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…

 

5 Comments

  1. Dividend--Portfolio

    Congrats on another solid month DM. And thanks for sharing your thought process on why you sold Polaris and bought Dr. Pepper. Absolutely nothing wrong with taking 50% profits and reinvesting that in another company that meets your buying criteria. Looking forward to seeing you cross the $8400 mark!

    Reply
  2. Meter ManMeter Man (Post author)

    UPDATE: SNR just announced their next quarterly dividend at .26 – no dividend cut!

    Reply
  3. Dividend Diplomats

    The meter keeps on moving forward. I freaking love it and I benefited from the AFL dividend increase as well. Interesting purchase with DPS and I look forward to further investigating the stock. How excited are you about the 20% SBUX increase??

    Bert

    Reply
  4. greg mattiucci

    cannot retrieve dividends from yahoo, is this what you are referencing in Nov. 13 post, I cannot get the div, on spread sheet , meter won;t work.

    Reply
    1. Meter ManMeter Man (Post author)

      Hi Greg,

      Correct, Yahoo Finance no longer supports its open API, so the import formulas no longer work. The good news is that an opportunity has been created for other financial data providers, including Dividend Meter eventually, to fill the void.

      I hope to post a November Update, along with more information on the status of the Dividend Meter spreadsheet, in the next few days.

      -Mike the Meter Man

      Reply

Leave a Comment

Your email address will not be published. Required fields are marked *