July 2024 Dividend Growth Stock Purchases/Sales

As I'm writing this blog post, it's Friday, July 26. The temperature here in Central Wisconsin is expected to reach a high of 84 degrees Fahrenheit. But for the forecast of showers throughout the day, the weather would be perfect.

Now that the month of July is just days from its conclusion, I will highlight my dividend stock purchases/sales for the month.

Dividend Stock Purchase #1: Brookfield Asset Management (BAM)

My first dividend growth stock purchase for the month was 11 more shares of Brookfield Asset Management at an average price per share of $40.90. That boosted my net annual forward dividends by $16.72, which works out to a 3.72% net dividend yield.

Interested readers can find more info on my investment thesis from my July 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #2: Mastercard (MA)

The next dividend growth stock that I purchased was an additional share of Mastercard at a cost of $438.65. This transaction increased my net annual forward dividends by $2.64, which is equivalent to a 0.6% dividend yield.

Readers can also find more insight into why I added to my stake in MA from the aforementioned July 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #3: Essential Utilities (WTRG)

The third dividend growth stock purchase for the month was 11 shares of Essential Utilities at an average price per share of $40.38. That lifted my net annual forward dividends by $13.512, which equates to a 3.04% net dividend yield.

Curious readers can also find my the gist of my investment thesis in my blog post linked above.

Bonus Activity:

Dividend Stock Sales: Dominion Energy (D) and Tanger Inc. (SKT)

I closed my positions in both Dominion Energy and Tanger Inc. this month. Since dividend cuts from each of these holdings years ago, those dividends haven't yet been restored. So, I figured now was the time to finally cut them loose. These sales resulted in a $28.12 drop in my portfolio's net annual forward dividends.

Dividend Stock Purchase: British American Tobacco (BTI)

I redeployed my capital proceeds and most of my modest cash reserves in one of my taxable accounts to purchase 22 shares of British American Tobacco at a cost of $33.21 a share. This is another $64.90 in net annual forward dividends for my portfolio and works out to an 8.88% yield.

For curious readers, Dividend Sensei's Seeking Alpha article from May sums up my decision to up my BTI stake by nearly 50%.

Dividend Stock Purchase: Meta Platforms (META)

I also purchased a two-share starter position in Meta Platforms in my taxable account at an average cost per share of $505.49. This lifted my net annual forward dividends by $4, which is a 0.4% net dividend yield.

Interested readers can check out my investment thesis for META here.

Concluding Thoughts:

Besides the capital shuffling, the dividend growth stock purchases that I made with non-stock capital amounted to capital deployment of $2,343.71. These purchases added $36.872 to my portfolio's net annual forward dividends, which is a weighted-average net dividend yield of 1.57%. Capital redeployment added another $36.78 in net annual forward dividends to my portfolio.

Another $14.4926 increase in my net annual forward dividends came from dividend raises announced in July.

In total, my net annual forward dividend climbed from almost $4,770 heading into July to nearly $4,860 exiting the month.

Discussion:

How was your capital deployment for the month?

Did you close any positions or start any new ones in July 2024 as I did with D/SKT and META?

Thank you for your readership and I look forward to your comments!

Expected Dividend Increases For August 2024

As I'm writing this blog post, it is July 19th. The temperature is going to reach a high of 79 degrees Fahrenheit today, which is arguably perfect for this time of year.

Now that the month is mostly complete, I believe it is a good time to discuss the dividend hikes that I received. I'll also look ahead to the dividend raises that I believe are on tap for August 2024.

Actual Dividend Increases For July 2024

Dividend Increase #1: Cummins (CMI)

Cummins announced an 8.3% boost in its quarterly dividend per share to $1.82. This was slightly better than my expectation of a 7.1% raise in the quarterly dividend per share to $1.70 in the previous blog post of this series.

Across my five shares of CMI, my net annual forward dividends grew by $2.80 from this dividend announcement.

Dividend Increase #2: Duke Energy (DUK)

Duke Energy declared a 2% increase in its quarterly dividend per share to $1.045, which was in line with my prediction.

