of that total, about $8,800 is secured, meaning I no longer have any obligations to fulfill. My monthly options update serves as a status report on the open options and the obligations I have. I also report on new trades and I provide a running tally of DivGro's options income to date.

Tuesday, August 29, 2017

Yield Channel Charts: A Tool For Dividend Growth Investors

This article presents a tool for dividend growth investors (DGIs) called Yield Channel Charts. These charts provide a way to assess market valuation relative to a stock's historical yield patterns.

Yield channel charts are suitable for high-quality dividend growth stocks with long histories of paying higher dividends every year.

Yield channels can be seen as safety zones for stock prices. As long as the stock price remains within the yield channel, the stock can be considered fairly valued. Once the stock price moves outside the yield channel, the stock is either overvalued or undervalued relative to historical yields.

Sunday, August 27, 2017

3 Dividend Increases: August 21-25, 2017

With earnings season over, only a few companies announced dividend increases this week.

This article reports on three dividend increases, including one from of my DivGro holdings.

I monitor dividend increases for stocks on my watch to identify candidates for further analysis.

Thursday, August 24, 2017

Using Options To Boost Dividend Income

Last year I decided to add options trading to complement DivGro's strategy of investing in dividend growth stocks.

My options trading activity is focused on generating extra income. I sell covered calls on some of my DivGro positions and I sell put options on stocks I wouldn't mind adding to my DivGro portfolio.

I don't buy options and I consider myself a learner options trader.

In this article, I discuss my approach to using options to boost dividend income. After 15 months of executing this strategy, I'm happy to provide some insights and to share results.

Tuesday, August 22, 2017

3 Dividend Increases: August 14-18, 2017

Companies that regularly increase dividends show confidence in the potential growth of future earnings.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

In the past week, only three companies on my watch list announced dividend increases.

Sunday, August 20, 2017

DivGro Pulse: August 2017

Welcome to another edition of my monthly pulse article series.

In my pulse articles, I focus on strategy and I monitor the health of DivGro, my portfolio of dividend growth stocks. I update the fair value estimates for every stock I own and use the information to identify undervalued stocks suitable for further investment.

Additionally, I review the recent performance of stocks in my portfolio. If any of them perform poorly, they could be candidates for the chopping block.

To update fair value estimates, I perform a multi-stage Dividend Discount Model analysis, a Gordon Growth Model analysis, and an analysis of dividend safety. My final fair value estimate considers fair value estimates and price targets available elsewhere, such as those from Morningstarfinbox.io, and S&P Capital IQ.

Wednesday, August 16, 2017

Make Financial Freedom A Strategic Goal

By Charles Fournier

In 1987, I realized nobody else would have the level of interest in our financial well-being that I have. So I decided to manage our financial affairs myself and have been doing so ever since.

Shortly after graduating, my wife and I set Financial Freedom as our primary goal.

We decided to accumulate investments that would generate an income stream and would allow us to maintain our standard of living once we retired.

To help us achieve this goal, we chose to create a well-diversified portfolio of blue chip, dividend-paying companies with a track record of steady dividend increases. Along the way, we added real estate investment properties to reduce our risk.

Sunday, August 13, 2017

6 Dividend Increases: August 7-11, 2017

Companies can only raise their dividends regularly if earnings grow sufficiently.

Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

Recently, six companies on my watch list declared dividend increases.

Friday, August 11, 2017

10 Dividend Growth Stocks For August 2017

As a dividend growth investor, I love David Fish's CCC list of dividend growth stocks trading on U.S exchanges. Updated every month, the CCC list contains more than 800 stocks trading with at least five consecutive years of higher dividend payments. The accompanying spreadsheet provides key statistics of the CCC stocks.

In my monthly 10 Dividend Growth Stock series, I identify 10 CCC stocks worthy of further research. To create the list, I trim the CCC list using various screens. I rank the trimmed list and assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis.

The latest CCC list (dated 7/31/17) contains 829 stocks. This month I used the dividend stock screener provided by Simply Safe Dividends to select "Very Safe" stocks.

Tuesday, August 8, 2017

Monthly Review: July 2017

Welcome to another monthly review of DivGro, my portfolio of dividend growth stocks! This is monthly review number 55!

In January 2013, I embraced the strategy of DGI (dividend growth investing) after being inspired by many DGI bloggers. My goal is to generate a reliable and growing dividend stream.

Over time, I've managed to grow DivGro's projected annual dividend income to $15,079. If nothing changes and the companies I've invested in continues to pay the dividends they're paying me today, I can expect to receive $1,257 in dividend income (on average) every month in perpetuity!

