Saturday, April 29, 2017

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


Companies can only increase their dividends regularly if they manage to grow earnings sufficiently. Monitoring dividend increases for stocks on my watch list helps me to identify candidates for further analysis.

This past week, 28 companies on my watch list declared dividend increases, including three of the stocks I hold in my portfolio.

Part 1 covers stocks in the Financials sector, while Part 2 will cover the non-Financials.

Thursday, April 27, 2017

Quarterly Review, Q1-2017

Welcome to my 17th quarterly review of DivGro, my portfolio of dividend growth stocks. I adopted the strategy of dividend growth investing (DGI) just more than four years ago after being inspired by several do-it-yourself DGI bloggers. It has been quite a journey!

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

In the first quarter of 2017, I transferred our trust account from Scottrade to Interactive Brokers, which provides a more flexible trading platform and lower commissions. I'm taking additional consolidation actions, including transferring our IRAs to FolioInvesting where I'll be managing them as part of DivGro.

Wednesday, April 26, 2017

Options Update: March 2017

I report my options trading activity monthly, usually after options expiration Friday. Doing so allows me to report on expired or assigned options. I also report new options trades and provide a running tally of DivGro's options income to date.

As I mentioned in my Monthly Review for March, I'm finding it challenging to keep DivGro up to date, as work is occupying much of my time. So this update is quite a bit late! In fact, last Friday was option expiration Friday for April, so the clock is already ticking for my next options update!

Tuesday, April 25, 2017

15 Dividend Increases: April 17-21, 2017


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

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.

This week, 15 companies on my watch list declared dividend increases, including one of my DivGro holdings.

Sunday, April 23, 2017

Monthly Review: March 2017

I'm a little late with my monthly review for March. Work continues to occupy most of my time, so I'm finding it quite challenging to update DivGro. I'm certainly not complaining about work... it is better to have too much work than not to have enough work. But it would be great to have just enough once in a while!

In March I finished the consolidation of my wife's traditional IRA's into a single account at FolioInvesting, where I'll be managing it using DivGro's strategy of dividend growth investing. I retained one of her stocks, UnitedHealth Group (UNH), which happens to be DivGro's 8th home run!

Saturday, April 22, 2017

Home Run Number 8

I use the term home run to describe any position in my portfolio that has crossed the 100% mark in total return. In my days as a trader, I sold half of my shares when a position became a home run position. I justified the action by saying that now I'm playing with "house" money. I no longer think that way. In fact, I'm more than happy to hang on to home run stocks and to continue collecting their growing dividends.

I announced DivGro's seventh home run on 27 October 2016, nearly two years after announcing the first. Today, I'm happy to announce that I've scored another home run with DivGro!

Wednesday, April 19, 2017

Two Recent Sells

Covered call trading is a two-edged sword. It provides a way to generate options income and so boost dividend income. You sell someone the right to buy shares you own at a predetermined price, called the strike price. For that right, the options buyer pays you an options premium.

I report my options trades monthly, usually after option expirations date. I'm yet to report on my options trading activity for March, but you can see February's report here.

When I sell covered calls, I'm well aware of the potential drawbacks. The stock price can move quickly above the strike price and you have to sell your shares. You leave money on the table and, assuming the strike price is above your cost basis, you have to pay capital gains tax. Finally, you give up future dividends.

Sunday, April 16, 2017

9 Dividend Increases: April 10-13, 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.

This week, nine companies on my watch list decided to increase their dividends, including three of the stocks I own. Only one stock announced a double digit percentage increase.

Saturday, April 15, 2017

Closing Two Closed-End Funds

I invested in closed-end funds (CEFs) in my Scottrade account before consolidating my investments and bringing them into the DivGro fold.

Aside from the attractive yields on offer, I liked having a few target holdings for Scottrade's flexible reinvestment program, or FRIP. Much like DRIPs, Scottrade's FRIP allows investors to collect dividends in a special account and reinvest the money periodically.

Now that I've moved to Interactive Brokers, at least one of the reasons for holding onto these CEFs has disappeared. Of course, giving up those higher yields is difficult, so I decided to close only two of the three CEFs I owned.

