Tuesday, February 27, 2024

Expected Dividend Increases for March 2024

As I'm writing this blog post, it is Friday, February 16th. The high temperatures here in Central Wisconsin are expected to reach into the 40s over the next week. Needless to say, that's a heat wave for this time of year!

With that said, I have received my dividend raises that I anticipated for the month. Thus, I will be discussing those and looking ahead to the next month of dividend raises that I am predicting.

Actual Dividend Increases for February 2024

Dividend Increase #1: Shell (SHEL)

Shell announced a 3.9% increase in its quarterly dividend per share to $0.688.

Across my nine shares of SHEL, my net annual forward dividends rose by $0.936 due to this announcement.

Dividend Increase #2: Simon Property Group (SPG)

Simon Property Group declared a 2.6% raise in its quarterly dividend per share to $1.95.

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

Dividend Increase #3: Prudential Financial (PRU)

Prudential Financial announced a 4% bump in its quarterly dividend per share to $1.30, which was in line with my prediction in the previous post of this series.

Across my 10 shares of PRU, my net annual forward dividends grew by $2 due to this announcement.

Dividend Increase #4: Tractor Supply (TSCO)

Tractor Supply declared a 6.8% raise in its quarterly dividend per share to $1.10. This was slightly below my expectation of $1.12.

My net annual forward dividends increased by $1.40 across my five shares of TSCO from this declaration.

Dividend Increase #5: Brookfield Asset Management (BAM)

Brookfield Asset Management announced an 18.8% boost in its quarterly dividend per share to $0.38. That was better than the $0.36 that I predicted.

Across my 30 shares of BAM, my net annual forward dividends climbed higher by $7.20 due to this announcement.

Dividend Increase #6: Hershey (HSY)

Hershey declared a 14.9% hike in its quarterly dividend per share to $1.37.

My net annual forward dividends grew by $3.56 across my five shares of HSY from this declaration.

Dividend Increase #7: PepsiCo (PEP)

PepsiCo announced a 7.1% raise in its quarterly dividend per share to $1.355. This was just below my forecast of $1.365.

Across my six shares of PEP, my net annual forward dividends rose by $2.16 due to this announcement.

Dividend Increase #8: Cisco Systems (CSCO)

Cisco Systems declared a 2.6% increase in its quarterly dividend per share to $0.40, which was what I projected.

My net annual forward dividends grew by $0.88 across my 22 shares of CSCO from this declaration.

Dividend Increase #9: Coca-Cola (KO)

Coca-Cola announced a 5.4% raise in its quarterly dividend per share to $0.485. That was just ahead of the $0.48 that I predicted.

Across my 10 shares of KO, my net annual forward dividends increased by $1 due to this announcement.

Dividend Increase #10: Genuine Parts Company (GPC)

Genuine Parts Company declared a 5.3% bump in its quarterly dividend per share to $1, which was below the $1.01 that I anticipated.

My net annual forward dividends edged higher by $1.20 across my six shares of GPC from this declaration.

Dividend Increase #11: NextEra Energy (NEE)

NextEra Energy announced a 10.2% boost in its quarterly dividend per share to $0.515. That was in line with my prediction.

Across my 13 shares of NEE, my net annual forward dividends grew by $2.47 due to this announcement.

Dividend Increase #12: The Home Depot (HD)

The Home Depot hasn't declared its next quarterly dividend, but I'm reiterating my forecast of a 5.7% increase to $2.21.

My net annual forward dividends would grow by $2.40 across my five shares from such a declaration.

UPDATE: HD declared a 7.7% raise in its quarterly dividend per share to $2.25. My net annual forward dividends grew by $3.20 as a result across my five shares.

Dividend Increase #13: Allstate (ALL)

Allstate hasn't announced its next quarterly dividend. However, I'm standing by my prediction of a 5.6% raise to $0.94.

Across my five shares, my net annual forward dividends would rise by $1 due to such an announcement.

UPDATE: ALL announced a 3.4% raise in its quarterly dividend per share to $0.92. Across my five shares, that was an extra $0.60 in net annual forward dividends.