Sunday, August 6, 2017

19 Dividend Increases: July 31-August 4, 2017

Companies that regularly increase dividends show confidence in future earnings growth potential.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

In the last week, 19 companies on my watch list announced dividend increases, including one of the stocks I own.

Friday, August 4, 2017

Market Implied DGR - A Quick and Dirty Stock Valuation Method

By Catfishwizard

Coming up with a fair value of an individual stock is really hard, and can be as complicated as you want it to be.

I don’t like complicated, so I came up with a metric that I call Market Implied DGR to quickly give me a baseline of fair value from a dividend growth investing perspective.

I’d like to share that metric and my reasoning behind using it with you.

Thursday, August 3, 2017

Options Update: July 2017

DivGro is about generating a reliable and growing dividend income stream. I invest mainly in quality dividend growth stocks with a track record of paying and regularly increasing dividends.

Since 2013 when I started DivGro, my portfolio has generated dividend income totaling about $38,000. While that's a decent chunk of change, I realized that I could boost my dividend income through options trading.

In my monthly options update, I report my options trades and provide a running tally of DivGro's options income to date.

In 2017, I'm hoping to earn $8,400 in options income. This month I added secured options income of $1,376, increasing 2017's total to $6,274. (Last month I collected only $469, so I'm very happy with this month's total!)

Monday, July 31, 2017

18 Dividend Increases: July 24-28, 2017 (Part 2: Non-Financials)

Companies can only increase their dividends regularly if earnings grow sufficiently.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

This past week, 18 companies on my watch list declared dividend increases.

Saturday, July 29, 2017

18 Dividend Increases: July 24-28, 2017 (Part 1: Financials)


Companies that regularly increase dividends show confidence in the potential growth of future earnings.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.

In the last week, 18 companies on my watch list declared dividend increases.

Tuesday, July 25, 2017

How To Invest $100,000 In Dividend Growth Stocks

By Mike McNeil

I recently decided to quit my job and to build my own business. Having contributed to a defined pension plan, I’m soon going to receive more than $100,000. With the markets trading at all-time highs, the question is: How should I invest the $100,000?

I decided to invest the full amount in dividend growth stocks. This article explains my decision and presents the step-by-step methods I intend to use.

Sunday, July 23, 2017

20 Dividend Increases: July 17-21, 2017 (Part 2: Non-Financials)


Companies can only raise their dividends regularly if earnings grow sufficiently.

I like monitoring dividend increases for stocks on my watch list of dividend growth stocks because I consider such stocks to be candidates for further analysis.

In the past week, 20 companies on my watch list announced dividend increases, including one of the stocks I own.

20 Dividend Increases: July 17-21, 2017 (Part 1: Financials)


Companies that regularly raise their dividend payments show confidence in future earnings growth potential.

One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

This past week, 20 companies on my watch list announced dividend increases including one of the stocks I hold in my portfolio. 

Saturday, July 22, 2017

Recent Sell: Reynolds American

On 19 July 2017, the Winston-Salem-based tobacco company, Reynolds American, Inc (RAI), announced that shareholders approved the acquisition of RAI by British American Tobacco plc (LON:BATS). The transaction is expected to complete on or about 25 July 2017.

The deal comprises a cash payment of $29.44 per RAI share, plus American Depositary Shares (BTI) equal to 0.526 of an ordinary BATS share.

Thursday, July 20, 2017

DivGro Pulse: July 2017

Welcome to another edition of my monthly pulse article series.

Pulse articles are strategy focused and I monitor the health of DivGro, my portfolio of dividend growth stocks. I update the fair value estimates of every stock I own and use the information to identify undervalued stocks suitable for further investment.

Additionally, I review the recent performance of stocks in my portfolio to see if any of them are performing poorly. If so, I need to take appropriate action.

Tuesday, July 18, 2017

LTC: A Monthly Dividend Offering a Growing Payout

By Gaurav Sharma

There's a famous saying in the investment world: The greater the risk, the greater the return.

Greater risk requires more information: Can the business survive? Is the business model easy to understand? Being a higher-risk investment, does it need to be assessed on a more frequent basis?

These are all valid questions when investing.

Sunday, July 16, 2017

10 Dividend Increases: July 10-14, 2017


Companies that regularly increase dividends show confidence in the potential growth of future earnings.

I monitor dividend increases for stocks on my watch list of dividend growth stocks to identify candidates for further analysis.
In the last week, ten companies on my watch list declared dividend increases, including three of the stocks I own.

