Tuesday, May 28, 2024

May 2024 Dividend Stock Purchases

As I'm writing this blog post, it is currently May 17, 2024. The temperature is currently 76 degrees Fahrenheit and sunny here in Central Wisconsin. That's precisely why I plan on getting outside after finishing this blog.

With that aside, I'm done with my dividend stock purchases for the month with fresh capital (I may sell a few stakes and redeploy capital in my Charles Schwab account). So, I'll outline my dividend stock purchases in my IRA for May 2024.

Dividend Stock Purchase #1: Brookfield Asset Management (BAM)

My first dividend stock purchase that I completed during the month was 10 shares of Brookfield Asset Management (BAM) at an average cost of $40.07 a share. This boosted my net annual forward dividends by $1.52, which works out to a 3.79% net dividend yield.

Interested readers can check out my Seeking Alpha article published earlier this month to learn why I added to my stake in BAM.

Dividend Stock Purchase #2: McDonald's (MCD)

The next dividend stock purchase that I made in May was two shares of McDonald's (MCD) at an average price per share of $267.22. That increased my net annual forward dividends by $13.36, which equates to a 2.5% dividend yield.

Readers can peruse my May 2024 Dividend Stock Watch List blog post for my brief investment thesis on MCD.

Dividend Stock Purchase #3: NextEra Energy (NEE)

The third dividend stock purchase that I executed for the month was five shares of NextEra Energy (NEE) at an average cost of $73.83 per share. This raised my net annual forward dividends by $10.30, which is equivalent to a 2.79% net dividend yield.

Those interested in my investment thesis can find it in this Seeking Alpha article from late last month.

Dividend Stock Sales: Digital Realty Trust (DLR), Eastman Chemical (EMN), International Business Machines (IBM), and Omnicom (OMC)

I closed out my respective 10, 7, 6, and 7 share positions in the aforementioned stocks on May 21. Each of these stocks have delivered little to no dividend growth for the last two to three years.

So, I was happy to cut ties with them. I received $3,845.47 in total capital proceeds from those sales and lost $131.16 in net annual forward dividends from the transactions.

Dividend Stock Capital Redeployment: Nvidia (NVDA), Philip Morris International (PM), British American Tobacco (BTI), and Enterprise Products Partners (EPD)

I rolled these proceeds into a starter position of two shares of Nvidia (NVDA) at an average cost of $951.59 a share. I also added six shares of Philip Morris International (BTI) at $100.43 apiece. I boosted my position in British American Tobacco (BTI) by 21 shares at an average cost of $31.50 each. Lastly, I upped my stake in Enterprise Products Partners (EPD) by 23 units at an average price per unit of $28.65.

As I put $3,826.31 in capital back to work, this helped me to increase my emergency fund (a bit more) by $19.16. I also lifted my net annual forward dividends by $10.11 after factoring in the loss of dividends with my four sales.

Overall, I believe this basket is going to meaningfully outperform my previous basket in relatively safe starting income, income growth, and capital appreciation.

Concluding Thoughts:

On the dividend stock purchases that I completed with my own capital, I deployed $1,304.25 in May. This boosted my net annual forward dividends by $38.86, which is a weighted average net dividend yield of 2.98%.

Combined with the $9.414 lift in my net annual forward dividends from dividend increases and the capital redeployment, my net annual forward dividends grew from $4,580 to $4,640.

Discussion:

How was your capital deployment this month?

Did you open any new positions?

Thanks for reading and please feel free to drop a comment below!

Tuesday, May 21, 2024

Expected Dividend Increases For June 2024

As I'm writing this blog post on Monday, May 13th, the temperature is currently expected to reach a high of 75 degrees Fahrenheit here in Central Wisconsin. Other than wildfires in Canada currently impacting air quality, the weather is perfect today.

Now that all but two of my anticipated dividend increases for May have already been announced, I will be going over those dividend increases and looking ahead to the ones on tap for next month.