Friday, April 14, 2017

10 Dividend Growth Stocks For April 2017


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 with at least five consecutive years of higher dividend payments. The accompanying spreadsheet provides key statistics of the CCC stocks and is a wonderful source for dividend growth investors.

In my monthly 10 Dividend Growth Stock series, I identify 10 CCC stocks worthy of further analysis. 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.

Thursday, April 13, 2017

Recent Transfer: UnitedHealth Group


Founded in 1974 and based in Minnetonka, Minnesota, UnitedHealth Group Incorporated (UNH) is a diversified health and well-being company with core capabilities in clinical expertise, advanced technology and data and health information. The company provides medical benefits to customers in the United States and more than 125 other countries. UNH operates through four segments: UnitedHealthcare, OptumHealth, OptumInsight, and OptumRx.

UNH is a Dividend Challenger with a streak of 7 years of dividend increases. It pays quarterly dividends in March, June, September, and December. The current dividend is 62.5¢ per share, so UNH yields 1.52% at the recent share price of $162.96. UNH has an impressive 5-year DGR (dividend growth rate) of 31%.

Sunday, April 9, 2017

5 Dividend Increases: April 3-7, 2017


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

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

Recently, 5 companies on my watch list declared dividend increases. No stocks I hold in my portfolio announced any increases last week.

Saturday, April 8, 2017

I'm Adding CVS Health To My DivGro Portfolio


CVS Health Corporation (CVS) ranked third in the March edition of my 10 Dividend Growth Stocks series of articles on Seeking Alpha.

The stock is trading down more than 30% from an all-time high price of $113.45, recorded in July 2015. As a result, CVS is trading at a 5-year high yield.

In this article, I explain why I'm adding CVS to DivGro. The article provides a full stock analysis and includes some risk factors, too.

Monday, April 3, 2017

4 Dividend Increases: March 27-31, 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.
This week, four companies on my my watch list declared dividend increases, including one of the stocks I hold in my portfolio.

Saturday, April 1, 2017

I'm Looking To Buy Dividend Champion Hormel Foods


Hormel Foods Corporation (HRL) ranked second in the March edition of my 10 Dividend Growth Stocks series of articles on Seeking Alpha. In fact, the stock has made the top ten list six times in the past year.

The last time I looked at HRL, the stock was trading at $38.46 per share and yielding 1.51%. At the time, my fair value estimate was $34 per share, so I decided to stay on the sidelines and wait for a more favorable entry point.

Tuesday, March 28, 2017

DivGro Pulse: March 2017

If you're wondering what happened to my DivGro Pulse article for February, the short answer is I never got around to writing one! Things were just too crazy at work with deadlines looming.

My preferred time to write the monthly pulse article is mid-month so you can see I'm already quite late with the March edition.

These pulse articles are strategy focused and help me to identify undervalued stocks suitable for further investment. Additionally, if stocks any of the stocks in my portfolio perform poorly, I want to know about it so I can take appropriate action.

Sunday, March 26, 2017

4 Dividend Increases: March 20-24, 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.

The rate of dividend increases is slowing down. This week, only four companies on my watch list decided to increase their dividends, including one of my DivGro holdings.

Saturday, March 25, 2017

Back To The Future: Lessons Learned From 3 Dividend Growth Stocks I Bought On 09/09/09

I love movies about time travel and Back To The Future is one of my all time favorites.

Sometimes I wonder what it would be like if I found myself back in the past with my present knowledge. Or, if I could travel into the future, what information would I look for to bring back to the present day?

In this article, I "travel" back to 09/09/09 when I bought 3 dividend growth stocks for my wife's IRA. I look at the performance of these stocks over 7.5 years of ownership and explain why I decided to keep them now that I'm managing my wife's IRA's as part of DivGro, my portfolio of dividend growth stocks.

Thursday, March 23, 2017

9 Dividend Increases: March 13-17, 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, nine companies on my watch list announced dividend increases, including one of my DivGro holdings.

Tuesday, March 21, 2017

10 Dividend Growth Stocks For March 2017

Every month, I rank a selection of the CCC dividend growth stocks and present the top 10 ranked stocks as candidates for further research.

To introduce variation, I use different screens to trim the list of more than 800 stocks. This month I used screens favoring established dividend payers with positive earnings growth.

