Meter Updates

October 2017 Dividend Meter Update

2017 October Dividend Update

The needle on the Dividend Meter gauge chart rose a modest $77.37 during October. Here’s a summary of the activity:

Date Total Annual Dividends Notes
10/25/2017 $8,388.35 AFL dividend increase, raises meter reading $5.92
10/25/2017 $8,382.43 Sold 25 PII, used proceeds to buy 36 shares of DPS at $84.70 in Roth IRA, raises meter reading $25.32
10/16/2017 $8,356.91 With approximately $425 in accumulated cash dividend in Roth IRA, bought 17 shares of SKT at $25.05 per share, raises meter reading $23.29
10/12/2017 $8,333.62 OHI dividend increase, raises meter reading $11.04
10/4/2017 $8,322.58 With approximately $435 in accumulated cash dividends in IRA Rollover, bought 5 shares of DPS at $86.92, raises meter reading $11.60

Trading Polaris for Dr. Pepper

On October 24th, 2017, Polaris Industries Inc. (PII) released a stellar earnings report, vaulting the stock more than $16.00 (or 15%) in one day.  The huge move in Polaris’ stock price pushed the dividend yield very close to a predetermined sell yield of 1.8%. With Dr. Pepper Snapple (DPS) continuing to move down in October, an opportunity to lock in gains on PII and raise overall dividend income for the portfolio presented itself.  Polaris (PII) was sold at $123.30 and the proceeds were used to buy more shares of Dr. Pepper at $84.70 (dividend yield of 2.74%).

Polaris Industries was originally identified as a buying opportunity in April of this year when the dividend yield was at 3%.  Twenty-five PII shares were purchased on April 12, 2017 at $81.19 per share.  After selling at $123.30, a whopping gain of over 50% was realized in only six months.

Looming Dividend Cut in November?

With a still-to-be-announced dividend raise from Starbuck’s (SBUX) and cash dividends waiting to be reinvested in November, it seems inevitable the Dividend Meter will break the $8,400.00 annual dividend income barrier.  However, it is possible one of the portfolio’s smaller speculative high-yield positions, New Senior Investment Group (SNR), will cut its dividend.  Last year, SNR announced a quarterly dividend on November 2, 2016, so the new dividend announcement could happen any day – stay tuned…

 

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%