June 2022 Dividend Stock Purchases

As I'm writing this blog post, it's 88 degrees Fahrenheit. The good news is that humidity is somewhat low at 43%, so the heat isn't particularly oppressive. And over the next week, high temperatures here in Central Wisconsin will drop to the upper-60 degrees Fahrenheit to mid-70 degrees Fahrenheit range. In my opinion, those temperature ranges are ideal for outdoor activity. Thus, I will be getting outside as much as I can in the days ahead.

There is less than a week left in the month of June and I won't be making any stock purchases in the last few days of the month. That's why it's time to take a look at the stock purchases that I made during June 2022.

Starting with my retirement account, the $75.43 in net dividends that I received from my Capital Income Builder (CAIBX) mutual fund were reinvested. Since I left my prior job last July to write for The Motley Fool and Seeking Alpha, dividend reinvestment is the only way my share count of CAIBX will grow moving forward.

My CAIBX share balance increased by 1.21 shares to 180.811 heading into July. This helped my net annual forward dividend income to move $2.58 higher, which works out to a 3.42% net dividend yield.

I started off the month by adding 18 shares to my position in Medical Properties Trust (MPW) at an average cost of $17.53 a share. Interested readers can check out this recently published Motley Fool article on why I like the stock, as well as Realty Income (O). This dividend stock purchase added $20.88 to my portfolio's net annual forward dividend income, which is equivalent to a weighted average net yield of 6.62%.

The next dividend stock that I added to in June was 11 shares of STORE Capital (STOR) at an average cost of $27.40 a share. For a more in-depth dive into why I'm bullish on STOR, readers can check out this Motley Fool article on STOR and Digital Realty Trust (DLR) that was published earlier this month. As a result of this dividend stock purchase, my net annual forward dividends surged $16.94 higher. This equates to a 5.62% net dividend yield.

I also added three shares of Simon Property Group (SPG) to my portfolio at an average cost per share of $111.48. This added $20.40 to my net annual forward dividend income, which works out to a weighted average net yield of 6.10%.

The next dividend stock that I purchased in June was 11 shares of Cisco (CSCO) at an average cost of $45.41 a share. This boosted my net annual forward dividends by $16.72, which is equivalent to a 3.35% net dividend yield.

I also added three shares of Medtronic (MDT) at an average cost per share of $89.51. Curious readers can check out this Motley Fool article from earlier in the month to see why I'm optimistic on MDT, as well as CVS Health (CVS). This bumped my net annual forward dividend income up by $8.16, which equates to a weighted average net yield of 3.04%.

The next dividend stock that I purchased was two shares of International Business Machines (IBM) at an average cost of $135.38 a share. This led my net annual forwards to increase by $13.20, which works out to a 4.88% net dividend yield.

I also added two shares of 3M (MMM) to my portfolio at an average cost per share of $136.01. This boosted my net annual forward dividend income by $11.92, which is equivalent to a weighted average net yield of 4.38%.

The only non-dividend stock that I purchased during June was 0.5 shares of Amazon (AMZN) at an average cost of $102.78 a share. Readers can find out why I added to my position in this stock by reading the April 2022 Dividend Stock Purchases blog post of this series. 

I also added six shares of Altria Group (MO) to my portfolio at an average cost per share of $42.16. For more color on why I made this decision, readers can check out this Motley Fool article on the stock. My net annual forward dividends soared $21.60 higher as a result of this purchase, which equates to an 8.53% net dividend yield.

The next dividend stock purchase that I made during June was six shares of GlaxoSmithKline (GSK) at an average cost of $42.49 a share. I laid out my reasoning for this purchase several weeks back in my June 2022 Dividend Stock Watch List blog post. My net annual forward dividend income increased by $12.00 due to this purchase, which works out to a weighted average net yield of 4.71%.

The final dividend stock purchase that I executed during the month was Kinder Morgan (KMI) at an average cost per share of $16.42. My logic for this decision was also laid out in the June 2022 Dividend Stock Watch List post that I linked to in the paragraph above. My net annual forward dividends grew by $19.98 as a result of this purchase, which is equivalent to a 6.76% net dividend yield.

Concluding Thoughts:

I deployed $3,192.36 in capital during June 2022. My dividend stock purchases for the month added $164.38 in net annual forward dividend income to my portfolio. Along with the $7.014 in increased annual dividend income from dividend increases received during the month, my net annual forward dividends soared from just under $2,790 at the start of the month to a bit more than $2,960 heading into July.

