DivGro Pulse: August 2018

In my monthly pulse articles, I focus on strategy and monitor the health of DivGro, my portfolio of dividend growth stocks. My aim is to reduce portfolio risk, to further diversify my holdings, and to improve the balance of my holdings.

To identify undervalued or overvalued stocks in my portfolio, I perform a comprehensive fair value analysis and update the fair value estimate of every dividend growth stock in my portfolio.

Undervalued stocks may be suitable for further investment and overvalued stocks are candidates to be trimmed or sold.

4 Dividend Increases: August 20-24, 2018

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.

In the last week, four companies on my watch list declared dividend increases, including one of the stocks I own.

Two of the four dividend increases are double-digit percentage increases!

10 Dividend Growth Stocks For August 2018

The CCC list is a wonderful source for dividend growth investors. It contains more than 800 stocks trading on U.S. exchanges with at least 5 consecutive years of increased dividend payments. The accompanying spreadsheet provides fundamental data.

With my monthly 10 Dividend Growth Stocks series, I identify 10 stocks worthy of further research. To create the list, I trim the CCC list to a manageable number of stocks, rank the trimmed list, and assign a 7-star rating to each stock. In my view, stocks rated 5 stars or better are worthy of further analysis.

This month's top 10 list contains five 7-star and five 6-star stocks.

5 Dividend Increases: August 13-17, 2018

Companies that regularly raise their dividend payments show confidence in future earnings growth potential. Monitoring dividend increases for stocks on my watch list helps me identify candidates for further analysis.

This past week, five companies on my watch list announced dividend increases.

Four of the five dividend increases are double-digit percentage increases!

Monthly Review of DivGro: July 2018

Once a month, I review my portfolio of dividend growth stocks, DivGro. The goal of these reviews is to provide a summary of dividends received and to detail buy and sell transactions. I also consider the impact on DivGro's projected annual dividend income (PADI).

In July, I added shares to four existing positions. Additionally, I closed one position and reduced my holdings in one position. Five DivGro stocks announced dividend increases in July. The net result of these changes is that PADI increased by about 0.7% in July. Year over year, PADI increased by 40.2%.

As for dividend income, in July I received dividends totaling $1,231 from 18 stocks in my portfolio, a year over year increase of 68%. So far in 2018, I've collected $10,514 in dividends or about 58% of my 2018 goal of $18,000.

Options Update: July 2018

Welcome to another edition of my monthly options updates!

I write monthly options updates that track the options trades I make in my DivGro portfolio.

These updates serve as a status report on the open options and the obligations I have. I also report new trades and provide a running tally of DivGro's options income to date.

I sell puts on stocks I'd like to own and covered calls on stocks I already own. Occasionally, I execute more speculative options trades such as bull put spreads and other combo trades.

8 Dividend Increases: August 6-10, 2018

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.

In the last week, eight companies on my watch list announced dividend increases.

Three of the dividend increases are double-digit percentage increases.

Recent Sell: Microsoft

In my last Pulse article, I looked at a yield channel chart of Microsoft (MSFT) that clearly shows that the stock is trading at an overvalued yield when looking at historical yield patterns.

MSFT is DivGro's seventh home-run and one of my top performers with annualized total returns of about 55%. It is tough to sell a home-run stock when it is performing so well, but my yield channel chart suggests it is a good time to do so.

I think MSFT has more room to grow, so I decided to sell a portion of my shares and ride the upward trend as long as it lasts. This article presents a short summary of the trades and dividends received as well as a net profit analysis.

18 Dividend Increases: July 30-August 3, 2018

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, 18 companies passing my watch list criteria decided to increase their dividends, including two of the stocks I own.

Two of the dividend increases are double-digit percentage increases.

Home Run Number 18

Well, that was quick!

Only three days ago I reported home run #17—and here I'm back to celebrate home run #18!

Aflac (AFL) beat out Apple (AAPL) to become DivGro's seventeenth home run, but it didn't take the tech giant long to also cross the 100% mark in total returns in my portfolio.

