Tuesday, June 11, 2024

July 2024 Dividend Stock Watch List

As I'm writing this blog post, it is currently Saturday, June 8. The high temperature is expected to reach 72 degrees Fahrenheit later today here in Central Wisconsin. It is also going to be partly sunny, so I plan to get outside later today for this perfect weather.

Now that I have made most of my purchases for the month of June, it's not too early to start thinking about my potential purchases for next month. Without further ado, here are three dividend stocks at the top of my list right now.

Dividend Stock #1: Brookfield Asset Management (BAM)

The first dividend stock on my watch list for June 2024 is Brookfield Asset Management (BAM). Readers interested in my full investment thesis for BAM can find it in this Seeking Alpha article from last month.

The gist of it is that BAM is a leading player within the growing alternative asset management industry. The company's A-rated balance sheet also had approximately $2.6 billion of liquidity as of March 31 against no long-term debt. The 4% dividend yield is well-covered and I also believe the payout is positioned for robust future growth. The stock also looks to be modestly discounted from the current $38 share price (as of June 8, 2024).

Dividend Stock #2: Essential Utilities (WTRG)

The next dividend stock that I'm thinking about adding to next month is Essential Utilities (WTRG). Last month, I provided my comprehensive investment thesis in a Seeking Alpha article.

Briefly, WTRG is a water utility that I believe can grow earnings by 6% to 7% annually long term. The balance sheet is also A-rated. The 3.3% dividend yield appears to be secure and set to keep growing by around 7% each year. Throw in considerable undervaluation and I believe double-digit annual total returns are likely from the current $37 share price (as of June 8, 2024).

Dividend Stock #3: Mastercard (MA)

The third dividend stock on my watch list for June 2024 is Mastercard (MA). My investment thesis remains unchanged from when I last covered MA on Seeking Alpha in January 2024.

As an established leader behind Visa (V) in the global payments industry, MA is well-positioned to keep benefiting from the transition toward cashless payments. This should lead to routine double-digit annual earnings growth. The 0.6% dividend yield leaves plenty of room for future dividend growth as well. If that wasn't enough, MA also possesses an A-rated balance sheet. The cherry on top is that I believe shares are modestly undervalued from the current $450 share price (as of June 8, 2024).

Concluding Thoughts:

Another month. Another three world-class dividend growth stocks. Absent meaningful rallies in BAM or MA (or a massive rally in WTRG), I'm looking forward to adding to my positions in these excellent businesses.

Discussion:

Are any of BAM, WTRG, or MA on your watch list for the coming weeks?

If not, what dividend stocks are on your radar?

Thanks for reading and please feel free to comment below!

Tuesday, June 4, 2024

May 2024 Dividend Income

As I'm writing this blog post on Wednesday, May 29, the high temperature is expected to reach 71 degrees Fahrenheit in Central Wisconsin. The forecast also calls for very little cloud cover, so the weather is ideal.

Putting that aside, the time of the month means that I will be going over my net dividend income for May 2024.

A New May/Middle Of The Quarter Month Record

In May 2024, I collected $365.82 in net dividends (after accounting for British American Tobacco's ADR fees). This is equivalent to a 4% quarterly growth rate compared to the $351.91 in net dividends received in February 2024.

My net dividends collected in May 2024 were also 32.3% higher versus the $276.48 in net dividends that my portfolio produced in May 2023.

I received $337.46 from 29 companies within my Charles Schwab account (formerly my Robinhood account). Dividend raises from the likes of Williams-Sonoma (WSM) and Realty Income (O) helped this account's net dividend income rise slightly.

My net dividends collected in my Webull portfolio from three companies amounted to $15.56 (net of ADR fees). Due to unfavorable foreign currency exchange for BTI, that explains the marginal decrease in net dividend income within this portfolio.

I received $12.41 in net dividends within my IRA from two companies. Additionally, Agree Realty (ADC) was a first-time dividend payer for the overall portfolio.

Finally, I collected $0.39 in net dividends from 16 companies in my M1 Finance account. A dividend raise from Procter & Gamble (PG) and the first dividend from Haleon (HLN) helped to lift these net dividends higher.

