Watchlist For September 2019

After publishing my August results in terms of dividend income and growth figures, I decided to write down my watchlist for September. Many stocks appear to be overvalued at the moment, especially when you consider their most recent growth rates of revenues and earnings. But if you look closer, then you’re always able to discover some high-quality businesses trading at attractive valuation numbers. Here’s my shortlist:

Johnson & Johnson (JNJ): this one needs no introduction in the dividend investing community. Although the P/E seems to be on the high side, the forward P/E of 15 looks very attractive. Buying this beauty for a price below $130 immediately gives you a nice dividend yield to start with: 3%. Their latest dividend increase was 5.6% and I think management is targeting for such a dividend growth rate in the near future. There’s nothing wrong with that, while cruising through the next economic recession. Besides, they’ve increased their dividends for 56 years in a row; with this company in our portfolios, we’ll sleep well at night. I’ve always considered my portfolio as incomplete without JNJ. Adding this wonderful business to my nest with eggs means some extra dividend income in “my lower income” months. That would be nice.

Simon Property Group (SPG): another REIT? Yes, but one of the best, just like Realty Income (O). I don’t think a retail apocalypse is at hand. Look where Target (T) and Walmart (WMT) are trading at the moment in comparison to, let’s say, two years ago. I’m confident SPG will continue to do just fine in this low-interest environment and during the looming recession. They have a strong balance sheet and will also be able to refinance some of their debt if interest rates stay low. The extra cash could be used to ramp up their share buyback program. SPG also has a credit rating of A or likewise from other credit rating agencies. Their most recent dividend increase was 2.5%. SPG has a streak of 9 years increasing their dividend. This quality name trades at a high 5.5% dividend yield at the moment. Initiating a position in this company increases the amount of money I receive in the months with my highest dividend income.

Other candidates would be Abbvie (ABBV), Altria (MO) and Exxon Mobil (XOM). This would mean increasing my position, which doesn’t feel like the right thing to do as I consider these positions already full positions. Especially relative to other positions in my portfolio. I’m also checking out the big Canadian banks. Talking about steady compounders.

What are you up to? Which names are you looking at? And are you planning to add to or initiate a new position?

Please let me know.

Happy investing!

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Still Going Strong: A 58% YoY Growth In Dividends For August

Everything is back to normal over here; the summer vacation is over, our kids are back to school and the usual wet and windy weather has returned. Time has flown by. Meanwhile, the dividends haven’t stopped from rolling in ☺️. August was a month of several big price drops which gave us as long term investors some pretty good opportunities to buy good companies at reasonable prices. Fortunately, I had some cash at hand to take advantage of these price swings. Here’s my score of the month of August.

Income numbers

For this month my total amount of dividend income was $331.12. This is the highest amount of monthly dividend income so far and it’s also my first month above the $300 threshold. Hallelujah! This is so inspiring.

Three companies paid me more than last quarter as a consequence of a raise or larger position. The dividend payment I received from Abbvie (ABBV) has increased from $18.19 in May to a nice $56.71 in August. Realty Income (O) paid me $3.85, just a penny more than in May. Delta Air Lines (DAL) increased its quarterly dividend with 15.00% which resulted in a dividend of $9.26 for this month. Here’s the breakdown:

Apple (AAPL) – $16.94

Abbvie (ABBV) – $56.71

CVS Caremark (CVS) – $17.00

Delta Air Lines (DAL) – $9.26

Realty Income (O) – $3.85

Omega Healthcare (OHI) – $66.00

Starbucks (SBUX) – $16.92

Tanger Factory Outlets (SKT) – $51.83

AT&T (T) – $85.68

Texas Instruments (TXN) – $6.93

This makes the total amount of dividend income for this month a nice $331.12. My dividend income in May 2019 was $291.38 so that’s an increase of 14% QoQ. My passive income for August 2018 was $209.12, so that’s a very welcome 58% YoY growth. This means another high double-digit growth number, I love it! Here is the graph that shows all monthly dividends YTD as compared to last year:

7C7D3C91-BCA0-4B41-AC71-1B9E41B8F24C

Transactions during August

I added to three positions at lower prices than my average buy price, locking a higher dividend yield than I already had. This leads to a higher yield on cost. I bought 7 stocks of Abbvie (ABBV), 3 stocks of 3M (MMM) and 10 stocks of Altria (MO). The details are as follows:

F9CE049A-441D-4EE0-9384-541EB5BC6F71I now own 60 stocks of Abbvie (ABBV), 29 shares of 3M (MMM) and 97 pieces of Altria (MO). That’s getting serious.

