September 2017 Dividend Meter Update
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.
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).