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Friday, April 13, 2018

Why I Added Comcast To My Dividend Growth Portfolio

It has been quite a while since I last wrote a stock analysis.

In the March edition of my 10 Dividend Growth Stocks series of articles on Seeking Alpha, two stocks that I did not own ranked in the top 10: Comcast (CMCSA) and Pfizer (PFE).

I previously own PFE but sold the stock in November 2017 when call options I had sold got exercised. Rather than reopen a position in PFE, I decided to build my cash reserves and look for other opportunities. PFE consistently ranked below #40 in my monthly pulse articles and received either 3 or 4 stars ratings.

But CMCSA looked interested, especially following a 21% increase in its quarterly dividend payment and a sudden drop in its share price after news came out of a possible offer to buy UK satellite television provider Sky.

Founded in 1963 and headquartered in Philadelphia, Pennsylvania, Comcast is a global media and technology company with two primary businesses, Comcast Cable and NBCUniversal. The company's Comcast Cable business provides video, Internet, and voice services to residential customers under the XFINITY brand. The company’s NBC Universal business consists of cable networks, broadcast television, filmed entertainment, and theme parks.

CMCSA is a Dividend Contender with a track record of 11 consecutive years of higher dividend payments and a solid 5-year dividend growth rate of 15%. The stock pays quarterly dividends in the months of January, April, July, and October.

CMCSA ranked sixth of my top ten ranked dividend growth stocks for March 2018. On 24 January 2018, CMCSA announced a 21% increase in its quarterly dividend payment. On the same day, the stock recorded an all-time high of $44.00 per share. Now the stock is trading about 22% below the all-time high. As a result, CMCSA is trading at a 5-year high yield of 2.23%.

Please read this article at Seeking Alpha for a detailed stock analysis of CMCSA and to learn why I added shares to my DivGro portfolio.

On 22 March 2018, I added 150 shares of CMCSA @ $33.60 per share. The buy adds $114 to DivGro's projected annual dividend income. 

Please feel free to leave comments on this article either at Seeking Alpha or here, on my blog. I'll do my best to respond to each comment as quickly as possible.

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