November 2024 Dividend Stock Watch List

As I’m writing this blog post, it is Friday, October 11^th. The high temperature is expected reach 74 degrees Fahrenheit in Central Wisconsin. Add in a partly sunny forecast and the weather is perfect for this time of the year.

Now that less than three weeks remain in the month, I’ll be looking ahead to dividend stocks on my watch list for November 2024. Let’s dive into it!

Dividend Stock #1: Energy Transfer (ET)

The first stock on my watch list for November 2024 is Energy Transfer (ET). Those interested in the investment thesis in detail can refer to my August Seeking Alpha article.

In a nutshell, ET set several new partnership records in its second quarter. The partnership’s credit rating was upgraded to Baa2 (BBB equivalent) by Moody’s in June. The 7.8% distribution yield is also well-covered by DCF. Finally, ET’s $16 unit price (as of October 11^th, 2024) remains well under my fair value estimate of approximately $19 a unit.

Dividend Stock #2: Alphabet (GOOGL)

The next stock on my watch list for next month is Alphabet (GOOGL). Astute readers will notice that I just highlighted the stock in my September 2024 Dividend Stock Watch List.

Well, my buying rationale is about the same as it was at that time. Since that time, I published a September Seeking Alpha article. YouTube Shorts monetization is improving, and Google Cloud remains a go-to option for both startups and established businesses. GOOGL’s nearly $100 billion net cash position and AA+ credit rating from S&P on a stable outlook are also pluses. The recently initiated dividend is modest and has tons of room for future growth. The icing on the cake is that GOOGL is deeply undervalued from the current $165 share price (as of October 11^th, 2024), with my October fair value estimate approaching $210 a share.

Dividend Stock #3: PepsiCo (PEP)

The third stock on my watch list for November 2024 is PepsiCo (PEP). My investment thesis for the consumer staple remains unchanged from my May Seeking Alpha article.

PEP operates as a leader in a fragmented, trillion-plus dollar global beverage and convenient food category. The company also enjoys an A+ credit rating from S&P on a stable outlook. Fair value is also edging closer to $200 a share, which would represent a moderate discount versus the current $174 share price (as of October 11^th, 2024).

Concluding Thoughts:

So, that is that for this blog post in my monthly stock watch list series. Three more world-class stocks on my radar for additional investment. These are the kinds of investment holdings that allow me to sleep well at night and stand by the dividend growth investing strategy. This has served me well over the past seven years and I especially look forward to the next seven years of living by the strategy.

Discussion:

Are any of ET, GOOGL, and/or PEP on your watch list for November 2024?

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

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

September 2024 Dividend Income

As I'm writing this blog post, it's Friday, October 4th. The high temperature is going to reach into the upper 60 degrees Fahrenheit range later today. Unsurprisingly, I'm planning on getting outside for a while today to enjoy what's left of the ideal weather.

Now that September is over, I'm going to be taking a moment today to review my net dividend income for the month. Without further ado, let's dig into it.

Dividend Income Approached $550 For The Month

In September 2024, I collected $543.81 in net dividends (including ADR fees for BP and withholdings on BAM dividends). Against the $520.75 in net dividends received in June 2024, this is equivalent to a 4.4% quarterly growth rate.

Compared to the $434.85 in net dividends collected in September 2023, that equates to a 25.1% year-over-year growth rate.

My net dividends received in my Charles Schwab portfolio were $364.41 from 48 companies. This was marginally lower because of my sale of Dominion Energy (D) in July 2024 and partially offset by my purchase of Meta Platforms (META) during the month.

In my retirement account sponsored by my former employer, I collected $87.11 in net dividends from my Capital Income Builder (CAIBX) holding. This increased slightly because of a higher share count from dividend reinvestment.

My net dividends received from my Fidelity portfolio was $74.80 from 13 companies. Dividend stock purchases in June 2024, July, and August 2024 accounted for this uptick in net dividends.

In my Webull account, I collected $17.49 in net dividends from six companies. Payout raises contributed to a modest increase in net dividends.

Concluding Thoughts:

As I indicated in my June 2024 Dividend Income blog post, my capital deployment in recent months is putting me on a realistic path to receive at least $600 in net dividends for December 2024.

Discussion:

How was your net dividend income for September 2024?

Did you collect any first-time dividends during the month as I did with META?

I appreciate your readership and welcome your comments below!

September 2024 Dividend Stock Purchases

As I’m writing this blog post, it is currently Thursday, September 26^th. The weekend is going to see highs in the mid 70 degrees Fahrenheit. So, we’re seeing a cooling trend here in Central Wisconsin. That’s decent weather for this time of the year, though.

Since the month of September is just about complete, I’ll be detailing my dividend stock purchases for the month. Without further ado, let’s dig into it.