Looking Forward

I earned $1,938.34 in dividend income YTD, which means I surpassed the FY 2018 dividend income of $1,793.09.

Some companies in my portfolio are still trading for low or reasonable valuations. at the moment. In addition to the three bunsiness above, I can think of CVS Caremark (CVS), AT&T (T), Exxon Mobil (XOM) and Wells Fargo (WFC). I’ve also had my eyes on Bank of Montreal (BMO), Johnson & Johnson (JNJ), Simon Property Group (SPG) and the Toronto-Dominion Bank (TD).

Altria (MO) and Philip Morris (PM) confirmed their talks about a potential all-stock “merger of equals.” A combined company could be worth more than $200 billion. I’m curious how this one will play out.

Did you buy a number of companies during the price swings in August? Please let me know.

Thanks for for your time.

Happy investing!

A Hot 66% Increase In Dividend for July 2019

For me, the first month of every quarter is a month with strong growth rates YoY. I’m very curious how things evolved in July. Let’s find out.

The Numbers

My dividend income for July was $275.02. In this month I got two raises as compared to the dividend payment three months ago. This month included the usual small dividend increase from Realty Income (O), but also the 5.3% raise from Leggett & Platt (LEG). July was also the first month in which I got a payment from the REIT Iron Mountain (IRM), $11.00 to be exactly. Also Walt Disney (DIS) contributed a semiannual, but welcome $4.40. This sums up to:

Bank of Nova Scotia (BNS) – $29.73

Walt Disney (DIS) – $4.40

Iron Mountain (IRM) – $11.00

Illinois Tool Works (ITW) – $6.00

JP Morgan (JPM) – $4.80

Kimco Realty (KIM) – $70.00

Leggett & Platt (LEG) – $8.40

Altria (MO) – $69.60

Realty Income (O) – $3.85

Philip Morris (PM) – $30.78

Ventas (VTR) – $36.46

This makes the total amount of dividend income for this month a nice $275.02. My dividend income for April 2019 was $258.53 so that’s an increase of a very small 6% QoQ. My passive income for the month of July in 2018 was $165.45 so that’s an increase of 66% YoY. That’s quite a growth rate! Here is the graph YTD:

53D97B70-6B33-427E-AE49-FD8044943CD7

 

Transactions during July

This month I bought 27 stocks of Wells Fargo (WFC) for a price of $48.45. I owned this stock before, but sold it because of the low prospects of shareholder returns after the infamous scandal. But after the last stress test of the Fed, things have changed as we can lock in a 4.25% dividend yield right now and a buy back up to $23.1B of stock. I would love to double this position if the price drops to the $42-43 range.

Looking Forward

We’re on our way to crush the number of $300. I would love to start 2020 with $300 as a new baseline. Stock prices are climbing again after the recent drop in August. My total dividend income YTD is $1,607.22, already close to the number of FY 2018 $1,793.09.

Please let me know which stocks you bought and whether July was a good month in terms of dividend income numbers. Thanks for reading.

Happy investing!

June – A Month Of Increasing Growth Numbers

The first six months of 2019 are already behind us. This gives me a nice opportunity to stand still for a moment and consider the progress made so far in 2019. Some things come to my mind:

1. A broader diversification in business sectors / industries as I put more money in the healthcare sector: Abbvie (ABBV) and CVS Caremark (CVS). In 2019, I would love to add Johnson & Johnson (JNJ) to these two names.

2. Averaging down on several existing positions thereby increasing my yield on cost and lowering my average buy price for 3M (MMM), Abbvie (ABBV), Altria (MO), CVS Caremark (CVS) and Philip Morris (PM).