Dividend Increase #14: L3Harris Technologies (LHX)

L3Harris Technologies hasn't announced its next quarterly dividend. Yet, I believe that it will be upped by 4.4% to $1.19.

Across my four shares of LHX, my net annual forward dividends would increase by $0.80 due to such an announcement.

UPDATE: LHX announced a 1.8% increase in its quarterly dividend per share to $1.16. My net annual forward dividends grew by $0.32 across my four shares.

Dividend Freeze: Albemarle (ALB)

Albemarle hasn't yet declared its next quarterly dividend. But I am maintaining my expectation of a 1.3% raise to $0.405.

My net annual forward dividends would increase by $0.16 across my eight shares from such a declaration.

UPDATE: Albemarle kept its quarterly dividend per share at $0.40. Given its capex situation and industry headwinds, I don't necessarily blame the company for doing so.

Expected Dividend Increases for March 2024

Expected Dividend Increase #1: Dollar General (DG)

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

My net annual forward dividends would grow by $0.64 across my four shares if such a declaration plays out.

Expected Dividend Increase #2: General Dynamics (GD)

I believe that General Dynamics will announce a 6.1% raise in its quarterly dividend per share to $1.40.

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

Expected Dividend Increase #3: Realty Income (O)

I am predicting that Realty Income will declare a 0.2% increase in its monthly dividend per share to $0.257.

My net annual forward dividends would edge higher by $0.234 across my 39 shares of O if such a declaration pans out.

Expected Dividend Increase #4: TJX Companies (TJX)

My best guess is that TJX Companies will announce an 11.3% hike in its quarterly dividend per share to $0.37.

Across my 11 shares of TJX, my net annual forward dividends would rise by $1.65 from such an announcement.

Expected Dividend Increase #5: Williams-Sonoma (WSM)

I believe that Williams-Sonoma will declare a 6.7% bump in its quarterly dividend per share to $0.96.

My net annual forward dividends would grow by $2.40 across my 10 shares of WSM if such a declaration occurs.

Concluding Thoughts:

With no anticipated announcements remaining, my net annual forward dividends grew by $28.726 in February 2024. That would be equivalent to investing $957.53 in capital at a 3% weighted average dividend yield.

If the five raises that I'm expecting materialize in March, my net annual forward dividends would grow by $6.844. This would be similar to investing $228.13 in capital at a 3% net dividend yield.

Discussion:

How was your February 2024 for dividend hikes?

Did you receive any first-time payout increases for the month?

I appreciate your readership and look forward to your comments!

Tuesday, February 20, 2024

March 2024 Dividend Stock Watch List

As I'm writing this blog post, Valentine's Day is just two days away. The weather here in Central Wisconsin has remained unusually warm, with the high temperature today reaching 45 degrees Fahrenheit. That's well above the average high of 30 degrees Fahrenheit for the month of February, so I'm very happy to have such warm weather.

Now that I have largely built up my liquidity to my preferences, I am tentatively planning on being a buyer of equities in March with my own capital. Without further ado, please allow me to briefly discuss a few of the stocks on my watch list heading into next month.


Image Source: Pexels

Dividend Stock #1: Agree Realty (ADC)

The first dividend stock on my watch list for March 2024 is Agree Realty (ADC). Readers can check out my Seeking Alpha article from December for the in-depth investment thesis.

The gist of it is that I'm very impressed with CEO Joey Agree's knowledge base and transparency. ADC's ~5% dividend yield is well-covered and I believe can keep growing by around 4% to 5% annually. That's an attractive combination of starting income and growth potential. Lastly, shares could be worth well into the $70 range, suggesting sizable undervaluation at the current $58 share price. Therefore, I want to open a position in ADC.

Dividend Stock #2: Automatic Data Processing (ADP)

Next up on my watch list for next month is Automatic Data Processing (ADP). Curious readers can find my detailed investment thesis in my recent Seeking Alpha article.

ADP's 2.2% dividend yield isn't flashy, but its payout ratio is reasonable. The company's growth prospects are also quite strong. Lastly, shares are slightly discounted at the present $250 share price. Thus, why I want to add to my position.