Concluding Thoughts:

There we have it. May 2024 was another month of progress for the portfolio. As I keep putting my capital to work in the IRA, my net dividends should keep climbing higher over time.

Discussion:

How did you fare with your net dividend income in May 2024?

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

I appreciate your readership and welcome your comments below!

Tuesday, May 28, 2024

May 2024 Dividend Stock Purchases

As I'm writing this blog post, it is currently May 17, 2024. The temperature is currently 76 degrees Fahrenheit and sunny here in Central Wisconsin. That's precisely why I plan on getting outside after finishing this blog.

With that aside, I'm done with my dividend stock purchases for the month with fresh capital (I may sell a few stakes and redeploy capital in my Charles Schwab account). So, I'll outline my dividend stock purchases in my IRA for May 2024.

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

My first dividend stock purchase that I completed during the month was 10 shares of Brookfield Asset Management (BAM) at an average cost of $40.07 a share. This boosted my net annual forward dividends by $1.52, which works out to a 3.79% net dividend yield.

Interested readers can check out my Seeking Alpha article published earlier this month to learn why I added to my stake in BAM.

Dividend Stock Purchase #2: McDonald's (MCD)

The next dividend stock purchase that I made in May was two shares of McDonald's (MCD) at an average price per share of $267.22. That increased my net annual forward dividends by $13.36, which equates to a 2.5% dividend yield.

Readers can peruse my May 2024 Dividend Stock Watch List blog post for my brief investment thesis on MCD.

Dividend Stock Purchase #3: NextEra Energy (NEE)

The third dividend stock purchase that I executed for the month was five shares of NextEra Energy (NEE) at an average cost of $73.83 per share. This raised my net annual forward dividends by $10.30, which is equivalent to a 2.79% net dividend yield.

Those interested in my investment thesis can find it in this Seeking Alpha article from late last month.

Dividend Stock Sales: Digital Realty Trust (DLR), Eastman Chemical (EMN), International Business Machines (IBM), and Omnicom (OMC)

I closed out my respective 10, 7, 6, and 7 share positions in the aforementioned stocks on May 21. Each of these stocks have delivered little to no dividend growth for the last two to three years.

So, I was happy to cut ties with them. I received $3,845.47 in total capital proceeds from those sales and lost $131.16 in net annual forward dividends from the transactions.

Dividend Stock Capital Redeployment: Nvidia (NVDA), Philip Morris International (PM), British American Tobacco (BTI), and Enterprise Products Partners (EPD)

I rolled these proceeds into a starter position of two shares of Nvidia (NVDA) at an average cost of $951.59 a share. I also added six shares of Philip Morris International (BTI) at $100.43 apiece. I boosted my position in British American Tobacco (BTI) by 21 shares at an average cost of $31.50 each. Lastly, I upped my stake in Enterprise Products Partners (EPD) by 23 units at an average price per unit of $28.65.

As I put $3,826.31 in capital back to work, this helped me to increase my emergency fund (a bit more) by $19.16. I also lifted my net annual forward dividends by $10.11 after factoring in the loss of dividends with my four sales.

Overall, I believe this basket is going to meaningfully outperform my previous basket in relatively safe starting income, income growth, and capital appreciation.

Concluding Thoughts:

On the dividend stock purchases that I completed with my own capital, I deployed $1,304.25 in May. This boosted my net annual forward dividends by $38.86, which is a weighted average net dividend yield of 2.98%.

Combined with the $9.414 lift in my net annual forward dividends from dividend increases and the capital redeployment, my net annual forward dividends grew from $4,580 to $4,640.

Discussion:

How was your capital deployment this month?

Did you open any new positions?

Thanks for reading and please feel free to drop a comment below!

Tuesday, May 21, 2024

Expected Dividend Increases For June 2024

As I'm writing this blog post on Monday, May 13th, the temperature is currently expected to reach a high of 75 degrees Fahrenheit here in Central Wisconsin. Other than wildfires in Canada currently impacting air quality, the weather is perfect today.

Now that all but two of my anticipated dividend increases for May have already been announced, I will be going over those dividend increases and looking ahead to the ones on tap for next month.

