Tuesday, August 16, 2022

September 2022 Dividend Stock Watch List

As I'm writing this blog post, the temperature is expected to reach a high of 74 degrees Fahrenheit today. And the next week of weather looks like it will be in the mid-70 degrees to low-80 degrees Fahrenheit range here in Central Wisconsin. That's why I plan on getting outside as much as possible in the days ahead.

With August almost already half over, now is as good of a time as any to start planning a few weeks ahead for possible dividend stock purchases in September.


Image Source: Pexels

Dividend Stock #1: Albemarle (ALB)

Albemarle is a leading specialty chemicals business. The company's predominant business is lithium, which made up 55.3% of its net sales through the first half of 2022. The remaining 44.7% of its net sales was generated from its bromine and catalysts segments (info from Albemarle Q2 2022 earnings press release).

With the penetration rate of electric vehicles expected to soar from just 3.4% of all new car sales in 2021 to 29.5% by 2030, global lithium demand is going to rapidly grow for the foreseeable future. That's why analysts are forecasting 77.2% annual adjusted diluted EPS growth over the 2021 base of $4.04 for the next five years.

Trading at a forward P/E ratio of 13.3 at the current $281 share price (as of August 13, 2022), ALB appears to be a bargain. ALB's 0.6% dividend yield is minuscule. But with the company's significant growth potential in the years ahead, it should prove to be an incredible dividend growth stock.

Dividend Stock #2: Bristol-Myers Squibb (BMY)

With mega-blockbusters such as the anti-coagulant drug co-owned with Pfizer (PFE) called Eliquis and cancer drugs Revlimid and Opdivo, Bristol-Myers Squibb is one of the most dominant pharma companies in the world. As I explained in a recent Motley Fool article on Cigna and BMY, the latter also has a deep drug pipeline to propel its adjusted diluted EPS higher over time.

The stock's 2.9% dividend yield also seems to be well-covered with a dividend payout ratio set to come in under 30% in 2022. Yet the stock is a downright bargain at a forward P/E ratio of 9.4 at the current $76 share price (as of August 13, 2022).

Dividend Stock #3: Philip Morris International (PM)

Philip Morris International is the largest tobacco company in the world. And as I discussed in a recent Motley Fool article, the stock is a great buy for income investors.

That's because PM's market-smashing 5% dividend yield is reasonably safe for a tobacco company based on its dividend payout ratio. Not to mention that analysts are predicting steady adjusted diluted EPS growth over the medium term. The cherry on top is that the stock's forward P/E ratio of 16.7 at the current $99 share price (as of August 13, 2022) is a slight discount to the tobacco industry.

Concluding Thoughts:

September's capital deployment should once again fall right around $2,500. I'm continuing to strive toward a balance between low yield, high growth, moderate yield, moderate growth, and high yield, low growth dividend stocks as my purchases. I'm excited for yet another month to bring high-quality dividend growth stock purchases with it.

Discussion:

Are any of ALB, BMY, or PM on your watch list for September 2022?

If not, what stocks are you watching for next month?

As usual, thanks for reading. I look forward to your comments below!

Tuesday, August 9, 2022

July 2022 Dividend Income

As I'm writing this blog post, the high temperature for today is expected to reach 86 degrees Fahrenheit. Temperatures will top out tomorrow at a high of 92 degrees Fahrenheit. But then temperatures will be in the ideal low-70 degrees to low-80 degrees Fahrenheit range for a few days. 

With July 2022 having been over for nearly a week, I will be taking a look at my net dividend income for the month. The spoiler alert is that my net dividend income was yet again a record for the first month of the quarter.




Analysis:

I received $176.10 in net dividends during July 2022. This is equivalent to a 26.5% growth rate over the $139.19 in net dividends collected in April 2022.

On a year-over-year basis, my net dividends received soared 62.6% higher compared to the $108.32 in net dividends collected from my portfolio in July 2021.

Taking a deeper dive, I received $165.47 in net dividends from 26 stocks in my Robinhood account. In addition, I collected $10.48 in net dividends from five stocks within my Webull portfolio. Lastly, I received $0.15 in net dividends from seven stocks in my M1 Finance account.