Dividend Stock #3: Enbridge (ENB)

Last but not least on my watch list for March 2024 is Enbridge (ENB). Intrigued readers can check out my more specific investment thesis outlined in my Seeking Alpha article from December.

Like ADC and ADP, ENB's 7.8% dividend yield appears to be safely covered. Combined with modest growth prospects and a discounted valuation from the current $35 share price, this is why I am interested in opening a position.

Concluding Thoughts:

I'm excited to have the opportunity to be a net buyer of dividend stocks for the first time since August 2023. Along with a few other stocks that are on my watch list, I believe my targeted adds are very high-quality companies.

Discussion:

Are any of the noted stocks on your watch list for March 2024?

If not, what stocks are on your radar for next month?

As always, I'm grateful for your readership and welcome your comments below!

Monday, February 12, 2024

January 2024 Dividend Income

As I'm writing this blog post, it is February 5th. Yet, the temperature here in Central Wisconsin is 49 degrees Fahrenheit. Suffice it to say, that's very warm weather for this time of the year. Better yet, the temperatures are expected to stay around or above freezing here for at least the next week.

With that in mind, I will discuss my net dividend income for January 2024. Without further ado, let's dig into it!





In January 2024, I received $265.76 in net dividends (disregarding the $5.25 payment from Broadcom that Webull indicates was paid on 1/2 when it was paid by the company on 12/29). That was 5.9% less than the $282.51 in net dividends that I collected in October 2023. But when adjusting for my sales of W.P. Carey (WPC) in October 2023 and Medical Properties Trust (MPW) in November 2023, my net dividends were up 3%.

Against the $220.01 in net dividends received in January 2023, this works out to a 20.8% year-over-year growth rate. When adjusting for the sales of WPC and MPW, my net dividends were higher by 28.5%.

Digging deeper, I collected $255.30 in net dividends from 28 companies within my Robinhood account. The $10.24 received in net dividends in my Webull portfolio were paid by five companies. Finally, I collected $0.22 in net dividends from nine companies within my M1 Finance account.

My net dividends from Digital Realty Trust (DLR) in my Robinhood account were $12.20 more because of the timing of its dividend payment.

I received an extra $0.26 from U.S. Bancorp (USB) within my Robinhood portfolio, which was due to the 2.1% increase in the dividend announced in December.

My net dividends collected from Innovative Industrial Properties (IIPR) were $0.12 higher in my Robinhood account as a result of the 1.1% bump in the dividend declared in December.

I received an additional $0.15 in net dividends from Main Street Capital (MAIN) within my Robinhood portfolio. That was due to the 2.1% raise in the monthly dividend announced in November.

My net dividends collected from Realty Income (O) in my Robinhood account were $0.02 greater because of the 0.2% increase in the monthly dividend declared in December.

I received an extra $0.16 in net dividends from GSK plc (GSK) within my Robinhood portfolio, which was due to the variability of the dividend payment.

My net dividends collected from Merck (MRK) were $0.44 higher in my Robinhood account. That was because of the 5.5% raise in the dividend announced in November.

I received an additional $0.14 in net dividends from Eastman Chemical (EMN) within my Robinhood portfolio, which was due to the 2.5% increase in the dividend declared in December.

My net dividends collected from PepsiCo (PEP) were $7.62 higher in my Robinhood and M1 Finance accounts. That was thanks to the timing of the dividend payment.

I received an extra $1.05 in net dividends from Automatic Data Processing (ADP) within my Robinhood portfolio, which was the result of the 12% dividend hike announced in November.

My net dividends collected from MPW in my Robinhood account were reduced by $9.60 due to my aforementioned sale.

I received $14.99 less in net dividends from WPC within my Robinhood portfolio, which was a result of my aforementioned sale.

My net dividends collected from American Tower (AMT) were $9.72 less in my Robinhood account. That was due to the timing of the dividend payment.

I received $4.60 less in net dividends from Coca-Cola (KO) within my Robinhood portfolio, which was also the result of the timing of the dividend payment.

Discussion:

How was your January 2024 for dividend income?

