12 Dividend Increases, February 1-February 5, 2016

Includes: ADM • AVA • BIP • ES • GLW • HOG • IR • LB • MDP • MMM • PPL • SEP 

Summary

• This past week, 12 companies on my watch list announced dividend increases, including 3 of the stocks I hold in my DivGro portfolio. 
• I monitor dividend increases for stocks in my watch list to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
• Companies that regularly increase dividends show confidence in the potential growth of future earnings.

Recent Transfer: Nuveen Premium Income Municipal Fund 2, Inc.

Nuveen Premium Income Municipal Fund 2, Inc. (NYSE:NPM) is a diversified closed-end investment company. The fund's objective is to seek current income exempt from regular federal income tax. A secondary investment objective is the enhancement of portfolio value.

Since November 2015, I have been transferring stocks from my portfolio at Scottrade to DivGro. Altogether, I've transferred 16 stocks and added $1,934.02 to DivGro's projected annual dividend income.

I have 3 more transfers to go, but these will be closed-end funds rather than stocks.

Recent Transfer: Main Street Capital Corporation

Main Street Capital Corporation (NYSE:MAIN) is a principal investment firm that provides customized debt and equity financing to lower middle market companies and debt capital to middle market companies. The company invest primarily in secured debt investments, equity investments, warrants, and other securities of companies based in the United States. MAIN was founded in 1997 and is based in Houston, Texas.

MAIN pays dividends monthly and has a 5-year streak of dividend increases. The current annual dividend of yield is $2.18, which means the stock yields 7.48% (at a price of $28.89).

Recent Buy: Ford Motor Company

2016-01-26: Bought 280 shares of F at $12.24 per share. 2016-01-29: Bought 150 shares of F at $11.77 per share.

Founded in 1903 and based in Dearborn, Michigan, Ford Motor Company (NYSE:F) manufactures and distributes automobiles worldwide. The company has around 62 plants across the world and offers vehicles primarily under the Ford and Lincoln brand names. Ford sells its products through distributors and dealers, as well as through dealerships to fleet customers. The company provides vehicle financing products through a wholly owned subsidiary, Ford Motor Credit Company LLC.

I already own 170 shares of Ford, which I bought in November 2014 at an initial yield on cost (YoC) of 3.96%. YoC for the 2 buys is 4.9% and 5.1%, respectively, and the average YoC of my Ford holding is 4.64%.

17 Dividend Increases, January 25-January 29, 2016

Includes: AIT • AJG • BKH • CINF • CNI • CPT • ETH • GMT • HCN • HCP • NP • NWBI • PAG • PII • PX • SXL • TMP  

Summary

• I monitor dividend increases for stocks in my watch list of dividend growth stocks to identify candidates for further analysis.
• Another reason I monitor dividend increases is to make yield on cost adjustments for stocks in DivGro, my portfolio of dividend growth stocks.
• This week, 17 companies on my watch list announced dividend increases, including one of the stocks I own.

12 Dividend Increases: January 18 To January 22, 2016

Includes: ATR • BRO • CMS • CNP • D • FAF • FIBK • INTC • LLTC • TLLP • WAFD • WES 

Summary

• Companies that regularly increase dividends show confidence in the potential growth of future earnings.
• I monitor dividend increases for stocks in my watch list to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
• In the past week, 12 companies on my watch list announced dividend increases, including two of the stocks I hold in my DivGro portfolio.

10 Dividend Growth Stocks for January 2016

Includes: CMI • EMR • HP • IBM • LAZ • LOW • PII • TROW • VIAB • VLO 

Summary

• After several months on hiatus, I'm restarting my monthly 10 Dividend Growth Stocks series.
• Every month, I'll rank a selection of the CCC stocks to identify top candidates worthy of further analysis.
• This article explains the selection process, which trims the CCC list of more than 750 dividend growth stocks to a more manageable number of candidates.
• I rank the remaining stocks based on fundamental analysis and a multi-stage dividend discount model and assign a 7-star rating to each of the top ranked stocks.
• The article reveals January's top 10 ranked stocks.