This month, four stocks earned 7-star ratings, while the remaining six stocks earned 6-star ratings. I consider stocks rated 5-stars or better worthy of further analysis.

Sunday, March 19, 2017

9 Dividend Increases: March 6-10, 2017


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

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

Recently, nine companies on my watch list declared dividend increases. In this period, none of my DivGro's holdings announced dividend increases.

Sunday, March 12, 2017

Monthly Review: February 2017


February was one of those really busy months. With looming deadlines at work, I found it quite challenging to keep DivGro up to date. I have several articles in the works and I'll try to get them posted as soon as possible. Despite the "busyness", I managed to get a lot of DivGro business done!

First, I transferred my wife's traditional and Roth IRA's to FolioInvesting, where I'll be managing our IRA's using DivGro's strategy of dividend growth investing. The account transfers were easier than expected, though I had to spend some time to assess the account holdings. In the end, I retained only four positions and I'll be reporting on those in due course.

In February I received dividend income of $736, an increase of 57% over the amount received in February 2016. Additionally, I recognized past dividend income of $733 from my wife's traditional IRA, which I'm now managing as part of DivGro. Projected annual dividend income (PADI) increased to $12,728, a year over year increase of 47%.

Saturday, March 11, 2017

Options Update: February 2017

I report on my options trading activity monthly, usually after options expiration Friday. Doing so allows me to report on expired or assigned options. I also report new options trades and provide a running tally of DivGro's options income to date.

Options trading is a sideline activity for DivGro. My goal is to boost dividend income with options income. I mainly sell covered calls, which is a way of leveraging my existing portfolio to generate more income. Occasionally, though, I'll sell put contracts and so set the price I'm willing to pay for stocks I want to buy.

Wednesday, March 8, 2017

10 Dividend Increases: February 27-March 3, 2017


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

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.

This week, 10 companies on my watch list announced dividend increases, including one of the stocks I own.

Wednesday, March 1, 2017

28 Dividend Increases: February 20-24, 2017 (Part 2: The Remaining Sectors)


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

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

This week, 28 companies on my watch list announced dividend increases, including one of the stocks I own.

Tuesday, February 28, 2017

28 Dividend Increases: February 20-24, 2017 (Part 1: Financials, REITs, and Utilities)


Companies that regularly raise their dividend payments 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.

This week, 28 companies on my watch list declared dividend increases, including one of the stocks I hold in my portfolio.

Tuesday, February 21, 2017

22 Dividend Increases: February 13-17, 2017


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

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

Recently, 22 companies on my watch list decided to increase their dividends, including 3 of the stocks I hold in my portfolio.

Monday, February 20, 2017

Monthly Review: January 2017

In January I celebrated DivGro's fourth anniversary. The journey has been (and still is!) exhilarating and I look forward to seeing where the next four years will take me. Coincidently, in December 2016 DivGro's projected annual dividend income (PADI) crossed the $12,000 mark, which means I can expect dividend income of at least $1,000 per month, on average, in perpetuity.

I've finalized the transfer of our trust account from Scottrade to Interactive Brokers where commission rates are more favorable for options trading. I still need to transfer stocks from one of my FolioInvesting accounts to Interactive Brokers so I can execute options trades on those stocks as well. Speaking of options, in January I secured $727 in options income. Recall that I tally secured options income, which is income received from closed options trades. Please see my latest options update for details.

Saturday, February 18, 2017

Recent Sell: PennantPark Investment

I bought 215 shares of PennantPark Investment Corp (PNNT) in September 2013 when I was a rookie dividend growth investor. One can easily argue that I made the classic mistake of chasing yield. The company paid dividends of 28¢ per quarter, so my initial yield on cost (YoC) was a whopping 9.63%. Unfortunately, PNNT froze its dividend right when I bought those shares. Rather than sell the shares, I argued that I could afford to take on more risk for such a high yield.

Not long after buying those shares, PNNT's stock took a nosedive all the way down to $4.65:

Friday, February 17, 2017

10 Dividend Growth Stocks For February 2017

I rank a selection of the CCC dividend growth stocks and present the top 10 ranked stocks as candidates for further research.

For February's selection, I start with the top dividend growth stocks held by DGI bloggers and rank those that also appear on the CCC list.