Did you receive first-time dividends in your portfolio last month?

I appreciate your readership and welcome your comments below!

Tuesday, February 6, 2024

Expected Dividend Increases For February 2024

As I'm writing this blog post, it is January 30th. If it weren't for a look at the calendar, I would think that it's already March! The temperature here in Central Wisconsin is currently 38 degrees Fahrenheit. For at least the next week, high temperatures will remain in the high-30 to mid-40 degrees Fahrenheit range.

With this in mind, the end of January means that it is time to look at my dividend raises received during the month. I will also look ahead to the raises that I anticipate for February 2024. Without further ado, let's dive into it!

Actual Dividend Increases For January 2024

Dividend Increase #1: STAG Industrial (STAG)

STAG Industrial declared a 0.7% bump in its monthly dividend per share to $0.1233.

Across my 21 shares of STAG, this declaration lifted my net annual forward dividends higher by $0.2016.

Dividend Increase #2: BlackRock (BLK)

BlackRock announced a 2% increase in its quarterly dividend per share to $5.10. This was in line with what I predicted in the previous post of this series.

My net annual forward dividends rose by $0.80 across my two shares of BLK as a result of this announcement.

Dividend Increase #3: Alliant Energy (LNT)

Alliant Energy declared a 6.1% raise in its quarterly dividend per share to $0.48, which was what I anticipated.

Across my 13 shares of LNT, my net annual forward dividends grew by $1.43 due to this declaration.

Dividend Increase #4: ONEOK (OKE)

ONEOK announced a 3.7% bump in its quarterly dividend per share to $0.99. This was better than the $0.975 that I expected.

My net annual forward dividends were lifted by $4.76 across my 34 shares of OKE from this announcement.

Dividend Increase #5: Kimberly Clark (KMB)

Kimberly Clark declared a 3.4% increase in its quarterly dividend per share to $1.22, which was what I predicted.

Across my four shares of KMB, my net annual forward dividends rose by $0.64 due to this declaration.

Dividend Increase #6: Air Products & Chemicals (APD)

Air Products & Chemicals announced a 1.1% raise in its quarterly dividend per share to $1.77. This was much less than the $1.89 that I anticipated. But I think that the conservative raise was the right move as APD focuses on major projects to fuel robust future growth.

My net annual forward dividends grew by $0.40 across my five shares of APD from this announcement.

Dividend Increase #7: Comcast (CMCSA)

Comcast declared a 6.9% hike in its quarterly dividend per share to $0.31, which was what I expected.

Across my 39 shares of CMCSA, my net annual forward dividends were lifted by $3.12 due to this declaration.

Distribution Increase #8: Energy Transfer (ET)

Energy Transfer announced a 0.8% bump in its quarterly distribution per unit to $0.315. This was in line with my prediction.

My net annual forward distributions rose by $0.86 across my 86 units of ET from this announcement.

Distribution Increase #9: Enterprise Products Partners (EPD)

Enterprise Products Partners declared a 3% increase in its quarterly distribution per unit to $0.515, which was ahead of the $0.51 that I anticipated.

Across my 52 units of EPD, my net annual forward distributions grew by $3.12 due to this declaration.

Dividend Increase #10: United Parcel Service (UPS)

United Parcel Service announced a 0.6% raise in its quarterly dividend per share to $1.63.

My net annual forward dividends were lifted by $0.20 across my five shares of UPS from this announcement.

Dividend Increase #11: T. Rowe Price Group (TROW)

T. Rowe Price Group declared a 1.6% bump in its quarterly dividend per share to $1.24.

Across my six shares of TROW, my net annual forward dividends rose by $0.48 due to this declaration.

Dividend Increase #12: WEC Energy Group (WEC)

Recently, WEC Energy Group made a 7.1% hike in its quarterly dividend per share to $0.835 official. This topped my expectation of $0.8325.

My net annual forward dividends grew by $2.64 across my 12 shares of WEC from this announcement.

Expected Dividend Increases For February 2024

Expected Dividend Increase #1: Albemarle (ALB)

The first dividend increase that I anticipate for next month will be from Albemarle. My best guess is that ALB will declare a 1.3% raise in its quarterly dividend per share to $0.405.

