Tuesday, July 5, 2022

June 2022 Dividend Income

As I'm writing this blog post, the high temperatures here in Central Wisconsin are expected to reach into the mid-70 to high-70 degrees Fahrenheit range over the next few days. As a result of this flawless weather, I will be getting outside as much as possible this Independence Day weekend.

With that aside, I will be discussing the dividend income that my portfolio produced during June 2022.







Analysis:

During the month of June 2022, I received $332.86 in net dividends. Compared to the $302.53 in net dividends that I collected in March 2022, this is a 10% growth rate over the prior quarter.

Against June 2021's net dividends amount of $197.54, this is an astonishing 68.5% year-over-year growth rate.

Diving into more details, I received $242.80 in net dividends from 44 stocks in my Robinhood portfolio. I also collected $75.43 in net dividends from my Capital Income Builder (CAIBX) mutual fund within my retirement account. My net dividends received from my Webull portfolio were $14.15 from six stocks. And last but not least, I collected $0.48 in net dividends from 23 stocks in my M1 Finance account.

The $30.33 quarterly increase in my net dividends received from March 2022 to June 2022 were due to the following activity in my portfolio:

My net dividends collected from Main Street Capital (MAIN) surged $1.16 higher within my Robinhood account (including special dividends), which was the result of my decision to purchase four more shares back in May.

I received an extra $5.40 in net dividends from Simon Property Group (SPG) in my Robinhood portfolio. This was due to my addition of three more shares last month and the recent 3% increase in the quarterly dividend.

My net dividends collected from PepsiCo (PEP) within my Robinhood account increased by $1.37. This was the result of my purchase of a share back in May. 

I received an additional $3.66 in net dividends from Digital Realty Trust (DLR) in my Robinhood portfolio, which was because of my decision to add three shares to my position in May.

My net dividends collected from Union Pacific (UNP) were $0.36 higher within my Robinhood account, which was due to the 10.2% raise in the dividend recently.

I received an extra $0.40 in net dividends from UnitedHealth Group (UNH) in my Robinhood and Webull portfolios. This was the result of the 13.8% boost to its quarterly dividend last month.

My net dividends collected from Shell (SHEL) were $0.18 higher within my Robinhood account, which was because of the 4.2% dividend increase back in March.

I received an additional $4.88 in net dividends from BlackRock (BLK) in my Robinhood portfolio. This was driven by my decision to pick up another share of BLK in April

My net dividends collected from Home Depot (HD) increased by $1.90 within my Robinhood account, which was due to my purchase of another share in April.

I received an extra $0.98 in net dividends from Duke Energy (DUK) in my Robinhood portfolio. This was because of an extra share that I added back in February.

My net dividends collected from Raytheon Technologies (RTX) were $0.28 higher within my Robinhood account, which was the result of the stock's 7.8% dividend hike in April.

I received an additional $0.01 in net dividends from Realty Income (O) in my Robinhood portfolio. This was due to the stock's 0.2% increase in the monthly dividend in March. 

My net dividends collected from KeyCorp (KEY) were boosted by $3.32 within my Robinhood account, which was because of my decision to add 17 shares of the stock to my position in May.

I received an extra $3.83 in net dividends from NextEra Energy (NEE) in my Robinhood portfolio. This was due to my dividend stock purchases in March and April. 

My net dividends collected from International Business Machines (IBM) were $0.04 higher within my Robinhood account. This was the result of the stock's 0.6% dividend increase in April.

I received an additional $0.35 in net dividends from Johnson & Johnson (JNJ) in my Robinhood portfolio, which was because of the stock's 6.6% bump in its quarterly dividend in April.

My net dividends collected from Southern (SO) were $0.10 higher within my Robinhood account. This was due to the stock's 3% dividend raise in its quarterly dividend in April.

I received an extra $1.45 in net dividends from Cummins (CMI) in my Robinhood portfolio, which was the result of my purchase of an extra share in May.

My net dividends collected from American Water Works (AWK) were $0.21 higher within my Robinhood account. This was because of the stock's 8.7% dividend hike that was announced in April.

I received $0.03 less in net dividends in my M1 Finance portfolio, which was due to the timing of Fastenal's (FAST) dividend payment.

My net dividends collected from CAIBX were $0.48 higher. This was due to my extra shares in the mutual fund compared to March.

Concluding Thoughts:

My net dividends continue to steadily grow with each passing quarter. Given my consistent capital deployment of around $3,000 each month, I wouldn't be surprised if my net dividends were close to $500 received in June 2023.

Those brave signers of the Declaration of Independence who pledged their lives, fortunes, and sacred honor were the spark that led to the birth of this country. And the brave men and women who have fought to protect our freedoms are what allowed so many to achieve their version of the American dream over the generations!

I'm very blessed to be living in the United States of America. The progress I have made in building my dividend growth stock portfolio wouldn't have otherwise happened to the extent that it has if I lived in any other country.

Discussion:

How was your month for dividend income?

Did you receive any first-time dividends during the month?

Thanks for reading. I look forward to your comments below!

Tuesday, June 28, 2022

June 2022 Dividend Stock Purchases

As I'm writing this blog post, it's 88 degrees Fahrenheit. The good news is that humidity is somewhat low at 43%, so the heat isn't particularly oppressive. And over the next week, high temperatures here in Central Wisconsin will drop to the upper-60 degrees Fahrenheit to mid-70 degrees Fahrenheit range. In my opinion, those temperature ranges are ideal for outdoor activity. Thus, I will be getting outside as much as I can in the days ahead.

There is less than a week left in the month of June and I won't be making any stock purchases in the last few days of the month. That's why it's time to take a look at the stock purchases that I made during June 2022.




Starting with my retirement account, the $75.43 in net dividends that I received from my Capital Income Builder (CAIBX) mutual fund were reinvested. Since I left my prior job last July to write for The Motley Fool and Seeking Alpha, dividend reinvestment is the only way my share count of CAIBX will grow moving forward.

My CAIBX share balance increased by 1.21 shares to 180.811 heading into July. This helped my net annual forward dividend income to move $2.58 higher, which works out to a 3.42% net dividend yield.

I started off the month by adding 18 shares to my position in Medical Properties Trust (MPW) at an average cost of $17.53 a share. Interested readers can check out this recently published Motley Fool article on why I like the stock, as well as Realty Income (O). This dividend stock purchase added $20.88 to my portfolio's net annual forward dividend income, which is equivalent to a weighted average net yield of 6.62%.

The next dividend stock that I added to in June was 11 shares of STORE Capital (STOR) at an average cost of $27.40 a share. For a more in-depth dive into why I'm bullish on STOR, readers can check out this Motley Fool article on STOR and Digital Realty Trust (DLR) that was published earlier this month. As a result of this dividend stock purchase, my net annual forward dividends surged $16.94 higher. This equates to a 5.62% net dividend yield.