My net dividends collected were boosted by $36.91 from April 2022 to July 2022, which was due to the following activity within my portfolio:

I received my first dividend payment from Comcast (CMCSA) in the amount of $4.59 in my Robinhood account, which was the result of my decision to purchase 17 shares of the stock back in April.

My net dividends collected from Cisco (CSCO) were $4.18 higher within my Robinhood portfolio, which was due to the doubling of my position to 22 shares in June.

I received an extra $0.86 in net dividends from Main Street Capital (MAIN) in my Robinhood account, which was the result of my decision to add four more shares to my stake in May.

My net dividends collected from Realty Income (O) were $0.01 higher within my Robinhood portfolio, which was due to the company's 0.2% dividend increase in June.

I received an additional $4.24 in net dividends from STORE Capital (STOR) in my Robinhood and Webull accounts, which was the result of my 11 share purchase in June.

My net dividends collected from W.P. Carey (WPC) increased by $0.01 within my Robinhood portfolio, which was due to the 0.2% dividend raise in June.

I received my first dividend payment in the amount of $10.50 from Innovative Industrial Properties (IIPR) in my Robinhood account, which was the result of my decision to open a position in the stock in April.

My net dividends collected from Medtronic (MDT) were $2.29 higher within my Robinhood portfolio, which was due to the stock's 7.9% dividend increase in May and my purchase of three extra shares in June.

I received an additional $1.56 in net dividends from Leggett & Platt (LEG) in my Robinhood account, which was the result of the 4.8% dividend increase in May and my purchase of three more shares during the month.

My net dividends collected from Medical Properties Trust (MPW) were boosted by $5.22 within my Robinhood portfolio, which was due to my purchase of 18 more shares in June.

I received a first-time dividend payment from FedEx (FDX) in the amount of $3.45 in my Robinhood account, which was the result of my dividend stock purchases in May.

My net dividends collected from American Tower (AMT) were $0.09 higher within my Robinhood portfolio, which was due to the 2.1% dividend raise in May.

I received an extra $2.28 in net dividends from Eastman Chemical (EMN) in my Robinhood account, which was the result of my purchase of three more shares in May.

My net dividends collected from GSK plc (GSK) were $2.36 less within my Robinhood portfolio, which was due to the differing dividend payment amounts and the cut ahead of the Haleon (HLN) spinoff.

I received $0.01 less in net dividends from my M1 Finance account, which was also the result of GSK's dividend announcement.

Concluding Thoughts:

Quarter in and quarter out, my net dividends are consistently increasing. Factoring in expected dividend increases and capital deployment, August 2022 is going to be my portfolio's final month of net dividend income below $200 for any given month.

Discussion:

How was your dividend income in July 2022?

Did you collect any first-time dividends as I did with CMCSA, FDX, and IIPR?

Thanks for your readership and feel free to comment below!

Tuesday, August 2, 2022

July 2022 Dividend Stock Purchases

As I'm writing this blog post on July 29th, it's expected to reach a high of 77 degrees Fahrenheit today while also being sunny. And temperatures won't be much hotter than that over the next couple of days here in Central Wisconsin. This perfect weather is precisely why I will be spending at least several hours outside this weekend. 

With that out of the way, the timing of the month means that it's time to check out my stock purchases for July 2022.


I started off the month of July by purchasing eight shares of VICI Properties (VICI) at an average cost of $30.02 a share. Readers interested in a more detailed explanation of this dividend stock purchase can check out my Motley Fool article on the stock and Medical Properties Trust (MPW) that was published a few weeks ago. This transaction added $11.52 in net annual forward dividends to my portfolio.

The next dividend stock that I added to during the month was Merck (MRK). I picked up an additional three shares of the stock at a cost per share of $90.83. My reasons for scooping up more shares of MRK can be found in this Motley Fool article from June on the stock and Amgen (AMGN). As a result of this purchase, my net annual forward dividends surged $8.28 higher.

I also snatched up five units of Magellan Midstream Partners (MMP) in July at an average cost of $46.62 per unit. It has been a while since I have covered MMP, but my buying rationale remains the same compared to this Motley Fool article from last December. Due to this transaction, my net annual forward distributions soared higher by $20.75.