12 Dividend Increases: December 20, 2015-January 15, 2016

Includes: ATR • BRO • CMS • CNP • D • FAF • FIBK • INTC • LLTC • TLLP • WAFD • WES 

Summary

• 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.
• Recently, 12 companies on my watch list announced dividend increases, including 3 of the stocks I hold in my DivGro portfolio. 
• Companies that regularly increase dividends show confidence in future earnings growth potential.

Quarterly Review, Q4-2015

This is the 12^th quarterly review of DivGro, concluding 3 years of dividend growth investing and blogging. Soon I'll post an annual review of my portfolio's performance in 2015.

In my previous quarterly review (Q3-2015) I talked about big plans for Q4-2015, including selling stocks I no longer believe should be in my portfolio and merging the holdings of my Scottrade portfolio with those in DivGro. So I'll be reporting on those moves as well as DivGro's performance in Q4-2015.

Monthly Review, December 2015

The new year started with increased volatility in the stock market. The first week of trading ended with a wave of late selling, pushing the market to its worst weekly performance since 2011. The dismal start to 2016 follows on concerns about China's economy slowing down. Both the S&P 500 and the Dow Jones are down by 6% for the week, while the Nasdaq declined more than 7%.

For dividend growth investors, the declining market should offer some great buying opportunities. I'm looking forward to deploying some of the cash available in my DivGro portfolio. In January and February, I'll continue to transfer holdings from my Scottrade account to DivGro. In the process, I'm adding some solid dividend paying stocks and increasing DivGro's projected annual dividend income.

In this post, I'd like to review DivGro's performance in the month of December 2015. Later this month, I'll write quarterly and annual reviews as well. I'll be updating DivGro's Performance page so
readers can review DivGro's status and performance relative to the market and to prior months.

Recent Transfer: The Walt Disney Company

The Walt Disney Company (NYSE:DIS), more commonly known as Disney, is a diversified international family entertainment company based in Burbank, California. Founded on October 16, 1923, by Walt Disney and Roy O. Disney, the company established itself as a leader in the American animation industry before diversifying into live-action film production, television, and theme parks. Today, Disney operates in five business segments: media networks, parks and resorts, studio entertainment, consumer products and interactive media.

DIS pays dividends semi-annually in the months of January and July. The company has a 6-year streak of dividend increases. At the current price of $105.07 the stock yields 1.35%.

Recent Transfer: Ford Motor Company

Founded in 1903 and based in Dearborn, Michigan, Ford Motor Company (NYSE:F) manufactures and distributes automobiles worldwide. The company has around 62 plants across the world and offers vehicles primarily under the Ford and Lincoln brand names. Ford sells its products through distributors and dealers, as well as through dealerships to fleet customers. The company provides vehicle financing products through a wholly owned subsidiary, Ford Motor Credit Company LLC.

Ford started paying dividends again in 2012 after suspending them in 2006 when the company was close to bankruptcy. At the hight of the global financial crises, Ford famously supported competitors General Motors and Chrysler as they requested government bailout loans. Ford declined the same, but requested a $9 billion credit line. The company returned to profitability in 2009 and Ford's corporate bonds were upgraded from junk to investment grade in 2012.

The company pays quarterly dividends of 15¢ per share in the months of January, April, July and October. At the current price of $14.09, the stock yields 4.26%.

Recent Transfer: Dr Pepper Snapple Group, Inc.

Incorporated in 2007 and headquartered in Plano, Texas, Dr Pepper Snapple Group, Inc. (NYSE:DPS) is one of the largest beverage companies in the Americas. DPS has a diverse portfolio of flavored carbonated soft drinks, including brands such as Dr Pepper, Sunkist, and 7-UP, as well as non-carbonated beverages such as Snapple, Hawaiin Punch and Rose's.

DPS is a Dividend Challenger with a 6-year streak of annual dividend increases. The company pays quarterly dividends of 48¢ per share in the months of January, April, July and October. At the current price of $93.20, the stock yields 2.06%.

DPS is the 13^th stock that I'm transferring from my portfolio at Scottrade to DivGro.

Recent Transfer: Reynolds American, Inc.

