October 2024 Stock Watch List

As I'm writing this blog post, my parents recently celebrated their 31st wedding anniversary. I'm very blessed to have been raised in a loving home. God willing, I hope to replicate that one day with a family of my own.

On another note, the high temperatures this weekend are expected to reach the low to high 70 degrees Fahrenheit range in Central Wisconsin. Since there are three weeks remaining in the month of September, now would be a good time to look at a few stocks on my watch list for October.

Dividend Stock #1: Amazon (AMZN)

The first stock on my watch list for October is Amazon (AMZN). Interested readers can check out my Seeking Alpha article from July.

AMZN's growth looks to be holding up. The company is broadening its item selection on its e-commerce platform. AMZN is also set to benefit from the vast majority of global IT spending remaining on-premises and gradually transitioning to the cloud. Additionally, the company's free cash flow is immensely improving. Finally, shares could be trading at a substantial discount to fair value from the current $171 share price (as of September 6, 2024).

Dividend Stock #2: Enterprise Products Partners (EPD)

The next stock on my watch list for next month is Enterprise Products Partners (EPD). Curious readers can peruse my July Seeking Alpha article for more info.

EPD's adjusted EBITDA and DCF continues to steadily move higher. The midstream operator is also planning a major growth project, which should sustain this growth. EPD's A-rated balance sheet is the strongest in its industry. The 7%+ distribution yield is well-covered and positioned to keep growing. Sealing the buy case, units of EPD are moderately undervalued from the current $29 unit price (as of September 6, 2024).

Dividend Stock #3: Visa (V)

The third stock on my watch list for October 2024 is Visa (V). Those interested in my in-depth investment thesis can read my co-produced Seeking Alpha article from July.

V has secular trends on its side to keep double-digit annual adjusted diluted EPS growth flowing. The company also enjoys an AA- credit rating from S&P on a stable outlook. Finally, shares could be discounted by a double-digit percentage from the current $279 share price (as of September 6, 2024).

Concluding Thoughts:

Another month. Three more excellent stocks that I plan to own for the long haul. I'm very pleased to deploy capital at an approximately 50/50 split between growth stocks and value stocks.

Discussion:

Are any of AMZN, EPD, and V on your watch list for next month?

If not, what stocks are you watching for October 2024?

Thank you for reading and please feel free to comment below!

Happy Labor Day Plus An Interesting Thought

As I'm writing this blog post, it is Thursday, August 29th. The weather here in Central Wisconsin is expected to be quite pleasant this weekend. The high temperatures are anticipated to reach into the mid-70s to low 80s Fahrenheit. In other words, that's ideal weather for spending plenty of time outside as I'm planning for this weekend.

This weekend also is Labor Day weekend. For those who aren't familiar, the holiday celebrates the American worker. It originated with a parade in New York City arranged by the Central Labor Union and the Knights of Labor in 1882. By 1894, it was officially recognized as a federal holiday by President Grover Cleveland.

The coming of Labor Day this year brought an interesting thought to mind. In fairness, this has probably been brought up by others in the community and I just haven't seen it. Nevertheless, I think it's worth sharing.

Make Dividends Your Employee

I'm a firm believer in the dignity of work because it can bring a sense of achievement and fulfillment to our lives. Simultaneously, I don't think that most people are meant to be stuck in the rat race until the day they die.

This is why I would argue it's so important to make your money work for you and why I have started to view my dividends as my employee. When done right with an insistence on quality, dividend growth investing can be magical. Many people have realized financial independence (e.g., investment income > expenses) this way and I even work with some of them on a routine basis.

That has allowed these individuals to focus on the work that matters most to them. It also has freed them up to spend more time on more important things. This includes practicing their faith, spending time with family, and taking better care of their health.

Concluding Thoughts:

So, that's all I have for today. By the time everybody reads this post, Labor Day weekend will be over. I hope everybody has a safe, healthy, and relaxing weekend!

Discussion:

Has your dividend "employee" helped you to reach financial independence yet?

If not, when do you anticipate reaching financial independence?

I appreciate your readership and welcome your comments below!

August 2024 Dividend Stock Purchases

As I'm writing this blog post on Friday, August 23rd, the temperature here in Central Wisconsin is expected to reach a high of 80 degrees Fahrenheit. That's just about the perfect temperature in my opinion, so I plan on spending plenty of time outside today.

Now that August is nearly complete, I believe today is also a great day to discuss my dividend stock purchase activity for the month. Without further ado, I'll jump into it!

Dividend Stock Purchase #1: Realty Income (O)

My first dividend stock purchase for the month was nine shares of Realty Income at an average price per share of $57.72. That lifted my net annual forward dividends by $28.404, which equates to a 5.47% net dividend yield.

Curious readers can check out my investment thesis on O in my August 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #2: Visa (V)

The next dividend growth stock that I added to in August was two shares of Visa at $264.60 a share. This purchase lifted my net annual forward dividends by $4.16, which works out to a net dividend yield of 0.79%.

Interested readers can also find my investment thesis on V in the August 2024 Dividend Stock Watch List linked above.

Dividend Stock Purchase #3: WEC Energy Group (WEC)

My third dividend growth stock purchase was six shares of WEC Energy Group at an average price per share of $88.49. That boosted my net annual forward dividends by $20.04, which is equivalent to a 3.77% net dividend yield. 

