Happy New Year! It’s time to replace the top header image with a year-end reading of the Dividend Meter and update the Archive page. The end of 2016 marks the first full calendar year of publicly tracking the portfolio, and despite a few dividend cuts this past year, the Dividend Meter’s estimated annual dividend income broke through the $7k barrier in December. Here’s a summary of notes from the spreadsheet for December’s activity:
|Date||Total Annual Dividends||Notes|
|12/23/2016||$7,008.06||Sold 40 AAPL, bought 29 BA, raises meter reading $73.52|
|12/21/2016||$6,934.54||AMGN dividend increase, raises meter reading $31.20|
|12/20/2016||$6,903.34||Sold 73 AWR, used proceeds and about $370 in accumulated dividends to buy 100 FAF, raises meter reading $65.19|
|12/19/2016||$6,838.15||Sold 58 DFS, used proceeds and $500+ in accumulated dividends to buy 32 AMGN, raises meter reading $58.40|
|12/15/2016||$6,779.75||WM dividend increase, raises meter reading $10.80|
|12/13/2016||$6,768.95||PFE dividend increase, raises meter reading $27.76|
|12/12/2016||$6,741.19||Fixed a dividend formula error on spreadsheet for DFS dividend, correct amount should be $1.20 (had $1.12), raises meter reading $11.12|
Annual dividend income rose a whopping $277.99 in December compared to November’s meter reading, and that’s without making any new savings deposits! Three dividend increases and fixing an error contributed to the increase, but the largest gains were the result of selling a few shares of positions that were getting close to their dividend yield sell triggers, and buying other stocks with higher dividend yields and that were trading near their high yield buy indicator levels (classic Dividend Yield Theory portfolio management).
Two stock purchases in December, Boeing Co. (BA) and First American Financial Corp. (FAF), are new positions for the Dividend Meter portfolio, and the result of continued extensive research to build a “watch list” spreadsheet of quality dividend growth stocks. The Watch List spreadsheet, introduced in November’s Update, requires analyzing dividend yield charts for each position to determine the automatic Buy and Sell indicators that appear in column, “Yield Buy/Sell Indicator” as shown below. Stay tuned – I’m hoping to introduce the Watch List in January or February for Member’s Club subscribers:
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:
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.
As we enter the final quarter of 2016, the needle on the Dividend Meter broke the $6,700 barrier in October! Here’s a quick summary of last month’s activity:
|10/28/2016||$6,710.74||AFL dividend increase, raises meter reading $5.92|
|10/27/2016||$6,704.82||Bought 28 shares of SBUX in regular account with new savings, raises meter reading $22.40|
|10/19/2016||$6,682.42||Sold 10 shares of AAPL, bought 38 shares of OGE, raises meter reading $23.18|
|10/18/2016||$6,659.24||Bought 8 shares of ADP in regular brokerage acount with new savings, raises meter reading $16.96|
|10/18/2016||$6,642.28||Bought 23 shares F with accumulated dividends in IRA Rollover #2, raises meter reading $13.80|
|10/16/2016||$6,628.48||OHI dividend increase, raises meter reading $9.88|
Looking ahead to November, dividend increase announcements are expected from AWR, SBUX, and ADP. Next month, I also plan to enhance my spreadsheet by adding a new column to import EPS (earnings per share) to calculate a dividend payout ratio – stay tuned.
The needle on the Dividend Meter rose $240.74 during September! Here’s a summary of last month’s activity from the history tab of the spreadsheet:
|9/30/2016||$6,618.60||OGE dividend increase, raises meter reading $16.72|
|9/14/2016||$6,601.88||GMRE officially declares .20 quarterly dividend, raises meter reading by $160.00|
|9/14/2016||$6,441.88||Bought 11 shares of OHI with accumulated dividends in IRA Rollover #1, raises meter reading $26.40|
|9/6/2016||$6,415.48||VZ dividend increase, raises meter reading $5.00|
|9/6/2016||$6,410.48||Sold 400 DAKT in IRA Rollover#2, bought 200 GMRE and 147 SNR, lowers meter reading $7.20, but manually inputing zero for GMRE until official dividend declaration|
|9/6/2016||$6,417.60||Sold 800 DAKT in regular account, bought 75 VZ and 82 SIX, raises meter reading $39.74|
|9/1/2016||$6,377.86||Bought 12 PPL with accumulated dividends in IRA Rollover #2, raises meter reading $18.24|
You may notice the summary of activity is in reverse order from previous months. After a year of recording every transaction and dividend change to the Dividend Meter portfolio, the history tab was getting quite lengthy. I reversed the order, placing the most recent transactions at the top so you don’t have to scroll to see current activity.
Another Dividend Cut, Another Sale
While Daktronic’s (DAKT) most recent dividend announcement of 7 cents per share indicates a dividend increase, the company in fact implemented a cut to the total dividend payout. Two quarters ago, DAKT actually cut it’s regular dividend from 10 cents a share to 6 cents, but paid a 4 cent special dividend, which kept the total payout at 10 cents – a payout that I’ve enjoyed for nearly a year while holding the position. DAKT’s most recent earnings report was solid and beat expectations – I was surprised they didn’t pay another special dividend to keep the total payout at 10 cents. At least the stock price ran up leading to the earnings report, allowing me to sell the position and buy other stocks with higher dividend yields. With the sale proceeds from DAKT, I added to positions that were newly established last month: Six Flags (SIX), and Verizon (VZ).
Added Two Speculative REITs
With a portion of the sale proceeds from DAKT, I also purchased small positions in two new REIT stocks: New Senior Investment Group (SNR) and Global Medical REIT (GMRE). Speculative high-yield plays make me nervous, but the two stocks were chosen after researching many high-yield dividend stocks, ranging from 5% to 10%. SNR is a dedicated senior housing play, and GMRE is a new IPO, run by CEO David Young, whose experience with HCP and GE Capital enticed me to take a chance on two hundred shares. As a reminder, do your own due diligence!
See you all here next month, or perhaps in person at the MoneyShow Conference in Dallas from October 19 – 21? If any fellow “Meterites” would like to meet up for a beer at the Conference, drop me a line…