Author Archive: Meter Man

September 2017 Dividend Meter Update

Annual Dividend Income

Déjà vu. September portfolio activity was nearly identical to August for the Dividend Meter: Two dividend increases and a purchase of more shares of DFS (Discover Financial Services) combined to modestly boost total annual dividend income by $39.00:

Date Total Annual Dividends Notes
9/26/2017 $8,310.98 OGE dividend increase, raises meter reading $22.80
9/15/2017 $8,288.18 With approximately $480 in accumulated cash dividends in IRA Rollover, bought 8 shares of DFS at $58.51 per share, raises meter reading $11.20
9/7/2017 $8,276.98 VZ dividend increase, raises meter reading $5.00

The purchase of DFS on September 15th at $58.51 per share was very timely, since the stock steadily moved higher during the second half of September to finish the month at $64.48 / share. With a recent dividend hike of 17%, a dividend payout ratio of only 25%, and projected earnings growth of over 10% next year, Discover Financial Services has plenty of room for continued dividend growth.

October Preview

We’re still waiting for a dividend declaration from SBUX (Starbucks Corp.), which could happen any day now in October. Other portfolio positions that could announce dividend increases in October include: OHI (Omega Healthcare Investors, Inc.), and AFL (Aflac, Inc.).  Any new incoming cash dividends will likely be used to purchase more shares of DPS (Dr. Pepper Snapple Group Inc.) – if the stock continues to trade with a dividend yield greater than 2.6% (or less than $89.00 per share).

 

August 2017 Dividend Meter Update

August 2017 Dividend Income

August was a quiet month for the Dividend Meter portfolio; so this update will be brief.  Two dividend increases and an additional purchase of Discover Financial Services (DFS) with accumulated cash dividends raised total annual income by $31.10:

Date Total Annual Dividends Notes
8/22/2017 $8,271.98 With approximately $540 in accumulated cash dividends in IRA Rollover, bought 9 shares of DFS at $59.25 per share, raises meter reading $12.60
8/16/2017 $8,259.38 FAF dividend increase, raises meter reading $16.00
8/2/2017 $8,243.38 AWR dividend increase, raises meter reading $2.50

September Preview

Barring any major trades, the month of September may be similar to August, with a planned purchase of more shares of DFS with any incoming dividends (if Discover’s stock price stays anywhere below $63.50, or a dividend yield above 2.2%).  In September, dividend increase announcements are expected from Verizon (VZ), Starbucks (SBUX), and OGE Energy Corporation (OGE).

To all who labor, I hope you get to enjoy a nice long Labor Day weekend.

 

July 2017 Dividend Meter Update

July 2017 Dividends

The needle on the Dividend Meter moved up $222.01 in July.  Most of the increase was a result of selling one of the portfolio’s larger stock positions, Metlife (MET), and using the proceeds to buy three stocks with higher dividend yields. Also, three other companies reported dividend increases in July:  Hershey’s (HSY), Discover Financial Services (DFS), and Omega Healthcare Investors (OHI).  Here are the spreadsheet summary notes for July:

Date Total Annual Dividends Notes
7/26/2017 $8,240.88 HSY dividend increase, raises meter reading $6.00
7/25/2017 $8,234.88 DFS dividend increase, raises meter reading $16.20
7/18/2017 $8,218.68 Sold 222 MET, used proceeds and approx. $400 in accumulated cash dividends to buy 100 ADM (new position), 100 SWM, and 181 SKT in IRA Rollover, raises meter reading $188.77
7/14/2017 $8,029.91 OHI dividend increase, raises meter reading $11.04

 

Metlife – 32% Winner

Metlife was originally added to the portfolio in 2016 when the dividend yield was approximately 3.8%.  The actual purchase details are as follows:

08/19/2016 Buy 67 MET – METLIFE INC $40.11 ($2,696.07)
06/03/2016 Buy 13 MET – METLIFE INC $44.08 ($581.99)
03/08/2016 Buy 142 MET – METLIFE INC $42.00 ($5,972.79)
Total ($9,250.85)

On July 18th, 2017, with the stock trading at $55.10 and yielding 2.8%, all shares of Metlife were sold for $12,226.96, a gain of $2,976.11, or approximately 32%!  The proceeds from the sale were used to purchase ADM, SWM, and SKT at the following prices and dividend yields – this is Dividend Yield Theory compounding at work….

ADM – Archer Daniels Midland    $41.43      3.09%

SWM – Schweitzer-Mauduit         $37.49      4.48%

SKT – Tanger Factory Outlet        $26.44      5.19%

 

 

June 2017 Dividend Meter Update

June 2017 Dividend Income

It’s time for fireworks – the Dividend Meter portfolio broke through the $8k annual income barrier in June! Here’s how the needle on the Dividend Meter moved up $316.37 in just one month:

Date Total Annual Dividends Notes
6/28/2017 $8,018.87 GIS dividend increase, raises meter reading $7.44
6/27/2017 $8,011.43 Sold 37 JNJ, used proceeds and approx. $360 in accrued cash dividends to buy 147 shares of SWM in IRA Rollover #2, raises meter reading $122.64
6/27/2017 $7,888.79 With approximately $450 in accumulated cash dividends in Regular brokerage account, bought 8 more shares of QCOM, raises meter reading $18.24
6/9/2017 $7,870.55 Sold 50 AWR, used proceeds and approx. $100 in accrued cash dividends in Roth IRA to buy 99 SKT in IRA Rollover #2, raises meter reading $87.13
6/8/2017 $7,783.42 Sold 68 AWR, used proceeds and approx. $125 in accrued cash dividends to buy 51 CMP in IRA Rollover #2, raises meter reading $80.92

Taking Profits and Doubling Dividend Income

Johnson & Johnson (JNJ) and American States Water Co. (AWR) have been wonderful investments for the Dividend Meter portfolio. For the past several weeks, JNJ and AWR stock prices have risen significantly, pushing their respective dividend yields to historical low ranges and very close to my predetermined sell points (see screenshot of the spreadsheet below for AWR reference).  With new buying opportunities showing up on the Dividend Meter Watch List, it was a great time to sell a few shares of stock yielding 2% and use the proceeds to buy other investments yielding over 4% (CMP, SKT, and SWM).

Tanger Factory Outlet Centers, Inc. (SKT) and Schweitzer-Mauduit International, Inc. (SWM) are new positions for the portfolio.  Tanger, a publicly-traded REIT, is trading near its 52-week low, despite having announced a dividend increase in April and new share repurchase plan in May.  Tanger (SKT) has increased its dividend for 24 consecutive years.  Schweitzer-Mauduit International has traditionally been known for producing cigarette papers; however, the Company manufactures many other product lines such as medical bandages and industrial laminates. Recent acquisitions and product diversification has helped SWM reverse a trend of declining revenues within the past year.

Looking Ahead

The needle on the Dividend Meter should continue to move higher in July as dividend increase announcements are expected from:  Metlife Inc. (MET), and Discover Financial Services (DFS).  Be sure to check in again next month to monitor the progress.

 

Dividend Meter Spreadsheet as of July, 2017