Discussion:

How was your June 2022 for capital deployment?

What stock positions did you add to and did you open any new positions during the month?

As always, thanks for reading and please feel free to comment below!

Expected Dividend Increases for July 2022

As I'm writing this blog post on June 17, it's currently in the mid-70 degrees Fahrenheit here in Central Wisconsin. And this is expected to persist over the next few days before temperatures heat up to the mid-80 degrees Fahrenheit. Needless to say, I'll be getting outside as much as possible in the days ahead.

Aside from the weekly report on the weather in my area, I have received all of the dividend increases that I'm expecting for June besides Clorox. That's why I will be recapping the payout raises that I received during the month and looking ahead to the dividend announcements for July.

Actual Dividend Increases for June 2022

Dividend Increase #1: Realty Income (O)

Realty Income declared a 0.2% increase in its monthly dividend per share from $0.2470 to $0.2475. This was in line with the expectation that I outlined in the previous post of this series. O is really as steady as they come and it proves it quarter after quarter with payout bumps. 

My net annual forward dividends inched $0.078 higher across my 13 shares of O due to the dividend announcement.

Dividend Increase #2: W.P. Carey (WPC)

W.P. Carey announced a 0.2% bump in its quarterly dividend per share from $1.057 to $1.059. Similar to O, WPC's new quarterly dividend per share is precisely what I anticipated it would be. 

Across my seven shares of WPC, my net annual forward dividends increased by $0.056 as a result of the dividend increase.

Dividend Increase #3: UnitedHealth Group (UNH)

UnitedHealth Group declared a 13.8% hike in its quarterly dividend per share from $1.45 to $1.65. This again was in line with my prediction.

My net annual forward dividends surged $1.60 higher across my two shares of UNH due to the payout boost.

Dividend Increase #4: FedEx (FDX)

FedEx blew my projection out of the water. FDX announced a massive 53.3% hike in its quarterly dividend per share from $0.75 to $1.15. This was four times the 13.3% raise that I was expecting. Not bad for my first raise received from the stock.

Across my three shares of FDX, my net annual forward dividends soared $4.80 as a result of the dividend increase.

Dividend Increase #5: General Mills (GIS)

General Mills declared a 5.9% increase in its quarterly dividend per share from $0.51 to $0.54. 

My net annual forward dividends inched $0.48 higher across my four shares of GIS due to the payout raise.

Pending Dividend Increase: Clorox (CLX)

Clorox has yet to announce its next dividend payment. But I'm still forecasting a 0.9% increase in the quarterly dividend per share from $1.16 to $1.17. I will update this section of the blog once CLX announces its next dividend.

Expected Dividend Increases for July 2022

Expected Dividend Increase #1: Wells Fargo (WFC)

The first dividend raise that I'm predicting for July is Wells Fargo. I believe that WFC will declare a 20% boost in its quarterly dividend per share to $0.30.

If my prediction is correct, my net annual forward dividends would rise by $1.60 across my eight shares of WFC.

Expected Dividend Increase #2: J.M. Smucker (SJM)

The next dividend increase that I am expecting for next month will be from J.M. Smucker. My projection is that SJM will announce a 5.1% hike in its quarterly payout per share to $1.04. 

If SJM meets my expectations, this would lift my net annual forward dividends by $0.60 across my three shares.

Expected Dividend Increase #3: National Retail Properties (NNN)

The third dividend raise that I'm forecasting for July is from National Retail Properties. I anticipate that NNN will declare a 3.8% increase in its quarterly dividend per share to $0.55.

If my forecast is right, my net annual forward dividends would surge $0.96 higher across my 12 shares of NNN.

Expected Dividend Increase #4: Essential Utilities (WTRG)

The next dividend boost that I am predicting for next month will be from Essential Utilities. I believe that WTRG will announce a 7.2% raise in its quarterly dividend per share to $0.2875.

If my prediction is correct, my net annual forward dividends would rise by $0.772 across my 10 shares of WTRG.

Expected Dividend Increase #5: Cummins (CMI)

The fifth dividend raise that I'm forecasting for July is from Cummins. My projection is that CMI will declare a 7.6% hike in its quarterly dividend per share to $1.56. 