I also added three shares of Simon Property Group (SPG) to my portfolio at an average cost per share of $111.48. This added $20.40 to my net annual forward dividend income, which works out to a weighted average net yield of 6.10%.

The next dividend stock that I purchased in June was 11 shares of Cisco (CSCO) at an average cost of $45.41 a share. This boosted my net annual forward dividends by $16.72, which is equivalent to a 3.35% net dividend yield.

I also added three shares of Medtronic (MDT) at an average cost per share of $89.51. Curious readers can check out this Motley Fool article from earlier in the month to see why I'm optimistic on MDT, as well as CVS Health (CVS). This bumped my net annual forward dividend income up by $8.16, which equates to a weighted average net yield of 3.04%.

The next dividend stock that I purchased was two shares of International Business Machines (IBM) at an average cost of $135.38 a share. This led my net annual forwards to increase by $13.20, which works out to a 4.88% net dividend yield.

I also added two shares of 3M (MMM) to my portfolio at an average cost per share of $136.01. This boosted my net annual forward dividend income by $11.92, which is equivalent to a weighted average net yield of 4.38%.

The only non-dividend stock that I purchased during June was 0.5 shares of Amazon (AMZN) at an average cost of $102.78 a share. Readers can find out why I added to my position in this stock by reading the April 2022 Dividend Stock Purchases blog post of this series. 

I also added six shares of Altria Group (MO) to my portfolio at an average cost per share of $42.16. For more color on why I made this decision, readers can check out this Motley Fool article on the stock. My net annual forward dividends soared $21.60 higher as a result of this purchase, which equates to an 8.53% net dividend yield.

The next dividend stock purchase that I made during June was six shares of GlaxoSmithKline (GSK) at an average cost of $42.49 a share. I laid out my reasoning for this purchase several weeks back in my June 2022 Dividend Stock Watch List blog post. My net annual forward dividend income increased by $12.00 due to this purchase, which works out to a weighted average net yield of 4.71%.

The final dividend stock purchase that I executed during the month was Kinder Morgan (KMI) at an average cost per share of $16.42. My logic for this decision was also laid out in the June 2022 Dividend Stock Watch List post that I linked to in the paragraph above. My net annual forward dividends grew by $19.98 as a result of this purchase, which is equivalent to a 6.76% net dividend yield.

Concluding Thoughts:

I deployed $3,192.36 in capital during June 2022. My dividend stock purchases for the month added $164.38 in net annual forward dividend income to my portfolio. Along with the $7.014 in increased annual dividend income from dividend increases received during the month, my net annual forward dividends soared from just under $2,790 at the start of the month to a bit more than $2,960 heading into July.

Discussion:

How was your June 2022 for capital deployment?

What stock positions did you add to and did you open any new positions during the month?

As always, thanks for reading and please feel free to comment below!

Tuesday, June 21, 2022

Expected Dividend Increases for July 2022

As I'm writing this blog post on June 17, it's currently in the mid-70 degrees Fahrenheit here in Central Wisconsin. And this is expected to persist over the next few days before temperatures heat up to the mid-80 degrees Fahrenheit. Needless to say, I'll be getting outside as much as possible in the days ahead.

Aside from the weekly report on the weather in my area, I have received all of the dividend increases that I'm expecting for June besides Clorox. That's why I will be recapping the payout raises that I received during the month and looking ahead to the dividend announcements for July.

Actual Dividend Increases for June 2022

Dividend Increase #1: Realty Income (O)

Realty Income declared a 0.2% increase in its monthly dividend per share from $0.2470 to $0.2475. This was in line with the expectation that I outlined in the previous post of this series. O is really as steady as they come and it proves it quarter after quarter with payout bumps. 

My net annual forward dividends inched $0.078 higher across my 13 shares of O due to the dividend announcement.

Dividend Increase #2: W.P. Carey (WPC)

W.P. Carey announced a 0.2% bump in its quarterly dividend per share from $1.057 to $1.059. Similar to O, WPC's new quarterly dividend per share is precisely what I anticipated it would be. 

Across my seven shares of WPC, my net annual forward dividends increased by $0.056 as a result of the dividend increase.

Dividend Increase #3: UnitedHealth Group (UNH)

UnitedHealth Group declared a 13.8% hike in its quarterly dividend per share from $1.45 to $1.65. This again was in line with my prediction.

My net annual forward dividends surged $1.60 higher across my two shares of UNH due to the payout boost.

Dividend Increase #4: FedEx (FDX)

FedEx blew my projection out of the water. FDX announced a massive 53.3% hike in its quarterly dividend per share from $0.75 to $1.15. This was four times the 13.3% raise that I was expecting. Not bad for my first raise received from the stock.

Across my three shares of FDX, my net annual forward dividends soared $4.80 as a result of the dividend increase.

Dividend Increase #5: General Mills (GIS)

General Mills declared a 5.9% increase in its quarterly dividend per share from $0.51 to $0.54. 

My net annual forward dividends inched $0.48 higher across my four shares of GIS due to the payout raise.

Pending Dividend Increase: Clorox (CLX)

Clorox has yet to announce its next dividend payment. But I'm still forecasting a 0.9% increase in the quarterly dividend per share from $1.16 to $1.17. I will update this section of the blog once CLX announces its next dividend.

Expected Dividend Increases for July 2022

Expected Dividend Increase #1: Wells Fargo (WFC)

The first dividend raise that I'm predicting for July is Wells Fargo. I believe that WFC will declare a 20% boost in its quarterly dividend per share to $0.30.

If my prediction is correct, my net annual forward dividends would rise by $1.60 across my eight shares of WFC.

Expected Dividend Increase #2: J.M. Smucker (SJM)

The next dividend increase that I am expecting for next month will be from J.M. Smucker. My projection is that SJM will announce a 5.1% hike in its quarterly payout per share to $1.04. 

If SJM meets my expectations, this would lift my net annual forward dividends by $0.60 across my three shares.

Expected Dividend Increase #3: National Retail Properties (NNN)

The third dividend raise that I'm forecasting for July is from National Retail Properties. I anticipate that NNN will declare a 3.8% increase in its quarterly dividend per share to $0.55.

If my forecast is right, my net annual forward dividends would surge $0.96 higher across my 12 shares of NNN.

Expected Dividend Increase #4: Essential Utilities (WTRG)

The next dividend boost that I am predicting for next month will be from Essential Utilities. I believe that WTRG will announce a 7.2% raise in its quarterly dividend per share to $0.2875.

If my prediction is correct, my net annual forward dividends would rise by $0.772 across my 10 shares of WTRG.

Expected Dividend Increase #5: Cummins (CMI)

The fifth dividend raise that I'm forecasting for July is from Cummins. My projection is that CMI will declare a 7.6% hike in its quarterly dividend per share to $1.56. 

If CMI meets my expectations, this would boost my net annual forward dividends by $2.20 across my five shares.

