November 2016 Dividend Meter Update

November 2016 Dividend Meter Reading

The needle on the Dividend Meter rose only slightly in November.  What could have been a really great month was diminished by HCP’s recent dividend cut and related spin-off of QCP.  Here’s a summary of last month’s activity notes from the history tab of the spreadsheet:

11/15/2016 $6,730.07 Added new savings, bought 20 shares of AMGN in regular brokerage account, establishing a new position and raising meter reading $80.00
11/14/2016 $6,650.07 Sold 55 QCP (spin-off shares from HCP), used proceeds and a small amount of accumulated dividends to buy 29 shares of OHI, raises meter reading $70.76
11/8/2016 $6,579.31 ADP dividend increase, raises meter reading $3.20
11/8/2016 $6,576.11 SIX dividend increase, raises meter reading $27.84
11/4/2016 $6,548.27 HCP spins off QCP, cutting dividend to $1.48/share, keeping HCP, likely selling QCP soon due to “dividend cut”, lowers meter reading $228.78
11/3/2016 $6,777.05 AWR dividend increase, raises meter reading $16.87
11/3/2016 $6,760.18 SBUX dividend increase, raises meter reading $24.00
11/3/2016 $6,736.18 Bought 12 shares DPS with new savings, raises meter reading $25.44

Four dividend increases and two additional savings deposits were required in November to make up for HCP’s dividend cut.  As is customary with the Dividend Meter portfolio, stocks that cut their dividend are sold and replaced with an alternative investment. HCP essentially packaged up the lower quality, high risk HCR ManorCare assets, and spun them off into a new REIT:  Quality Care Properties (QCP). With the higher quality assets remaining in HCP, I decided to only sell the spin-off shares of QCP and keep the parent, HCP.

Last month, I mentioned enhancing the spreadsheet by adding a column to import EPS (earnings per share), and another column to calculate dividend payout ratio. The idea has inspired an even more ambitious project!  I’m building an amazing “watch list” spreadsheet that will include earnings per share, payout ratio, declaration date of last dividend increase, percentage increase of last dividend raise, track a few hundred quality dividend growth stocks, and automatically provide buy and sell indicators based on the “Dividend Yield Theory“.  Here’s a screenshot preview:

Dividend Stocks Watch List

The initial research for this project has already led to a new position being added to the actual Dividend Meter portfolio:  Amgen, Inc. (AMGN). The work on this spreadsheet will take a few weeks to complete, and when ready, the sheet will be made available to anyone who is interested for a small monthly subscription fee. To be notified of the Watch List’s availability, please either Register or complete a Contact Us form.

 

 

1 Comment

  1. DivHut

    Thanks for sharing your recent income update. I’m still going to hold on to my HCP and maybe even add to it if prices remain depressed. I anticipate an announcement about a QCP dividend. For now, a stock like that just looks like dead money to me.

    Reply

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