Actual Dividend Increases For May 2024

Dividend Increase #1: American Water Works (AWK)

As I noted in the previous post of this series, American Water Works announced an 8.1% raise in its quarterly dividend per share to $0.765. This was in line with my prediction.

Across my four shares of AWK, my net annual forward dividend rose by $0.92 as a result of this dividend announcement.

Dividend Increase #2: Main Street Capital (MAIN)

Main Street Capital declared a 2.1% increase in its monthly dividend per share to $0.245. That was also what I anticipated.

My net annual forward dividends surged $1.80 across my 30 shares of MAIN due to this dividend declaration.

Dividend Increase #3: RTX Corp (RTX)

RTX Corp announced a 6.8% raise in its quarterly dividend per share to $0.63. This was also what I forecasted.

Across my 12 shares of RTX, my net annual forward dividends were boosted by $1.92 as a result of this dividend announcement.

Dividend Increase #4: Simon Property Group (SPG)

Simon Property Group (SPG) declared a 2.6% increase in its quarterly dividend per share to $2. That was also on par with my expectations.

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

Dividend Increase #5: Realty Income (O)

Realty Income announced a 2.1% raise in its monthly dividend per share to $0.2625. Across my 39 shares of O, my net annual forward dividends grew by $2.574 from this announcement.

Pending Dividend Increase: Medtronic (MDT)

Medtronic also hasn't yet boosted its dividend, but I'd expect this to occur on May 23, with the release of its fiscal fourth quarter earnings. My expectation remains that MDT will up the quarterly dividend per share by 1.4% to $0.70.

UPDATE:

Just as expected, MDT announced a 1.4% raise in its quarterly dividend per share to $0.70. My net annual forward dividends increased by $0.52 across my 13 shares of MDT from this raise.

Pending Dividend Increase: Lowe's (LOW)

Lowe's hasn't yet announced its dividend hike, but I would anticipate this will happen with the release of its fiscal first quarter earnings on May 21. I continue to believe that LOW will up the quarterly dividend per share by 4.5% to $1.15.

Across my 10 shares of LOW, my net annual forward dividends would grow by $2 from such an announcement.

UPDATE:

As anticipated, LOW declared a 4.5% increase in its quarterly dividend per share to $1.15.

My net annual forward dividends grew by $2 across my 10 shares due to this declaration.

Expected Dividend Increases For June 2024

Expected Dividend Increase #1: FedEx (FDX)

The first dividend boost that I'm expecting for June will come from FedEx. My best guess is that FDX will announce a 9.6% increase in its quarterly dividend per share to $1.38.

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

Expected Dividend Increase #2: General Mills (GIS)

The next payout raise that I'm anticipating for next month will be from General Mills. I believe that GIS will declare a 9.3% boost in its quarterly dividend per share to $0.59.

My net annual forward dividends would increase by $0.80 across my four shares of GIS due to such a declaration.

Expected Dividend Increase #3: Realty Income (O)

The third dividend bump that I'm predicting for June will come from Realty Income. I anticipate that O will announce a 0.2% raise in its monthly dividend per share to $0.2630.

Across my 39 shares of O, my net annual forward dividends would grow by $0.234 from such an announcement.

Expected Dividend Increase #4: UnitedHealth Group (UNH)

The next dividend boost that I'm expecting for June will be from UnitedHealth Group. My best guess is that UNH will declare a 13.3% hike in its quarterly dividend per share to $2.13.

My net annual forward dividends would rise by $5 across my five shares of UNH due to such a declaration.

Concluding Thoughts:

The seven dividend raises that I received in May boosted my net annual forward dividends by $11.534. This would be equivalent to investing $384.47 at a 3% net dividend yield.

If dividend announcements work out as I expect, my net annual forward dividends would rise by $7.954 in June. That would be like investing $265.13 at a 3% weighted-average dividend yield.

Discussion:

How was your month for dividend increases?

Did you receive any first-time dividend boosts in May 2024?

I appreciate your readership and welcome your comments below!