Not bad, it seems. I still have some work to do to balance my portfolio. Fortunately, opportunities will continue to come by in and beyond 2019. Think of market uncertainties regarding a trade deal between USA and China, a looming Brexit in October and continued talks about the chances of an economic recession in 2020. These uncertainties will lead to enough opportunities to buy wonderful stocks at low or reasonable valuations. But for now, let’s see how June turned out to be.

Income Numbers

The amount of dividend income for month 2019/06 was $153.28. In this month I got raises in dividend income from Realty Income (O), PepsiCo (PEP), Southern Company (SO) and Exxon Mobil (XOM) as compared to the dividend payment three months ago.

O paid me a penny more than three months ago; slowly,  but surely. The payment by PEP was a small, but nice 3% higher in comparison with March. SO rewarded me with a 3.3% quarterly dividend hike. This month also included a higher dividend payment by XOM, a nice 6.1% increase.

My dividend income of $153.28 for this month was generated by:

Bank of America (BAC) – $5.85

BlackRock (BLK) – $13.20

Cummins (CMI) – $11.40

Emerson Electric (EMR) – $4.90

3M (MMM) – $15.84

Norfolk Southern (NSC) – $5.16

Realty Income (O) – $3.84

PepsiCo (PEP) – $8.60

Southern Company (SO) – $21.70

Stanley Black & Decker (SWK) – $7.92

Union Pacific (UNP) – $5.28

Exxon Mobil (XOM) – $49.59

Breakdown of Dividend Income

My passive income for the month of March 2019 was $141.68. That means an increase of 8% QoQ; not that great, but at least my income for my lagging third month of a quarter is rising. The progress YoY is more meaningful; my dividend income for June last year was $127.27. So that’s an increase of 20% YoY. I love double digits! This comes down to the next graph:

C48F9653-25FD-4BD8-B9D9-4CFFA6FE9576.jpeg

Buys In June

During this month I bought me two chunks of Abbvie (ABBV): 8 stocks for a price of $75.90 and 16 shares for the trading price of $67.25. I also initiated a position in a new REIT: Iron Mountain (IRM). This one has been on my radar for a while. I finally bought 18 stocks for $31.40. In total these three buys added $146.64 to my dividend income on a yearly basis.

Dividend Income YTD 2019

Including this month I collected a nice $1,332.20 YTD. My total dividend income in 2018 was $1,793.09. It looks like I’m going to hit a FY dividend income of $3,000. Sweet!

Come What May… A 90% Increase & A Record High 🥂

The month of May. Well, it wasn’t exactly the month of Theresa May. To say the least… But May was certainly a good month for me. Last month I wrote that a monthly dividend income higher than $200 seemed to be the new normal. In fact, I hope to touch the amount of $300 any time soon. That would be a huge milestone for me; just steamrolling forward 💪

Income numbers

For this month my total amount of dividend income was $291.38. As I wrote a record high and the fourth month in 2019 above the $200 threshold. Crossing the $300 barrier is well within reach, hopefully in August. I already notice the snowball effect taking place; every month I have more money to invest, because of the increasing number of stocks and higher dividend amounts per share.

Three companies paid me more than last quarter as a consequence of a raise. Apple (AAPL) increased its quarterly dividend from $0.73/share to $0.77/share, representing a 5.5% annual dividend increase. May included the first payment of $0.77/share. Good ol’ Realty Income (O) paid me $3.84, just a penny more than in February. Tanger Factory Outlets (SKT) paid me $0.355/share, which comes down to a 1.4% increase from prior dividend of $0.35. Delta Airlines (DAL) switched their month of pay date so that’s a bit of a cheat. They paid me $8.05 for this quarter.