My net annual forward dividends rose by $0.48 across my six shares of DUK due to this dividend declaration.

Dividend Increase #3: Enterprise Products Partners (EPD)

Enterprise Products Partners announced a 1.9% raise in its quarterly distribution per unit to $0.525. That was a bit below my projection of a 2.9% increase in its quarterly distribution per unit to $0.53.

Across my 75 units of EPD, my net annual forward distributions surged by $3 from this distribution announcement.

Dividend Increase #4: NNN REIT (NNN)

NNN REIT declared a 2.7% bump in its quarterly dividend per share to $0.58, which was what I predicted.

My net annual forward dividends grew by $1.08 across my 18 shares of NNN due to this dividend declaration.

Dividend Increase #5: J.M. Smucker (SJM)

J.M. Smucker announced a 1.9% raise in its quarterly dividend per share to $1.08. This was below the 3.8% increase in the quarterly dividend per share to $1.10.

Across my three shares of SJM, my net annual forward dividends edged $0.24 higher from this dividend announcement.

Dividend Increase #6: Albemarle (ALB)

Albemarle declared a 1.3% increase in its quarterly dividend per share to $0.405. My net annual forward dividends grew by $0.16 across my eight shares of ALB due to this dividend declaration.

Dividend Increase #7: Union Pacific (UNP)

Union Pacific announced a 3.1% raise in its quarterly dividend per share to $1.34. Across my four shares of UNP, my net annual forward dividends rose by $0.64 from this dividend announcement.

Dividend Increase #8: Wells Fargo (WFC)

This month, Wells Fargo made its 14.3% hike in its quarterly dividend per share to $0.40 official. Across my eight shares of WFC, this lifted my net annual forward dividends by $1.60 due to this declaration.

Dividend Increase #9: BP plc (BP)

BP announced a 10% hike in its quarterly dividend per share to $0.48. My net annual forward dividends grew by $1.927 across my 10 shares of BP from this dividend announcement.

Dividend Increase #10: Clorox (CLX)

Clorox declared a 1.7% increase in its quarterly dividend per share to $1.22. Across my two shares of CLX, my net annual forward dividends edged higher by $0.16 due to this declaration.

Dividend Increase #11: Essential Utilities (WTRG)

Essential Utilities announced a 6% boost in its quarterly dividend per share to $0.3255. This was just below my previous estimate in this post of a 6.8% raise to $0.3280. My net annual forward dividends rose by $1.5456 across my 21 shares of WTRG from this dividend announcement.

Pending Dividend Increase: Energy Transfer (ET)

Energy Transfer has yet to up its quarterly distribution per unit. However, I'm reiterating my expectation for a 0.8% increase in the quarterly distribution per unit to $0.32.

My net annual forward distributions could grow by $0.86 across my 86 units of ET from such an announcement.

UPDATE:

ET announced a 0.8% increase in its quarterly distribution per unit to $0.32. Across my 86 units of ET, my net annual forward dividends grew by $0.86 due to this announcement.

Expected Dividend Increases For August 2024

Expected Dividend Increase #1: Iron Mountain (IRM)

The first dividend increase that I'm expecting for next month will be from Iron Mountain. My best guess is that IRM will announce a 6.2% raise in its quarterly dividend per share to $0.69.

Across my 21 shares of IRM, my net annual forward dividends would grow by $3.36 from such an announcement.

Expected Dividend Increase #2: Main Street Capital (MAIN)

The next dividend bump that I'm predicting in August is from Main Street Capital. I believe that MAIN will declare a 2% increase in its monthly dividend per share to $0.25.

My net annual forward dividends would increase by $1.80 across my 30 shares due to such a declaration.

Expected Dividend Increase #3: Altria Group (MO)

The third dividend raise that I'm projecting for next month will be from Altria Group. My hunch is that MO will announce a 4.1% hike in it quarterly dividend per share to $1.02.

Across my 24 shares of MO, my net annual forward dividends would soar by $3.84 from such an announcement.