Reynolds American, Inc. (NYSE:RAI) is a holding company. Through its subsidiaries, RAI manufactures and sells cigarettes and other tobacco products in the United States. The company also provides electronic cigarettes. It distributes its products primarily through direct wholesale deliveries from a local distribution center and public warehouses. RAI was founded in 2004 and is headquartered in Winston-Salem, North Carolina.

RAI is a Dividend Contender with an 11-year streak of annual dividend increases. The company pays quarterly dividends of 36¢ per share in the months of January, April, July and October. At the current price of $46.17, the stock yields 3.12%.

RAI is the 12^th stock that I'm transferring from my portfolio at Scottrade to DivGro.

So Long, Seadrill

Yesterday, I closed all my MLPs (master limited partnerships).

I no longer want to own MLPs because I don't like dealing with the somewhat complicated tax reporting requirements. I'm not in a particularly good mood when I'm filing taxes, so dealing with obscure details and confusing variations in Schedule K-1's is not my idea of fun.

Today is the third anniversary of DivGro's founding, although my first post announcing the blog appeared on 10 January 2013. It has been an exciting 3 years!

I created DivGro to generate a reliable and growing dividend income stream. By keeping track of the portfolio and interacting with like-minded investors, I've become a better dividend growth investor. I've learned a tremendous amount about dividend growth investing. Some of the lessons have been painful, but looking at the bright side:

Out With The Old

Earlier, I reported closing a tax harvest trade on Qualcomm Inc (NASDAQ:QCOM). Because I still like QCOM, I decided to double down in November and wait 31 days before selling my original shares. In doing so, I took a loss on QCOM for the sake of tax-loss harvesting, but I also grabbed a larger dividend in December and managed to reduce QCOM's cost basis!

In November, I wrote about some big changes coming to DivGro. One change I mentioned was selling stocks I no longer believe should be in my portfolio. I sold PennyMac Mortgage Investment Trust (NYSE:PMT) and Textainer Group Holdings Limited (NYSE:TGH) after both companies cut their dividends. I also mentioned that several other stocks were in my crosshairs but that I'm waiting for one last dividend payment before selling my shares.

With this post, I'm reporting on these trades. I've decided to reduce DivGro's exposure to Energy sector stocks and to get rid of all master limited partnership (MLP) holdings. The losses I'm booking with these trades hurt a lot. On the bright side, though, I've learned a valuable lesson and renewal is liberating!

Completing QCOM Tax-loss Harvesting

In November, I wrote about the other way to harvest tax losses. Instead of selling a losing position
in December to offset capital gains and so limit your tax liability, you could double down by buying an equivalent number of shares in November, wait 31 days and then sell the original position in December before year's end.

I mentioned potentially benefiting from doubling down, including the so-called Santa Clause rally when stock prices generally increase over the final week of trading. Should the market rally, you'll end up with a smaller loss on your original position and gain on the new position.

While reviewing my portfolio, I identified Qualcomm Inc (NASDAQ:QCOM) as a candidate for tax-loss harvesting. At the time, QCOM was trading at $49.10 for an unrealized loss of nearly 25%. One added benefit of doubling down on my QCOM position was that I would have received a larger dividend payment in December.

The Blogger's Dividend Growth Portfolio, 2015 Edition

This article originally appeared on The DIV-Net on Wednesday, 23 December 2015.

In January 2013, I joined a growing number of dividend growth investment (DGI) bloggers when I created DivGro. As a starting DGI blogger, I learned a lot by reading other DGI blogs and mimicking what seemed to be good ideas. For me, the best learning came from reviewing the portfolios of DGI bloggers who chose to make their portfolios public.

My blogroll contains over 100 DGI blogs and I include links to public portfolios. Having direct access to public portfolios gives me a quick overview of a blogger's investment philosophy. By now, I know most of the tickers usually found in DGI portfolios, so a quick glance at a public portfolio tells me a lot. Of course, if bloggers choose to include more details than just a list of tickers, that is most useful.

Recently, I updated my blogroll by separating blogs into different categories based on date and activity. New Blogs are blogs that are less than one year old. More established blogs are either Active Blogs (blogs with at least 50 posts in the past year) or Steady Blogs (blogs with fewer than 50 posts in the past year). I also have an Honor Roll containing well-known and popular blogs that contain high quality or inspirational articles.