Across my eight shares of ALB, my net annual forward dividends would be lifted by $0.16 if such a declaration plays out.

Expected Dividend Increase #2: Allstate (ALL)

The next payout hike that I predict for February is from Allstate. I anticipate that ALL will announce a 5.6% boost in its quarterly dividend per share to $0.94.

My net annual forward dividends would rise by $1 across my five shares of ALL from such an announcement.

Expected Dividend Increase #3: Brookfield Asset Management (BAM)

The third dividend hike that I forecast for next month will be from Brookfield Asset Management. I believe that BAM will declare a 12.5% lift in its quarterly dividend per share to $0.36.

Across my 30 shares of BAM, my net annual forward dividends would grow by $4.80 if this declaration happens.

Expected Dividend Increase #4: Cisco Systems (CSCO)

The next dividend increase that I'm expecting for February is from Cisco Systems. My best guess is that CSCO will announce a 2.6% bump in its quarterly dividend per share to $0.40.

My net annual forward dividends would be lifted by $0.88 across my 22 shares of CSCO from such an announcement.

Expected Dividend Increase #5: Genuine Parts Company (GPC)

The fifth payout boost that I predict for next month will be from Genuine Parts Company. I anticipate that GPC will declare a 6.3% raise in its quarterly dividend per share to $1.01.

Across my six shares of GPC, my net annual forward dividends would rise by $1.44 if this declaration occurs.

Expected Dividend Increase #6: Home Depot (HD)

The next dividend raise that I'm forecasting for February is from Home Depot. I believe that HD will up its quarterly dividend per share by 5.7% to $2.21.

My net annual forward dividends would grow by $2.40 across my five shares from such an announcement.

Expected Dividend Increase #7: Coca-Cola (KO)

The seventh dividend increase that I anticipate for next month will be from Coca-Cola. My best guess is that KO will declare a 4.3% bump in its quarterly dividend per share to $0.48.

Across my 10 shares of KO, my net annual forward dividends would be lifted by $0.80 if this declaration happens.

Expected Dividend Increase #8: L3Harris Technologies (LHX)

The next dividend raise that I'm predicting for February is from L3Harris Technologies. I anticipate that LHX will up its quarterly dividend per share by 4.4% to $1.19.

My net annual forward dividends would rise by $0.80 across my four shares of LHX from such an announcement.

Expected Dividend Increase #9: NextEra Energy (NEE)

The ninth dividend boost that I forecast for next month will be from NextEra Energy. I believe that NEE will declare a 10.2% hike in its quarterly dividend per share to $0.515.

Across my 13 shares of NEE, my net annual forward dividends would grow by $2.47 if this declaration plays out.

Expected Dividend Increase #10: PepsiCo (PEP)

The next dividend raise that I anticipate for February is from PepsiCo. My best guess it that PEP will announce a 7.9% increase in its quarterly dividend per share to $1.365.

My net annual forward dividends would be lifted by $2.40 across my six shares of PEP from such an announcement.

Expected Dividend Increase #11: Prudential Financial (PRU)

The eleventh dividend increase that I'm predicting for next month will be from Prudential Financial. I anticipate that PRU will declare a 4% raise in its quarterly dividend per share to $1.30.

Across my 10 shares of PRU, my net annual forward dividends would rise by $2 if this declaration occurs.

Expected Dividend Increase #12: Tractor Supply (TSCO)

The final dividend boost that I forecast for February is from Tractor Supply. I believe that TSCO will announce an 8.7% raise in its quarterly dividend per share to $1.12.

My net annual forward dividends would grow by $1.80 across my five shares of TSCO from such an announcement.

Concluding Thoughts:

The 12 dividend raises that I received in January boosted my net annual forward dividends by $18.6516. That would be equivalent to investing $621.72 in fresh capital at a 3% weighted average net dividend yield.

If the dozen raises that I am expecting in February play out as anticipated, my net annual forward dividends would rise by $21.05. Replicating this would require investing $701.67 at a 3% yield.

Discussion:

How was your January 2024 for dividend boosts?