Expected Dividend Increase #4: Simon Property Group (SPG)

The next dividend bump that I'm expecting for August is from Simon Property Group. I believe that SPG will declare a 2.5% increase in its quarterly dividend per share to $2.05.

Across my nine shares of SPG, my net annual forward dividends would grow by $1.80 due to such a declaration.

Concluding Thoughts:

The 12 dividend increases that I received in July lifted my net annual forward dividends by $14.4926. That's equivalent to investing $483.09 of fresh capital at a net dividend yield of 3%.

If the four dividend raises that I'm expecting for next month play out as anticipated, my net annual forward dividends could increase by $10.80. This would be like investing $360 of fresh capital at a net dividend yield of 3%.

Discussion:

How has your month been for dividend increases?

Did you receive any first-time dividend hikes this month?

Thanks for reading and please feel free to comment below!

August 2024 Dividend Growth Stock Watch List

As I'm writing this blog post, it is currently Friday, July 12th. The high temperature here in Central Wisconsin is set to reach 85 degrees Fahrenheit later today. That's exactly why after spending time with my nephew, I plan on getting outside later in the afternoon to enjoy the weather.

Now that the month of July is almost half over, it would be a good time to briefly cover the dividend growth stocks that are at the top of my watch list for August.

Dividend Stock #1: American Electric Power (AEP)

First up is American Electric Power (AEP). Interested readers can find my investment thesis in this Dividend Kings article from May.

The gist of the article is that AEP's 6% to 7% annual operating EPS growth prospects remain intact. The company's balance sheet remains investment-grade, with a BBB+ credit rating from S&P. AEP's low-60% payout ratio is better than the 75% payout ratio that rating agencies like to see per The Dividend Kings' Zen Research Terminal. Finally, the $91 share price (as of July 12, 2024) represents a moderate discount to my $100+ fair value estimate.

Dividend Stock #2: Realty Income (O)

The second dividend growth stock on my watch list for August 2024 is Realty Income (O). Last month, I updated my investment thesis on O in a Seeking Alpha article.

In my view, O can likely continue delivering almost 4% annual AFFO per share growth to shareholders. The ~6% dividend yield also looks to be quite secure, with a payout ratio in the mid-70% range. Topped off with shares trading 11% below my fair value estimate of $63 (from the current $56 share price), double-digit annual total returns appear to be a strong possibility from here in my opinion.

Dividend Stock #3: Visa (V)

Wrapping things up, Visa (V) is the third dividend growth stock on my watch list for next month. Readers can find my investment thesis from late April in this Seeking Alpha article.

At the time (and still now), I believed the company had a reasonable path to keep putting up annual adjusted diluted EPS growth in the teens. The 0.8% starting yield isn't much, but it's backed up by a payout ratio in the low-20% range. V also flexes an AA- credit rating from S&P. Finally, shares could be worth over $300 apiece. Against the current $266 share price (as of July 12), that's a compelling value for my money.

Concluding Thoughts:

So, that concludes my discussion of my highest conviction picks that I'd like to add to next month. Each of these pick are undervalued enough that I almost certainly don't see myself not buying them. The only exception would be if they somewhat rally and other world-class holdings in my portfolio experience unjustified selloffs.

Discussion:

Are any of AEP, O, and/or V on your watch list for August 2024?

If not, what dividend growth stocks are piquing your interest?

I appreciate your readership and welcome your comments below!

Happy Independence Day/Dividends Are Amazing

As I'm writing this blog post, it is currently July 4th. With this blog post set for publication on July 9th, nobody will see this until after the conclusion of Independence Day weekend. But I hope everybody has a great weekend of relaxation and gratitude with their families.

For those of us in the United States, this is none other than the birthday of our nation. This country owes a debt of gratitude to all of those who have fought, bled, and given life and limb for this country (and their families) in the last 248 years.

As a country, I believe we owe so much to those 56 brave signers of the Declaration of Independence on that July day in 1776 and thereafter. They essentially signed their own death warrants and committed treason against Great Britain, the most powerful nation in the world at that time.

