September 2017 Dividend Meter Update

Annual Dividend Income

Déjà vu. September portfolio activity was nearly identical to August for the Dividend Meter: Two dividend increases and a purchase of more shares of DFS (Discover Financial Services) combined to modestly boost total annual dividend income by $39.00:

Date Total Annual Dividends Notes
9/26/2017 $8,310.98 OGE dividend increase, raises meter reading $22.80
9/15/2017 $8,288.18 With approximately $480 in accumulated cash dividends in IRA Rollover, bought 8 shares of DFS at $58.51 per share, raises meter reading $11.20
9/7/2017 $8,276.98 VZ dividend increase, raises meter reading $5.00

The purchase of DFS on September 15th at $58.51 per share was very timely, since the stock steadily moved higher during the second half of September to finish the month at $64.48 / share. With a recent dividend hike of 17%, a dividend payout ratio of only 25%, and projected earnings growth of over 10% next year, Discover Financial Services has plenty of room for continued dividend growth.

October Preview

We’re still waiting for a dividend declaration from SBUX (Starbucks Corp.), which could happen any day now in October. Other portfolio positions that could announce dividend increases in October include: OHI (Omega Healthcare Investors, Inc.), and AFL (Aflac, Inc.).  Any new incoming cash dividends will likely be used to purchase more shares of DPS (Dr. Pepper Snapple Group Inc.) – if the stock continues to trade with a dividend yield greater than 2.6% (or less than $89.00 per share).

 

4 Comments

  1. Dividend--Portfolio

    Congrats on another solid month Dividend Meter. You will soon reach the $8500 mark. BTW, I also have SBUX and am looking forward to seeing what they intend on doing with their dividends.

    Looking forward to next month’s report.

    Reply
    1. Meter ManMeter Man (Post author)

      I’m hoping to hit the $8500 mark by the end of the year; however, the portfolio could take a step back in late November when SNR and DIN announce dividends. It’s possible one or both of them cut their dividend payouts. Fortunately, the positions are relatively small within the overall portfolio. The damage to total annual dividends will be minimal, but it will delay hitting the inevitable $8500 barrier by a month or two.

      Reply
      1. Meter ManMeter Man (Post author)

        DIN just announced their next quarter dividend – no dividend cut, holding steady at .97 per share.

        Reply
  2. Dividend--Portfolio

    Sweet. That’s very good to hear.

    Reply

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