Did you get any first-time payout raises during the month?

Thanks for reading and please feel free to comment below!

Tuesday, January 30, 2024

January 2024 Dividend Stock Purchases/Sales

As I'm writing this blog post, it's already January 22. The temperature has been trending higher to uncharacteristically warm levels again here in Central Wisconsin. The next week is expected to feature high temperatures into the low- to mid-30 degrees Fahrenheit range. Even the lows will reach into the high-20s to low-30s.

As has been the case for the last several months, I have been building up my emergency fund. Thus, I have sold some holdings and shuffled capital proceeds into what I believe are higher quality businesses. This continued in the month of January.


My lone transaction for January was the sale of all 32 of my shares of Leggett & Platt (LEG) at $25.75 each. This was a sale that I made preemptively to avoid a potential dividend cut from the company. As my Dividend Kings colleague Dividend Sensei has repeatedly pointed out with research from Hartford Funds, dividend cutters and eliminators drastically underperform dividend growers and initiators.

In a recent article, Dividend Sensei notes that the dividend is expected to consume virtually all of LEG's FCF in 2024. Worse yet, that is before considering the impact of a potentially mild recession. Not to mention that its interest coverage ratio through the first nine months of 2023 was just 4.4. If a recession were to hit, the company would be pressured by rating agencies to cut the dividend to preserve liquidity.

I haven't deployed my capital proceeds into anything new yet, but Enbridge (ENB) is my top candidate. Interested readers can check out why I want to open a position in ENB in my December article. Basically, ENB has a firmly investment-grade balance sheet, a well-covered and comparable yield to LEG, and reasonable growth prospects, all at an attractive valuation.

Concluding Thoughts:

I would like to swing from no refund ahead of my 2023 tax filing to a modest refund and increase the proportion of my tax-advantaged investments relative to total investments. To do this, I am going to keep saving in my emergency fund for the foreseeable future. I'll then open and max out an IRA with the $6,500 annual contribution limit for those under age 50.

This way, I can backload my investments for 2023. During the summer and fall, I hope to again max out my contribution for 2024. All the while, my approach should allow me to maintain an ample emergency fund.

Discussion:

How did you fare on capital deployment in January?

Did you sell any positions as I did with LEG? Did you open any new positions?

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

Tuesday, January 23, 2024

My Financial And Personal Goals For 2024

As I'm writing this blog post on January 17th, it's hard to believe that there are just two weeks left in this month. The low temperatures here in Central Wisconsin are set to remain in the negative Fahrenheit territory, although not as bad as the -30 with wind chill that we have been experiencing. Fortunately, in a few days, the low temperatures will reach into the upper 20s with highs getting above freezing.

With that aside, now is time to set my new financial and personal goals for 2024.


Image Source: Pexels

My Financial Goals For 2024

1. Generate at least 20% growth in net dividends collected

In the last few years, my net dividends have routinely grown by 40% or more. However, I believe this will be coming to an end in 2024. That's because aside from having less capital to invest than in the last couple of years, my portfolio base is making it more difficult to post these types of growth rates.

Fortunately, I still think a 20% growth rate is doable. Off the top, my organic growth should come in around 10% from dividend reinvestment and dividend growth. I figure another 10% dividend growth from capital deployment is reasonable and gives me flexibility to be more qualitative (e.g., lower yield and higher growth prospects) with my dividend stock purchases.

2. Grow net annual forward dividends by 20% by the end of the year

Similar to my first goal, I am aiming for 20% growth in my net annual forward dividends heading into 2025. For the reasons that I already discussed in my previous goal, I think that this will also be a doable goal.

Personal Goals For 2024

1. Jog At Least 10 Miles A Week

As the weather has become more unfavorable in recent months, I have shifted my exercise routine to the indoors. I have enjoyed jogging on the treadmill these last couple of months and plan on continuing to do this throughout the year. As the weather warms up, I will spend more time outside. However, I intend to stick with my routine on the treadmill moving forward in lieu of exercise in the outdoors.