The only business paying me more than a quarter ago because of a bigger position was CVS Caremark (CVS) which paid $17.00 (instead of $6.00). Here’s the breakdown:

Apple (AAPL) – $16.94

Abbvie (ABBV) – $18.19

CVS Caremark (CVS) – $17.00

Delta Airlines (DAL) – $8.05

Realty Income (O) – $3.84

Omega Healthcare (OHI) – $66.00

Starbucks (SBUX) – $16.92

Tanger Factory Outlets (SKT) – $51.83

AT&T (T) – $85.68

Texas Instruments (TXN) – $6.93

This makes the total amount of dividend income for this month a nice $291.38. My dividend income in February 2019 was $270.71 so that’s a small increase of 8% QoQ. My passive income for May 2018 was $153.68 so that’s an increase of 90% YoY. This means another high double-digit growth number, I love it! Here is the graph that shows all monthly dividends YTD as compared to last year:

6A0D2688-FFB5-42F0-B0D5-F33D9AD06155

Transactions during May

I bought 22 stocks of 3M (MMM) in only two weeks. I like this company very much; they have a streak of 61 years increasing their dividends. Including this transaction I now own 26 stocks for an average price of $172.44. My first stocks were bought at a price slightly above $192. I added to my small position in four different chunks:

9F141247-4E21-4C3A-8D08-892667F1DFA4Looking Forward

This is my fourth month with a dividend income above $200. And I’m already on my way to realize the target of getting my first dividend income of $300+ in 2019.

My stake in the tobacco industry has come under pressure again after Nielsen tracking data indicated that cigarette industry volume fell 11.2% in the 4-week period ending on May 18 to mark a deceleration from the -9.5% 12-week pace, according to Wells Fargo. Not a good sign, but I’m sure MO and PM will prosper eventually. MO looks very attractive again at these price levels.

I earned $1,178.93 in dividend income YTD. That’s a big number, imho. I collected this income number three months earlier than in 2018.

Please let me know which stocks you bought. Did you buy 3M (MMM)? Was May a good month in terms of dividend income numbers?

Thanks for reading.

The Snowball Keeps Rolling – April 2019 Dividend Growth of 92% YoY $$$

63C38821-0343-4305-A892-C5A2455C4134We’ve closed the first quarter of 2019. I’ve managed to update my blog the last weeks so I’m happy to write about the income numbers for April. The first quarter was very encouraging as growth rates went through the roof. I’m very curious for my progress in dividend numbers YoY and QoQ in April. The first month of each quarter has always been a strong month for me in terms of absolute numbers, but also percentage-wise. I’m very excited about several new positions so let’s find out whether these new stakes contributed to my dividend income in April.

The Numbers

My dividend income for 2019/04 was $258.53. In this month I got several raises as compared to the dividend payment three months ago. This month included another small dividend increase from Realty Income (O). April included my first dividend income from my new position in JP Morgan (JPM), $4.80 to be exactly. Also Leggett & Platt (LEG) contributed a very welcome $7.98. I bought “alotta” shares of Altria (MO) and Philip Morris (PM) during the end of 2018 which resulted in a dividend of $69.60 and $30.78 respectively. This sums up to:

Bank of Nova Scotia (BNS) – $29.07

Illinois Tool Works (ITW) – $6.00

JP Morgan (JPM) – $4.80

Kimco Realty (KIM) – $70.00

Leggett & Platt (LEG) – $7.98

Altria (MO) – $69.60

Realty Income (O) – $3.84

Philip Morris (PM) – $30.78

Ventas (VTR) – $36.46

This makes the total amount of dividend income for this month a nice $258.53. My dividend income for January 2019 was $216.63 so that’s an increase of a nice 19% QoQ. My passive income for the month of April in 2018 was $134.50 so that’s an increase of 92% YoY. That’s quite a growth rate! Here is the graph YTD:

C48B3D15-A208-4E8F-BEE3-1E2AB48D025D

Transactions during April

I bought 12 stocks of Abbvie (ABBV) for a price of $78.94. I like this stock for a market price below $80. Including this transaction I now own 29 stocks for an average price of $83.37. My first stocks were bought at a price around $92. That’s a nice 10% decrease by averaging down. I also bought my first 4 stocks of 3M (MMM) for a price of $192.14 after the big drop in price following its earnings report. At this price I still bought it at a P/E of 20 which is on the high side. Hopefully the price keeps swinging up and down the coming months so I can add to this position at an even more attractive valuation number.