My original plan was to purchase shares of American Electric Power (AEP). By the time I was deploying capital, though, AEP's value proposition had mostly dissipated. It was still buyable, but I thought that WEC was the better overall pick for me.

Bonus Stock Purchase: Energy Transfer (ET)

In my Charles Schwab account, I had some dividends lying around that had been accrued in prior weeks. So, I put that to work by purchasing another 16 units of Energy Transfer at $16.27 a unit. This raised my net annual forward distributions by $20.48, which is a net distribution yield of 7.87%.

Readers can peruse my latest Seeking Alpha article on ET for my investment thesis.

Concluding Thoughts:

In August, I deployed $1,839.92 in capital to dividend growth stock purchases. That added $73.084 in net annual forward dividends/distributions to my portfolio. This is a 3.97% weighted average dividend/distribution yield.

My net annual forward dividends also grew by $11.10 from the three dividend raises that I received in August 2024. That pushed my net annual forward dividends/distributions from almost $4,860 at the start of August to around $4,945 going into September.

Discussion:

How was your capital deployment in August 2024?

Did you buy any new positions during the month?

Thanks for reading and please feel free to comment below!

Expected Dividend Increases For September 2024

As I'm writing this blog post, it is Friday, August 16th. The temperature is expected to reach a high of 75 degrees Fahrenheit today, which is in line with my preferences.

The month is about half complete. Since the dividend raise from Altria Group (MO) later this month is the only one that I'm still awaiting, I'll look ahead to the dividend increases that I'm expecting in September.

Actual Dividend Increases For August 2024

Dividend Increase #1: Iron Mountain (IRM)

Iron Mountain announced a 10% boost in its quarterly dividend per share to $0.715. That was well above the 6% raise to $0.69 that I was anticipating in my previous blog post of the series.

Across my 21 shares of IRM, my net annual forward dividends soared higher by $5.46 due to this dividend announcement.

Dividend Increase #2: Simon Property Group (SPG)

Simon Property Group declared a 2.5% increase in its quarterly dividend per share to $2.05. This was what I predicted.

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

Dividend Freeze: Main Street Capital (MAIN)

Main Street Capital announced a $0.245 monthly regular dividend, which was in line with the previous. That was less than the 2% increase that I predicted. But in an environment in which interest rates are likely to soon start falling, this was probably the right move.

Pending Dividend Increase: Altria Group (MO)

Altria Group hasn't declared its dividend raise yet. But it has consistently done so on the fourth Thursday of August for quite a long time now. I continue to believe that MO will declare a 4.1% bump in its quarterly dividend per share to $1.02.

Across my 24 shares of MO, my net annual forward dividends would rise by $3.84 due to such a declaration.

Update:

As expected, MO raised its quarterly dividend per share by 4.1% to $1.02. This boosted my net annual forward dividends by $3.84.

Expected Dividend Increases For September 2024

Expected Dividend Increase #1: Microsoft (MSFT)

The first dividend raise that I'm expecting in September will be from Microsoft. My best guess is that MSFT will announce a 10.7% boost in its quarterly dividend per share to $0.83.

My net annual forward dividends would rise by $1.60 across my five shares of MSFT from such an announcement.

Expected Dividend Increase #2: Realty Income (O)

The next dividend increase that I'm projecting for next month is from Realty Income. I believe that O will declare a 0.2% bump in its monthly dividend per share to $0.2635.

Across my 48 shares of O, my net annual forward dividends would grow by $0.288 due to such a declaration.

Expected Dividend Increase #3: Philip Morris International (PM)

The third dividend increase that I'm anticipating in September will be from Philip Morris International. My guess is that PM will announce a 3.1% raise in its quarterly dividend per share to $1.34.

My net annual forward dividends would increase by $4.32 across my 27 shares of PM from such an announcement.

Expected Dividend Increase #4: Starbucks (SBUX)

The next payout raise that I'm predicting for next month is from Starbucks. My best guess is that SBUX will declare a 7% hike in its quarterly dividend per share to $0.61.

Across my 23 shares of SBUX, my net annual forward dividends would rise by $3.68 due to such a declaration.

Expected Dividend Increase #5: VICI Properties (VICI)

The fifth dividend increase that I'm projecting in September will be from VICI Properties. I believe that VICI will announce a 6% raise in its quarterly dividend per share to $0.44.

My net annual forward dividends would grow by $6.80 across my 68 shares of VICI from such an announcement.

Expected Dividend Increase #6: Verizon Communications (VZ)

The final dividend bump that I'm anticipating for next month is from Verizon Communications. My guess is that VZ will declare a 1.9% increase in its quarterly dividend per share to $0.6775.

Across my 45 shares, my net annual forward dividends would rise by $2.25 due to such a declaration.

Concluding Thoughts:

The three raises that I received in August have upped my net annual forward dividends by $11.10. That's like investing $370 at a 3% net dividend yield.

If the six dividend hikes that I'm predicting for next month pan out, my net annual forward dividends would rise by $18.938. This would be equivalent to investing $631.27 at a 3% yield.

Discussion:

How has your month been going for dividend raises?

Did you receive any first-time raises in August?

Thank you for your readership and I welcome your comments below!