I was very fortunate with a strong start for the year with a 43% growth YoY. The market got very volatile in February and March with the further spread of the coronavirus. I always love bouncing stock prices especially after disappointing earnings reports. So I’m really looking forward to next week as big banks will publish their first quarter results. Man, do short-term oriented people freak out. We will have down months, quarters and even years with some dividend aristocrats and dividend kings once in a while. But that’s the nature of doing business. Sometimes the road gets bumpy. And once in a while the stock market gets hit hard in an unpredictable way. Just like now. But increasing a dividend for more than 50 years should give us peace of mind to endure. Let’s trust these smart people in the boardroom, which is something different than being naive or indifferent.
Let’s see what February was all about…
As you can see in the table below the total of dividends for February was $394.55. A new record with a 46% increase YoY and a 12% QoQ. As you can see the new positions in comparison with February 2019, Abbie (ABBV) and Simon Property Group (SPG), contributed in a meaningful way.
The following chart shows the monthly progress for the last four years. I like the direction: up, up, up. It looks like I’m going to pass the number of $400 within a quarter. Just wow!
Also in terms of buys February was an exciting month. I made three buys during the first half of the month: Broadcom (AVGO), Cisco (CSCO) and Exxon Mobil (XOM). It was clear to me I had to work on a larger exposure to the technology sector. So I finally pulled the trigger. Broadcom (AVGO) and Cisco (CSCO) are new positions which I’d love to increase at attractive valuation multiples and dividend yields in the near future.
I also decided to sell my position in Ventas (VTR) in February, because of two reasons. First, they haven’t increased their dividends for some years now and I’d like to have significant more positions with a higher dividend growth rate. The second reason is I’d like to scale down my exposure to maybe four REIT’s. With the money I got from selling Ventas (VTR) I bought (additional) shares of other companies during the second half of February, as stated in the table below.
Additional new positions for me are Caterpillar (CAT) and T. Rowe Price (TROW). They successively have increased their dividends with 10 and 33 years. Although the streak of dividend increases for 10 years seems short, Caterpillar (CAT) has paid a cash dividend every year since the company was formed and has paid a quarterly dividend since 1933. The quarterly dividend of T. Rowe Price (TROW) has grown at an average 11% per year over the past decade. Just impressive! As you can see I also averaged down my position in Cisco (CSCO).
In summary, February was another good month with high dividend growth numbers YoY and four new positions at very attractive prices and dividend yields. My total dividend income for the fist two months of 2020 was $704.71 which is already more than the total of the first three months in 2019 ($629.02).
I’ll post my progress for the month of March shortly.