Recent Transfer: Gilead Sciences, Inc.

Gilead Sciences, Inc (NASDAQ:GILD) is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines. The company’s primary areas of focus include human immunodeficiency virus, liver diseases such as chronic hepatitis C virus infection and chronic hepatitis B virus infection, oncology and inflammation, and serious cardiovascular and respiratory conditions. GILD markets its products through commercial teams and in conjunction with third-party distributors and corporate partners. The company was founded in 1987 and is headquartered in Foster City, California.

GILD only recently started paying dividends. So far, the company has paid 3 quarterly dividends of 43¢ per share. At the current price of about $103.58, the stock yields 1.66%.

7 Dividend Increases, December 7 To December 18, 2015

Includes: BEN • O • PFE • PNR • THG • UBA • WPC 

Summary

• I monitor dividend increases for stocks on my watch list to identify candidates for further analysis and to make yield on cost adjustments for stocks I own.
• Companies that regularly increase dividends show confidence in future earnings growth potential. 
• In the past 2 weeks, 7 companies on my watch list announced dividend increases, including 3 holdings in my DivGro portfolio.

Goals for 2016

With a week to go before Christmas, I think it is a good time to set new goals for DivGro for 2016!

2015 has been a busy year for DivGro and I've achieved some challenging goals. I increased projected annual dividend income from $4,900 to about $8,000, some $500 above my 2015 goal. Also, 2015 dividend income stands at $7,700, which easily beats my goal of $6,000 for the year.

I'm on track to achieve several of the other goals I set for 2015, which is great news! Although I'll miss out on a couple of my goals, I consider that as inspiration to try harder next year. Of course, if you easily achieve all the goal you've set, perhaps they were not challenging enough!

Before listing my 2016 goals, I'd like to state some assumptions and commitments:

Recent Transfer: Union Pacific Corporation

Omaha, Nebraska-based Union Pacific Corporation (NYSE:UNP) operates through its principal operating company, Union Pacific Railroad Company. The company operates the largest public railroad in North America, with 32,000 miles of track linking 23 states in the western two-thirds of the United States. UNP hauls coal, industrial products, intermodal containers, agricultural goods, chemicals, and automotive products. UNP owns a quarter of Mexican railroad Ferromex. The company was founded in 1862.

UNP is a Dividend Challenger with a 9-year streak of annual dividend increases. The company pays quarterly dividends of 55¢ per share in the months of March, June, September and December. At the current price of about $78.10, the stock yields 2.82%.

Recent Transfer: Texas Instruments, Inc.

Texas Instruments, Inc. (NASDAQ:TXN) designs, makes and sells semiconductors to electronics designers and manufacturers worldwide. The company operates mainly through two segments, Analog and Embedded Processing. It markets and sells products through a direct sales force and through distributors. TXN was founded in 1930 and is headquartered in Dallas, Texas.

TXN is a Dividend Contender with a 12-year streak of annual dividend increases. The company pays quarterly dividends of 38¢ per share in the months of February, May, August and November. At the current price of about $58, the stock yields 2.62%.

Recent Transfer: Pfizer Inc

Headquartered in New York and founded in 1849, Pfizer Inc (NYSE:PFE) is one of the world's largest pharmaceutical firms, with annual sales of about $50 billion. The company is engaged in discovering, developing and manufacturing of healthcare products. Prescription drugs and vaccines account for almost 90% of PFE's sales. Top sellers include the meningitis vaccine Prevnar 13, the impotence drug Viagra, and Lyrica for epilepsy and some forms of neuropathic pain. The company sells products globally with international sales accounting for about 60% of total sales.

PFE just recently made a comeback to the CCC-list, a list of dividend growth stocks with at least 5 consecutive years of dividend increases. PFE was dropped from the CCC list in 2009 following a dividend cut. At the time, the company was a Dividend Champion with a 41-year streak of dividend increases. Of course, now PFE is a Dividend Challenger.

15 Dividend Increases, November 23 To December 4, 2015

Includes: BDX • CHRW • DFT • DIS • EMN • ENB • ERIE • GGG • HRL • LG • MKC • MRK • SJI • VAL • WEC

Summary

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