Recent Buy: HCP Inc.

17 Feb 2016: Bought 90 shares of HCP at $27.58 per share. Formed in 1985 and based in Irvine, California, HCP, Inc (NYSE:HCP) is an independent hybrid REIT (real estate investment trust). The company invests primarily in properties serving the healthcare industry in the United States, including sectors such as senior housing, life science, medical office, hospital and skilled nursing. HCP acquires, develops, leases, manages and disposes of healthcare real estate and provides financing to healthcare providers.

HCP is a Dividend Champion with an impressive track record of 31 consecutive years of dividend increases. The company pays quarterly dividends of 57.5¢ per share in the months of February, May, August and November.

At my buy price of $27.58, the stock yields 8.34%. Adding 75 shares of HCP to DivGro increases projected annual dividend income by $207.

19 Dividend Increases, February 22-February 26, 2016

Includes: ALB • BBY • BGS • CB • CHS • CNS • ETN • IPCC • KSS • KW • MGA • MGRC • MIC • SWX • TD • WM • WYN

Summary

• This past week, 19 companies on my watch list of dividend growth stocks announced dividend increases, including 3 of the stocks I own. 
• 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.

10 Dividend Growth Stocks for February 2016

Includes: CMI • EMR • HRL • LAZ • LOW • MGA • NKE • NOV • PII • VLO 

Summary

• Every month, I rank a selection of the CCC stocks to identify top candidates worthy of further analysis.
• Using several screens, my selection process 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.
• This article reveals February's top 10 ranked stocks.

Monthly Review, January 2016

January was a tough month for investors. The new year started with lots of volatility and a wave of selling, which pushed the market to its worst weekly performance since 2011. Both the S&P 500 and the Dow Jones are down by more than 5% for the month. For dividend growth investors, the declining market should offer some great buying opportunities.

In the next few months, 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. I'm also planning to transfer stocks from a couple of IRA accounts in a similar fashion. As with my Scottrade transfers, I'm not actually moving the holdings from one account to the other. (I'm not allowed to do that with IRA holdings anyway!). Instead, I'll just be managing these accounts using my DivGro investment strategies.

In this post, I'd like to review DivGro's performance in the month of January 2016. As always, I'm updating DivGro's Performance page at the same time.

14 Dividend Increases, February 15-February 19, 2016

Includes: ADI • CCE • DLR • GPC • KO • NHI • SCG • SHW • STR • TROW • WMT • WRI • WSBC • XEL 

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, 14 companies on my watch list announced dividend increases, including 4 of the stocks I own.

Recent Sell: ConocoPhillips

2015-02-05: Sold 85 shares of COP at $32.55 per share.

On Thursday, February 4, oil major ConocoPhillips (NYSE:COP) slashed its quarterly dividend by 66%, from 74¢ per share to 25¢ per share. This is the first dividend reduction by COP in about 25 years. With this cut, COP will be removed from the CCC list and, specifically, from the list of Dividend Contenders (10-24 consecutive years of dividend increases).

Global crude oil prices have plummeted from the 2014 high price of over $100 a barrel, making it hard for energy companies to maintain profitability. For COP, which split from refiner Phillips 66 (NYSE:PSX) in 2012, the challenge is even greater. As an independent upstream company, COP is primarily engaged in the discovery, exploration and production business. It relies heavily on the crude oil price to generate cash flow and earnings.

Annual Review, 2015

This is my 3^rd annual review of DivGro, my portfolio of dividend growth stocks. I created DivGro in January 2013 to generate a reliable and growing dividend income stream.

Keeping track of DivGro in a public forum has helped me to become a better dividend growth investor. Much of my learning has come from the research I do while writing articles, but I've also learned a lot from interacting with like-minded investors. So, a big Thank You! to all my readers for their support, encouragement and comments. Please keep it coming!

In this article, I'll be reviewing DivGro's 2015 performance by looking at the portfolio's overall performance as measured by rate of return, dividend income, dividend growth, and yield on cost (YoC). I'll also review some of DivGro's 2015 highlights.

17 Dividend Increases, February 8-February 12, 2016

Includes: BPL • CHD • CMP • CSCO • DPS • HAS • KMB • LLL • NEE • NUS • NWE • OMI • RAI • RHI • TRI • UPS • WGL

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.
• Companies that regularly increase dividends show confidence in future earnings growth potential. 
• Last week, 17 companies on my watch list announced dividend increases, including 3 of the stocks I hold in my DivGro portfolio.

Recent Buy: The Walt Disney Company

2016-02-03: Bought 27 shares of DIS at $95.43 per share. 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 currently pays a dividend of 71¢ per share semi-annually. At the current price of $92.11, the stock yields 1.54%. The company has a 6-year streak of dividend increases.

Another Home Run With DivGro

It has been a while since I celebrated my first home run with DivGro.

I call it a home run when an investment crosses the 100% profit mark. When that happens, you could sell half your shares and play with the house's money. Of course, that kind of thinking is a remnant of my days as a speculator. Selling half of a doubler ensures that you'll likely end up in the black. It also lets your winners ride.

Dividend growth investing is a bit different. The strategy is to invest in companies that pay and regularly increase dividends and trade at or below fair value. In theory, a company that increases its dividend every year can do so sustainably only if it grows earnings sufficiently. If that happens, the market should reward the company by bidding up the share price.

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: