September 2016 Dividend Meter Update
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…