Dividend growth investing is the strategy of buying shares in companies with reliable and consistently increasing dividend payouts to shareholders.
I have used this strategy since early 2013, and have kept a log of all the dividend increase announcements in my portfolio since its inception. By doing so, I am able to see which companies I own announce new dividends on which dates, and see if there is any pattern to the announcements over the years.
I have found that there is typically a lull in announcements made during the summer months, with most announcements made in either quarter surrounding the New Year. This makes intuitive sense, as companies are generally declaring new rates at the end of either their fiscal or the calendar year.
It’s been a crazy busy summer in the household, so my apologies for the limited number of posts on the site of late. Between T-ball, swimming lessons, high school reunions, family vacations, and everything else, the weeks have really been flying by.
It seems like I just finished up the June portfolio update, and here we sit a week and a half into August already and I’m just getting the July report put together.
However, despite the lack of free time to manage my portfolio, it continues to chug along just fine on its own. Dividend income in the portfolio grew by 16.7% over 2016, and the July totals put me over $1,100 in dividends collected so far in 2017.
4th of July festivities may have ended, but I’m still celebrating after tallying up the last of the dividends received during the month of June.
It was another successful month in the portfolio, as dividend income increased by 11.5% over 2016, and by nearly 2% over Q1. This increase was driven by add-on purchases of two companies I already owned, reinvestment of dividends, and organic dividend increases to dividend payouts.
Cracker Barrel Old Country Store, Inc. $CBRL served up my favorite menu item last week…another dividend increase! It added a cherry on top in the form of a special dividend, further adding to my portfolio income.
The last of my April dividends hit the account on Monday, allowing me to update the DGI For The DIY portfolio spreadsheet and see the progress made in the portfolio.
Here are the final income numbers for the month, along with a comparison to 2016’s totals:
The portfolio saw a 10% increase in dividend income over 2016 totals. This increase comes from a combination of organic dividend increases, reinvestment of dividends, and purchases made over the last year.
Ameriprise Financial Inc. $AMP is a company rarely mentioned among the top stocks in the financial sector. However, despite the lack of recognition it has been one of the better performers over the last decade, providing investors with 10.7% annualized total returns against 6.5% from the S&P.
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.
If you’ve done much reading on this site, you are probably aware that I enjoy keeping watch lists on various sectors of the stock market. Nike Inc. $NKE not only resides on the consumer discretionary sector watch list, but has also made appearances on some of the high growth lists I’ve put together as well.
While Nike has been on my radar for some time, I have avoided purchasing it for two reasons: