April 2017 Dividend Meter Update
It’s time to check out the Dividend Meter Spreadsheet to see what happened in April. Here’s a summary from the History tab:
|Date||Total Annual Dividends||Notes|
|4/28/2017||$7,579.24||Sold 30 WM, used proceeds and approx. $250 in accrued cash dividends to buy 36 CMP in IRA Rollover #2, raises meter reading by $52.68|
|4/27/2017||$7,526.56||AVY dividend increase, raises meter reading $3.20|
|4/27/2017||$7,523.36||JNJ dividend increase, raises meter reading $13.92|
|4/19/2017||$7,509.44||OHI dividend increase, raises meter reading $11.04|
|4/12/2017||$7,498.40||Added $2,000 to Roth IRA towards 2017 contribution, bought 25 PII, raises meter reading by $58.00|
Compared to last month’s meter reading, total annual projected dividends rose $138.84 in April. Two new positions were added to the portfolio (identified by the Watch List as trading in their respective high-yield dividend zone): Polaris Industries (ticker symbol: PII) and Compass Minerals International (ticker symbol: CMP).
Polaris Industries makes snowmobiles, jet skis, motorcycles (heard of Indian motorcycles?), and other off-road vehicles. In addition, the Company sells parts and apparel related to recreational vehicles. PII’s stock price has been depressed the past months due to numerous product recalls; however, Polaris keeps growing revenues. After studying the historical dividend yields for Polaris, a buy-yield of 2.9% and a sell-yield of 1.8% were set for the Dividend Meter Watch List. When Polaris’ stock price recently dipped into the upper 70’s and low 80’s in April, it was showing a dividend yield of 3% and became a buying opportunity. 25 shares of PII were purchased with a cash deposit of $2,000 towards a 2017 Roth IRA contribution (only $1,000 left to contribute for 2017!).
Compass Minerals International, Inc. produces salt products (primarily road deicer salt) and plant fertilizers. The Company has raised its dividend each year for twelve years in a row, and examining the yield charts, appears to be a good buy when the yield is over 4% (For the Dividend Stocks Watch List, the buy-yield is set to 4.1% and sell-yield at 2.5%). To fund the purchase of CMP, 30 shares of Waste Management (WM) were sold from the portfolio. Waste Management has been such a great investment – it’s a difficult decision to sell any shares of WM, but the stock has run up significantly over the past few months and is trading near a historically low average dividend yield. Fortunately, 90 shares of WM are still held in the Dividend Meter portfolio.
Looking Ahead to May
Barring any surprise dividend cuts, the meter reading for the Dividend Meter portfolio should break the $7,600.00 barrier in May. Tomorrow, May 2nd, Apple (AAPL) will report quarterly earnings and will likely announce a dividend increase also. Apple’s share price has steadily increased during the past few months and has reached the Spreadsheet’s sell-yield signal of 1.6%. With a new dividend increase, Apple’s yield should move above 1.6% and all shares will continue to be held in the portfolio. Good luck to all with your investing and be sure to check in again next month.