Only one stock earns a 7-star rating this month, while the other nine are all rated 6-stars. I consider stocks rated 5-stars or better worthy of further analysis.

Wednesday, February 15, 2017

19 Dividend Increases: February 6-10, 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.

This past week, 19 companies on my watch list announced dividend increases, including three of the stocks I own.

Sunday, February 12, 2017

Options Update: January 2017

Every month, I compile an update of options trading activity shortly after options expiration Friday. Doing so allows me to report any options that expired or got assigned. I also report new options trades and provide a running tally of options income to date.

My foray into options is to boost dividend income with options income. I do so by leveraging the dividend growth stocks I own. While my focus will remain on dividend growth investing, options trading provides an interesting and potentially lucrative sideline activity. In about eight months of trading, I've secured nearly $3,000 in options income!

Monday, February 6, 2017

19 Dividend Increases: January 30-February 3, 2017


Companies that regularly raise 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.

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

Friday, February 3, 2017

Annual Review, 2016

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

Keeping track of DivGro in a public forum helps me to learn and grow as a dividend growth investor. I learn from the research I do while writing articles, but also from interacting with like-minded investors.

In my annual reviews, I look at DivGro's performance as measured by dividend income, dividend increases, annualized returns, and rate of return. I also look at some highlights of the past year and share my outlook for the coming year.

Thursday, February 2, 2017

DivGro Pulse: January 2017

With lots of new year hustling related to DivGro, my portfolio of dividend growth stocks, I'm a little late with my monthly pulse article in which I monitor DivGro's health.

Pulse articles are strategy focused and help me to identify undervalued stocks suitable for further investment. Additionally, if stocks in my portfolio perform poorly, they could be candidates for the chopping block. I use various charts to visualize recent performance.

To prepare for pulse articles, I update the fair value estimates for every stock in my portfolio. This is a process that takes several hours to complete, as 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 Morningstar, finbox.io, and S&P Capital IQ.

Tuesday, January 31, 2017

31 Dividend Increases: January 23-27, 2017 (Part 2: Non-Financials)


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

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

This week, 31 companies on my watch list decided to increase their dividends, including 3 of my DivGro holdings.

Part 1 of this article reported on nine Financials sector stocks and three MLPs that announced dividend increases last week. Part 2 reports on 19 companies in sectors other than the Financials sector.

Monday, January 30, 2017

31 Dividend Increases: January 23-27, 2017 (Part 1: Financials and MLPs)


Companies can only increase their dividends regularly if earnings grow sufficiently. One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

This past week, 31 companies on my watch list decided to increase their dividends.

Part one of this article reports on nine Financials sector stocks and three MLPs that announced dividend increases last week.

Sunday, January 29, 2017

Recent Transfer: Microsoft Corporation


Founded in 1975 and based in Redmond, Washington, Microsoft Corporation (MSFT) develops, licenses and supports a wide range of products and services related to computing. The company’s products include operating systems, server applications, productivity applications and business solutions, desktop and server management tools, software development tools, video games, and online advertising. MSFT also designs, manufactures, and sells hardware, including gaming consoles and PC hardware products.

MSFT is a Dividend Contender with a streak of 15 years of dividend increases. It pays quarterly dividends in March, June, September, and December. The current dividend is 39¢ per share, so MSFT yields 2.49% at the recent share price of $62.74.

MSFT has an impressive DGR (dividend growth rate). The stock's 10-year DGR is 14.8%, while its 5-year, 3-year, and 1-year DGR's are 16.7%, 14.9%, and 14%, respectively.

Friday, January 27, 2017

10 Dividend Growth Stocks for January 2017


Every month, I rank a selection of David Fish's CCC dividend growth stocks and present the top 10 ranked stocks as candidates for further research.

This article reveals the top 10 ranked stocks for January.

A year after resuming the monthly 10 Dividend Growth Stock series, I look back to see how the year-ago selection performed.

Wednesday, January 25, 2017

14 Dividend Increases: January 16-20, 2017


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

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.

Last week, fourteen companies on my watch list announced dividend increases, including one of the stocks I own in my portfolio.