Dividend Stock Purchase #1: Enbridge (ENB)

The first dividend stock purchase that I made during the month was 25 shares of Enbridge at an average price of $40.57 a share. This boosted my net annual forward dividends by $67, which is equivalent to a 6.61% net dividend yield.

Interested readers can find the gist of my investment thesis in my September 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #2: Alphabet (GOOGL)

My next dividend stock purchase completed in September was four shares of Alphabet at an average cost per share of $153.84. That increased my portfolio’s net annual forward dividends by $3.20, which works out to a 0.52% net dividend yield.

Curious readers can peruse the September 2024 Dividend Stock Watch List blog post linked above for my investment thesis.

Dividend Stock Purchase #3: Meta Platforms (META)

The third and final dividend stock purchase that I executed for the month was a share of Meta Platforms at $506.11. As a result, my net annual forward dividends edged $2 higher. This equates to a net dividend yield of 0.40%.

Intrigued readers can also uncover my investment thesis in the September 2024 Dividend Stock Watch List blog post.

Concluding Thoughts:

In September, I put $2,135.70 in capital to work. Against the $72.20 in net annual forward dividends added from these buys, this is a weighted average net dividend yield of 3.38%.

My net annual forward dividends also increased by $22.378 from the nine dividend increases that I received in September 2024. This helped my net annual forward dividends rise from about $4,945 heading into the month to approximately $5,040 going into October.

Discussion:

How was your capital deployment during the month?

Did you open any new positions/close any positions in September 2024?

Thank you for reading and please leave your comments below!

Expected Dividend Increases For October 2024

As I’m writing this blog post, it is currently Thursday, September 19th. The weather here in Central Wisconsin is going to be ideal for this weekend, with the high temperatures in the low 80 degrees Fahrenheit range. So, I plan on going outside for at least a few hours this weekend.

Now that I have received all but one of the raises that I am expecting for the month, I’ll go over those in this post. I’ll also look ahead to the dividend raises that I’m anticipating for next month.

Actual Dividend Increases For September 2024

Dividend Increase #1: Broadcom (AVGO)

Broadcom announced a 1% increase in its quarterly dividend per share to $0.53. This was due to the 10:1 stock split completed in July and aimed at keeping the dividend at an non-fractional cent amount.

Across my 40 shares of AVGO, my net annual forward dividends grew by $0.80 due to this dividend announcement.

Dividend Increase #2: JPMorgan Chase (JPM)

JPMorgan Chase made its 8.7% increase in its quarterly dividend per share to $1.25 official during the month.

My net annual forward dividends rose by $2.40 across my six shares of JPM because of this dividend declaration.

Dividend Increase #3: Microsoft (MSFT)

Microsoft announced a 10.7% raise in its quarterly dividend per share to $0.83 in September. This was in line with my prediction in this series’ previous blog post.

Across my five shares of MSFT, my net annual forward dividends climbed by $1.60 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 $0.2635. That was also precisely what I anticipated.

My net annual forward dividends edged $0.288 higher across my 48 shares of O because of this dividend declaration.

Dividend Increase #5: Philip Morris International (PM)

Philip Morris International announced a 3.8% raise in its quarterly dividend per share to $1.35. This was $0.01 more than I expected.

Across my 27 shares of PM, my net annual forward dividends increased by $5.40 due to this dividend announcement.

Dividend Increase #6: VICI Properties (VICI)

VICI Properties declared a 4.2% increase in its quarterly dividend per share to $0.4325. This came in below my expectation of $0.44.

My net annual forward dividends climbed by $4.76 across my 68 shares of VICI because of this dividend declaration.

Dividend Increase #7: Verizon Communications (VZ)

Verizon Communications announced a 1.9% raise in its quarterly dividend per share to $0.6775, which was what I predicted.

Across my 45 shares of VZ, my net annual forward dividends increased by $2.25 due to this dividend announcement.

Dividend Increase #8: Texas Instruments (TXN)

Texas Instruments upped its quarterly dividend per share by 4.6% to $1.36. Across my 12 shares of TXN, my net annual forward dividends rose by $2.88.

Dividend Increase #9: McDonald's (MCD)

McDonald's was a bit early with its dividend hike this year. The company matched my expectations of a 6% raise in its quarterly dividend per share to $1.77. My net annual forward dividends grew by $2 across my five shares of MCD from this dividend announcement.

Expected Dividend Increases For October 2024

Expected Dividend Increase #1: AbbVie (ABBV)

The first dividend raise that I’m expecting in October will be from AbbVie. My best guess is that a 5.2% increase in the quarterly dividend to $1.62 will be announced.

Across my 14 shares of ABBV, my net annual forward dividends would climb by $3.92 from such an announcement.