Expected Dividend Increase #6: Hershey (HSY)

The next dividend boost that I am expecting for next month will be from Hershey. I believe that HSY will announce a 9.2% raise in its quarterly dividend per share to $0.984.

If my forecast is right, my net annual forward dividends would surge $0.996 higher across my three shares of HSY.

Expected Dividend Increase #7: Duke Energy (DUK)

The seventh dividend raise that I am predicting for July is from Duke Energy. I expect that DUK will declare a 5.1% increase in its quarterly dividend per share from $0.985 to $1.035.

If my prediction is correct, my net annual forward dividends would be boosted by $1.20 across my six shares of DUK.

Concluding Thoughts:

I received $7.014 in dividend increases in June from five stocks. This would require $200.40 in fresh capital to match at a 3.5% weighted average dividend yield.

Based on the seven raises that I'm expecting in July, my net annual forward dividends would be lifted by $8.328. This would be equivalent to investing $237.94 at a 3.5% average net yield.

Discussion:

How was your June 2022 for dividend announcements?

Are you anticipating any first-time dividend increases as I am with WTRG, CMI, HSY, and DUK?

Thanks for your readership and please feel free to share your thoughts below!

Tuesday, June 14, 2022

July 2022 Dividend Stock Watch List

As I'm writing this blog post, it's raining here in Central Wisconsin. The good news is that this will help keep the fire danger low for the foreseeable future as we head into summer. But the bad news is that it will be more difficult to enjoy the outdoors.

With that aside, it's already mid-June. That makes now a good time to look a few weeks ahead at three stocks that I will buy next month, barring massive surges in their share prices. Let's dig in.

Image Source: Pexels

Dividend Stock #1: VICI Properties (VICI)

As I explained in a Motley Fool article published last month, VICI Properties is the largest gaming real estate investment trust (REIT) in the world. The company owns many of the most iconic gaming properties in the world.

Ownership of these reputable properties has literally paid dividends to VICI's shareholders. This has allowed the stock to average high-single-digit annual dividend increases over the past several years. With a dividend payout ratio just above 70% in 2021, dividend growth should remain strong going forward.

Buying VICI in July is an opportunity to purchase shares ahead of the stock's anticipated payout hike in September. In the meantime, the starting yield on a lot of shares at the current $30 share price is 4.8% (as of June 11, 2022). And at a 2022 price-to-AFFO-per share ratio of 16.5, VICI's shares look sensibly valued at this time as well.

Dividend Stock #2: Merck (MRK)

The next stock that's on my watch list for July is the pharma powerhouse Merck. Interested readers can get my most recent thoughts on the stock in more detail in this Motley Fool article that was published last month.

But the gist of it is these three points:

1) The stock's impressive drug pipeline should lead to above-average growth in the years ahead.

2) The market-beating payout should continue to increase at a healthy rate.

3) The stock is trading at a bargain valuation for its quality.

Dividend Stock #3: Magellan Midstream Partners (MMP)

Astute readers will point out that technically Magellan Midstream Partners is a distribution stock and not a dividend stock. This is due to the fact that MMP is a master limited partnership and not a C-corp, so it pays distributions rather than dividends.

It has been a while since I have looked at MMP, but the fundamentals look intact from what I can tell. This is why I still like the stock from when I last covered it at Motley Fool last December.

The basic reasons why I'm confident that the stock will make its unitholders rich in the years ahead are as follows:

1) MMP's 12,000 miles of refined products and crude oil pipelines would be almost impossible for any competition to replicate. 

2) Global economic growth will require more refined products and crude oil over the next couple of decades, which should lead to slow and steady growth for MMP.

3) MMP pays a market-crushing 7.9% distribution yield, which is well-covered by distributable cash flow.

Concluding Thoughts:

I'm very blessed to have the opportunity each month to add to my positions in the best companies in the world. And July should be another month with capital deployment in the $2,500 to $3,000 range. This should go a long way in my goal of building meaningful passive income in the years ahead to achieve financial independence.

Discussion:

Are any of VICI, MRK, or MMP on your watch list for July 2022?

If not, what stocks are you considering purchasing next month?

I appreciate your readership and welcome your comments below!

Tuesday, June 7, 2022

May 2022 Dividend Stock Purchases

As I'm writing this blog post, the temperature is in the low-70 degrees Fahrenheit range today in Central Wisconsin. And it will remain that way over the next few days. That's why I'm very much looking forward to getting outside as much as possible during this ideal weather.

Now that it's early June, I will shift my attention to the dividend stock purchases (and one non-dividend stock purchase) that I made in May 2022.


The first stock purchase that I made in May was a share of Innovative Industrial Properties (IIPR) at a cost of $139.28. Just as I explained in my April 2022 Dividend Stock Watch List post, IIPR is the leader in providing financing solutions for state-licensed operators in the budding cannabis industry. And if that wasn't enough, the massive dividend is quickly growing and the stock is priced at a bargain-bin valuation. Since I added $7.00 of net annual forward dividends to my portfolio, this works out to a 5.03% net dividend yield.

I also added two shares of JPMorgan Chase (JPM) at an average cost of $123.22 a share. Simply put, JPM is a well-run bank that I believe was attractively valued at the time of my purchase. Factoring in the $8.00 in net annual forward dividends that I added to my portfolio, this equates to a 3.25% weighted average net yield. 

The third stock purchase that I executed in May was a share of PepsiCo (PEP) at a cost of $169.88. Readers looking for a more in-depth explanation of why I added to my position should check out my Motley Fool article on the stock published earlier this month. Given the $4.60 boost in the net annual forward dividends of my portfolio from this transaction, my net dividend yield was 2.71%.

I added four shares of Main Street Capital (MAIN) to my portfolio at an average cost of $39.49 a share. As I explained in a Motley Fool article published back in January, MAIN is arguably the best business development company around and the dividend looks to be safe. Not considering the special dividends paid by MAIN, this purchase added $10.32 in net annual forward dividends to my portfolio. This is equivalent to a 6.53% weighted average net yield.

The fifth stock purchase that I completed in May was three shares of Leggett & Platt (LEG) at an average cost of $36.83 a share. Interested readers can check out my Motley Fool article from April for a detailed explanation of why I like LEG. Factoring in the $5.28 boost in my net annual forward dividends from this transaction, this works out to a 4.78% net dividend yield.

I also added a share of Cummins (CMI) at a cost of $203.15. Readers can peruse my Motley Fool article from last month on Merck and CMI for more details on the factors that led me to ultimately led me to add to my position in the latter. Given the $5.80 in net annual forward dividends that this purchase added, this equates to a 2.86% weighted average net yield.

The seventh stock purchase that I made in May was 0.04 shares of Amazon (AMZN). This is because AMZN has gradually evolved from a dominant e-commerce retailer to the leading cloud computing company and a leading advertising company. 