Last time I mentioned that AAPL was involved in another race, with Amazon (AMZN), to become the first ever trillion dollar company. This morning it was widely reported that AAPL reached trillion dollar status, but, in fact, AAPL needed to hit $207.05 to do so.

34 Dividend Increases: July 23-27, 2018 (Part 2: Non-Financials)

Companies that regularly increase dividends show confidence in future earnings growth potential. Monitoring dividend increase announcements helps me identify candidates for further analysis.

In the past week, 34 companies that match my watch criteria announced dividend increases, including one of my portfolio holdings.

Part 1 presented details on dividend increases from the Financials sector stocks. In Part 2 the remaining sectors are covered.

34 Dividend Increases: July 23-27, 2018 (Part 1: Financials)

Companies that regularly raise their dividend payments show confidence in future earnings growth potential. One way to identify dividend growth stocks for further analysis is to monitor dividend increases.

This past week, 34 companies that match my watch list criteria announced dividend increases, including one of the stocks I own.
Part 1 presents details on dividend increases from the Financials sector, while Part 2 will cover the remaining sectors.

Home Run Number 17

It has been more than two months since my last home!

I use the term home run to identify a stock in my portfolio that crosses the 100% mark in total returns.

I expected Aflac (AFL) to become my sixteenth home run, but the stock stubbornly stayed just below the 100% mark for two months running and Valero Energy (VLO) beat AFL to the punch!

Last time I identified two contenders for DivGro's 17^th home run: AFL and Apple (AAPL). And today I'm happy to reveal the winner! Did AFL finally break the 100% barrier, or did AAPL beat AFL to the punch?

DivGro Pulse: July 2018

In my regular DivGro Pulse articles, I focus on strategy and monitor the health of my portfolio of dividend growth stocks. My aim is to reduce portfolio risk, to further diversify my holdings, and to improve the balance of my holdings.

To identify undervalued or overvalued stocks in my portfolio, I perform an extensive fair value analysis and update the fair value estimates of every dividend growth stock in my portfolio. Undervalued stocks are suitable for further investment, while overvalued stocks are candidates for selling.

I create Yield Channel Charts for stocks that appear to be undervalued or overvalued. These charts show market valuation relative to historical yield patterns, creating a fair value or "safety" zone for the stock price. As long as the stock price stays within the safety zone of the yield channel, no immediate action is needed. But if the stock price moves outside the yield channel, I want to be alerted.

31 Dividend Increases: July 16-20, 2018 (Part 2: Non-Financials)

Companies that regularly increase dividends show confidence in future earnings growth potential. Monitoring dividend increase announcements helps me identify candidates for further analysis.

Last week, 31 companies that match my selection criteria declared dividend increases, including three of my DivGro holdings.

Part 1 presented details on dividend increases from the Financials sector stocks. In Part 2 the remaining sectors are covered.

31 Dividend Increases: July 16-20, 2018 (Part 1: Financials)

Companies that regularly raise their dividends show confidence in the potential growth of future earnings. I like monitoring dividend increase announcements because I consider stocks that regularly increase their dividends to be candidates for further analysis.

Last week, 31 companies that match my watch list criteria announced dividend increases. Part 1 presents details on dividend increases from the Financials sector stocks, while Part 2 will cover the remaining sectors.

Quarterly Review of DivGro, Q2 2018

Welcome to the 22^nd quarterly review of DivGro, my portfolio of dividend growth stocks.

My quarterly reviews provide a summary of dividend income, dividend changes, and transactions executed in the past quarter. I also provide some charts showing various portfolio statistics. While these reviews are mostly informational, they help me to track progress over time.

Now in its sixth year of existence, my portfolio generated more than $4,600 of dividend income this quarter and I'm projecting dividend income of at least $5,200 per quarter going forward.

Year-to-date I've collected dividend income of $9,250, so it looks like I'll easily achieve my goal of earning at least $18,000 in in 2018. In fact, I'll probably end up collecting about $20,000 this year!