Expected Dividend Increase #2: American Electric Power (AEP)

The next dividend increase that I’m projecting for next month will come from American Electric Power. I believe that AEP will declare a 5.7% increase in its quarterly dividend per share to $0.93.

My net annual forward dividends would rise by $3 due to such a declaration across my 15 shares of AEP.

Expected Dividend Increase #3: A.O. Smith (AOS)

The third dividend raise that I’m anticipating in October will be from A.O. Smith. My guess is that AOS will announce a 7.8% increase in its quarterly dividend per share to $0.345.

Across my 12 shares of AOS, my net annual forward dividends would edge higher by $1.20 from such an announcement.

Expected Dividend Increase #4: Energy Transfer (ET)

The next distribution increase that I’m expecting for next month will come from Energy Transfer. I believe that ET will declare a 0.8% bump in its quarterly distribution per unit to $0.3225.

My net annual forward distributions would rise by $1.02 across my 102 units of ET due to such a distribution declaration.

Expected Dividend Increase #5: Lockheed Martin (LMT)

The fifth dividend raise that I’m projecting in October will be from Lockheed Martin. My best guess is that LMT will announce a 6.3% increase in its quarterly payout per share to $3.35.

Across my four shares of LMT, my net annual forward dividends would climb by $3.20 from such an announcement.

Expected Dividend Increase #6: MPLX LP (MPLX)

The next distribution raise that I’m anticipating in October will be from MPLX LP. My guess is that MPLX will announce a 5.9% hike in its quarterly distribution per unit to $0.90.

Across my 32 units of MPLX, my net annual forward distributions would grow by $6.40 from such an announcement.

Expected Dividend Increase #7: Pinnacle West Capital (PNW)

The seventh dividend increase that I’m projecting for next month will come from Pinnacle West Capital. I believe that PNW will declare a 1.9% bump in its quarterly dividend per share to $0.90.

My net annual forward dividends would increase by $0.56 across my seven shares due to such a dividend declaration.

Expected Dividend Increase #8: Visa (V)

The next dividend boost that I’m predicting in October will be from Visa. My best guess is that V will announce a 13.5% hike in its quarterly dividend per share to $0.59.

Across my nine shares of V, my net annual forward dividends would rise by $2.52 from such an announcement.

Expected Dividend Increase #9: Exxon Mobil (XOM)

The ninth and final dividend increase that I’m anticipating for next month will come from Exxon Mobil. I believe that XOM will declare a 5.3% raise in its quarterly dividend per share to $1.

My net annual forward dividends would grow by $2.20 across my 11 shares of XOM due to such a declaration.

Pending Dividend Increase: Starbucks (SBUX)

Starbucks has yet to deliver its dividend boost. But I’m standing by my projection that a 7% increase in the quarterly dividend per share to $0.61 will be declared before the month is up.

My net annual forward dividends would rise by $3.68 across my 23 shares of SBUX with such a dividend declaration.

Concluding Thoughts:

I received an additional $22.378 in net annual forward dividends from nine companies in September. This is like investing $745.93 in capital at a 3% dividend yield.

If the 10 raises that I’m projecting for next month materialize, my net annual forward dividends would increase by $27.70. That would be equivalent to investing $923.33 in fresh capital at a 3% net yield.

Discussion:

How were your dividend/distribution raises in September?

Did you receive any first-time raises?

As always, I appreciate your readership. Please feel free to leave your comments below!

August 2024 Dividend Income

As I’m writing this blog post, it is currently Friday, September 13^th. The high temperatures here in Central Wisconsin are set to reach the high 80 degrees Fahrenheit range this weekend. There is also quite a bit of sun in the forecast, so I’m looking to spend plenty of time outside while the weather is still pleasant.

Now that August is complete, I’ll be taking a moment to highlight my dividend income during the month.

Middle Month Net Dividend Income Is Approaching $400

In August 2024, I received $384.73 in net dividends (factoring in British American Tobacco’s ADR fees). That works out to a 5.2% quarterly growth rate versus the $365.82 in net dividends collected in May 2024.

My net dividends received in August were 25.8% more than the $305.77 in net dividends collected in August 2023.

I received $356.23 in net dividends from 27 companies within my Charles Schwab account. My purchase of another 21 shares of British American Tobacco (BTI) in May 2024 helped contribute to my higher net dividend income in this portfolio.

My net dividends collected in my Webull account amounted to $15.90 (net of ADR fees) from three companies. A distribution raise from Enterprise Products Partners (EPD) and a higher dividend from BTI boosted my portfolio’s net income.

I received $12.41 in net dividends from two companies in my Fidelity retirement portfolio. This was unchanged from May.