I opened a three share position in FedEx (FDX) at an average cost of $214.15 a share. As I noted in my May 2022 Dividend Stock Watch List post, FDX's growth potential is related to e-commerce. Few industries are going to grow as fast as e-commerce in the years ahead and this should lead to increased shipping volumes for FDX and United Parcel Service (UPS). Factoring in the $9.00 boost in my net annual forward dividends from this purchase, this is equivalent to a 1.40% net dividend yield.

The ninth stock purchase that I executed in May was three shares of Eastman Chemical (EMN) at an average cost of $103.42 a share. Given the $9.12 in net annual forward dividends that this transaction added, this works out to a 2.94% weighted average net yield.

I also added three shares to my position in Digital Realty Trust (DLR) at an average cost of $126.48 a share. I put my money where my mouth is, which is exactly why I added to my position in DLR a couple of weeks after my Motley Fool article on DLR and VICI Properties (VICI) was published. Factoring in the $14.64 boost in my net annual forward dividends from this purchase, this equates to a 3.86% net dividend yield.

The 11th and final stock purchase that I completed in May was 17 shares of KeyCorp (KEY) at an average cost of $18.42 a share. Given the $13.26 in net annual forward dividends that this transaction added, this is equivalent to a 4.23% weighted average net yield.

Concluding Thoughts:

I deployed $2,761.03 in capital during May 2022. These stock purchases allowed me to add $87.02 in net annual forward dividends to my portfolio. And this isn't even including the $10.20 boost that I received from dividend increases announced during the month. This explains how my net annual forward dividends soared from over $2,690 at the start of May to nearly $2,790 heading into June.

Discussion:

How was your May 2022 for dividend stock purchases and capital allocation?

Did you open any new positions like I did with FDX?

I appreciate your readership and welcome your comments below!

Tuesday, May 31, 2022

May 2022 Dividend Income

As I'm writing this blog post, it's sunny and the temperature is 70 degrees Fahrenheit here in Central Wisconsin. And the high temperatures for the next few days will reach into the low-80 degrees Fahrenheit range. That's why I will be getting outside as much as I can in the days ahead.

With that aside, we're already just a couple of days away from the end of May. That means it's time to go over my net dividend income for the month.




Analysis:

During May 2022, I received $183.89 in net dividends. This works out to a 17.7% quarterly growth rate over the $156.30 in net dividends collected in February 2022.

And the amount of net dividends that I received in May 2022 was a 57.2% year-over-year increase stacked up against the $116.98 in net dividends collected in May 2021.

Digging deeper, I received $169.82 in net dividends from 28 companies within my Robinhood portfolio, $13.70 in net dividends from three companies in my Webull account, and $0.37 from 16 companies within my M1 Finance portfolio.

The net dividends that I collected from February 2022 to May 2022 increased by $27.59, which was due to the following activity in my accounts:

My net distributions from Energy Transfer (ET) were $1.84 higher within my Robinhood and Webull portfolios, which the result of both ET's 14.3% raise in its quarterly distribution to $0.20 per unit and my purchase of two additional units of the stock in April.

I received $1.04 less in net dividends from British American Tobacco (BTI) in my Robinhood and Webull accounts, but that's because of the varying dividend payments by quarter.

My net dividends collected from Starbucks (SBUX) within my Robinhood portfolio were $4.90 higher, which was due to my purchase of shares in March and April.

I received $0.69 in extra net dividends from Williams-Sonoma (WSM) in my Robinhood account, which was the result of the stock's dividend increase in March.

My net dividends collected from Kinder Morgan (KMI) were $9.44 higher within my Robinhood portfolio, which was due to the purchases that I made in January, February, and March.

I received an additional $0.01 in net dividends from Realty Income (O) in my Robinhood account, which was the result of the stock's dividend increase in March.

My net dividends collected from Tanger Factory Outlet Centers (SKT) were $0.19 higher within my Robinhood portfolio, which was due to the stock's payout raise in April.

I received an extra $0.98 in net dividends from Mastercard (MA) in my Robinhood account, which was the result of my decision to open a position in the stock back in February.

My net dividends collected from Air Products & Chemicals (APD) were $4.86 higher within my Robinhood portfolio, which was due to my stock purchase in March.

I received an additional $6.56 in net dividends from Medifast (MED) in my Robinhood account, which was the result of my purchases last December and in January, as well as the payout raise in March.

My net dividends collected from General Dynamics (GD) were $0.28 higher within my Robinhood portfolio, which was due to the dividend hike in March.

I received $5.09 less in net dividends from AT&T (T) in my Robinhood account, which was due to the stock's recent dividend cut.

My net dividends collected from JPMorgan Chase (JPM) were $4.00 higher within my Robinhood portfolio. This is because while JPM's dividend was payable on Saturday, April 30, I didn't receive the dividend until Monday, May 2. That's why I am accounting for the dividend in May rather than for April.

I received $0.03 more in net dividends from my M1 Finance account. A $0.02 decline in net dividends from T was more than offset by the timing of JPM's $0.02 payment and Fastenal's (FAST) $0.03 payment.

Concluding Thoughts:

Depending on the stocks that I purchase in the next couple of months, May 2022 may be my last middle month of the quarter under $200 in net dividends. And given my average monthly capital deployment around $3,000, my net dividends should be quite close to $300 in May 2023.

Discussion:

How was your dividend income for May 2022?

Did you receive any first-time dividends like I did with SBUX, KMI, MA, APD, and MED?

Thanks for reading and feel free to leave a comment below!

Tuesday, May 24, 2022

Expected Dividend Increases for June 2022

As I'm writing this blog post, the high temperature here in Central Wisconsin is expected to reach into the low-60 degrees Fahrenheit today. This is an ideal temperature that more closely resembles early-spring for this area rather than late-spring.

With that aside, I will be going over the dividend increases that I received in May and looking ahead to the raises that I am expecting for June.

Actual Dividend Increases for May 2022

Dividend Increase #1: American Tower (AMT)

American Tower announced a 2.1% increase in its quarterly dividend per share from $1.40 to $1.43. This fell just short of my expectation of a 2.9% raise in the quarterly dividend per share to $1.44. But with AMT raising its dividend every quarter, I'll gladly take this payout bump.

Across my three shares of AMT, my net annual forward dividends edged $0.36 higher as a result of this dividend increase.

Dividend Increase #2: Leggett & Platt (LEG)

Leggett & Platt declared a 4.8% raise in its quarterly dividend per share from $0.42 to $0.44. This was precisely the raise that I predicted LEG would deliver weeks ago. 

My net annual forward dividends surged $1.20 higher due to this payout increase across my 15 shares of LEG.

Dividend Increase #3: Union Pacific (UNP)

Union Pacific announced a 10.2% hike in its quarterly dividend per share from $1.18 to $1.30. Since I opened a whole share position in UNP in January, this was the first raise that I have received from the stock. And I couldn't be more pleased. This easily tops the inflation rate.

Across my three shares of UNP, my net annual forward dividends soared $1.44 higher as a result of this dividend increase.

