May 2017 Dividend Meter Update
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.