Options Update: June 2018 (Part 2)

Welcome to Part 2 of my June options update!

With lots of trading activity in June, I decided to split this update into two parts. Part 1 provided a snapshot of June's trades and I reported on expired, closed, and rolled options. I also reviewed the options that expire soon.

Part 2 provides details on new covered call and put contracts, as well as a spread trade I executed last month. It concludes with the usual running tally of the total amount I received from options trades, as well as the options premiums secured due to options that expired.

I added options trading to DivGro in June 2016 to leverage the equity in my portfolio and to generate additional income. To date, I've collected a total of $32,671 in options income.

Options Update: June 2018 (Part 1)

I added options trading to DivGro in June 2016 to leverage the equity in my portfolio and to generate additional income.

The purpose of these monthly options update articles is to report my options trades and to keep track of the options income so generated.

With lots of trading activity in June, I decided to split this update into two parts. Part 1 provides the usual recap and a snapshot of June's trades. I report on expired, closed, and rolled options, and review a list of options that expire soon. Part 1 concludes with a look at how I'm doing with regards to my secured options income goal.

Part 2 will provide details on new covered call and put contracts, as well as a spread trade I executed last month. I'll also provide the usual running tally of the total amount I received from options trades, as well as the options premiums secured due to options that expired.

10 Dividend Growth Stocks For July 2018

The CCC list is a valuable source for dividend growth investors.

Previously compiled by the late David Fish and now maintained by Justin Law, the CCC list contains U.S. companies with streaks of at least 5 years of higher dividend payments. The accompanying spreadsheet provides key statistics of the CCC stocks.

In my monthly 10 Dividend Growth Stocks series, I identify 10 CCC stocks for further research. To create the list, I rank a selection of the CCC stocks and assign a 7-star rating to each stock. Stocks rated 5 stars or better are worthy of further analysis. This month's top 10 list contains two 7-star and eight 6-star stocks.

12 Dividend Increases: July 2-13, 2018

Companies can only raise their dividends sustainably if they grow earnings sufficiently. I monitor dividend increase announcement to identify candidates for further analysis.

In the past two weeks, 12 companies declared dividend increases, including one of the stocks I hold in my portfolio.

Four of the dividend increases are double-digit percentage increases.

Monthly Review of DivGro: June 2018

Welcome to the monthly review of DivGro, my portfolio of dividend growth stocks.

The goal of these reviews is to provide a summary of dividends received and to detail buy and sell transactions. I also consider the impact on DivGro's projected annual dividend income (PADI).

In June, I opened six new positions and added shares to five existing positions. Additionally, I closed two positions and reduced my holdings in one position. Eight DivGro stocks announced dividend increases in June. The net result of these changes is that PADI increased by about 2.6% in June. Year over year, PADI increased by 40.2%.

5 Dividend Increases: June 25-29, 2018

Companies that regularly increase dividends show confidence in future earnings growth potential. I monitor dividend increases for dividend growth stocks to identify candidates for further analysis.

In the past week, five companies decided to increase their dividends, including one of my DivGro holdings.

Three of the dividend increases are double-digit percentage increases.

5 Dividend Increases: June 18-22, 2018

Companies can only raise their dividends sustainably if they grow earnings sufficiently. I like to monitor dividend increase announcements to find candidates for further analysis.

Last week, five companies on my watch list announced dividend increases, including three of my DivGro holdings.

Two companies impressed with double-digit percentage increases.

7 Dividend Growth Stocks With Consistent Earnings Growth

As a dividend growth investor, I highly value consistent earnings growth.

Consistent earnings growth gives a company options, either to grow the business, to retain the earnings, or to return it to shareholders as dividends or share buybacks. Of course, I'm mostly interested in dividends, so I look for consistent dividend growth commensurate with consistent earnings growth.

For the purposes of this article, I consider earnings growth to be consistent if a graph of the earnings over the past ten years increases monotonically.