Dividend Increase #4: Simon Property Group (SPG)

Simon Property Group declared a 3% raise in its quarterly dividend per share from $1.65 to $1.70. Nearly two years after SPG cut its quarterly dividend per share from $2.10 in July 2020 out of an abundance of caution, the company is taking major steps to restore its dividend. I wouldn't be surprised to see the dividend fully restored by next summer.

My net annual forward dividends increased by $1.20 across my six shares of SPG due to the payout raise.

Dividend Increase #5: Lowe's (LOW)

Lowe's announced a staggering 31.3% boost in its quarterly dividend per share from $0.80 to $1.05. This was more than double the 13.8% raise to $0.91 that I was expecting. LOW is one of those stocks that I believe should be the foundation of a dividend growth stock portfolio and it continues to show why.

Across my five shares of the stock, my net annual forward dividends per share soared $5.00 higher as a result of the payout hike.

Dividend Increase #6: Medtronic (MDT)

Medtronic declared a 7.9% increase in its quarterly dividend per share from $0.63 to $0.68. This was in line with my expectations. Like LOW, MDT is another stock that I think deserves a place in every dividend growth stock portfolio.

My net annual forward dividends were boosted by $1.00 across my five shares of MDT due to the dividend raise.

Dividend Freeze: Omnicom (OMC)

Surprisingly, Omnicom decided to keep its quarterly dividend per share the same at $0.70. This was below my estimate of a 7.1% hike in its quarterly dividend per share to $0.75. The company could certainly afford such a raise. But I guess with fears of a looming recession, OMC opted to be conservative.

Expected Dividend Increases for June 2022

Expected Dividend Increase #1: Realty Income (O)

The first dividend increase that I'm expecting next month is from Realty Income. My prediction is that O will announce a 0.2% increase in its monthly dividend per share from $0.2470 to $0.2475. 

If my prediction is proven right, my net annual forward dividends would edge $0.078 higher across my 13 shares of O.

Expected Dividend Increase #2: W.P. Carey (WPC)

The next payout raise that I'm forecasting in June will come from W.P. Carey. I believe WPC will announce a 0.2% raise in its quarterly dividend per share from $1.057 to $1.059. 

Across my seven shares of WPC, my net annual forward dividends would inch $0.056 higher if my projection is accurate.

Expected Dividend Increase #3: UnitedHealth Group (UNH)

The third dividend hike that I'm expecting next month is from UnitedHealth Group. My guess is that UNH will announce a 13.8% boost to its quarterly dividend per share from $1.45 to $1.65.

My net annual forward dividends would be lifted by $1.60 across my two shares of UNH if my prediction is correct.

Expected Dividend Increase #4: FedEx (FDX)

The final dividend increase that I'm forecasting in June will come from FedEx. I believe that FDX will declare a 13.3% raise in its quarterly dividend per share from $0.75 to $0.85.

Across my three shares of FDX, my net annual forward dividends would be boosted by $1.20 if my projection is right.

Expected Dividend Increase #5: Clorox (CLX)

Clorox didn't increase its payout in May. But I expect that the company will likely do so in early June. I'm still expecting a token 0.9% increase in its quarterly dividend per share from $1.16 to $1.17.

Across my two shares of CLX, this would bump my net annual forward dividends up by $0.08 if my prediction is right.

Concluding Thoughts:

I received $10.20 in dividend raises from six stocks. This would require $291.43 in fresh investment capital to replicate at a 3.5% weighted average dividend yield.

And with five raises expected in June, my net annual forward dividends would surge $3.014 higher if my predictions are correct. This is equivalent to investing $86.11 in capital at a 3.5% average net yield.

Discussion:

How was your May for dividend announcements?

Are you expecting any first-time dividend increases from stocks in your portfolio like I am with FDX and CLX?

Thanks for reading and please feel free to comment below!

Tuesday, May 17, 2022

June 2022 Dividend Stock Watch List

As I'm writing this blog post, the temperature is 75 degrees Fahrenheit here in Central Wisconsin. This is a major cool off from the highs that reached into the low-90 degrees Fahrenheit range over the last couple of days. And with highs in the low to mid-60 degrees Fahrenheit for the next few days, it will be an especially great time to get outside. 

But without further ado, let's dive into a few dividend stocks that are on my watch list for June 2022 since almost half of May is already in the books.

Image Source: Pexels

Dividend Stock #1: Kinder Morgan (KMI)

Kinder Morgan (KMI) owns and/or operates approximately 83,000 miles of pipelines that predominantly transport natural gas, as well as gasoline, crude oil, and carbon dioxide. The company's network is used to transport 40% of U.S. natural gas consumption and exports, which points to an especially bright future (details sourced from slide 3 of Kinder Morgan May 2022 Investor Presentation).

That's because the International Energy Agency anticipates that total global energy demand for natural gas and oil products will steadily increase from 2020 to 2040 (slide 11 of Kinder Morgan May 2022 Investor Presentation). KMI's long-term contracts are mostly for volumes and prices that are contractually fixed or for fixed prices and variable volumes (69% and 25% of contracts, respectively, per slide 5 of Kinder Morgan May 2022 Investor Presentation). 

Overall, this is why I believe KMI will generate low-single-digit annual distributable cash flow growth going forward. This will comfortably cover the stock's market-crushing 5.9% dividend yield (as of May 14, 2022).

And at a forward price to DCF ratio of 9 ($42.5 billion market cap from Google Finance divided by $4.7 billion 2022 DCF forecast from slide 8 of Kinder Morgan May 2022 Investor Presentation), KMI looks like a solid buy at $19 a share (as of May 14, 2022) - - even with the 15% year-to-date rally in its share price.

Dividend Stock #2: Medical Properties Trust (MPW)

With a $22 billion-plus real estate portfolio, Medical Properties Trust (MPW) is one of the biggest owners of hospitals in the world. The reasons that initially drew me to purchase MPW are just as strong now as they were in January and February of this year. Interested readers can get a more detailed explanation of why I like MPW in a Motley Fool article published a few months ago.

But at its core, the factors are that MPW is a steadily growing REIT with tons of room for future growth and a well-covered dividend (a whopping 6.4% yield as well at the current $18 share price) at a modest valuation.

Dividend Stock #3: GlaxoSmithKline (GSK)

GlaxoSmithKline is one of the largest pharmaceutical companies in the world. Unsurprisingly, the company has plenty of blockbusters like respiratory drugs Trelegy and Nucala, as well as HIV drugs Tivicay and Triumeq (page 47 of GlaxoSmithKline Q4 2021 earnings press release). 

And with dozens of other projects in clinical development in its pipeline, analysts are forecasting 8.2% annual earnings growth over the next five years. The stock also offers investors a market-trouncing 4.6% dividend yield. And the cherry on top is that GSK's forward P/E ratio of 13.4 at the current $43 share price doesn't appear to be too steep for its quality.

