August 2024 Dividend Stock Purchases

As I'm writing this blog post on Friday, August 23rd, the temperature here in Central Wisconsin is expected to reach a high of 80 degrees Fahrenheit. That's just about the perfect temperature in my opinion, so I plan on spending plenty of time outside today.

Now that August is nearly complete, I believe today is also a great day to discuss my dividend stock purchase activity for the month. Without further ado, I'll jump into it!

Dividend Stock Purchase #1: Realty Income (O)

My first dividend stock purchase for the month was nine shares of Realty Income at an average price per share of $57.72. That lifted my net annual forward dividends by $28.404, which equates to a 5.47% net dividend yield.

Curious readers can check out my investment thesis on O in my August 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #2: Visa (V)

The next dividend growth stock that I added to in August was two shares of Visa at $264.60 a share. This purchase lifted my net annual forward dividends by $4.16, which works out to a net dividend yield of 0.79%.

Interested readers can also find my investment thesis on V in the August 2024 Dividend Stock Watch List linked above.

Dividend Stock Purchase #3: WEC Energy Group (WEC)

My third dividend growth stock purchase was six shares of WEC Energy Group at an average price per share of $88.49. That boosted my net annual forward dividends by $20.04, which is equivalent to a 3.77% net dividend yield. 

My original plan was to purchase shares of American Electric Power (AEP). By the time I was deploying capital, though, AEP's value proposition had mostly dissipated. It was still buyable, but I thought that WEC was the better overall pick for me.

Bonus Stock Purchase: Energy Transfer (ET)

In my Charles Schwab account, I had some dividends lying around that had been accrued in prior weeks. So, I put that to work by purchasing another 16 units of Energy Transfer at $16.27 a unit. This raised my net annual forward distributions by $20.48, which is a net distribution yield of 7.87%.

Readers can peruse my latest Seeking Alpha article on ET for my investment thesis.

Concluding Thoughts:

In August, I deployed $1,839.92 in capital to dividend growth stock purchases. That added $73.084 in net annual forward dividends/distributions to my portfolio. This is a 3.97% weighted average dividend/distribution yield.

My net annual forward dividends also grew by $11.10 from the three dividend raises that I received in August 2024. That pushed my net annual forward dividends/distributions from almost $4,860 at the start of August to around $4,945 going into September.

Discussion:

How was your capital deployment in August 2024?

Did you buy any new positions during the month?

Thanks for reading and please feel free to comment below!

Expected Dividend Increases For September 2024

As I'm writing this blog post, it is Friday, August 16th. The temperature is expected to reach a high of 75 degrees Fahrenheit today, which is in line with my preferences.

The month is about half complete. Since the dividend raise from Altria Group (MO) later this month is the only one that I'm still awaiting, I'll look ahead to the dividend increases that I'm expecting in September.

Actual Dividend Increases For August 2024

Dividend Increase #1: Iron Mountain (IRM)

Iron Mountain announced a 10% boost in its quarterly dividend per share to $0.715. That was well above the 6% raise to $0.69 that I was anticipating in my previous blog post of the series.

Across my 21 shares of IRM, my net annual forward dividends soared higher by $5.46 due to this dividend announcement.

Dividend Increase #2: Simon Property Group (SPG)

Simon Property Group declared a 2.5% increase in its quarterly dividend per share to $2.05. This was what I predicted.

My net annual forward dividends rose by $1.80 from this dividend declaration across my nine shares of SPG.

Dividend Freeze: Main Street Capital (MAIN)

Main Street Capital announced a $0.245 monthly regular dividend, which was in line with the previous. That was less than the 2% increase that I predicted. But in an environment in which interest rates are likely to soon start falling, this was probably the right move.

Pending Dividend Increase: Altria Group (MO)

Altria Group hasn't declared its dividend raise yet. But it has consistently done so on the fourth Thursday of August for quite a long time now. I continue to believe that MO will declare a 4.1% bump in its quarterly dividend per share to $1.02.

Across my 24 shares of MO, my net annual forward dividends would rise by $3.84 due to such a declaration.

Update:

As expected, MO raised its quarterly dividend per share by 4.1% to $1.02. This boosted my net annual forward dividends by $3.84.

Expected Dividend Increases For September 2024

Expected Dividend Increase #1: Microsoft (MSFT)

The first dividend raise that I'm expecting in September will be from Microsoft. My best guess is that MSFT will announce a 10.7% boost in its quarterly dividend per share to $0.83.

My net annual forward dividends would rise by $1.60 across my five shares of MSFT from such an announcement.

Expected Dividend Increase #2: Realty Income (O)

The next dividend increase that I'm projecting for next month is from Realty Income. I believe that O will declare a 0.2% bump in its monthly dividend per share to $0.2635.

Across my 48 shares of O, my net annual forward dividends would grow by $0.288 due to such a declaration.

Expected Dividend Increase #3: Philip Morris International (PM)

The third dividend increase that I'm anticipating in September will be from Philip Morris International. My guess is that PM will announce a 3.1% raise in its quarterly dividend per share to $1.34.

My net annual forward dividends would increase by $4.32 across my 27 shares of PM from such an announcement.

Expected Dividend Increase #4: Starbucks (SBUX)

The next payout raise that I'm predicting for next month is from Starbucks. My best guess is that SBUX will declare a 7% hike in its quarterly dividend per share to $0.61.

Across my 23 shares of SBUX, my net annual forward dividends would rise by $3.68 due to such a declaration.

Expected Dividend Increase #5: VICI Properties (VICI)

The fifth dividend increase that I'm projecting in September will be from VICI Properties. I believe that VICI will announce a 6% raise in its quarterly dividend per share to $0.44.