Tuesday, May 14, 2024

June 2024 Dividend Stock Watch List

As I'm writing this blog post, it is Monday, May 6. The weather is going to be perfect today here in Central Wisconsin, with clear skies and the temperature expected to hit a high of 75 degrees Fahrenheit. 

The first week of the month is almost over. So, now would be a good time to take a look at three dividend stocks that are top of mind for purchases next month.

Dividend Stock #1: American Water Works (AWK)

First up is the water utility, American Water Works (AWK). Interested readers can check out my Seeking Alpha article from earlier this month to learn why I would like to up my weighting in the stock.

Basically, AWK is a steady grower and the most recent quarterly results reinforce my belief that this won't be ending anytime soon. The 8.1% dividend hike announced just days ago is supported by the low payout ratio. Lastly, I believe shares could be worth approximately $141 each, which would be a decent discount from the current $130 share price.

Dividend Stock #2: VICI Properties (VICI)

The next dividend stock on my watch list is VICI Properties (VICI). For a deeper dive into why I like VICI, readers can peruse my Seeking Alpha article from last month.

Simply put, VICI's near-6% dividend yield can be sustained by FFO per share generation. Consistent FFO per share growth can also power future dividend growth. Finally, shares could be worth $35 apiece. That would be a moderate discount versus the current $29 share price.

Dividend Stock #3: WEC Energy Group (WEC)

The third stock on my watch list is WEC Energy Group (WEC). Readers can take a look at my Seeking Alpha article published today for my updated investment thesis.

Basically, I think WEC's latest quarterly results back up my argument that it is just a few years away from becoming a Dividend Aristocrat. The company's earnings are consistently growing. For a utility, the payout is also conservative. In closing, WEC could be worth $96 a share - - a double-digit percentage discount from the current $82 share price.

Concluding Thoughts:

There we have it. The names and the month may change, but the story stays the same. Three more businesses that I believe are high-quality and undervalued. Thus, why I'm likely going to be adding to each next month.

Discussion:

Are any of AWK, VICI, or WEC on your watch list for the foreseeable future?

If not, what stocks are you currently watching?

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

Tuesday, May 7, 2024

April 2024 Dividend Income

As I'm writing this blog post, it is currently Wednesday, May 1. The temperature is expected to reach a high of 68 degrees Fahrenheit here in Central Wisconsin. That's why aside from my usual treadmill and weights routine, I plan on getting outside for at least a half an hour to an hour later today.

With that aside, a new month means now is a great time to reflect on my portfolio's net dividend income for April 2024. Without further ado, I'll jump into it!

A Decent Month Considering Recent Portfolio Activity

During April 2024, I received $246.69 in net dividends. This was 7.2% less than the $265.76 in net dividends that I collected in January 2024. However, when adjusting for some special items, my net dividends would have grown by 6.4% in April over that month.

Via my forced sale of Spirit Realty (SRC) to Realty Income (O) due to the latter's acquisition, this was a $7.06 hit to my net dividends. My sale of Leggett & Platt (LEG) in January was a $14.72 drag on my net dividends. The timing of Digital Realty Trust's (DLR) dividend also weighed on my net dividends to the tune of $12.20.

Against the $222.78 in net dividends that I received in April 2023, this was a 10.7% year-over-year growth rate (before accounting for the above items).

In my Charles Schwab account, I collected $236.23 in net dividends from 27 companies. The aforementioned headwinds from SRC, LEG, and DLR were partially offset by dividend raises.

My net dividends received from four companies in my Webull account were unchanged at $10.24.

Concluding with my M1 Finance account, I collected $0.22 in net dividends from nine companies. This was also the same as January 2024.

Concluding Thoughts:

My net dividends dipped below $250 in April. But moving forward, they should climb back above that in July and beyond. Besides dividend increases, this is because of my dividend stock purchases made in March 2024.

Discussion:

How was your dividend income last month?

Did you collect any first-time dividends in April 2024?

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