Earnings season is kicking into gear and the quiet period for dividend increase announcements seems to be over!

Friday, July 14, 2017

Selling Puts Makes Sense For Dividend Growth Investors

By Amber Tree Leaves

If you're a dividend growth investor, you buy a stock and capture the dividend for reinvestment.

Did you know that selling puts could boost your income?

Yes, there are horror stories about options. But selling puts is useful if done wisely.

Thursday, July 13, 2017

Quarterly Review, Q2-2017

Welcome to my 18th quarterly review of DivGro, my portfolio of dividend growth stocks. I adopted the strategy of dividend growth investing (DGI) more than four years ago after being inspired by several do-it-yourself DGI bloggers.

My quarterly reports summarize the actions I've taken during the preceding quarter. Quarterly reports include summaries of dividends received and changes that impact dividend income.

In the second quarter of 2017, I concluded several account consolidation actions, including transferring our IRAs to FolioInvesting where I'm managing them as part of DivGro. I have yet to transfer our taxable account from FolioInvesting to our trust account at Interactive Brokers. Doing so will allow me to write more covered calls.

Sunday, July 9, 2017

Investing Lesson: Why Buying Netflix In 2012 Made Me Foolish

By Stockles

It's hard to imagine that it has been five years since I bought my first stock, Netflix (NFLX). When I look back and think about the mistakes, lessons, and experiences over these years, I am quite humbled.

Investing is something special and, somehow, it makes life a bit more profound and enjoyable.

Saturday, July 8, 2017

7 Dividend Increases: June 26-July 7, 2017


Companies that regularly increase dividends show confidence in the potential growth of future earnings.

One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

In the past two weeks, 7 companies on my watch list declared dividend increases.

Thursday, July 6, 2017

10 Dividend Growth Stocks For July 2017

David Fish maintains a list of stocks trading on U.S. exchanges with at least five consecutive years of paying higher dividends. Colloquially called the CCC list and presented in a spreadsheet, the list is a wonderful source for dividend growth investors.

In my monthly 10 Dividend Growth Stock series, I identify 10 CCC stocks worthy of further research. To create the list, I trim the CCC list using various screens. I rank the trimmed list and assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis.

The latest CCC list (dated 6/30/17) contains 824 stocks. This month, I trimmed the CCC list using screens based on the Value Line Ranking System:

Monday, July 3, 2017

Monthly Review: June 2017

Welcome to my monthly review of DivGro, my portfolio of dividend growth stocks!

I love quarter-ending months, as most companies pay dividends in these months. And June certainly did not disappoint, as I set another record for dividend income received in a single month! In fact, this is the first time I've collected more than $2,000 in a single month! No fewer than 31 of my positions paid dividends in June.

As for trading activity, June was a busy month. I opened several new positions and added shares to an existing position. Noteworthy is that I've added four non-dividend paying stocks to DivGro! I have yet to report on these trades and explain why I decided to add these stocks. Look for an upcoming article that explains my thinking.

Friday, June 30, 2017

Recent Sell: Target Corporation

In my latest Pulse article, Target Corporation (TGT) turned out to be the fifth largest position in DivGro. The reason is that in May, I added shares to my TGT position due to the assignment of put options.

Before this trade, I owned 340 shares of TGT. I decided to sell 40 shares and so reduce my TGT position to 300 shares. This short article presents a summary of the trades and dividends received.

Wednesday, June 28, 2017

Options Update: June 2017

Welcome to my options update for June!

I report my options trades monthly, usually shortly after options expiration Friday. I list assigned, expired, closed, and rolled options and I report new options. Finally, I provide a running tally of DivGro's options income to date and I discuss the progress I'm making towards achieving my 2017 options income goal.

In last month's option update I added $1,635 to my tally of secured options income. This month I'm adding only $469, but I'm making great progress to achieving my goal of earning $8,400 in options income in 2017.

Monday, June 26, 2017

Now Inviting Guest Posts

Last month I surveyed readers to determine if DivGro should publish guest posts. Most respondents supported the idea and I decided to start hosting guest posts in July 2017.

I added a Guest Posts page with guidelines for prospective guest authors and to explain the submission process. The page briefly explains the review process and lists some ideas for article topics.

 If you're interested in writing a guest post for DivGro, please contact me.

Saturday, June 24, 2017

4 Dividend Increases: June 19-23, 2017


Companies that regularly increase dividends show confidence in the potential growth of future earnings.

Monitoring dividend increases for stocks on my watch list is one way to identify candidates for further analysis.

In the past few weeks, four companies on my watch list decided to increase their dividends.

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