Meter Updates

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

 

May 2017 Dividend Meter Update

May 2017 Dividends

Only four spreadsheet entries to report for May, so this month’s update will be brief. Projected annual dividend income broke through the $7,600 and $7,700 barriers!

Date Total Annual Dividends Notes
5/26/2017 $7,702.50 With approximately $460 in accumulated cash dividends in IRA Rollover account #1, bought 8 shares QCOM, raises meter reading $18.24
5/4/2017 $7,684.26 PEP dividend increase, raises meter reading $3.36
5/4/2017 $7,680.90 Sold 25 WM, deposited $1,000 towards Roth IRA (completes 2017 contribution), and added $60 in accumulated dividends to buy 76 UFS, raises meter reading by $83.66
5/2/2017 $7,597.24 AAPL dividend increase, raises meter reading $18.00

The largest dividend income increase, $83.66, came from adding a new $1,000 cash deposit to a Roth IRA, selling 25 shares of Waste Management (currently yielding about 2.3%) and then using the total proceeds to buy 76 shares of Domtar Corporation (symbol: UFS). Domtar currently offers a dividend yield of approximately 4.4% and is a new position for the Dividend Meter portfolio. In addition to producing numerous paper products, Domtar also makes many disposable, recurring-purchase items such as medical gowns and diapers, including adult incontinence products, which could be a growth opportunity for the Company.  After a few years of declining revenue, UFS needs to find a growth catalyst to replace lines of paper products that continue to be digitized.

With 2017’s Roth IRA now fully funded and no additional deposits planned for the rest of the year, increases to the Dividend Meter income stream will need to come from dividend increases, reinvestment of dividends, and strategic sales of low-yield stocks with accompanying buys of higher yield opportunities. Be sure to check in regularly for updates and have a great summer.