Tuesday, June 20, 2017

10 Dividend Increases: June 5-16, 2017


Companies that regularly raise 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, ten companies on my watch list decided to increase their dividends, including three of my DivGro holdings.

Sunday, June 18, 2017

DivGro Pulse: June 2017

Welcome to another Pulse article! The goal of my monthly Pulse articles is to monitor the health of DivGro, my portfolio of dividend growth stocks. These articles are strategy focused and help me to identify undervalued stocks suitable for further investment. I also want to identify underperforming stocks, which should be monitored carefully. If a stock underperforms for a prolonged period of time, it should be removed from my portfolio.

Because of how I schedule my other monthly articles, I like to publish my pulse articles mid-month. Updating the fair values of every stock in DivGro 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. I also consider fair value estimates and price targets available elsewhere, such as those from Morningstarfinbox.io, and S&P Capital IQ.

I hope you find my pulse articles worth the read!

Thursday, June 15, 2017

Top Holdings of Dividend ETFs (June 2017 Edition)

In December last year, I presented the Top Holdings of Dividend ETFs, a virtual portfolio of dividend growth stocks compiled from 27 ETFs (exchange-traded funds) that invest in dividend-paying stocks. By analyzing the top 25 holdings in each ETF and assigning weights proportional to the size of each holding, it is possible to rank them and so find the top holdings of all these dividend ETFs.

This article presents an updated list for June 2017 compiled from 28 dividend ETFs. I present the top 50 holdings along with key statistics and fair value estimates from Morningstar.

Saturday, June 10, 2017

Monthly Review: May 2017


Welcome to monthly review number 53 of DivGro, my portfolio of dividend growth stocks!

After last month's disappointing total, I'm happy to say that I added dividend income totaling $1,278 in May.

This amount includes $460 in past dividends and $818 in new dividends. Past dividends are from a stock in one of my wife's IRA's, which I'm now managing as part of DivGro.

Friday, June 9, 2017

10 Dividend Growth Stocks For June 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 it 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.

Tuesday, June 6, 2017

4 Dividend Increases: May 29-June 2, 2017


Companies that regularly raise 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, 4 companies on my watch list announced dividend increases.

Sunday, June 4, 2017

500

The last time I wrote a milestones article, I had just crossed half million page views. I posted the article (number 370 on DivGro) on 17 July 2016. Today's article is number 500 and I'm closing in on 850,000 page views!

Page views and number of articles are nice numbers to track and I'm happy to celebrate milestones, but DivGro is about generating a reliable and growing dividend income stream and I'm much more interested in seeing how DivGro's projected annual dividend income increases over time.

As with all these milestone articles, I hope to encourage other dividend growth investment (DGI) bloggers and to help this wonderful community go from strength to strength!

Friday, June 2, 2017

Options Update: May 2017

I report my options trading activity monthly, usually shortly 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.

In last month's option update I added $1,184 to my tally of secured options income. This month I'm adding $1,602 more. I'm getting close to achieving my goal of earning $8,400 in options income in 2017. At this pace, I'll have to revise my goal upwards! Is it realistic to go for $12,000 instead? I wonder.

In May, two options got assigned, two expired, and I closed one option early. Also, I rolled forward three trades and sold one put. Following are details of all my options trades.

Wednesday, May 31, 2017

Results of My Guest Posts Survey

Earlier this month I asked readers to express their thoughts on whether DivGro should publish guest posts.

I posed questions like Would adding guest posts be helpful? and Would other dividend growth (DG) bloggers want to write guest post for DivGro?

Today's post answers these questions and provides a summary of the survey results.

Monday, May 29, 2017

9 Dividend Increases: May 22-26, 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 week, 9 companies on my watch list announced dividend increases.

Tuesday, May 23, 2017

8 Dividend Increases: May 15-19, 2017


Companies can only increase their dividends regularly if they sufficiently grow 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, 8 companies on my watch list announced dividend increases, including 2 of my DivGro holdings.

Sunday, May 21, 2017

Recent Transfer: INTC

Intel Corporation (INTC) is an American multinational semiconductor chip maker corporation with headquarters in Santa Clara, California. Intel makes motherboard chipsets, network interface controllers and integrated circuits, flash memory, graphic chips, embedded processors and other devices related to communications and computing. INTC the world's largest and highest valued semiconductor chip maker, based on revenue.

INTC pays quarterly dividends in the months of March, June, September, and December. Recently, the company increased its dividend by 4.81% to 27.25¢ per share. At $35.40, INTC yields 3.08%.

The stock is no longer on the CCC list because the company failed to increase the dividend in 2014. With increases in 2019 and 2020, INTC will once again earn Dividend Challenger status.

Friday, May 19, 2017

Monthly Review: April 2017

Welcome to another monthly review of DivGro, my portfolio of dividend growth stocks. I founded DivGro in January 2013 to generate a reliable and growing dividend stream, and this is monthly review number 52!

After last month's record-breaking dividend income total, April's total was quite disappointing. As a matter of fact, the last time I earned less than $415 in a single month was way back in October 2015.

So why the big drop?

The main reason is that I closed my PennantPark Investment (PNNT) position in February and so gave up a fairly large dividend. Specifically, in April 2016, I collected $531 just from PNNT... and dividend income totaling $651. This month, without the boost from PNNT, I collected only $414.

Tuesday, May 16, 2017

Options Update: April 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.

Things are still hectic, as I seem to have more work to do than time to do these days. So this update is a bit late, once again, as May's options expiration Friday is upon us!

In my options update for March, I reported on two option assignments, one options expiration, three rolled trades, and one put option trade. My options trading activity was rather light in March, so I added only $271 to my tally of secured options income.

In contrast, April's options trading activity was quite heavy!

Saturday, May 13, 2017

16 Dividend Increases: May 8-12, 2017


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 last week, 16 companies on my watch list announced dividend increases.

Thursday, May 11, 2017

10 Dividend Growth Stocks For May 2017

David Fish maintains a list of stocks with at least five consecutive years of paying higher dividends. Colloquially called the CCC list, it contains more than 800 dividend growth stocks trading on U.S. exchanges. The CCC list and the accompanying spreadsheet is a wonderful source for dividend growth investors and I've been using it for years.

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.

Tuesday, May 9, 2017

16 Dividend Increases: May 1-5, 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.

This week, 16 companies on my watch list decided to increase their dividends, including two of the stocks I own. Four of the sixteen stocks announced double-digit percentage increases.

Sunday, May 7, 2017

Guess Posts on DivGro?

Today's post posts a question to you, my DivGro readers. And the question is one that requires some action if you want to help guide the future of DivGro.

I founded DivGro in January 2013 and joined a growing community of dividend growth (DG) bloggers tracking their portfolios online.

By interacting with like-minded investors, I've become a better DG investor. I've learned a tremendous amount about DG investing, how to value dividend stocks, and, frankly, the benefits of blogging.

Wednesday, May 3, 2017

DivGro Pulse: April/May 2017

I decided to combine the April and May editions of DivGro Pulse, as we'll be taking a vacation break in mid-May when I usually publish pulse articles.

Pulse articles are strategy focused. I update fair value estimates for every stock in my portfolio 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.

Sunday, April 30, 2017

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


Companies that regularly increase their dividend show confidence in their ability to grow earnings. I monitor dividend increases to identify candidates for further analysis.

In the last week, 28 companies on my watch list announced dividend increases, including three of the stocks I hold in my portfolio.

Part 1 of this article covered stocks in the Financials sector. This is Part 2, which covers the non-Financials.

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 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.

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