Actual Dividend Increases For May 2024

Dividend Increase #1: American Water Works (AWK)

As I noted in the previous post of this series, American Water Works announced an 8.1% raise in its quarterly dividend per share to $0.765. This was in line with my prediction.

Across my four shares of AWK, my net annual forward dividend rose by $0.92 as a result of this dividend announcement.

Dividend Increase #2: Main Street Capital (MAIN)

Main Street Capital declared a 2.1% increase in its monthly dividend per share to $0.245. That was also what I anticipated.

My net annual forward dividends surged $1.80 across my 30 shares of MAIN due to this dividend declaration.

Dividend Increase #3: RTX Corp (RTX)

RTX Corp announced a 6.8% raise in its quarterly dividend per share to $0.63. This was also what I forecasted.

Across my 12 shares of RTX, my net annual forward dividends were boosted by $1.92 as a result of this dividend announcement.

Dividend Increase #4: Simon Property Group (SPG)

Simon Property Group (SPG) declared a 2.6% increase in its quarterly dividend per share to $2. That was also on par with my expectations.

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

Dividend Increase #5: Realty Income (O)

Realty Income announced a 2.1% raise in its monthly dividend per share to $0.2625. Across my 39 shares of O, my net annual forward dividends grew by $2.574 from this announcement.

Pending Dividend Increase: Medtronic (MDT)

Medtronic also hasn't yet boosted its dividend, but I'd expect this to occur on May 23, with the release of its fiscal fourth quarter earnings. My expectation remains that MDT will up the quarterly dividend per share by 1.4% to $0.70.

UPDATE:

Just as expected, MDT announced a 1.4% raise in its quarterly dividend per share to $0.70. My net annual forward dividends increased by $0.52 across my 13 shares of MDT from this raise.

Pending Dividend Increase: Lowe's (LOW)

Lowe's hasn't yet announced its dividend hike, but I would anticipate this will happen with the release of its fiscal first quarter earnings on May 21. I continue to believe that LOW will up the quarterly dividend per share by 4.5% to $1.15.

Across my 10 shares of LOW, my net annual forward dividends would grow by $2 from such an announcement.

UPDATE:

As anticipated, LOW declared a 4.5% increase in its quarterly dividend per share to $1.15.

My net annual forward dividends grew by $2 across my 10 shares due to this declaration.

Expected Dividend Increases For June 2024

Expected Dividend Increase #1: FedEx (FDX)

The first dividend boost that I'm expecting for June will come from FedEx. My best guess is that FDX will announce a 9.6% increase in its quarterly dividend per share to $1.38.

Across my four shares of FDX, my net annual forward dividends would rise by $1.92 from such an announcement.

Expected Dividend Increase #2: General Mills (GIS)

The next payout raise that I'm anticipating for next month will be from General Mills. I believe that GIS will declare a 9.3% boost in its quarterly dividend per share to $0.59.

My net annual forward dividends would increase by $0.80 across my four shares of GIS due to such a declaration.

Expected Dividend Increase #3: Realty Income (O)

The third dividend bump that I'm predicting for June will come from Realty Income. I anticipate that O will announce a 0.2% raise in its monthly dividend per share to $0.2630.

Across my 39 shares of O, my net annual forward dividends would grow by $0.234 from such an announcement.

Expected Dividend Increase #4: UnitedHealth Group (UNH)

The next dividend boost that I'm expecting for June will be from UnitedHealth Group. My best guess is that UNH will declare a 13.3% hike in its quarterly dividend per share to $2.13.

My net annual forward dividends would rise by $5 across my five shares of UNH due to such a declaration.

Concluding Thoughts:

The seven dividend raises that I received in May boosted my net annual forward dividends by $11.534. This would be equivalent to investing $384.47 at a 3% net dividend yield.

If dividend announcements work out as I expect, my net annual forward dividends would rise by $7.954 in June. That would be like investing $265.13 at a 3% weighted-average dividend yield.

Discussion:

How was your month for dividend increases?

Did you receive any first-time dividend boosts in May 2024?

I appreciate your readership and welcome your comments below!