October 2017 Dividend Meter 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…