Another month gone by and it’s time for a quick Dividend Meter update. Four dividend hikes and a small transaction during February raised the annual dividend figure of the portfolio by almost one hundred dollars compared to January’s meter reading. Here’s the notes from the spreadsheet:
Total Annual Dividends:
|2/23/2017||$7,261.08||KSS dividend increase, raises meter reading $10.60|
|2/22/2017||$7,250.48||ETN dividend increase, raises meter reading $18.84|
|2/14/2017||$7,231.64||Sold 30 WM, bought 40 QCOM with proceeds and approx. $100 worth of accumulated cash dividends, raises meter reading by $33.80|
|2/14/2017||$7,197.84||DPS dividend increase, raises meter reading $12.20|
|2/7/2017||$7,185.64||PPL dividend increase, raises meter reading $16.14|
One of the most comforting benefits of dividend growth investing is watching your annual income rise without making any new deposits. Due to other personal financial commitments in 2017, new deposits to the Dividend Meter portfolio will likely be limited to the maximum annual Roth IRA contribution figure of $5,500.00, ($1,000.00 contributed so far, $4,500.00 to go!). It will be interesting to see where the meter reading ends up at year-end with limited new savings – the majority of growth will come from dividend increases, re-investment of dividends, and a few strategic sell/buy transactions. Be sure to check in regularly to see how the portfolio is progressing, and good luck to all in March.
In last month’s post, I mentioned providing more information about the new Dividend Meter Watch List. The video below provides a better preview of this amazing tool. As the stock market continues to march higher, it’s becoming increasingly difficult to find bargains among quality dividend growth stocks. For the past several weeks, I’ve been working on a spreadsheet that could help me quickly identify undervalued dividend payers from a large pool of stocks. The work has paid off big time, as some of my recent investment ideas (BA, AMGN, FAF, KSS, QCOM), came from the Watch List. Have a look….
View-only access to the Watch List is now available – you can subscribe on the Member Sheet page for only $19.00 / year until 3/31/2017. Every week, I spend hours keeping the sheet up-to-date and identifying new stocks to add to the list. Currently the Watch List monitors 225 quality dividend growth stocks. The stocks on the list have typically raised their dividend at least once a year and have not had a dividend cut since the 2008 financial crisis.
Check in again next week for February’s update – several recent dividend hikes have kept the needle moving higher on the Dividend Meter!
For dividend growth investors, opportunities abound whether the stock market is going up or down. When the market is going down, plentiful buying situations exist. In a raging bull market, as we have witnessed for the past few months, opportunities to take profits in certain over-valued stocks and buy higher-yielding bargains are present, but often difficult to identify, and even more challenging to execute – it’s human nature to avoid missing out on more possible gains. Fortunately, the Dividend Meter spreadsheet and growing Dividend Stocks Watch List are helping to address the most difficult stock investing questions: What do I sell and when? And, where will I invest the proceeds?
December’s stock sales and subsequent buys of AMGN, FAF, and BA proved to be very timely transactions. Shares of quality companies were purchased at bargain prices relative to current trading levels, and total annual dividend income was boosted in the process. However, it appears more patience will be required for January’s purchases of Kohl’s (KSS) and Qualcomm (QCOM). But that’s ok, because while we wait for the stocks to go up some day, the companies will hopefully keep paying fat dividend checks. Here’s a summary of January’s activity from the investment spreadsheet, which raised the reading on the Dividend Meter $161.44 from December’s reading:
|Total Annual Dividends:||
|1/23/2017||$7,169.50||Added $1,000 to Roth IRA for 2017 contribution, bought 22 QCOM with new deposit and some accumulated cash dividends, raises meter by $46.64|
|1/19/2017||$7,122.86||OHI dividend increase, raises meter reading $11.04|
|1/5/2017||$7,111.82||Sold 30 WM, bought 53 KSS with proceeds and a small amount of accumulated dividends, raises meter reading $55.00|
|1/4/2017||$7,056.82||Bought 23 QCOM with new $1500 savings, raises meter reading $48.76|
For the past several weeks, I’ve been working on a new Dividend Meter spreadsheet and Watch List, which I’m very excited to announce are now available! Please visit the Member Sheet for more information. Essentially, the Member Sheet page provides access to two fantastic tools: a new Dividend Aristocrats Meter Template, which utilizes more reliable script formulas to import both dividends and earnings-per-share, and a Dividend Stocks Watch List, which tracks over 200 quality dividend stocks and instantly provides Dividend Yield Theory buy/sell indicators. As more quality stocks are identified, and dividend yield charts studied to determine buy and sell triggers, the Watch List will continue to grow. I hope to provide a mid-month blog update with more specific details about the Watch List benefits, and how you can use it to quickly identify investing opportunities. Until next month, have a great February.
Happy New Year! It’s time to replace the top header image with a year-end reading of the Dividend Meter and update the Archive page. The end of 2016 marks the first full calendar year of publicly tracking the portfolio, and despite a few dividend cuts this past year, the Dividend Meter’s estimated annual dividend income broke through the $7k barrier in December. Here’s a summary of notes from the spreadsheet for December’s activity:
|Date||Total Annual Dividends||Notes|
|12/23/2016||$7,008.06||Sold 40 AAPL, bought 29 BA, raises meter reading $73.52|
|12/21/2016||$6,934.54||AMGN dividend increase, raises meter reading $31.20|
|12/20/2016||$6,903.34||Sold 73 AWR, used proceeds and about $370 in accumulated dividends to buy 100 FAF, raises meter reading $65.19|
|12/19/2016||$6,838.15||Sold 58 DFS, used proceeds and $500+ in accumulated dividends to buy 32 AMGN, raises meter reading $58.40|
|12/15/2016||$6,779.75||WM dividend increase, raises meter reading $10.80|
|12/13/2016||$6,768.95||PFE dividend increase, raises meter reading $27.76|
|12/12/2016||$6,741.19||Fixed a dividend formula error on spreadsheet for DFS dividend, correct amount should be $1.20 (had $1.12), raises meter reading $11.12|
Annual dividend income rose a whopping $277.99 in December compared to November’s meter reading, and that’s without making any new savings deposits! Three dividend increases and fixing an error contributed to the increase, but the largest gains were the result of selling a few shares of positions that were getting close to their dividend yield sell triggers, and buying other stocks with higher dividend yields and that were trading near their high yield buy indicator levels (classic Dividend Yield Theory portfolio management).
Two stock purchases in December, Boeing Co. (BA) and First American Financial Corp. (FAF), are new positions for the Dividend Meter portfolio, and the result of continued extensive research to build a “watch list” spreadsheet of quality dividend growth stocks. The Watch List spreadsheet, introduced in November’s Update, requires analyzing dividend yield charts for each position to determine the automatic Buy and Sell indicators that appear in column, “Yield Buy/Sell Indicator” as shown below. Stay tuned – I’m hoping to introduce the Watch List in January or February for Member’s Club subscribers: