Tuesday, April 9, 2024

March 2024 Dividend Income

As I'm writing this blog post, it's April 3rd. My paternal grandma is officially 86 years old today! After a relatively warm March, the weather has cooled off in recent days to start April here in Central Wisconsin. The temperature today is 34 degrees Fahrenheit and the ground is covered with a few inches of snow.

I'm not complaining, though. We have had limited snowfall so far this season and not much rain, either. So, I'll take precipitation however we can get it for the grass to get greened up.

Now that March is in the books, I will take a look at my dividend income for the month.

Nearing A Major Milestone For The Portfolio

In March 2024, I received $476.14 in net dividends (adjusting for ADR fees on BP dividends and withholdings on BAM dividends). Against the $529.78 in net dividends that I collected in December 2023, that's a -10.1% quarterly growth rate. Factoring out $81.26 in special dividends received from CAIBX (net of the $10 annual fee), my net dividend income was up 6.2%.

Compared to the $392.62 in net dividends that I collected in March 2023, this is a 21.3% year-over-year growth rate.

My residual Robinhood net dividends and Charles Schwab net dividends totaled $372.66 from 47 companies. This was driven by dividend raises announced in December, January, and February. The timing of an $8.15 dividend payment from United Parcel Service (UPS) also played a role in the income derived within these accounts.

I received $85.96 in regular net dividends from my Capital Income Builder or CAIBX mutual fund within my retirement account. That was due to a raise in the quarterly dividend per share and a higher share count from dividend reinvestment.

My net dividends collected in my Webull account from six companies were $16.97. This was the result of Prudential Financial's (PRU) 4% raise in the quarterly dividend per share announced in February.

In my M1 Finance account, the timing of UPS' dividend payment offset the timing of Fastenal's (FAST) dividend payment. Along with an extra $0.01 each from Aflac (AFL), Amgen (AMGN), and NextEra Energy (NEE) stemming from recent dividend hikes, this is how my net dividends were $0.55 from 23 companies.

Concluding Thoughts:

My portfolio is edging closer to generating $500 in monthly net dividends for the months of March, June, and September, as I surpassed $500 in December with special dividends from my CAIBX holding included. Overall, I hope to be blessed enough to continue this journey in the months and years that lie ahead. After years of hard work and (mostly) diligent capital deployment, it's starting to pay off!

Discussion:

How was your dividend income in March 2024?

Did you collect any special dividends or first-time dividends during the month?

Thanks for reading and please feel free to comment below!

Tuesday, April 2, 2024

March 2024 Dividend Stock Purchases

As I'm writing this blog post, it's Wednesday, March 27th. The high temperature is expected to reach 34 degrees Fahrenheit here in Central Wisconsin today. Good Friday and Easter weekend are shaping up to be very warm, with the high temperatures reaching into the 50s. So, it will be a great time to for me to spend time with family, praise my Lord and savior, Jesus Christ, and get outside!

Now that there is just one trading day left in the month, it is time to discuss my dividend stock purchases for March 2024.

Dividend Stock Purchase #1: Automatic Data Processing (ADP)

I started off my purchases today and for this month by purchasing four more shares of Automatic Data Processing (ADP) at an average price per share of $247.72. The $22.40 that this transaction added to my portfolio's net annual forward dividends was equivalent to a 2.26% net dividend yield.

Interested readers can check out a link to my buying rationale in my March 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #2: Agree Realty (ADC)

Next, I opened a 20 share position in Agree Realty (ADC) at an average cost of $56.55 apiece. The $59.28 in net annual forward dividends that this purchase added to my portfolio worked out to a 5.24% net dividend yield.

Similar to ADP, readers can find a link to my investment thesis for ADC in the March 2024 Dividend Stock Watch List blog post that I noted earlier.

Dividend Stock Purchase #3: Enbridge (ENB)

Finally, I started a 31 share position in Enbridge (ENB) at an average cost of $35.82 each. This transaction lifted my net annual forward dividends by $83.70, which equated to a 7.54% net dividend yield.

Like ADP and ADC, a link to my buying explanation for ENB can also be found in the March 2024 Dividend Stock Watch List blog post.

Concluding Thoughts:

After seven months of not deploying fresh capital to shore up my emergency fund, I deployed $3,232.17 in capital in March 2024. Compared to the $165.38 in net annual forward dividends added by these purchases, that's a 5.12% weighted average net dividend yield.

Along with $14.184 in dividend increases during the month, my net annual forward dividends grew to nearly $4,480 heading into April.

Discussion:

How was your capital deployment in March 2024?

Did you open any new positions as I did with ADC and ENB?

Please feel free to comment below and I hope everyone has/had a blessed Easter!

Tuesday, March 26, 2024

April 2024 Dividend Stock Watch List

As I'm writing this blog post, it's March 18th. The temperatures have cooled off considerably in the last week, with the high set to reach just 37 degrees Fahrenheit today. That's a far cry from the temperatures ranging in the 50s to 60s just a few days ago.

I haven't yet purchased any of the stocks on my March 2024 Dividend Stock Watch List, but plan to in the coming days. With the month more than half over, I will now be looking ahead to April 2024. Here are three of the stocks on my watch list for next month.


Image Source: Pexels

Dividend Stock #1: PepsiCo (PEP)

The first stock on my watch list for April 2024 is PepsiCo (PEP). Since my investment thesis is unchanged from my Seeking Alpha article last September, interested readers can check out that article.

In a nutshell, PEP's 3.1% dividend yield is sustainable. Thanks to healthy profitability and industry leadership, the company possesses an A-rated balance sheet. Shares also appear to be slightly undervalued at the current $171 share price (as of March 18, 2024). That's why I'm looking to up my weighting from 0.9% to between 1.5% and 2%.

Dividend Stock #2: Starbucks (SBUX)

The next stock on my watch list for next month is Starbucks (SBUX).

The holding currently comprises 0.8% of my portfolio, which I wouldn't mind ultimately doubling. Starbucks looks to have plenty of room to grow yet: The company is targeting 55,000 stores in the long-term, which is well above its mark of nearly 39,000 as of Dec. 31, 2023.

Couple that with margin expansion and this could support double-digit non-GAAP EPS growth annually for the foreseeable future. Free cash flow also covered the dividend nearly three times over in its fiscal first quarter per the Q1 2024 Press Release that I linked above, which suggests the payout can keep growing at a strong rate. Along with a 2.5% dividend yield and what I believe to be moderate undervaluation from the current $91 share price (as of March 18, 2024), this is why I'm interested in doubling my position.

Dividend Stock #3: UnitedHealth Group (UNH)

The third stock on my watch list for April 2024 is UnitedHealth Group (UNH). Since my previous Seeking Alpha article last month, my investment thesis remains unchanged.

UNH is a dividend growth machine with more than enough free cash flow to support further dividend growth. That makes an otherwise pedestrian 1.5% dividend yield quite attractive to me. It's how I anticipate the dividend will again double in the next five years. Shares also could be somewhat discounted at the current $487 share price (as of March 18, 2024). This is why I wouldn't mind increasing my weighting of UNH from the current 1.3% to around 2%.

Concluding Thoughts:

So, that's the trifecta of dividend growth stocks I'm seriously considering adding to next month. In my opinion, these are each respectively three of the best businesses in the world. I'm pleased to own all three of them and even more pleased that I will likely be owning more of them in the coming weeks.

Discussion:

Are any of PEP, SBUX, or UNH on your watch list for next month?

If not, what stocks are you paying attention to for April 2024?

Thanks for reading and please feel free to comment below!

Tuesday, March 19, 2024

Expected Dividend Increases For April 2024

As I'm writing this blog post, it's the ides of March. The temperature is currently 52 degrees Fahrenheit here in Central Wisconsin, with the high temperature expected to edge another 2 degrees higher to 54 later today. Needless to say, that's warm for this time of year.

All of my anticipated dividend hikes for this month have already played out. So, with that being the case, I will reminisce on these raises and how they compared to my expectations. I'll also look ahead to the payout boosts that I'm predicting for April. Let's dig into it!

Actual Dividend Increases For March 2024

Dividend Increase #1: Williams-Sonoma (WSM)

Williams-Sonoma announced a massive 25.6% boost in its quarterly dividend per share to $1.13. This was approximately quadruple the 6.7% raise to $0.96 that I was anticipating.

That's why I'm pleased this is my portfolio's fourth-biggest holding.

Across my 10 shares of WSM, my net annual forward dividends were lifted higher by $9.20 due to this dividend announcement.

Dividend Increase #2: TJX Companies (TJX)

TJX Companies declared a 12.8% hike in its quarterly dividend per share to $0.375, which was ahead of the 11.3% increase to $0.37 that I projected.