2. Lift Weights At Least Four Times A Week

Since November, I have been lifting weights. Given my 5'8'' and 125 pound frame, I started out doing at least two sets of 10 reps of various exercises with eight pound weights four times a week. As the year comes to a close, I would like to work my way up to doing the same amount of sets and reps with 15 pound weights.

3. Publish A Blog Post Each Week

As I have done for nearly five and a half years now, I plan on continuing to publish a post to this blog each week. I enjoy updating readers on my progress with dividend growth investing to demonstrate the power of the strategy in real time, so this is a goal I envision running back year after year.

Concluding Thoughts:

Overall, I am excited to see what the new year brings. In recent months, I have been clearing what I view as dead weight out of my portfolio. Also, I look forward to likely resuming capital deployment in just a few more weeks and further improving on the quality of my portfolio. Fitness-wise, I enjoy the grind of the everyday routine of remaining active and am eager to continue this in 2024.

Discussion:

What are your goals for 2024?

Do you believe any of your goals are going to be more challenging to accomplish than any others?

I appreciate your readership and welcome your comments below!

Tuesday, January 16, 2024

Review Of 2023 Goals

As I'm writing this blog post, it's already January 8th, 2024. Surprisingly, the weather here in Central Wisconsin continues to be quite mild. The temperature is expected to reach a high of 30 degrees Fahrenheit today. Anything around freezing for this time of the year is pretty rare, so I'll take it!

Now that 2023 is fully in the rearview mirror, it would be a good time to briefly go over whether I achieved my revised goals for the year.


Image Source: Pexels

Financial Goals for 2023

1. End 2023 With a Six Month Emergency Fund - Fail

At the end of 2023, my emergency fund (also factoring in taxable account dividend income) was five months. That was just short of my goal for the year. However, this was only because I realized at the end of the year that my estimated tax payments for 2023 weren't quite enough throughout the year. Thus, I had to chip in more than I anticipated. Factoring this out of the equation, I would have had a seven month emergency fund heading into 2024. The good news is that after this month, I should be at my target of a six month emergency fund.

2. Conclude 2023 With at Least $4,300 in Net Annual Forward Dividends - Pass

I narrowly topped my goal of $4,300 in net annual forward dividends heading into 2023, ending the year at around $4,315. This was mostly thanks to my capital deployment throughout the first eight months of the year and dividend growth/reinvestment in the last few months of the year.

3. Reach $120,000 in Investments and $140,000 in Net Worth - Pass

On the investment value front, I beat my goal by a few percent. In terms of net worth, I barely met my goal for 2023.

Personal Goals for 2023

1. Publish Approximately 360 Motley Fool Articles - Pass

At my rate of about 10 Motley Fool articles a week through the first eight months and change of 2023, I met my updated goal of publishing 360 articles during the year.

2. Publish At Least 90 Seeking Alpha Articles - Pass

I topped my goal related to Seeking Alpha in 2023. For the year, I had 95 articles published.

3. Publish 1 Blog Post Each Week - Pass

Finally, I succeeded on the blog front. In 52 Tuesdays, I published 52 blogs in 2023 - - exactly one blog each week as I intended.

Concluding Thoughts:

In the face of my job loss in September, I transitioned quickly adapted. In fact, I moved immediately from writing for Motley Fool to ramping my production at Seeking Alpha back up. There wasn't a single day that I was out of work, so I'm pleased with how I fared in the face of challenges in 2023.

Discussion:

How was your 2023?

Did you revise your goals part of the way through the year as I did or did you stand by your goals?

Thanks for your readership and please consider commenting below!

Tuesday, January 9, 2024

December 2023 Dividend Income

As I'm writing this blog post, it is officially 2024. Although it is cold in absolute terms, the weather here in Central Wisconsin remains warm for this time of year. The high temperature for today is expected to reach 31 degrees Fahrenheit!

With that aside, I plan on highlighting my net dividend income for December 2023. Let's dive into it!








During December 2023, I collected $529.78 in net dividends. Compared to the $434.85 in net dividends received in September 2023, this represents a 21.8% quarterly growth rate. Even factoring out the special dividend and annual fee from my Capital Income Builder (CAIBX) mutual fund in my retirement account, my net dividend income grew by 3%.