My net dividends collected from my M1 Finance account were $0.19 from seven companies. The recent implementation of its $3 monthly fee for accounts with less than $10,000 in assets prompted me to close my account. September will be my first month with M1 Finance not being a contributor to my dividend income since I opened the account in 2018.

Concluding Thoughts:

That’s all for now. Having not deployed tons of capital to companies paying dividends this month in recent months, I was pleased with my portfolio’s overall growth in net dividend income.

Discussion:

How was your net dividend income last month?

Did you receive any first-time dividends in August 2024?

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

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.

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).

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).

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!

September 2024 Dividend Stock Watch List

As I'm writing this blog post on Friday, August 9th, the weather forecast for this weekend here in Central Wisconsin is ideal. It's expected to be partly sunny, with high temperatures reaching into the upper 70s Fahrenheit.

Now that I have completed my stock purchases for August, I am looking ahead to my anticipated purchases for September.

Dividend Stock #1: Meta Platforms (META)

The first stock on my watch list for September is Meta Platforms (META). Curious readers can find my investment thesis in this Seeking Alpha article from last month.

META's social media platforms are used by half of the world. The continued integration of AI into its business is driving greater advertising efficiency and higher ad prices. The growth forecast for the global digital advertising industry is also very promising. Not to mention META's balance sheet is unbelievably strong. The starting yield of 0.4% may not be much, but the payout should have tons of room to grow in the future. Finally, shares look to be meaningfully undervalued from the current $514 share price (as of August 9, 2024).

Dividend Stock #2: Alphabet (GOOGL)

Next up on my watch list for next month is Alphabet (GOOGL). Interested readers can check out my thoughts on GOOGL in this June Seeking Alpha article.

Like META, the user base for GOOGL's products is extensive. That provides the company and its advertising partners with a treasure trove of data to run effective targeted ad campaigns. This positions GOOGL admirably in the growing digital advertising market as well. That should lead to promising growth prospects for the company. Additionally, GOOGL's balance sheet is arguably the most enviable among all of Big Tech. Like META, the company's 0.5% starting yield is small. However, it has a considerable growth runway. Lastly, shares of GOOGL are a great value from the current $162 share price (as of August 9, 2024).

Dividend Stock #3: Enbridge (ENB)

Last up is my more income-oriented pick of the month, Enbridge (ENB). For my updated thesis on ENB, readers can peruse my Seeking Alpha article from May.

Amid the AI boom and anticipated surge in electricity demand, ENB is well-positioned as North America's leading midstream operator. The company continues to steadily grow. Combined with an investment-grade balance sheet and modest payout ratio, this bodes well for ENB's dividend growth streak to persist well beyond the current three-decade mark. Despite these solid fundamentals, the midstream giant looks to be discounted from the current $39 share price (as of August 9, 2024).

Concluding Thoughts:

There we have it. In my view, my watch list for September 2024 contains an attractive mix of value with each of these three picks. ENB supplements the lower starting yields of META and GOOGL. Simultaneously, the latter two compensate for the more modest growth prospects of ENB. For my money, I also think the trio is of exceptional, world-class quality. This is why I'm very excited to be adding to each of these stakes in the coming weeks.

Discussion:

Are any of META, GOOGL, or ENB on your watch list for September 2024?

If not, what dividend growth stocks are you monitoring for the weeks ahead?

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

July 2024 Dividend Income

As I'm writing this blog post, it is Friday, August 2. The temperature here in Central Wisconsin is anticipated to reach a high of 85 degrees Fahrenheit later today. So, I plan on getting outside for a few hours.

Now that July 2024 is behind us, I will be looking at my net dividend income for the month.

Net Dividend Income Topped $250

During July 2024, I collected $256.43 in net dividends (including ADR fees for GSK). That was a 3.9% quarterly growth rate versus the $246.69 in net dividends received in April 2024. Backing out the sale of Omnicom (OMC) and Eastman Chemical (EMN) in May 2024, my net dividend income would have grown at a higher clip.

This was 0.6% lower than the $258.02 in net dividends that I collected in July 2023. But again, I no longer own OMC or EMN. Not to mention that I also liquidated positions in W.P. Carey (WPC) last October, Medical Properties Trust (MPW) last November and Leggett & Platt (LEG) in January. The timing of PepsiCo's (PEP) dividend payment schedule played a role as well.

I received $227.10 in net dividends from 24 companies in my Charles Schwab account. As I alluded to earlier, growth from dividend increases couldn't offset the loss of dividends from OMC and EMN. That is why my net dividends were a bit lower in this account.

That was more than offset by the $18.90 in net dividends that I collected in my IRA from three companies. Since opening and funding this account in March, this marked the first month of a quarter that my IRA contributed to my net dividend income.

My $10.24 in net dividends received from four companies within my Webull account was the same as April.