If CMI meets my expectations, this would boost my net annual forward dividends by $2.20 across my five shares.

Expected Dividend Increase #6: Hershey (HSY)

The next dividend boost that I am expecting for next month will be from Hershey. I believe that HSY will announce a 9.2% raise in its quarterly dividend per share to $0.984.

If my forecast is right, my net annual forward dividends would surge $0.996 higher across my three shares of HSY.

Expected Dividend Increase #7: Duke Energy (DUK)

The seventh dividend raise that I am predicting for July is from Duke Energy. I expect that DUK will declare a 5.1% increase in its quarterly dividend per share from $0.985 to $1.035.

If my prediction is correct, my net annual forward dividends would be boosted by $1.20 across my six shares of DUK.

Concluding Thoughts:

I received $7.014 in dividend increases in June from five stocks. This would require $200.40 in fresh capital to match at a 3.5% weighted average dividend yield.

Based on the seven raises that I'm expecting in July, my net annual forward dividends would be lifted by $8.328. This would be equivalent to investing $237.94 at a 3.5% average net yield.

Discussion:

How was your June 2022 for dividend announcements?

Are you anticipating any first-time dividend increases as I am with WTRG, CMI, HSY, and DUK?

Thanks for your readership and please feel free to share your thoughts below!

July 2022 Dividend Stock Watch List

As I'm writing this blog post, it's raining here in Central Wisconsin. The good news is that this will help keep the fire danger low for the foreseeable future as we head into summer. But the bad news is that it will be more difficult to enjoy the outdoors.

With that aside, it's already mid-June. That makes now a good time to look a few weeks ahead at three stocks that I will buy next month, barring massive surges in their share prices. Let's dig in.

Image Source: Pexels

Dividend Stock #1: VICI Properties (VICI)

As I explained in a Motley Fool article published last month, VICI Properties is the largest gaming real estate investment trust (REIT) in the world. The company owns many of the most iconic gaming properties in the world.

Ownership of these reputable properties has literally paid dividends to VICI's shareholders. This has allowed the stock to average high-single-digit annual dividend increases over the past several years. With a dividend payout ratio just above 70% in 2021, dividend growth should remain strong going forward.

Buying VICI in July is an opportunity to purchase shares ahead of the stock's anticipated payout hike in September. In the meantime, the starting yield on a lot of shares at the current $30 share price is 4.8% (as of June 11, 2022). And at a 2022 price-to-AFFO-per share ratio of 16.5, VICI's shares look sensibly valued at this time as well.

Dividend Stock #2: Merck (MRK)

The next stock that's on my watch list for July is the pharma powerhouse Merck. Interested readers can get my most recent thoughts on the stock in more detail in this Motley Fool article that was published last month.

But the gist of it is these three points:

1) The stock's impressive drug pipeline should lead to above-average growth in the years ahead.

2) The market-beating payout should continue to increase at a healthy rate.

3) The stock is trading at a bargain valuation for its quality.

Dividend Stock #3: Magellan Midstream Partners (MMP)

Astute readers will point out that technically Magellan Midstream Partners is a distribution stock and not a dividend stock. This is due to the fact that MMP is a master limited partnership and not a C-corp, so it pays distributions rather than dividends.

It has been a while since I have looked at MMP, but the fundamentals look intact from what I can tell. This is why I still like the stock from when I last covered it at Motley Fool last December.

The basic reasons why I'm confident that the stock will make its unitholders rich in the years ahead are as follows:

1) MMP's 12,000 miles of refined products and crude oil pipelines would be almost impossible for any competition to replicate. 

2) Global economic growth will require more refined products and crude oil over the next couple of decades, which should lead to slow and steady growth for MMP.

3) MMP pays a market-crushing 7.9% distribution yield, which is well-covered by distributable cash flow.

Concluding Thoughts:

I'm very blessed to have the opportunity each month to add to my positions in the best companies in the world. And July should be another month with capital deployment in the $2,500 to $3,000 range. This should go a long way in my goal of building meaningful passive income in the years ahead to achieve financial independence.

Discussion:

Are any of VICI, MRK, or MMP on your watch list for July 2022?

If not, what stocks are you considering purchasing next month?

I appreciate your readership and welcome your comments below!

May 2022 Dividend Stock Purchases

As I'm writing this blog post, the temperature is in the low-70 degrees Fahrenheit range today in Central Wisconsin. And it will remain that way over the next few days. That's why I'm very much looking forward to getting outside as much as possible during this ideal weather.