It all started with them. They were rebels with a cause. Those men and their families were willing to risk their own lives and fortunes for the idea that we were endowed with inalienable rights granted to us by God.

On this day, I'm grateful to be an American. This country has its share of issues just like any other, but there's no other place I'd rather be right now. This is home.

I feel so very blessed to have the privilege of living out my life as I see fit. Arguably the biggest blessing in this country is our overall belief that we can strike out on our own paths and shape our own destiny.

Since I was 12 years old, I have been fascinated with dividend investing. For the last seven years, I have been a real-money dividend growth investor. For the majority of those years, my gross income was below $40,000. I never exceeded $70,000 in gross income in a given year.

Yet, consistently setting aside and investing capital is beginning to yield tangible results.

Image Source: Track Your Dividends

Thanks to my regular capital contributions of between $1,500 and $2,000 a month and current dividend income, the dividend snowball is finally starting to roll down the hill. My expenses could rise in the years to come. But as I develop my career, my income could as well. So, I think these contributions could be maintained.

If that turns out to be the case, my portfolio is on track to surpass $1 million in value and throw off $37,000 in annual dividend income by my 40th birthday. Even adjusting for an average annual inflation rate of 3.5%, this would be equivalent to almost $24,000 in annual dividend income in today's dollars. 

If I were to move out of my parents' house, I estimate this is what my annual expenses would be to live a relatively comfortable life.

I'm sharing all of this because it is so mindboggling to see the power of compounding work in your favor. As much momentum as my portfolio is starting to build up, I'm so excited that the best days are yet to come.

Concluding Thoughts:

In closing, I'm grateful to be living in a country that allows people to pursue their dreams, big and small. In my view, this wouldn't be possible without the sacrifices made by so many great people throughout the history of this country and God's divine providence.

God Bless America and Happy Independence Day to all of my fellow Americans!

Discussion:

How was your Independence Day weekend?

What's your American Dream?

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

June 2024 Dividend Income

As I'm writing this blog post, it is currently Thursday, June 27. The high temperature is going to reach 74 degrees Fahrenheit here in Central Wisconsin today. That is especially perfect weather for the summertime.

With that aside, I will be taking a moment to briefly discuss my net dividend income for June 2024.

Dividend Income Surpassed $500 For The Month

In June 2024, I received $520.75 in net dividends (accounting for ADR fees on BP dividend and withholdings on BAM dividends). Compared to the $476.12 in net dividends that I collected in March 2024, this equates to a 9.4% quarterly growth rate.

Against the $421.41 in net dividend that I received in June 2023, that works out to a 23.6% year-over-year growth rate.

My net dividends collected within my Charles Schwab portfolio were $367.36 from 47 companies. The sales of Digital Realty Trust (DLR) and International Business Machines (IBM) in May were mostly offset by numerous dividend increases in previous months.

I received $86.53 in net dividends from my Capital Income Builder (CAIBX) mutual fund within my former employer-sponsored retirement account. A higher share count from dividend reinvestment resulted in a slightly higher dividend payment.

My net dividends collected in my IRA were $49.18 from seven companies. That was thanks to the dividend stock purchases that I made within the portfolio in March, April, and May.

I received $17.19 in net dividends from six companies in my Webull account. This was incrementally lifted due to an 11.7% dividend hike from UnitedHealth Group (UNH).

Finally, I collected $0.49 in net dividends from 21 companies in my M1 Finance portfolio. 3M's (MMM) dividend cut and the timing of United Parcel Service's (UPS) dividend payment were the notable events here.

Concluding Thoughts:

Overall, I'm pleased with the progress that the portfolio has made in recent months. At the current pace, I anticipate I could pass $600 in net dividends in December (including special dividends from CAIBX). As I've noted in recent months, the psychological effect of compounding working in my favor is beginning to take hold. It's an especially momentous occasion for which I am very grateful!

Discussion:

How was your dividend income for June 2024?

Did you receive any first-time dividends as I did with ENB and NVDA during the month?

Thanks for your readership and I look forward to your comments below!