On a year-over-year basis, my net dividends surged 25.2% higher versus the $423 in net dividends that I collected in December 2022.

Rather than discuss every aspect of how my net dividends climbed by $94.93 from September 2023 to December 2023, I will discuss activity within each of my accounts at a high level.

I received $349.33 in net dividends from 47 companies within my Robinhood portfolio. Growth in my Robinhood portfolio was driven by dividend raises from Broadcom (AVGO) and Main Street Capital (MAIN), as well as my new position in Ares Capital (ARCC). This was partially offset by the timing of dividends from PepsiCo (PEP) and Digital Realty Trust (DLR), which will be paid in January.

My Webull account generated $16.82 in net dividends across six companies (not pictured is the $8.40 in combined net dividends received from Lockheed Martin and Broadcom). Dividend boosts from Visa (V) and Lockheed Martin (LMT) in October and the December hike from AVGO contributed to this higher dividend income.

I collected $0.52 in net dividends from 23 companies in my M1 Finance portfolio. Fastenal's (FAST) special dividend more than offset the loss of income due to PepsiCo's (PEP) dividend payment timing.

My retirement account produced $163.11 in net dividends from my CAIBX mutual fund holding. A special dividend and a higher share count due to dividend reinvestment led my net dividends higher.

Concluding Thoughts:

December 2023 was the first month in which my net dividends exceeded $500. I don't anticipate to collect $500 in net dividends in a given month again until likely September or December of this year. However, I feel very blessed to have reached that mark during the month.

As I anticipate resuming capital deployment in February, my net dividend income should steadily continue to climb in 2024.

Discussion:

How was your dividend income for December 2023?

Did you receive any special dividends?

I appreciate your readership and welcome your comments below!

Tuesday, January 2, 2024

December 2023 Dividend Stock Purchases

As I'm writing this blog post, it's hard to believe that 2023 as we know it is just three days away from reaching its conclusion. Still, the temperatures here in Central Wisconsin remain warm for the season. It is expected to reach a high of 40 degrees Fahrenheit later today.

With that aside, now would be a good time to discuss the transactions that I completed in December. Let's dig in.



First, I closed out my seven share position in Medifast (MED) for an average price of $67.04 each. Earlier in the month, the company announced that it would be discontinuing its quarterly dividend per share of $1.65. MED intends to invest this cash to enhance the customer experience and acquire customers to revive its growth story. Overall, I think this was a necessary move on the part of the company to reinvent itself amid the anticipated surge in the popularity of the GLP-1 drug class. But since the vast majority of dividend cutters and suspenders underperform the market as a whole, I simply don't have the patience to ride this one out any longer. The dividend suspension and my sale of shares reduced my net annual forward dividends by $46.20.

My first move to redeploy these proceeds came with my addition of 12 shares of Ares Capital (ARCC) at an average price per share of $20.09. Readers curious on my buying rationale for ARCC can check out my Seeking Alpha article from two months ago. This boosted my net annual forward dividends by $23.04, which equates to a 9.56% dividend yield.

The other transaction I executed to redeploy capital proceeds was seven units of MPLX LP (MPLX) at an average cost of $35.67 a unit. This lifted my net annual forward distributions by $23.80, which equates to a 9.53% distribution yield. For my investment thesis, interested readers can peruse my recent Seeking Alpha article on MPLX.

Finally, I reinvested $176.88 into my Capital Income Builder (CAIBX) mutual fund holding (net the $10 annual fee) within my retirement account from a previous employer. These dividends, special dividends, and capital gains payments added 2.706 shares to my share count. That upped my net annual forward dividends by $5.764, which equates to a 3.26% net dividend yield.

Concluding Thoughts:

December 2023 marked the fourth consecutive month that I worked on building my emergency fund to a more robust level. At the rate that I am going, I anticipate that my emergency fund will be up to my target by the end of January. Thus, I hope to begin investing between $1,500 and $2,000 in capital each month starting in February.

Discussion:

How was your month for capital deployment?

Did you open any new positions or close any positions in December 2023?

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