July 2025 Stock Watch List

As I'm writing this blog post, it's currently Friday, June 6th. The temperature here in Central Wisconsin is expected to reach a high of 72 degrees Fahrenheit later today, with the forecast being partly sunny. That temperature is less than the average for this time of year, but arguably perfect.

Having likely completed all of my dividend stock purchases for the month, I believe now is a great time to look ahead at three stocks at the top of my watch list for July 2025.

Stock #1: Amazon (AMZN)

First up on my watch list for next month is Amazon, which is no stranger to this blog post series. I just discussed it in my May 2025 Stock Watch List blog post. Interested readers can also find my investment thesis in my recent Seeking Alpha article.

The crux of my investment thesis is that Amazon is a leader in industries with secular growth trends like e-commerce and cloud computing. The company is also a financial fortress, with an AA-rated balance sheet. Trading at a forward 12-month P/OCF ratio of 15.1, shares are also substantially discounted relative to the 10-year average P/OCF ratio of 23.8 per FAST Graphs. The current share $214 share price (as of June 6th, 2025) is substantially less than my fair value estimate of $304 a share.

Stock #2: Enterprise Products Partners (EPD)

Next up on my watch list for July 2025 is Enterprise Products Partners. EPD's most recently appeared in my April 2025 Stock Watch List blog post. Curious readers can also check out my investment thesis in my Seeking Alpha article from last month.

The heart of my investment thesis centers around $7.6 billion in major projects that EPD currently has under development. Most of these projects ($6 billion) are going to be finished in 2025. I'm also confident that any future projects the company initiates construction on will earn excellent returns for unitholders. This is because of EPD's reputation for having a high return on invested capital. The 6.8% distribution yield is also well-covered. The company also has the only A-rated balance sheet among its midstream peers. Topping off the buy case, units are trading at a forward 12-month P/OCF ratio of 7.6 from the current $31 unit price. This is cheaper than the 10-year average P/OCF ratio of 9.6 per data from FAST Graphs and my fair value of $36 a unit (based on my fair value P/OCF ratio of 8.6).

Stock #3: Union Pacific (UNP)

The final stock on my watch list for July 2025 is Union Pacific. The last time I covered this one on my blog was in my December 2022 Dividend Stock Watch List blog post. Readers can find my investment thesis in an iREIT+Hoya Capital listicle from March.

The gist of my investment thesis is that railroads have efficiently moved big and bulky freight for roughly 200 years. As the economy continues to grow and Union Pacific invests in becoming even more efficient, this bodes well for future earnings growth prospects. The company's 2.4% dividend yield is also secure and positioned for payout boosts in the years ahead. Union Pacific also enjoys an A-rated balance sheet. The stock is also trading at a forward 12-month P/E ratio of 18.5, which is below the 10-year average P/E ratio and my fair value multiple estimate of 21.2. That implies shares are worth $257 each and moderately undervalued from the current $223 share price.

Concluding Thoughts:

Another month. Three more excellent companies on my watch list. I'm planning on a roughly 40% weighting to AMZN, with the remainder being pretty evenly split between EPD and UNP. This will help me stay close to a weighted-average yield of 3%, while also providing my portfolio with growth and value.

Discussion:

Are any of AMZN, EPD, and UNP on your watch list in July 2025?

If not, what stocks are on your radar in the coming weeks?

I appreciate your readership and welcome your comments below!

May 2025 Dividend Income

As I'm writing this blog post, it's Friday, May 30th. The temperature here in Central Wisconsin is expected to reach a high of 78 degrees Fahrenheit later today, with a mild thunderstorm also expected. This weekend is going to be ideal, with a mostly sunny forecast and highs reaching into the upper 70s and low 80s. So, I'm definitely going to be spending at least a few hours outside in the coming days!

Now that the month is basically over, I'm going to be taking a moment to highlight my net dividend income for May 2025. Let's dive into it.

Net Dividend Income Approached $600

In May 2025, I received $568.35 in net dividends (including ADR fees for British American Tobacco). Compared to the $516.48 in net dividends that I collected in February 2025, that equates to a 10% quarterly growth rate.

My net dividends were also 55.4% greater versus the $365.82 in net dividends that I received in May 2024.

In my Charles Schwab portfolio, I collected $533.23 in net dividends from 22 companies. That was mostly due to additions to my BTI stake in January 2025 and February 2025. Additions to my Enterprise Products Partners (EPD) stake in April 2025 also played a role in the higher income.

I also received $18.50 in net dividends from three companies within my Fidelity IRA account. This higher income was largely fueled by my March 2025 purchase of more Realty Income (O).

Finally, I collected $16.62 in net dividends from three companies in my Webull portfolio. The slight uptick in income was due to a more favorable GBP to USD exchange rate, which lifted my net dividends from BTI.

Concluding Thoughts:

Overall, I was pleased with my net dividend income in May 2025. Through recent investment activity and dividend raises, I believe that I will be close to reaching the $600 milestone for net dividends in August 2025.

My net dividends year to date are up nearly 30% versus 2024 levels. The dividend snowball is beginning to pick up steam in rolling down the hill, which is quite encouraging after nearly eight years of investing.

Discussion:

How was your dividend income in May 2025?

Did you receive any first-time dividends for the month?

Thank you for your readership and please feel free to comment below!

May 2025 Stock Purchases

As I'm writing this blog post, it's Friday, May 23rd. The temperatures here in Central Wisconsin have been cool in recent days and that's going to continue for the foreseeable future. The high temperature isn't expected to reach 70 degrees Fahrenheit again until next Wednesday.

With that aside, there's roughly one week of trading left in the month. I have already completed all of my anticipated transactions for the month, so I figure now would be a good time to highlight those purchases.