My net annual forward dividends surged $1.87 higher from this dividend declaration across my 11 shares of TJX.

Dividend Increase #3: General Dynamics (GD)

General Dynamics announced a 7.6% raise in its quarterly dividend per share to $1.42. Once again, this was better than the 6.1% bump to $1.40 that I predicted.

Across my six shares of GD, my net annual forward dividends grew by $2.40 due to this dividend announcement.

Dividend Increase #4: Realty Income (O)

Realty Income declared a 0.2% increase in its monthly dividend per share to $0.2570, which was in line with my expectations.

My net annual forward dividends rose by $0.234 across my 39 shares of O from this dividend declaration.

Dividend Increase #5: JPMorgan Chase (JPM)

On Mar. 19, JPMorgan Chase announced a 9.5% hike in its quarterly dividend per share to $1.15. This came as a complete surprise to me, but I'll definitely take it!

Across my six shares of JPM, my net annual forward dividends grew by $2.40 due to this dividend announcement.

Dividend Freeze: Dollar General (DG)

Dollar General announced that it was holding its quarterly dividend per share at $0.59. This was less than the 6.8% raise to $0.63 that I was anticipating.

Dividend Cut: American Tower (AMT)

American Tower declared a quarterly dividend per share of $1.62. This represented a 4.7% reduction versus the $1.70 dividend per share declared in the fourth quarter. That was consistent with what the company conveyed in the Q3 2023 Earnings Call, though. AMT will likely declare $6.48 in dividends per share in 2024, which will be marginally higher than the $6.45 declared in 2023.

The expectation remains that strong dividend growth will resume in 2025 after the company has completed desired deleveraging. This is why I will continue to hold, even after a technical dividend cut.

Across my six shares of AMT, my net annual forward dividends declined by $1.92 due to this dividend declaration.

Expected Dividend Increases For April 2024

Expected Dividend Increase #1: FedEx (FDX)

My best guess is that FedEx will announce a 9.5% hike in its quarterly dividend per share to $1.38.

If this played out, my net annual forward dividends would grow by $1.92 across my four shares of FDX from such an announcement.

Expected Dividend Increase #2: Tanger Inc. (SKT)

I believe Tanger Inc. will declare a 5.8% raise in its quarterly dividend per share to $0.275.

Across my 11 shares, such a declaration would result in a $0.66 increase in my net annual forward dividends.

Expected Dividend Increase #3: American Water Works (AWK)

My prediction is that American Water Works will announce an 8.1% hike in the quarterly dividend per share to $0.765.

My net annual forward dividends would rise by $0.92 across my four shares of AWK from such an announcement.

Expected Dividend Increase #4: RTX Corp (RTX)

My best guess is that RTX Corp will declare a 6.8% increase in its quarterly dividend per share to $0.63.

Across my 12 shares of RTX, my net annual forward dividends would grow by $1.92 due to such a declaration.

Expected Dividend Increase #5: Johnson & Johnson (JNJ)

I believe Johnson & Johnson will announce a 5.9% raise in its quarterly dividend per share to $1.26.

My net annual forward dividends would be lifted by $1.40 from such an announcement across my six shares of JNJ.

Expected Dividend Increase #6: Southern Company (SO)

My prediction is that Southern Company will declare a 2.9% increase in its quarterly dividend per share to $0.72.

Across my five shares of SO, my net annual forward dividends would edge $0.40 higher due to such a declaration.

Expected Distribution Increase #7: Energy Transfer (ET)

I anticipate that Energy Transfer will announce a 0.8% bump in its quarterly distribution per unit to $0.3175.

My net annual forward distributions would rise by $0.86 across my 86 units of ET from such an announcement.

Expected Dividend Increase #8: International Business Machines (IBM)

My best guess is that International Business Machines will declare a 0.6% increase in its quarterly dividend per share to $1.67.

Across my six shares of IBM, my net annual forward dividends would grow by $0.24 due to such a declaration.

Concluding Thoughts:

My net annual forward dividends have increased by $14.184 from the five dividend raises and the one dividend cut that were announced during the month. This equates to investing $472.80 in capital at a 3% net dividend yield.

If the eight dividend boosts that I'm anticipating come to pass in April, my net annual forward dividends could be lifted by $8.32. That would be like investing $277.33 in capital at a 3% dividend yield.

Discussion:

How did you fare with dividend announcements in March 2024?

Did you receive any first-time raises as I did with TJX?

Thanks for your readership and please leave your comments below!