Friday, January 20, 2017

Quarterly Review, Q4-2016

Welcome to my 16th quarterly review of DivGro, concluding four years of dividend growth investing and blogging! 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 fourth quarter of 2016, I continued preparing DivGro for options trading. I reduced the number of stocks in my portfolio from a high of 66 stocks at the end of June 2016 to "only" 46 stocks at present. I used the cash from closing those positions to round out the number of shares of other positions to 100 shares or multiples thereof, ready for options trading.

Q4-2016 is my first quarter of serious options trading. I executed now fewer than 27 options trades (compared with 16 trades in Q3-2016 and 2 trades in Q2-2016). Option income totaled $4,485 in Q4-2016 (and $7,708 in 2016).

Wednesday, January 18, 2017

5 Dividend Increases: January 9-13, 2017

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

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

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

Sunday, January 15, 2017

Recent Transfer: Wal-Mart Stores, Inc


Based in Bentonville, Arkansas, Wal-Mart Stores, Inc (WMT) is the world's largest retailer and private employer, with over two million employees. The company is a multinational retailer consisting of more than 11,500 stores under 63 banners in 28 countries. WMT was founded in 1945.

WMT is a Dividend Champion with an impressive streak of 43 years of dividend increases. It pays quarterly dividends in January, April, July, and October. The current dividend is 50¢ per share, so WMT yields 2.98% at the recent share price of $67.13.

WMT's dividend growth is slowing. The stock's 10-year dividend growth rate is solid at 11.8%, but its 5-year, 3-year, and 1-year dividend growth rates tell a sorry tale: 7.3%, 3.3%, and 2.1%, respectively.

Friday, January 13, 2017

More Consolidation

Last year I decided to consolidate several portfolios into DivGro, my portfolio of dividend growth stocks. My goal was to manage all holdings as if they were part of a single portfolio. I did not actually transfer stocks between accounts and brokerages. Instead, I just added a column to my portfolio tracking spreadsheet to identify the host account.

If you visit my Portfolio page, you'll see a composite view of several accounts (though its is not apparent!). In fact, some stocks are even split across different brokerages. For example, I own shares of Target Corporation (TGT) in a so-called JTWROS account at FolioInvesting and in a trust account at Scottrade.

Having a single view of my DivGro portfolio regardless of the account or brokerage that hosts the individual stocks, simplifies things for me. I don't have to update (or manage) multiple portfolios.

Thursday, January 12, 2017

Monthly Review: December 2016

The last month of 2016 was quite busy for DivGro. I closed three positions and used some of the cash to buy additional shares in existing positions. In some cases, these buys allowed me to execute additional covered call trades and to collect premium income. Regular readers would know that I started trading options in 2016 to boost DivGro's dividend income.

In December, I added another $2,034 in options premiums. Each option sold represents a potential obligation until it expires or gets exercised. I label options income as secured income only when I no longer have the obligation. Please read my December 2016 options update for details.

December was a record setting month for dividend income. I collected $1,407 in dividends, an increase of 83% over December 2015's dividend income of $770. I just love quarter-ending months!

DivGro's projected annual dividend income (PADI) increased to $12,376, well above my goal of $12,000. The significance of $12k is that I can expect dividend income of at least $1,000 per month, on average, in perpetuity. (That's just a cool word meaning indefinitely or forever... and, of course, I'm assuming my portfolio stays the same and no companies cut their dividends).

Tuesday, January 10, 2017

Top Holdings of Dividend Growth Bloggers, 2017 Edition

This article presents the top dividend growth stocks held by established dividend growth bloggers with public portfolios. An analysis of stocks in these portfolios reveals Johnson & Johnson (JNJ) to be the most popular holding. I rank stocks by appearance frequency and by proportional weight, taking the relative size of each holding into account. Readers that manage their own dividend growth portfolios may find it interesting to compare their portfolios to the Top Holdings of Dividend Growth Bloggers.

In January 2013, I joined a growing community of dividend growth (DG) bloggers when I created DivGro. As a rookie blogger, I learned a lot by reading other DG blogs and scouring them for good ideas. For me, the best learning came from reviewing the public portfolios of DG bloggers.

Sunday, January 8, 2017

8 Dividend Increases: December 26, 2016-January 6, 2017

Summary

  • Companies that regularly raise their 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.
  • Recently, 8 companies on my watch list announced dividend increases.

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