In my M1 Finance account, I collected $0.19 from eight companies. That was $0.03 below my net dividend income in April. This was also due to the timing of PEP's dividend payment.

Concluding Thoughts:

Thus far, my net dividends through July are up 21.8%. God willing, I'm going to keep deploying between $1,500 and $2,000 of capital monthly. Coupled with organic growth, this should keep my dividend income climbing higher in the months and years to come.

Discussion:

How was your dividend income for July 2024?

Did you collect any first-time dividends in the month?

Thanks for reading and please feel free to comment below!

July 2024 Dividend Growth Stock Purchases/Sales

As I'm writing this blog post, it's Friday, July 26. The temperature here in Central Wisconsin is expected to reach a high of 84 degrees Fahrenheit. But for the forecast of showers throughout the day, the weather would be perfect.

Now that the month of July is just days from its conclusion, I will highlight my dividend stock purchases/sales for the month.

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

My first dividend growth stock purchase for the month was 11 more shares of Brookfield Asset Management at an average price per share of $40.90. That boosted my net annual forward dividends by $16.72, which works out to a 3.72% net dividend yield.

Interested readers can find more info on my investment thesis from my July 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #2: Mastercard (MA)

The next dividend growth stock that I purchased was an additional share of Mastercard at a cost of $438.65. This transaction increased my net annual forward dividends by $2.64, which is equivalent to a 0.6% dividend yield.

Readers can also find more insight into why I added to my stake in MA from the aforementioned July 2024 Dividend Stock Watch List blog post.

Dividend Stock Purchase #3: Essential Utilities (WTRG)

The third dividend growth stock purchase for the month was 11 shares of Essential Utilities at an average price per share of $40.38. That lifted my net annual forward dividends by $13.512, which equates to a 3.04% net dividend yield.

Curious readers can also find my the gist of my investment thesis in my blog post linked above.

Bonus Activity:

Dividend Stock Sales: Dominion Energy (D) and Tanger Inc. (SKT)

I closed my positions in both Dominion Energy and Tanger Inc. this month. Since dividend cuts from each of these holdings years ago, those dividends haven't yet been restored. So, I figured now was the time to finally cut them loose. These sales resulted in a $28.12 drop in my portfolio's net annual forward dividends.

Dividend Stock Purchase: British American Tobacco (BTI)

I redeployed my capital proceeds and most of my modest cash reserves in one of my taxable accounts to purchase 22 shares of British American Tobacco at a cost of $33.21 a share. This is another $64.90 in net annual forward dividends for my portfolio and works out to an 8.88% yield.

For curious readers, Dividend Sensei's Seeking Alpha article from May sums up my decision to up my BTI stake by nearly 50%.

Dividend Stock Purchase: Meta Platforms (META)

I also purchased a two-share starter position in Meta Platforms in my taxable account at an average cost per share of $505.49. This lifted my net annual forward dividends by $4, which is a 0.4% net dividend yield.

Interested readers can check out my investment thesis for META here.

Concluding Thoughts:

Besides the capital shuffling, the dividend growth stock purchases that I made with non-stock capital amounted to capital deployment of $2,343.71. These purchases added $36.872 to my portfolio's net annual forward dividends, which is a weighted-average net dividend yield of 1.57%. Capital redeployment added another $36.78 in net annual forward dividends to my portfolio.

Another $14.4926 increase in my net annual forward dividends came from dividend raises announced in July.

In total, my net annual forward dividend climbed from almost $4,770 heading into July to nearly $4,860 exiting the month.

Discussion:

How was your capital deployment for the month?

Did you close any positions or start any new ones in July 2024 as I did with D/SKT and META?

Thank you for your readership and I look forward to your comments!

Expected Dividend Increases For August 2024

As I'm writing this blog post, it is July 19th. The temperature is going to reach a high of 79 degrees Fahrenheit today, which is arguably perfect for this time of year.

Now that the month is mostly complete, I believe it is a good time to discuss the dividend hikes that I received. I'll also look ahead to the dividend raises that I believe are on tap for August 2024.

Actual Dividend Increases For July 2024

Dividend Increase #1: Cummins (CMI)

Cummins announced an 8.3% boost in its quarterly dividend per share to $1.82. This was slightly better than my expectation of a 7.1% raise in the quarterly dividend per share to $1.70 in the previous blog post of this series.

Across my five shares of CMI, my net annual forward dividends grew by $2.80 from this dividend announcement.

Dividend Increase #2: Duke Energy (DUK)

Duke Energy declared a 2% increase in its quarterly dividend per share to $1.045, which was in line with my prediction.

My net annual forward dividends rose by $0.48 across my six shares of DUK due to this dividend declaration.