Concluding Thoughts:

Since my master list of stocks that I don't yet own and want to own is now down to barely a dozen, I will mostly be adding to existing positions going forward. Unless the valuations for KMI, MPW, and GSK drastically change, I will likely be adding to my positions in those stocks next month, as well as a few others.

Discussion:

Are any of KMI, MPW, or GSK on your watch list for June 2022?

If not, what stocks are you thinking about buying next month?

Thanks for your readership and feel free to leave a comment below!

Tuesday, May 10, 2022

April 2022 Dividend Stock Purchases

As I'm writing this blog post, it's currently 55 degrees Fahrenheit here in Central Wisconsin. Next week is going to reach highs in the low-80s Fahrenheit, so summer is unofficially just days away and we barely had a spring!

With that aside, I'll turn to the dividend stock purchases (and the one non-dividend stock purchase) that I made in April 2022.



I started April by purchasing five shares of Innovative Industrial Properties (IIPR) at an average cost of $166.59 a share. My reasoning for purchasing the stock was that its AFFO per share is growing like a weed (pun intended), the stock is cheap for its growth prospects, and the starting dividend yield is market-crushing. Given the $35.00 in net annual forward dividends that I added from this purchase, my weighted average net yield fittingly was 4.20% on 4/20.

I followed up my purchase of IIPR by adding a share to my position in Home Depot (HD) at a cost of $316.01. For those interested in my buying rationale, I recently wrote a Motley Fool article on the stock. Since the stock boosted my net annual forward dividends by $7.60, my net dividend yield was 2.40%.

My first non-dividend paying stock purchase was the online retail, cloud computing, streaming, and advertising giant Amazon (AMZN). Where do I start with the beaten-down tech stock? AMZN is the undisputed leader in online retail and cloud computing. 

With global e-commerce sales set to surge from $4.9 trillion in 2021 to $7.4 trillion by 2025, Amazon is best positioned to cash in on this fast-growing market. Not to mention that the global cloud computing market is forecasted to compound at a 17.9% annual rate from $250 billion in 2021 to $791.5 billion in 2028. 

This is why analysts anticipate that AMZN will deliver 40% annual earnings growth over the next five years, despite its massive size. And at my average cost basis of $2,891.05 for my 0.21 shares of AMZN, I paid a 2025 P/E ratio of 20.9. This is a reasonably attractive valuation to pay for a stock that still has plenty of growth left in its tank, even with the recent challenges when it reported first-quarter earnings recently.

That's also why I plan on investing $50 to $100 into AMZN each month going forward. But make no mistake, 95%-plus of my capital will still be dedicated to dividend-paying stocks over growth stocks. And as AMZN's growth decelerates, I believe it will begin paying a dividend to shareholders near the end of this decade.

My next dividend stock purchase was 17 shares of Comcast (CMCSA) at an average cost of $42.06 a share. Readers that are interested in my reasons for buying the stock can visit my April 2022 Dividend Stock Watch List post that's linked above where I discuss IIPR. The $18.36 in net annual forward dividends that I added due to this purchase works out to a 2.57% weighted average net yield.

I also added 12 shares of A.O. Smith (AOS) to my portfolio at an average cost of $60.28 a share. Readers again can get my reasons for this purchase by checking out my April 2022 Dividend Stock Watch List post. Since my dividend stock purchase added $13.44 in net annual forward dividends, my net dividend yield was 1.86%.

My position in Williams-Sonoma (WSM) was increased by one share at a cost of $137.44. My reasons are outlined in a recent Motley Fool article on the stock. This added $3.12 in net annual forward dividends to the portfolio, which is equivalent to a 2.27% weighted average net yield. 

I also added two shares of NextEra Energy (NEE) at an average cost of $73.65 a share. My net annual forward dividends increased by $3.40 due to my purchase, which works out to a 2.31% net dividend yield.

The next dividend stock purchase that I made was when I increased my Starbucks (SBUX) position by two shares at an average cost of $76.78 a share. Interested readers can read my recent Motley Fool article for my buying rationale. The $3.92 in net annual forward dividends that were added to my portfolio from this transaction equate to a 2.55% weighted average net yield. 

I also added one share to my position in BlackRock (BLK) at a cost of $652.26. For my reasoning, check out my recent Motley Fool article on the stock. Given the $19.52 in net annual forward dividends that this purchase added, this works out to a 2.99% net dividend yield.

My last purchase of the month came when I added two more units to my position in Energy Transfer (ET) at an average cost of $11.39 a unit. This boosted my net annual forward distributions by $1.60, which is equivalent to a 7.02% weighted average net yield.

My one stock sale during the month was when I closed my five share position in Warner Bros. Discovery (WBD) that I received when AT&T (T) spun its media assets off. I received $91.86 in capital proceeds.

Concluding Thoughts:

Factoring out the capital proceeds from my sale of WBD, I deployed $4,215.99 in capital for April 2022. The purchases made with this capital added $105.96 to my net annual forward dividend income, which is a 2.51% weighted average net yield.

And I also received $10.49 in dividend increases from my dividend stocks during the month. This helped to propel my net annual forward dividends from just less than $2,580 at the start of the month to over $2,690 heading into May.

Discussion:

How was your April 2022 for capital deployment and dividend stock purchases?

Did you open any new positions like I did with AMZN, AOS, CMCSA, and IIPR during the month?

Thank you for reading. Please feel free to comment below!

Tuesday, May 3, 2022

April 2022 Dividend Income

As I'm writing this blog post, it's early-May. It's expected to be cloudy and highs will only reach into the low-50 degrees Fahrenheit range over the next couple of days here in Central Wisconsin. The good news is that high temperatures will reach into the low-70 degrees Fahrenheit in the days that follow. 

With April officially in the books, I'll be looking back at the dividend income that my portfolio generated for me during the month.




Analysis:

I collected $139.19 in net dividends during April 2022. This works out to an 8.1% quarterly growth rate over the $128.80 in net dividends that my portfolio produced in January 2022.

What's more, my net dividends surged 56.3% higher year-over-year compared to the $89.03 in net dividends that I collected from my portfolio in April 2021.

Digging in deeper, I received $128.55 in net dividends from 23 stocks within my Robinhood account. I also collected $10.48 in net dividends from five stocks in my Webull portfolio. Finally, I received $0.16 in net dividends from six stocks within my M1 Finance account.

My net dividend income increased by $10.39 from January 2022 to April 2022, which was the result of the following activity in my portfolio:

I collected an extra $0.03 in net dividends from American Tower (AMT) within my Robinhood account. This was due to the 0.7% increase in the stock's quarterly dividend that was declared in March. 

My net dividends received from Cisco System (CSCO) were $0.11 higher in my Robinhood portfolio. This is because the stock raised its payout to shareholders by 2.7% in February.

I collected an additional $0.01 in net dividends from Realty Income (O) within my Robinhood account. This was due to the 0.2% increase in the stock's monthly dividend that was declared in March.

