Friday, May 6, 2016

April 2016 Dividends

The dividend wheel turns just like seasons change.  It is spring and the flowers are blooming and the birds are chirping.  What is better than that?  Well dividends of course!  They keep increasing (for the most part) and growing year after year.  This month I saw 4 dividends increase from dividend growth stocks I own. 

Company
Held In
Dividend
Amount Received
Shares of life purchased
April
GPC
IRA
2.63
$7.58
0.0763
Was 2.46 so div increased 6.5%
UBSI
IRA
1.32
$35.12
0.9569

CRWS
IRA
0.32
$6.24
0.6753


IRA

$0.44

FDIC Interest
HRZN
Taxable
1.38
$6.99
0.6005

GE
Taxable
0.92
$6.13
0.1993


Taxable

$0.06

FDIC Interest
KO
Taxable
1.4
$0.94

Was 1.32 so div increased 5.7%
CNQ
Taxable
0.92
$0.49

Was .68 so div increased 26.1%
WMT
Taxable
2
$7.5

Was 1.96 so div increased  3%
GE
Taxable

$0.95



That is right my table is purple.  Purple is said to sooth the soul and invite you in to taste the nectar of dividends.  Most notably are Genuine Parts Company (GPC), Coca-Cola (KO), Canadian Natural Resources (CNQ), and Walmart (WMT).  The fastest grower was CNQ.  I had picked them up last year when the yield was over 3% but now it is hovering around 2.51% which is still good.  The next dividend is safe but we will see after that if the wildfires in Canada affect it in any way.

Besides Walmart the rest are growing at a great rate and I am happy to own a part of such great companies.  As you can see  those dividends were reinvested in my IRA and one of my taxable accounts.  The last chunk of stocks are with Motif Investing and they currently do not offer automatic dividend reinvestment.  In a recent survey they sent me I suggested they offer that as it would attract more dividend investors to their platform.  We will see if they listen.


Year over year there was a decrease in my dividend stream. Most notable last year was my last dividends from Windstream (WIN) that I sold because of the dividend cut.  That one was a purchase before I knew much about dividend growth investing and would never have bought them in the first place.  The dividend was huge but never grew and the balance sheet didn't look that good either.  You live and learn right.  Going forward, with increased diversification, I hope to only grow YOY and any dividend cuts will be minor bumps in the road.

Any thoughts on Walmart?  Are they becoming a utility dividend growth stock?

Long on all stocks mentioned.

Happy investing,
Dividend Family Guy

6 comments:

  1. Hi DFG,
    Awesome - a purple Barney income report! It's a shame about the dividend cuts but hopefully your portfolio is stronger because of it in the long term.

    I think all companies slow as they become larger; it's much easier to double $10,000 of sales into $20,000 than to double $482 billion into $964 billion. I like WMT though and we shop there a lot - owning shares encourages us to buy from there than from Amazon. Plus I get more credit card points from Walmart.

    Best wishes,
    -DL

    ReplyDelete
    Replies
    1. Yep same here. Shop & eat where I own stocks is the way to go. The place is always packed by us so at least for now they are safe. Their online presence isn't to bad either and is more like a marketplace.
      Cheers,
      DFG

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  2. Dividend cuts are part of the dividend growth game. It happens even to best portfolios and bluest of blue chip stocks. Just stay diversified and stick with those companies sporting sustainable dividends and you should be fine long term. I do not like any retail names. Not WMT, TGT or anything else in the space. Just my preference. I see long term headwinds for all brick and mortar plays.

    ReplyDelete
    Replies
    1. Yep cuts hurt and the lesson learned was to not over buy just one company (I think 50% of my portfolio was in them at the time). Diversification lowers risk (but also gains).
      Cheers,
      DFG

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  3. Solid month.

    Walmart is a tough one for me. I generally invest with a long term mentality in mind and the retail space is quickly moving online so I'm worried Walmart's best days are behind it if they can't get on that train. I went to Target a while ago and just left frustrated because the item I wanted(tick medicine for my dog) was behind a lock and I couldn't find anyone to unlock it for me nearby so I went home and ordered it online for a cheaper price.

    I think these stores either need to work on their online presence a lot more to compete with Amazon or make the store an experience again. A lot of the places near me are under staffed and dirty so I see no reason to go there anymore and just buy everything beyond Groceries, Clothing(and even that I go online for more often now) and big ticket electronics(the hassle of returning items online makes this prohibitive).

    ReplyDelete
    Replies
    1. I do love Amazon and that 2 day shipping. However they don't have enough cash to pay me dividends it seems so I will stick with the champs (even if it is WMT).
      Cheers,
      DFG

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