Dividend Increase #3: Enterprise Products Partners (EPD)

Enterprise Products Partners announced a 1.9% raise in its quarterly distribution per unit to $0.525. That was a bit below my projection of a 2.9% increase in its quarterly distribution per unit to $0.53.

Across my 75 units of EPD, my net annual forward distributions surged by $3 from this distribution announcement.

Dividend Increase #4: NNN REIT (NNN)

NNN REIT declared a 2.7% bump in its quarterly dividend per share to $0.58, which was what I predicted.

My net annual forward dividends grew by $1.08 across my 18 shares of NNN due to this dividend declaration.

Dividend Increase #5: J.M. Smucker (SJM)

J.M. Smucker announced a 1.9% raise in its quarterly dividend per share to $1.08. This was below the 3.8% increase in the quarterly dividend per share to $1.10.

Across my three shares of SJM, my net annual forward dividends edged $0.24 higher from this dividend announcement.

Dividend Increase #6: Albemarle (ALB)

Albemarle declared a 1.3% increase in its quarterly dividend per share to $0.405. My net annual forward dividends grew by $0.16 across my eight shares of ALB due to this dividend declaration.

Dividend Increase #7: Union Pacific (UNP)

Union Pacific announced a 3.1% raise in its quarterly dividend per share to $1.34. Across my four shares of UNP, my net annual forward dividends rose by $0.64 from this dividend announcement.

Dividend Increase #8: Wells Fargo (WFC)

This month, Wells Fargo made its 14.3% hike in its quarterly dividend per share to $0.40 official. Across my eight shares of WFC, this lifted my net annual forward dividends by $1.60 due to this declaration.

Dividend Increase #9: BP plc (BP)

BP announced a 10% hike in its quarterly dividend per share to $0.48. My net annual forward dividends grew by $1.927 across my 10 shares of BP from this dividend announcement.

Dividend Increase #10: Clorox (CLX)

Clorox declared a 1.7% increase in its quarterly dividend per share to $1.22. Across my two shares of CLX, my net annual forward dividends edged higher by $0.16 due to this declaration.

Dividend Increase #11: Essential Utilities (WTRG)

Essential Utilities announced a 6% boost in its quarterly dividend per share to $0.3255. This was just below my previous estimate in this post of a 6.8% raise to $0.3280. My net annual forward dividends rose by $1.5456 across my 21 shares of WTRG from this dividend announcement.

Pending Dividend Increase: Energy Transfer (ET)

Energy Transfer has yet to up its quarterly distribution per unit. However, I'm reiterating my expectation for a 0.8% increase in the quarterly distribution per unit to $0.32.

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

UPDATE:

ET announced a 0.8% increase in its quarterly distribution per unit to $0.32. Across my 86 units of ET, my net annual forward dividends grew by $0.86 due to this announcement.

Expected Dividend Increases For August 2024

Expected Dividend Increase #1: Iron Mountain (IRM)

The first dividend increase that I'm expecting for next month will be from Iron Mountain. My best guess is that IRM will announce a 6.2% raise in its quarterly dividend per share to $0.69.

Across my 21 shares of IRM, my net annual forward dividends would grow by $3.36 from such an announcement.

Expected Dividend Increase #2: Main Street Capital (MAIN)

The next dividend bump that I'm predicting in August is from Main Street Capital. I believe that MAIN will declare a 2% increase in its monthly dividend per share to $0.25.

My net annual forward dividends would increase by $1.80 across my 30 shares due to such a declaration.

Expected Dividend Increase #3: Altria Group (MO)

The third dividend raise that I'm projecting for next month will be from Altria Group. My hunch is that MO will announce a 4.1% hike in it quarterly dividend per share to $1.02.

Across my 24 shares of MO, my net annual forward dividends would soar by $3.84 from such an announcement.

Expected Dividend Increase #4: Simon Property Group (SPG)

The next dividend bump that I'm expecting for August is from Simon Property Group. I believe that SPG will declare a 2.5% increase in its quarterly dividend per share to $2.05.

Across my nine shares of SPG, my net annual forward dividends would grow by $1.80 due to such a declaration.

Concluding Thoughts:

The 12 dividend increases that I received in July lifted my net annual forward dividends by $14.4926. That's equivalent to investing $483.09 of fresh capital at a net dividend yield of 3%.

If the four dividend raises that I'm expecting for next month play out as anticipated, my net annual forward dividends could increase by $10.80. This would be like investing $360 of fresh capital at a net dividend yield of 3%.

Discussion:

How has your month been for dividend increases?

Did you receive any first-time dividend hikes this month?

Thanks for reading and please feel free to comment below!