My net dividends received from Leggett & Platt (LEG) were boosted by $1.68 in my Robinhood portfolio, which was the result of my decision to purchase four more shares of the stock last December.

I collected first-time net dividends of $5.98 from U.S. Bancorp (USB) within my Robinhood account. This was because I bought 13 shares of the stock back in March. 

My net dividends received from STORE Capital (STOR) were $1.15 higher in my Robinhood and Webull portfolio, which was due to my purchase of three additional shares of the stock in February.

I collected an extra $0.01 in net dividends from W.P. Carey (WPC) within my Robinhood account, which was because of the stock's 0.2% increase in its quarterly dividend in March.

My net dividends received from Medical Properties Trust (MPW) in my Robinhood portfolio were $7.25 higher. This was due to my purchase of 25 shares of the stock in January and February.

I collected an additional $0.78 in net dividends from GlaxoSmithKline (GSK) within my Robinhood account, which was because of the stock's varying dividend payment amounts.

My net dividends received from VICI Properties (VICI) were $1.44 higher in my Robinhood portfolio. This was due to my purchase of four extra shares of the stock back in March.

I collected an extra $0.08 in net dividends from Kimberly Clark (KMB) within my Robinhood account, which was because of the stock's 1.8% dividend increase in January.

My net dividends received from Coca-Cola (KO) were $4.40 higher in my Robinhood portfolio. This was due to my decision to purchase 10 shares of the stock in February.

I collected $4.25 in net dividends from Allstate (ALL) within my Robinhood account, which was the result of my purchase of five shares of stock in January and the 4.8% dividend raise in February.

My net dividends received from Genuine Parts Company (GPC) were $0.48 higher in my Robinhood portfolio. This was due to the stock's 9.8% payout hike in February.

I collected an extra $0.03 in net dividends from Albemarle (ALB) within my Robinhood and Webull accounts, which was the result of the stock's 1.3% increase in its quarterly dividend in February.

My net dividends received from Ventas (VTR) were $3.15 less in my Robinhood portfolio. This was due to my decision to sell off my stake in the stock in January. 

I collected $3.32 less in net dividends from PPL Corp (PPL) within my Robinhood account, which also stemmed from my choice to sell off my stake in the stock in January.

My net dividends received from Digital Realty Trust (DLR) were $3.48 less in my Robinhood portfolio. This was due to the timing of the stock's dividend payment.

I collected $3.23 less in net dividends from PepsiCo (PEP) within my Robinhood account, which was the result of PEP's dividend payment timing.

My net dividends received from JPMorgan Chase (JPM) were $4.00 less in my Robinhood portfolio. This was due to the timing of the stock's dividend payment.

I collected $0.11 less in net dividends within my M1 Finance account, which was the result of closing my VTR, PPL, and CAH positions, as well as the timing of PEP and JPM's dividends.

Concluding Thoughts:

My portfolio's net dividends are steadily growing with each passing quarter. And with my consistent capital deployment in the neighborhood of $3,000 each month, this should be my last month below $150 in net dividends.

Discussion:

How was your dividend income in April 2022?

Did you receive any first-time dividends as I did with ALL, KO, MPW, and USB?

As always, I appreciate your readership and look forward to your comments below!

Tuesday, April 26, 2022

Expected Dividend Increases for May 2022

As I'm writing this blog post, the temperature is going to soar from a high of 41 degrees Fahrenheit today to 55 degrees Fahrenheit by Friday. One month after the calendar officially turned to spring, it appears that the weather is finally reflecting the change of seasons here in Central Wisconsin.

With that aside, I'll be turning my attention to the dividend increases that I have received in April and looking ahead to the payout raises that I am expecting in May.

Actual Dividend Increases for April 2022

Dividend Increase #1: Johnson & Johnson (JNJ)

Johnson & Johnson declared a 6.6% increase in its quarterly dividend per share from $1.06 to $1.13. This came in just below my expectation of a 7.5% hike in the quarterly dividend. But it marked the 60th straight year that the stock raised its dividend. JNJ is undoubtedly one of the best businesses in the world and I'm thrilled to be a shareholder.

Across my five shares of JNJ, my net annual forward dividends surged $1.40 higher due to the stock's dividend boost.

Dividend Increase #2: Southern Company (SO)

Southern Company announced a 3% raise in its quarterly dividend per share from $0.66 to $0.68. True to form as a consistent utility, this was in line with my prediction. SO is a quality utility with 21 consecutive years of payout increases under its belt. That's why I'm glad to hold the stock in my portfolio.

My net annual forward dividends edged $0.40 higher across my five shares of SO as a result of the dividend increase.

Dividend Increase #3: Tanger Factory Outlet Centers (SKT)

Tanger Factory Outlet Centers declared a 9.6% increase in its quarterly dividend per share from $0.1825 to $0.20. This is still well below the $0.3575 peak in the early days of the COVID-19 pandemic. But it's nice to see that SKT is working toward restoring its dividend. And its fundamentals have improved to the point where I believe the dividend will be fully restored by the end of 2023. SKT will then emerge a much stronger company with loads of liquidity and a low payout ratio.

Across my 11 shares of SKT, my net annual forward dividends increased by $0.77 due to the payout raise.

Dividend Increase #4: Raytheon Technologies (RTX)

Raytheon Technologies announced a 7.8% raise in its quarterly dividend per share from $0.51 to $0.55. This came in a bit below my prediction of a 9.8% raise in the quarterly dividend per share to $0.56. But a high-single-digit dividend raise is still pretty decent.

My net annual forward dividends advanced higher by $1.12 across my seven shares of RTX as a result of the dividend increase.

Dividend Increase #5: International Business Machines (IBM)

Just as expected, International Business Machines announced a token 0.6% bump in the quarterly dividend per share from $1.64 to $1.65. It looks like Big Blue is starting to turn its business around and I wouldn't be surprised to see a resumption of larger dividend increases in a couple of years.

Across my four shares of IBM, my net annual forward dividends edged $0.16 higher due to the payout increase.

Dividend Increase #6: American Water Works (AWK)

American Water Works declared an 8.7% increase in its quarterly dividend per share from $0.6025 to $0.655. This came in a bit below my expectation of a 10% raise to $0.6625. But I'll gladly take that inflation-beating raise from AWK.

My net annual forward dividends were boosted by $0.84 across my four shares of AWK as a result of the dividend hike.

Dividend Increase #7: Energy Transfer (ET)

Energy Transfer announced a massive 14.3% hike in its quarterly distribution per unit from $0.175 to $0.20. ET has recently hinted at its ambition to restore its quarterly distribution to the previous $0.305 amount in the quarters ahead. And since ET has significantly reduced its leverage and has a very high distribution coverage ratio, the company can certainly afford to make good on this promise.

Across my 58 units of ET, my net annual forward distributions soared $5.80 higher due to the distribution raise.