Stock #1: Amazon (AMZN)

The first stock that I purchased in May 2025 was three shares of Amazon at an average price of $190.30 a share. Curious readers can check out my investment thesis in my May 2025 Stock Watch List blog post.

Stock #2: NextEra Energy (NEE)

The next stock that I added to during the month was 10 shares of NextEra Energy at an average cost per share of $67.31. Originally, I planned to bolster my position in Brookfield Asset Management. However, BAM's shares rallied to a less attractive valuation in the time that elapsed from my May 2025 Stock Watch List blog post to early May. This transaction added $22.66 to my net annual forward dividends, which equates to a 3.37% net dividend yield.

Stock #3: Realty Income (O)

The third stock purchase that I completed in May 2025 was 11 shares of Realty Income at an average price of $57.39 a share. Interested readers can check out my investment thesis in my May 2025 Stock Watch List blog post that I linked to earlier. This added $35.442 to my portfolio's net annual forward dividends, which works out to a 5.61% net dividend yield.

Bonus Stock Purchase: Nvidia (NVDA)

The final stock that I purchased during the month was another four shares of Nvidia at an average cost per share of $113.33. Initially, I was going to add more to Microsoft. That changed after MSFT rallied significantly following its Q3 earnings report. This transaction increased my net annual forward dividends by $0.16, which is a 0.04% net dividend yield.

Concluding Thoughts:

I put $2,328.62 of fresh capital to work in May 2025. Compared to the $58.262 in net dividends added through these purchases, this is equivalent to a weighted-average net dividend yield of 2.50%.

My net annual forward dividends also grew by $6.72 from dividend increases in May 2025. Collectively, these factors pushed my net annual forward dividends from almost $5,870 at the start of May to nearly $5,935 heading into June. Sometime next month, I expect to surpass the $6,000 milestone in net annual forward dividends.

Although this blog post won't be published until the day after Memorial Day, I would like to conclude by wishing everyone a safe and healthy holiday weekend. I'd especially like to thank those who paid the ultimate sacrifice in service to this great country, as well as their families!

Discussion:

How was your capital deployment in May 2025?

Did you open any new positions during the month?

I appreciate your readership and look forward to your comments below!

Expected Dividend Increases For June 2025

As I'm writing this blog post, it's Friday, May 16th. The temperature here in Central Wisconsin is expected to reach a high of 66 degrees Fahrenheit, with a chance for showers later tonight. The weekend is going to also be a bit cold for this time of year, with the high temperatures set to be 56 and 60 on Saturday and Sunday, respectively.

With that aside, the month of May is half complete. That makes now a good time to look at the dividend raises that I have received so far for the month. As remaining raises come in, I'll update this blog post. I will also look ahead to the dividend boosts that I'm expecting for June 2025.

Actual Dividend Increases For May 2025

Dividend Increase #1: Main Street Capital (MAIN)

As predicted in my previous blog post of this series, Main Street Capital increased its monthly dividend per share by 2% to $0.255.

Across my 30 shares of MAIN, my net annual forward dividends grew by $1.80 due to this dividend declaration.

Dividend Increase #2: RTX Corporation (RTX)

RTX upped its quarterly dividend per share by 7.9% to $0.68.

My net annual forward dividends increased by $2.40 across my 12 shares of RTX from this dividend announcement.

Pending Dividend Increase #1: Lowe's Companies (LOW)

Lowe's has yet to up its quarterly dividend per share. However, I'm reiterating my expectation of a 4.3% increase in its quarterly dividend per share to $1.20 for later this month.

Across my 10 shares of LOW, my net annual forward dividends would grow by $2 due to such a dividend declaration.

UPDATE: As expected, LOW increased its quarterly dividend per share by 4.3% to $1.20. This lifted my net annual forward dividends by $2 across my 10 shares.

Pending Dividend Increase #2: Medtronic (MDT)

Medtronic also hasn't raised its quarterly dividend per share yet. When earnings are reported later this month, I still believe the quarterly dividend per share will be increased by 1.4% to $0.71.

My net annual forward dividends would rise by $0.52 across my 13 shares of MDT from such an announcement.

UPDATE: MDT upped its quarterly dividend per share by 1.4% to $0.71. This lifted my net annual forward dividends by $0.52.

Expected Dividend Increases For June 2025

Expected Dividend Increase #1: FedEx (FDX)

The first dividend increase that I'm projecting for June 2025 will be from FedEx. I believe FDX will announce a 7.2% hike in its quarterly dividend per share to $1.48.

Across my four shares of FDX, my net annual forward dividends would grow by $1.60 due to such a declaration.

Expected Dividend Increase #2: Realty Income (O)

The next dividend raise that I'm expecting for next month will come from Realty Income. My best guess is that O will increase its monthly dividend per share by 0.2% to $0.269. This will be one of the four smaller raises (and one larger raise) that O announces each year.

My net annual forward dividends would grow by $0.834 across my 139 shares of O from such an announcement.

Expected Dividend Increase #3: UnitedHealth Group (UNH)

The final dividend boost that I'm anticipating for June 2025 will be from UnitedHealth Group. My guess is that UNH will raise its quarterly dividend per share by 7.1% to $2.25.

Across my six shares of UNH, my net annual forward dividends would grow by $3.60 due to such a declaration.

Concluding Thoughts:

My net annual forward dividends grew by $6.72 in May 2025 via four dividend raises. That would be like investing $224 at a net dividend yield of 3%.

If the three dividend increases that I'm expecting for June 2025 materialize, my net annual forward dividends would edge $6.034 higher. This would be equivalent to investing $201.13 at a 3% dividend yield.

Discussion:

How has your month been for dividend raises?

Did you receive any first-time payout boosts during the month?

Thanks for reading and please feel free to comment below!