The fourth dividend stock that I picked up during the month was British American Tobacco (BTI). I increased my position by six shares at an average cost per share of $40.43. For my rationale on executing this transaction, I would refer interested readers to my recent Motley Fool article on the stock and Leggett & Platt (LEG). As a result of this purchase, my net annual forward dividends vaulted $17.82 higher.

I also scooped up five shares of Iron Mountain (IRM) in July at an average cost of $48.32 a share. For my buying rationale on IRM and why I also like American Tower (AMT), readers can take a peek at this Motley Fool article. This purchase boosted my net annual forward dividends by $12.37.

The sixth dividend stock that I added to during the month was Mastercard (MA). I increased my position by one share at a total cost of $320.73. As I alluded to in a recently published Motley Fool article on Visa (V) and MA, the latter should continue to be an especially promising wealth compounder in the future. This helped my net annual forward dividends edge $1.96 higher.

I also picked up five more shares of ONEOK (OKE) in July at an average cost of $55.29 a share. This lifted my net annual forward dividends by $18.70.

The eighth stock that I purchased during the month was another share of Amazon (AMZN) at a cost of $110.07. As I explained a few months back, AMZN is an e-commerce, advertising, and cloud computing juggernaut. It probably won't be paying a dividend until the end of this decade or the start of next decade. But by the time it does, it will likely be at least a 5-bagger from my current cost basis.

Speaking of advertising giants, I initiated a six share position in Alphabet (GOOGL) in July at an average cost of $111.40 a share. The parent company to Google and YouTube is the undisputed leader of digital advertising. GOOGL boasted a 28.6% market share in 2021, which was meaningfully ahead of Facebook (FB) at 23.8% and AMZN at 11.3%.

This significant competitive advantage is why analysts believe GOOGL will deliver 13.7% annual earnings growth over the next five years. And at a current year P/E ratio of 21.5, the stock is trading at an attractive valuation for the long haul. Similar to AMZN, I believe GOOGL will be a powerful dividend payer in due time. In the meantime, the capital gains should be spectacular.

Concluding Thoughts:

I deployed $2,605.52 in capital during the month of July across a wide array of stocks. High growth stock purchases like AMZN, GOOGL, and MA will be grand slam dividend growers in 2030 and beyond in my opinion. And my midstream, REIT, tobacco, and pharma additions will provide both significant immediate and future income.

My stock purchases for the month added $91.40 in net annual forward dividends to my portfolio, which is a 3.51% weighted average dividend yield. Dividend increases received in July chipped in another $16.22 to my net annual forward dividends. This led my portfolio's net annual forward dividends to spike from just over $2,960 at the start of the month to a bit less than $3,070 heading into August.

Discussion:

How was your July 2022 for stock purchases?

Did you add any new holdings to your portfolio like I did with my purchase of GOOGL?

I appreciate your readership and welcome your comments below!

Tuesday, July 26, 2022

Expected Dividend Increases for August 2022

As I'm writing this blog post, the temperature here in Central Wisconsin is 90 degrees Fahrenheit and it feels like it is 94. The good news, however, is that the high temperatures will dip down into the high-70 degrees Fahrenheit to low-80 degrees Fahrenheit range starting on Sunday. 

With that aside, there is barely a week left in July. That means it's time to check out the dividend increases in my portfolio for the month and look ahead to what I'm expecting for August.

Actual Dividend Increases for July 2022

Dividend Increase #1: Enterprise Products Partners (EPD)

Enterprise Products Partners announced a solid 2.2% increase in its quarterly distribution per unit to $0.475. This is exactly what you'd come to expect from a high-quality midstream company. And it doesn't hurt that the stock offers a 7%-plus distribution yield to boot.

Across the 36 units of EPD that I own, this boosted my net annual forward distributions by $1.44 due to the distribution announcement.

Dividend Increase #2: Cummins (CMI)

Cummins declared an 8.3% increase in its quarterly dividend per share to $1.57. This came in just above my projection of a 7.6% raise in the quarterly dividend per share to $1.56. This was the first boost in my net annual forward dividends from CMI since I purchased the stock. And I believe it will be the first of many more.

