Category Archives: Portfolio Management

DGI For The DIY: Summer Dividend Income Update

Greetings and welcome to the summer edition of the DGI For The DIY dividend income review. My apologies for the lack of updates in recent months, I’m sure you’ve all been on the edge of your seats in anticipation of a new article!

As is likely the case with most of you, it’s been an incredibly busy summer for my household. It seems I make this comment with every update, but free time has become even more difficult to find in recent months.

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DGI For The DIY: February Dividend Income Review

The month of February is in the books, and it was an extremely volatile one for the stock market. It was also a busy month for me personally, as deadlines led to overtime at work and frequent snowstorms provided me with ample exercise opportunities in shoveling out the driveway.

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Giving Thanks For 42.8% Dividend Growth In November

As I type this update, we sit just three weeks one week away from Christmas. My kids are getting more excited by the day, and my 3-year-old still hasn’t quite figured out why it isn’t already Christmas since the tree is up and Christmas songs are playing on the radio.

However, the purpose of this post isn’t to look ahead, it is to review the past month, and November was another excellent one for both myself and the portfolio.

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Chowder’s Investing Words Of Wisdom, Part II

I read many comments, articles, and other writings about DGI investing throughout the week. Earlier this month, I started to bookmark the pieces that catch my eye, with plans to highlight them for readers here on DGI For The DIY.

Regular readers of this site are aware of the respect and admiration I have for Chowder on Seeking Alpha. He was one of the contributors there that caught my attention early on, and has played a big part in my maturation as a dividend growth investor.

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5 New Dividend Boosts Have Me All Smiles

I am all smiles after a handful of dividend increases were announced in the DGI For The DIY portfolio. Over the last two weeks, 5 more companies declared new dividend rates, providing me with another nice boost to my income.

With these increases, ten of the eleven companies from my portfolio dividend growth projections have now made announcements. I previously wrote about the increases from Polaris Industries, Church & Dwight Co. and Gilead Sciences, and Coca-Cola and Dr Pepper Snapple. Today I will give my thoughts on the most recent increases coming from Xcel Energy Inc. $XEL, Ross Stores, Inc. $ROST, GameStop Corp. $GME, Digital Realty Trust $DLR, and QUALCOMM Inc. $QCOM.

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Dividend Payout Ratio: Is It Relevant?

I was just going over some of my sector-based watch lists and was struck by the wide variety of dividend payout ratio targets that have been set by companies. This got me thinking about how often investors, and specifically dividend investors, use payout ratio as an initial screening tool for finding potential investments.

Not only do payout ratios vary significantly from sector to sector, but they also can vary significantly between companies operating in similar businesses. For example, it is quite common for utility companies to pay out more than 50% of their earnings in dividends, as they operate in generally stable businesses that have predictable earnings. However, when looking at my 30 stock utility watch list, there is a range of targeted payout ratios from 40-75%, with UGI Corporation $UGI on the low end and Dominion Resources $D at the top.

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DGI For The DIY: 2016 Portfolio Update

Another eventful year in the market has come to a close, and that means it is time to provide a new update on my dividend growth portfolio.

This update is a bit different for me, as it is the first one I’ve made since starting this new website. I’m still trying to find balance between simply restating what I already said in my Seeking Alpha update, and providing some new insight here.

2016 was a good one for the markets, as the DJIA gained more than 15%, while the S&P gained 11% for the year. My portfolio also did quite well, putting up 15.6% income growth and increasing in value by 24.1% (including contributions).

Value, Contributions, and Income Chart

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Finding Green Shoots Among My Healthcare Stocks

After taking a beating in 2016, it appears that the Healthcare Sector may be on the rebound. I have been taking advantage of the cheap prices by consistently adding to my positions over the last 6 months, with new positions and multiple buys made in Abbott Labs $ABT and CVS Health $CVS, along with adding to my positions in Omega Healthcare $OHI, and AbbVie Inc. $ABBV.

Here are the prices for those transactions, and how they have done so far.

Health Care Sector Investments

On the surface, those numbers don’t look all that great, as the first three purchases made are still underweight. I was a bit early in jumping in on CVS Health Corp., and my first two buys remain under water. However, I made a third purchase following the big drop on earnings, and that has worked out well so far, as that buy is up nearly 11%.

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Education Center Added

Just giving a quick update that I have begun construction of an “Education Center” that will cover some of the basic questions of Dividend Growth Investing.

Thus far I have the topics “Portfolio Weighting“, “Dividend Reinvestment“, and “Yield Vs. Growth“.

I am also planning on adding “Stock Selection” and “Portfolio Construction” pages, but thought I’d also open it up to readers as well to see if they can think of other important topics that should be covered.

As of now I am just populating these different topics with articles that I have personally written, but as time goes on I also plan to add articles from other authors from Seeking Alpha and other sites as I come across them.

Do you have any MUST READ articles in your bookmarks that you think would be worthwhile to others? If so, please share in the comments below and I will consider them for addition.

Thanks, and Happy New Year!

Eric