Dividend Freeze: Exxon Mobil (XOM)

Exxon Mobil declared a quarterly dividend per share of $0.88, which was in line with its previous dividend. With WTI crude so high and XOM pumping out huge profits, I was surprised that they didn't increase the dividend in April. That's because they had consistently done so until the COVID-19 pandemic had them announce a dividend increase last October to keep their Dividend Aristocrat status alive.

Perhaps October will be the new April for dividend increases for XOM.

Expected Dividend Increases for May 2022

Expected Dividend Increase #1: American Tower (AMT)

The first dividend increase that I'm anticipating in May will come from American Tower. My prediction is that AMT will announce a 2.9% increase in its quarterly dividend per share from $1.40 to $1.44. What makes AMT an especially great REIT is that it raises its dividend four times a year. Low-to-mid single-digit dividend increases every quarter really add up.

Across my three shares of AMT, my net annual forward dividends would inch $0.48 higher, if my estimate is proven correct.

Expected Dividend Increase #2: Lowe's (LOW)

The next dividend increase that I expect next month is from Lowe's. LOW boasts a low (pun intended) dividend payout ratio and analysts are expecting adjusted diluted EPS to rise 11.6% to $13.44 in 2022. This is why I believe LOW will declare a 13.8% increase in its quarterly dividend per share from $0.80 to $0.91.

If my forecast is correct, my net annual forward dividends would soar $2.20 higher across my five shares of LOW.

Expected Dividend Increase #3: Leggett & Platt (LEG)

The third dividend increase that I foresee for May will come from Leggett & Platt. With 50 straight years of dividend increases under its belt, LEG is an unofficial Dividend King. And I believe the stock will extend its dividend growth streak with a 4.8% raise in the quarterly dividend per share from $0.42 to $0.44.

Across my 12 shares of LEG, my net annual forward dividends would increase by $0.96, if my prediction pans out.

Expected Dividend Increase #4: Clorox (CLX)

The next dividend increase that I'm expecting for next month is from Clorox. Since the business is currently experiencing some challenges, I'm expecting a token dividend increase to keep its decades-long dividend growth streak alive. This is why I believe CLX will announce a 0.9% increase in its quarterly dividend per share from $1.16 to $1.17. 

My net annual forward dividends would edge $0.08 higher across my two shares of CLX, if my estimate is right.

Expected Dividend Increase #5: Medtronic (MDT)

The fifth payout raise that I'm anticipating in May will come from Medtronic. I believe that MDT will declare a 7.9% increase in its quarterly dividend per share from $0.63 to $0.68.

Across my five shares of MDT, my net annual forward dividends would increase by $1.00, if my forecast is proven correct.

Expected Wild Card Dividend Increase: Omnicom (OMC)

The final dividend increase that I'm expecting next month is from Omnicom. Since OMC kept its dividend the same in February, I believe the stock will have a 7.1% raise in store for shareholders in May. This would bring the quarterly dividend per share up to $0.75 from the current amount of $0.70.

My net annual forward dividends would surge $1.40 higher across my seven shares of OMC, if my prediction pans out.

Concluding Thoughts:

The seven raises that I received in April led my net annual forward dividends higher by $10.49. This is equivalent to investing $299.71 in capital at a 3.5% weighted average dividend yield.

Looking ahead to next month, my net annual forward dividends would increase by $6.12 if all of my estimates come to fruition. This would have the same effect as investing $174.86 at a weighted average yield of 3.5%.

Discussion:

How was your April 2022 in terms of payout increases?

Are you expecting any first-time dividend increases in May 2022 like I am with CLX and MDT?

Thanks for your readership. Feel free to leave a comment below!

Tuesday, April 19, 2022

May 2022 Dividend Stock Watch List

As I'm writing this blog post, it's mid-April. My 25th birthday was also just a few days ago, so I'm now closer to 30 than I am to 20. Every year seems to be flying by faster than the previous!

With that aside, it will be May before we know it. This is why I will be sharing three dividend stocks at the top of my watch list for May 2022.


Image Source: Pexels

Dividend Stock #1: FedEx (FDX)

The first stock that I am considering adding to my portfolio in May is FedEx (FDX). The transportation company is among the largest in the world alongside its peer United Parcel Service (UPS), which is currently in my portfolio.

FDX looks like a fundamentally strong stock. This is because FDX's long-term growth prospects are closely linked to e-commerce.

With global e-commerce sales expected to grow from $4.9 trillion in 2021 to $7.4 trillion by 2025, there will undoubtedly be many more packages for FDX to ship. This should translate into growing revenue and earnings. And it explains why analysts expect the stock's earnings to grow at 19% annually through the next five years.

FDX also offers investors a market-beating 1.5% dividend yield. Assuming $21 in midpoint adjusted diluted EPS for the current fiscal year and a dividend per share obligation of $3, FDX's adjusted diluted EPS payout ratio will be just 14.3%.

And at the current price of $204 a share (as of April 18, 2022) the stock is criminally undervalued with a trailing-twelve-month (TTM) P/E ratio of just 10.7. For context, this is approximately half of its 10-year median of 20.8.

Dividend Stock #2: Cummins (CMI)

The next stock that I'm considering adding to my position in next month is Cummins (CMI). 

The U.S. economy runs on trucks and that's no overstatement. Trucks are responsible for moving 72% of all goods consumed in the U.S. And CMI is the company behind the engines and other components that make those trucks reliably operate to keep the economy flowing. 

An investment in CMI is a bet that the company will be able to pivot from diesel-operated engines and components to alternative energy engines and components like electric. Like myself, analysts appear to be confident that the company will do so. That's because it's anticipated that CMI's diluted EPS will compound at an 11% annual rate over the next five years.

With a diluted EPS payout ratio of 38.3% in 2021 ($5.60 in dividends per share paid divided by $14.61 in diluted EPS), CMI's dividend has the flexibility to continue growing. And better yet, the stock offers a market-topping 2.9% dividend yield.

Best of all, CMI can be purchased at a TTM P/E ratio of 13.5. This is slightly lower than the 10-year median of 15.4, which makes the stock a solid value.

Dividend Stock #3: Leggett & Platt (LEG)

The third stock that I'm thinking about adding to in May is Leggett & Platt (LEG). In a nutshell, my reasons for wanting more LEG in my portfolio are its record revenue and earnings in 2021, the well-covered and market-crushing yield, and deep undervaluation.

For a detailed and recent analysis on why I'm bullish toward LEG, I'd refer interested readers to my Motley Fool article published on the stock earlier this month.

Concluding Thoughts:

Looking ahead to May, I expect to have nearly $3,000 of capital available for investment. Unless more of the remaining stocks on my master list that I don't already own become attractive, I will be primarily building up my existing positions rather than starting new ones.

Discussion:

Are any of FDX, CMI, or LEG on your watch list for May 2022?

If not, what stocks are you considering for the month?

Thanks for reading. I look forward to your comments below!