August 2024 Dividend Growth Stock Watch List

As I'm writing this blog post, it is currently Friday, July 12th. The high temperature here in Central Wisconsin is set to reach 85 degrees Fahrenheit later today. That's exactly why after spending time with my nephew, I plan on getting outside later in the afternoon to enjoy the weather.

Now that the month of July is almost half over, it would be a good time to briefly cover the dividend growth stocks that are at the top of my watch list for August.

Dividend Stock #1: American Electric Power (AEP)

First up is American Electric Power (AEP). Interested readers can find my investment thesis in this Dividend Kings article from May.

The gist of the article is that AEP's 6% to 7% annual operating EPS growth prospects remain intact. The company's balance sheet remains investment-grade, with a BBB+ credit rating from S&P. AEP's low-60% payout ratio is better than the 75% payout ratio that rating agencies like to see per The Dividend Kings' Zen Research Terminal. Finally, the $91 share price (as of July 12, 2024) represents a moderate discount to my $100+ fair value estimate.

Dividend Stock #2: Realty Income (O)

The second dividend growth stock on my watch list for August 2024 is Realty Income (O). Last month, I updated my investment thesis on O in a Seeking Alpha article.

In my view, O can likely continue delivering almost 4% annual AFFO per share growth to shareholders. The ~6% dividend yield also looks to be quite secure, with a payout ratio in the mid-70% range. Topped off with shares trading 11% below my fair value estimate of $63 (from the current $56 share price), double-digit annual total returns appear to be a strong possibility from here in my opinion.

Dividend Stock #3: Visa (V)

Wrapping things up, Visa (V) is the third dividend growth stock on my watch list for next month. Readers can find my investment thesis from late April in this Seeking Alpha article.

At the time (and still now), I believed the company had a reasonable path to keep putting up annual adjusted diluted EPS growth in the teens. The 0.8% starting yield isn't much, but it's backed up by a payout ratio in the low-20% range. V also flexes an AA- credit rating from S&P. Finally, shares could be worth over $300 apiece. Against the current $266 share price (as of July 12), that's a compelling value for my money.

Concluding Thoughts:

So, that concludes my discussion of my highest conviction picks that I'd like to add to next month. Each of these pick are undervalued enough that I almost certainly don't see myself not buying them. The only exception would be if they somewhat rally and other world-class holdings in my portfolio experience unjustified selloffs.

Discussion:

Are any of AEP, O, and/or V on your watch list for August 2024?

If not, what dividend growth stocks are piquing your interest?

I appreciate your readership and welcome your comments below!

Happy Independence Day/Dividends Are Amazing

As I'm writing this blog post, it is currently July 4th. With this blog post set for publication on July 9th, nobody will see this until after the conclusion of Independence Day weekend. But I hope everybody has a great weekend of relaxation and gratitude with their families.

For those of us in the United States, this is none other than the birthday of our nation. This country owes a debt of gratitude to all of those who have fought, bled, and given life and limb for this country (and their families) in the last 248 years.

As a country, I believe we owe so much to those 56 brave signers of the Declaration of Independence on that July day in 1776 and thereafter. They essentially signed their own death warrants and committed treason against Great Britain, the most powerful nation in the world at that time.

It all started with them. They were rebels with a cause. Those men and their families were willing to risk their own lives and fortunes for the idea that we were endowed with inalienable rights granted to us by God.

On this day, I'm grateful to be an American. This country has its share of issues just like any other, but there's no other place I'd rather be right now. This is home.

I feel so very blessed to have the privilege of living out my life as I see fit. Arguably the biggest blessing in this country is our overall belief that we can strike out on our own paths and shape our own destiny.

Since I was 12 years old, I have been fascinated with dividend investing. For the last seven years, I have been a real-money dividend growth investor. For the majority of those years, my gross income was below $40,000. I never exceeded $70,000 in gross income in a given year.

Yet, consistently setting aside and investing capital is beginning to yield tangible results.

Image Source: Track Your Dividends

Thanks to my regular capital contributions of between $1,500 and $2,000 a month and current dividend income, the dividend snowball is finally starting to roll down the hill. My expenses could rise in the years to come. But as I develop my career, my income could as well. So, I think these contributions could be maintained.

If that turns out to be the case, my portfolio is on track to surpass $1 million in value and throw off $37,000 in annual dividend income by my 40th birthday. Even adjusting for an average annual inflation rate of 3.5%, this would be equivalent to almost $24,000 in annual dividend income in today's dollars. 

If I were to move out of my parents' house, I estimate this is what my annual expenses would be to live a relatively comfortable life.

I'm sharing all of this because it is so mindboggling to see the power of compounding work in your favor. As much momentum as my portfolio is starting to build up, I'm so excited that the best days are yet to come.