My net annual forward dividends surged $2.40 higher across my five shares of CMI as a result of the payout raise.

Dividend Increase #3: Clorox (CLX)

Clorox announced a 1.7% bump in its quarterly dividend per share to $1.18. This was a bit above the $1.17 quarterly dividend per share announcement that I was forecasting. CLX's first dividend increase for me was light. But once the business has rebounded over the next few years, I expect dividend growth to meaningfully accelerate.

Across my two shares of CLX, my net annual forward dividends inched $0.16 higher due to the dividend raise.

Dividend Increase #4: Duke Energy (DUK)

Duke Energy declared a 2% increase in its quarterly dividend per share to $1.005. This was well below my prediction of a 5.1% raise in the quarterly dividend per share. DUK's raise was disappointing, but there's nothing wrong with being conservative. The company always has the option of making up for its low raise in future years.

My net annual forward dividends edged upward by $0.48 across my six shares of DUK as a result of the dividend lift.

Dividend Increase #5: National Retail Properties (NNN)

National Retail Properties announced a 3.8% raise in its quarterly dividend per share to $0.55. This was precisely what I was projecting, which is a great raise for a high-yielding REIT.

Across my 12 shares of NNN, my net annual forward dividends increased by $0.96 due to the dividend announcement.

Dividend Increase #6: J.M. Smucker (SJM)

J.M. Smucker declared a 3% bump in its quarterly dividend per share to $1.02. This came in slightly lower than the 5.1% raise that I was expecting. But the stock's 10% raise in the prior year compensates for this in my opinion. 

My net annual forward dividends rose by $0.36 across my three shares of SJM as a result of the payout raise.

Dividend Increase #7: Wells Fargo (WFC)

Wells Fargo boosted its quarterly dividend per share by 20% to $0.30.

Across my eight shares of WFC, my net annual forward dividends soared $1.60 higher due to the dividend announcement.

Dividend Increase #8: Energy Transfer (ET)

Energy Transfer announced a 15% increase in its quarterly distribution per unit to $0.23. The company is continuing to make significant progress in restoring its quarterly distribution per unit to $0.305.

My net annual forward distributions were boosted by $7.20 across my 60 units as a result of the payout hike.

Dividend Increase #9: Hershey

Hershey announced a 15% raise in its quarterly dividend per share to $1.036. This was well above the 9.2% raise that I was expecting.

Across my three shares, this increased my net annual forward dividends by $1.62.

Expected Dividend Increases for August 2022

Expected Dividend Increase #1: Altria Group (MO)

The first dividend raise that I'm expecting in August is from Altria Group. With mid-single-digit annual earnings growth set to continue over the next several years for the stock, I believe MO will announce a 4.4% raise in its quarterly dividend per share to $0.94.

If right, my net annual forward dividends would spike $3.84 higher across my 24 shares of MO as a result of the payout hike.

Expected Dividend Increase #2: BP plc (BP)

The other payout increase that I'm anticipating next month will be from BP. I believe that the company will announce a 3.8% raise in its quarterly dividend per share to $0.335.

Across my 11 shares, my net annual forward dividends would be boosted by $0.546 by such a dividend announcement.

Expected Dividend Increase #3: Essential Utilities (WTRG)

I'm still awaiting a dividend raise from Essential Utilities. Since WTRG will be reporting its second quarter earnings on the first Wednesday of August, I believe that will be the date that the company actually announces its raise. But I am maintaining my projection of a 7.2% hike in the quarterly dividend per share to $0.2875 in the final week of the month.

My net annual forward dividends would be bumped up by $0.772 across my 10 shares of WTRG if my prediction comes to fruition.

Concluding Thoughts:

I received $16.22 in dividend increases from nine of my holdings for the month. This would be the equivalent of investing $463.43 of fresh capital at a net dividend yield of 3.5%.

Dividend raises will slow down for my portfolio in August. But I believe that MO will more than make up for it.

Discussion:

How was your July 2022 for dividend raises?

Did you get any first-time payout hikes like I did with CMI, CLX, DUK, and HSY (as well as the increase that I'm still expecting from WTRG)?

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