Now that it's early June, I will shift my attention to the dividend stock purchases (and one non-dividend stock purchase) that I made in May 2022.

The first stock purchase that I made in May was a share of Innovative Industrial Properties (IIPR) at a cost of $139.28. Just as I explained in my April 2022 Dividend Stock Watch List post, IIPR is the leader in providing financing solutions for state-licensed operators in the budding cannabis industry. And if that wasn't enough, the massive dividend is quickly growing and the stock is priced at a bargain-bin valuation. Since I added $7.00 of net annual forward dividends to my portfolio, this works out to a 5.03% net dividend yield.

I also added two shares of JPMorgan Chase (JPM) at an average cost of $123.22 a share. Simply put, JPM is a well-run bank that I believe was attractively valued at the time of my purchase. Factoring in the $8.00 in net annual forward dividends that I added to my portfolio, this equates to a 3.25% weighted average net yield. 

The third stock purchase that I executed in May was a share of PepsiCo (PEP) at a cost of $169.88. Readers looking for a more in-depth explanation of why I added to my position should check out my Motley Fool article on the stock published earlier this month. Given the $4.60 boost in the net annual forward dividends of my portfolio from this transaction, my net dividend yield was 2.71%.

I added four shares of Main Street Capital (MAIN) to my portfolio at an average cost of $39.49 a share. As I explained in a Motley Fool article published back in January, MAIN is arguably the best business development company around and the dividend looks to be safe. Not considering the special dividends paid by MAIN, this purchase added $10.32 in net annual forward dividends to my portfolio. This is equivalent to a 6.53% weighted average net yield.

The fifth stock purchase that I completed in May was three shares of Leggett & Platt (LEG) at an average cost of $36.83 a share. Interested readers can check out my Motley Fool article from April for a detailed explanation of why I like LEG. Factoring in the $5.28 boost in my net annual forward dividends from this transaction, this works out to a 4.78% net dividend yield.

I also added a share of Cummins (CMI) at a cost of $203.15. Readers can peruse my Motley Fool article from last month on Merck and CMI for more details on the factors that led me to ultimately led me to add to my position in the latter. Given the $5.80 in net annual forward dividends that this purchase added, this equates to a 2.86% weighted average net yield.

The seventh stock purchase that I made in May was 0.04 shares of Amazon (AMZN). This is because AMZN has gradually evolved from a dominant e-commerce retailer to the leading cloud computing company and a leading advertising company. 

I opened a three share position in FedEx (FDX) at an average cost of $214.15 a share. As I noted in my May 2022 Dividend Stock Watch List post, FDX's growth potential is related to e-commerce. Few industries are going to grow as fast as e-commerce in the years ahead and this should lead to increased shipping volumes for FDX and United Parcel Service (UPS). Factoring in the $9.00 boost in my net annual forward dividends from this purchase, this is equivalent to a 1.40% net dividend yield.

The ninth stock purchase that I executed in May was three shares of Eastman Chemical (EMN) at an average cost of $103.42 a share. Given the $9.12 in net annual forward dividends that this transaction added, this works out to a 2.94% weighted average net yield.

I also added three shares to my position in Digital Realty Trust (DLR) at an average cost of $126.48 a share. I put my money where my mouth is, which is exactly why I added to my position in DLR a couple of weeks after my Motley Fool article on DLR and VICI Properties (VICI) was published. Factoring in the $14.64 boost in my net annual forward dividends from this purchase, this equates to a 3.86% net dividend yield.

The 11th and final stock purchase that I completed in May was 17 shares of KeyCorp (KEY) at an average cost of $18.42 a share. Given the $13.26 in net annual forward dividends that this transaction added, this is equivalent to a 4.23% weighted average net yield.

Concluding Thoughts:

I deployed $2,761.03 in capital during May 2022. These stock purchases allowed me to add $87.02 in net annual forward dividends to my portfolio. And this isn't even including the $10.20 boost that I received from dividend increases announced during the month. This explains how my net annual forward dividends soared from over $2,690 at the start of May to nearly $2,790 heading into June.

Discussion:

How was your May 2022 for dividend stock purchases and capital allocation?

Did you open any new positions like I did with FDX?

I appreciate your readership and welcome your comments below!