Concluding Thoughts:

In closing, I'm grateful to be living in a country that allows people to pursue their dreams, big and small. In my view, this wouldn't be possible without the sacrifices made by so many great people throughout the history of this country and God's divine providence.

God Bless America and Happy Independence Day to all of my fellow Americans!

Discussion:

How was your Independence Day weekend?

What's your American Dream?

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

June 2024 Dividend Income

As I'm writing this blog post, it is currently Thursday, June 27. The high temperature is going to reach 74 degrees Fahrenheit here in Central Wisconsin today. That is especially perfect weather for the summertime.

With that aside, I will be taking a moment to briefly discuss my net dividend income for June 2024.

Dividend Income Surpassed $500 For The Month

In June 2024, I received $520.75 in net dividends (accounting for ADR fees on BP dividend and withholdings on BAM dividends). Compared to the $476.12 in net dividends that I collected in March 2024, this equates to a 9.4% quarterly growth rate.

Against the $421.41 in net dividend that I received in June 2023, that works out to a 23.6% year-over-year growth rate.

My net dividends collected within my Charles Schwab portfolio were $367.36 from 47 companies. The sales of Digital Realty Trust (DLR) and International Business Machines (IBM) in May were mostly offset by numerous dividend increases in previous months.

I received $86.53 in net dividends from my Capital Income Builder (CAIBX) mutual fund within my former employer-sponsored retirement account. A higher share count from dividend reinvestment resulted in a slightly higher dividend payment.

My net dividends collected in my IRA were $49.18 from seven companies. That was thanks to the dividend stock purchases that I made within the portfolio in March, April, and May.

I received $17.19 in net dividends from six companies in my Webull account. This was incrementally lifted due to an 11.7% dividend hike from UnitedHealth Group (UNH).

Finally, I collected $0.49 in net dividends from 21 companies in my M1 Finance portfolio. 3M's (MMM) dividend cut and the timing of United Parcel Service's (UPS) dividend payment were the notable events here.

Concluding Thoughts:

Overall, I'm pleased with the progress that the portfolio has made in recent months. At the current pace, I anticipate I could pass $600 in net dividends in December (including special dividends from CAIBX). As I've noted in recent months, the psychological effect of compounding working in my favor is beginning to take hold. It's an especially momentous occasion for which I am very grateful!

Discussion:

How was your dividend income for June 2024?

Did you receive any first-time dividends as I did with ENB and NVDA during the month?

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

June 2024 Dividend Stock Purchases

As I'm writing this blog post, it is currently Monday, June 17. Summer is just three days away and the temperatures reflect this reality. Tomorrow is expected to top a high of 90 degrees Fahrenheit here in Central Wisconsin.

With that aside, my dividend stock purchases are largely complete for this month. So, I will be briefly covering my purchase activity for June 2024.

Dividend Stock Purchase #1: American Water Works (AWK)

My first dividend stock purchase for the month was four shares of American Water Works at an average cost of $128.39 a share. This lifted my net annual forward dividends by $12.24, which equates to a 2.38% net dividend yield.

Curious readers can review my June 2024 Dividend Stock Watch List blog post for my buying rationale.

Dividend Stock Purchase #2: VICI Properties (VICI)

The next dividend stock purchase that I made in June was 20 shares of VICI Properties at an average price per share of $28.35. This boosted my net annual forward dividends by $33.20, which works out to a 5.86% average dividend yield.

Interested readers can find my thoughts on VICI within the aforementioned June 2024 Dividend Stock Watch List blog post.

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

The final dividend stock purchase I completed for the month was seven shares of WEC Energy Group at an average cost of $79.22 a share. This increased my net annual forward dividends by $23.38, which is equivalent to a 4.22% net dividend yield.

My investment thesis for this purchase can also be found in my June 2024 Dividend Stock Watch List blog post.

Concluding Thoughts:

My net annual forward dividends grew by about $72 including reinvested dividends from my Capital Income Builder (CAIBX) retirement account. Overall, the $1,635.10 in capital that I deployed in my IRA was at a 4.21% weighted average dividend yield.

My net annual forward dividends grew by $9.034 from announced dividend increases during the month as well.

I also made downward adjustments to my dividends from GSK (accounting for the Haleon spin-off and currency translation) and for ADR fees/currency translation for BTI and ENB. Along with upward adjustments to CAIBX (assuming 2023 dividends and special dividends moving forward) and MAIN (including special dividends), I believe my dividends are more accurately accounted for in my spreadsheet now.

These actions resulted in a $47.66 increase in my net annual forward dividends. Overall, this is how my net annual forward dividends rose from $4,640 heading into June to nearly $4,770 exiting the month.

Discussion:

How was your capital deployment for June 2024?

Did you start any new positions during the month?

As always, I appreciate your readership and welcome your comments below!