My net annual forward dividends would grow by $6.80 across my 68 shares of VICI from such an announcement.

Expected Dividend Increase #6: Verizon Communications (VZ)

The final dividend bump that I'm anticipating for next month is from Verizon Communications. My guess is that VZ will declare a 1.9% increase in its quarterly dividend per share to $0.6775.

Across my 45 shares, my net annual forward dividends would rise by $2.25 due to such a declaration.

Concluding Thoughts:

The three raises that I received in August have upped my net annual forward dividends by $11.10. That's like investing $370 at a 3% net dividend yield.

If the six dividend hikes that I'm predicting for next month pan out, my net annual forward dividends would rise by $18.938. This would be equivalent to investing $631.27 at a 3% yield.

Discussion:

How has your month been going for dividend raises?

Did you receive any first-time raises in August?

Thank you for your readership and I welcome your comments below!

September 2024 Dividend Stock Watch List

As I'm writing this blog post on Friday, August 9th, the weather forecast for this weekend here in Central Wisconsin is ideal. It's expected to be partly sunny, with high temperatures reaching into the upper 70s Fahrenheit.

Now that I have completed my stock purchases for August, I am looking ahead to my anticipated purchases for September.

Dividend Stock #1: Meta Platforms (META)

The first stock on my watch list for September is Meta Platforms (META). Curious readers can find my investment thesis in this Seeking Alpha article from last month.

META's social media platforms are used by half of the world. The continued integration of AI into its business is driving greater advertising efficiency and higher ad prices. The growth forecast for the global digital advertising industry is also very promising. Not to mention META's balance sheet is unbelievably strong. The starting yield of 0.4% may not be much, but the payout should have tons of room to grow in the future. Finally, shares look to be meaningfully undervalued from the current $514 share price (as of August 9, 2024).

Dividend Stock #2: Alphabet (GOOGL)

Next up on my watch list for next month is Alphabet (GOOGL). Interested readers can check out my thoughts on GOOGL in this June Seeking Alpha article.

Like META, the user base for GOOGL's products is extensive. That provides the company and its advertising partners with a treasure trove of data to run effective targeted ad campaigns. This positions GOOGL admirably in the growing digital advertising market as well. That should lead to promising growth prospects for the company. Additionally, GOOGL's balance sheet is arguably the most enviable among all of Big Tech. Like META, the company's 0.5% starting yield is small. However, it has a considerable growth runway. Lastly, shares of GOOGL are a great value from the current $162 share price (as of August 9, 2024).

Dividend Stock #3: Enbridge (ENB)

Last up is my more income-oriented pick of the month, Enbridge (ENB). For my updated thesis on ENB, readers can peruse my Seeking Alpha article from May.

Amid the AI boom and anticipated surge in electricity demand, ENB is well-positioned as North America's leading midstream operator. The company continues to steadily grow. Combined with an investment-grade balance sheet and modest payout ratio, this bodes well for ENB's dividend growth streak to persist well beyond the current three-decade mark. Despite these solid fundamentals, the midstream giant looks to be discounted from the current $39 share price (as of August 9, 2024).

Concluding Thoughts:

There we have it. In my view, my watch list for September 2024 contains an attractive mix of value with each of these three picks. ENB supplements the lower starting yields of META and GOOGL. Simultaneously, the latter two compensate for the more modest growth prospects of ENB. For my money, I also think the trio is of exceptional, world-class quality. This is why I'm very excited to be adding to each of these stakes in the coming weeks.

Discussion:

Are any of META, GOOGL, or ENB on your watch list for September 2024?

If not, what dividend growth stocks are you monitoring for the weeks ahead?

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

July 2024 Dividend Income

As I'm writing this blog post, it is Friday, August 2. The temperature here in Central Wisconsin is anticipated to reach a high of 85 degrees Fahrenheit later today. So, I plan on getting outside for a few hours.

Now that July 2024 is behind us, I will be looking at my net dividend income for the month.

Net Dividend Income Topped $250

During July 2024, I collected $256.43 in net dividends (including ADR fees for GSK). That was a 3.9% quarterly growth rate versus the $246.69 in net dividends received in April 2024. Backing out the sale of Omnicom (OMC) and Eastman Chemical (EMN) in May 2024, my net dividend income would have grown at a higher clip.

This was 0.6% lower than the $258.02 in net dividends that I collected in July 2023. But again, I no longer own OMC or EMN. Not to mention that I also liquidated positions in W.P. Carey (WPC) last October, Medical Properties Trust (MPW) last November and Leggett & Platt (LEG) in January. The timing of PepsiCo's (PEP) dividend payment schedule played a role as well.

I received $227.10 in net dividends from 24 companies in my Charles Schwab account. As I alluded to earlier, growth from dividend increases couldn't offset the loss of dividends from OMC and EMN. That is why my net dividends were a bit lower in this account.

That was more than offset by the $18.90 in net dividends that I collected in my IRA from three companies. Since opening and funding this account in March, this marked the first month of a quarter that my IRA contributed to my net dividend income.

My $10.24 in net dividends received from four companies within my Webull account was the same as April.

In my M1 Finance account, I collected $0.19 from eight companies. That was $0.03 below my net dividend income in April. This was also due to the timing of PEP's dividend payment.

Concluding Thoughts:

Thus far, my net dividends through July are up 21.8%. God willing, I'm going to keep deploying between $1,500 and $2,000 of capital monthly. Coupled with organic growth, this should keep my dividend income climbing higher in the months and years to come.

Discussion:

How was your dividend income for July 2024?

Did you collect any first-time dividends in the month?

Thanks for reading and please feel free to comment below!