Looking Forward

Another month above the $200 is in the books. I love this new normal. The focus on diversification seems to pay off. I’m less dependent of a small number of companies, especially REIT’s and the average dividend growth rate is increasing step by step.

CVS Caremark (CVS) was up 5% after their earnings report this week. The company is doing fine and the integration of Aetna seems to go smoothly. I increased my position in this company like many other members of the dividend investing community. Keeping a long-term focus is so important.

My stake in the tobacco industry has risen nicely with my buys in December and January. The FDA recently authorized the sale of the IQOS heated tobacco system in the U.S. market so that’s very beneficial for Altria (MO).

Please let me know which stocks you bought and whether April was a good month in terms of dividend income numbers. Thanks for reading.

Happy investing!

March 2019 – A Growing Dividend Income, Again 👊

This post is already about the last month of the first quarter of 2019. January and February are in the books, both with a dividend income above the $200 and double-digit growth numbers. Each month the numbers are getting bigger and bigger. This is great and it really feels like I’m getting closer and closer to my goal of financial independence. Let’s find out if the last month of this quarter was also a month of a record high number!

Income Numbers

The amount of dividend income for month 2019/03 was $141.68. In this month I got three raises in dividend income from BlackRock (BLK), Norfolk Southern (NSC) and Union Pacific (UNP) as compared to the dividend payment three months ago. This was the second raise in one year for all three companies. What a fantastic businesses!

BlackRock (BLK) continued its streak of rising dividend payouts and rewarded its investors with a 5.4% quarterly dividend hike. The low payout ratio of 35% indicates that the current dividend is well-covered by the company’s earnings. BlackRock’s current dividend payout ratio is also lower than the company’s 40% average ratio over the past five years. Very nice! Norfolk Southern (NSC) announced in January that its board of directors approved an 8% increase in its quarterly dividend, from 80 to 86 cents per share. Their payout ratio sits around a low 34%. Union Pacific increased their dividend from $0.80 to $0.88 a share, a nice 10% increase. This comes down to a very conservative payout ratio of 40%. Union Pacific (UNP) recorded their ninth consecutive year of dividend increases.

This month also included a higher dividend payment by BlackRrock (BLK) and Exxon Mobil (XOM), because of my bigger stake in these companies. I really like to increase my positions in these companies. My dividend income for the month of March was generated by:

Bank of America (BAC) – $5.85

BlackRock (BLK) – $13.20

Cummins (CMI) – $11.40

Emerson Electric (EMR) – $4.90

Norfolk Southern (NSC) – $5.16

Realty Income (O) – $3.83

PepsiCo – $8.35

Southern Company (SO) – $21.00

Stanley Black & Decker (SWK) – $7.92

Union Pacific (UNP) – $5.28

Exxon Mobil (XOM) – $46.74

Breakdown of Dividend Income YoY

My passive income in the month of March last year was $130.14 so that’s an increase of 9% YoY. That’s on the low side for me. Especially after the YoY growth numbers of January and February. The progress QoQ was a bit lower, just 7%. The dividend income for March 2019 leads to the next graph:

57E64B3C-C1DE-41C1-9A2C-5A47ADF9351D.jpeg

Buys In March

During this month I added 10 stocks to my position in CVS Caremark (CVS) for a price of  $55.39. This additional buy brought down my average buy price. It’s now slightly above $61 and the yield on cost from this position has gone up to 3.27%.

I also initiated a position in JP Morgan Chase (JPM). This one has been on my radar since 2016. It was trading in the $55 – 60 range back then, but I wanted it get down to the low $50’s. Well, now I finally bought 6 stocks for $103.81. ☺️ I stepped in at a dividend yield of 2.80%. When it gets below the $100, I’m on it. I want this to be a meaningful position.

Dividend Income YTD 2019

Including the month of March I collected a nice $629.02 YTD. My total dividend income in 2018 was $1,793.09. It sure looks like I’m going to crush this number. What a feeling 👍