October 2022 Dividend Stock Watch List

As I'm writing this blog post, today, September 16th, is the day before a somber occasion. Those who know me personally may be aware that my paternal grandfather passed away long before I was born and my maternal grandfather passed away when I was four years old.

My paternal grandmother eventually met a partner who would fill the role as my grandfather from the moment I was born until just recently. Unfortunately, he passed away suddenly on September 11th. And tomorrow is his funeral, with the publication date of this blog set to have been his 74th birthday. I'm so grateful to have had the chance to know him and will deeply miss him.

On that note, I will be going over the dividend stocks that are on my watch list for October since this month is already more than half over.

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Dividend Stock #1: Comcast (CMCSA)

As I indicated in my April 2022 Dividend Stock Watch List post, the telecom and media conglomerate Comcast is a balanced business with growth catalysts. Thanks to growth in its customer count, the company's first-half revenue increased 9.5% year-over-year to $61 billion. This led CMCSA's adjusted diluted EPS to surge 16.3% higher over the year-ago period to $1.86 through the first half of 2022 (info in the previous two sentences sourced from page 1 of 16 of Comcast Q2 2022 earnings press release).

Analysts are forecasting 10.2% annual earnings growth over the next five years. And given that the stock's dividend payout ratio will be less than 30% in 2022, there is plenty of room for the dividend to grow moving forward. This is an especially attractive proposition considering that CMCSA's dividend yield is 3.1%. At the current $35 share price, the cherry on top is that the stock is trading at a forward P/E ratio of 9.6.

Dividend Stock #2: Medifast (MED)

The weight loss and nutrition company Medifast has a short track record of dividend growth. But with dividend growth well into the double-digits annually during that time, it's an impressive one. MED's leadership in its industry is why analysts are anticipating 20% annual earnings growth over the next five years.

With the dividend payout ratio expected to come in under 60% in 2022, dividend growth should be pretty close to earnings growth for the foreseeable future. That's intriguing for a stock with a 5.5% dividend yield. And MED is trading at a forward P/E ratio of 11.1 at the current $119 share price. That's quite cheap for its long term growth potential.

Dividend Stock #3: STAG Industrial (STAG)

The third and final stock on my watch list for October is STAG Industrial. For the sake of brevity, I will refer interested readers to my recent Motley Fool article on STAG and Innovative Industrial Properties. Basically, STAG offers investors a 4.7% dividend yield that's also well-covered. And the company's e-commerce-oriented portfolio is poised to do well as the future unfolds. At the current $31 share price, STAG is trading at a TTM P/AFFO ratio of less than 15. This is arguably a solid value for a wonderful company.

Concluding Thoughts:

Another month, another three quality dividend stocks on my watch list in October. I very much look forward to adding to my positions in these stocks in the coming weeks. With the capital allocation that I'm planning for next month, my net annual forward dividends should be boosted by nearly $70 as a result of such purchases.

Discussion:

Are CMCSA, MED, and/or STAG on your watch list for next month?

If not, what stocks are on your radar for October?

I appreciate your readership and welcome your comments below.

August 2022 Dividend Stock Purchases

As I'm writing this blog post, it's mid-September. This unofficially means that summer is basically over here in Central Wisconsin, even though fall is still officially nearly two weeks away. This is reflected by the fact that the high temperature for today will be just 64 degrees Fahrenheit. And the next couple of days will be in the high-50 degrees Fahrenheit range.

With that aside, it's now time to dig into my dividend (and non-dividend) stock purchases for the month of August 2022.

I started off the month by adding six shares to my position in National Retail Properties (NNN) at an average cost of $47.34 a share. Readers interested in my rationale for this decision can refer to my August 2022 Dividend Stock Watch List post from a couple of months ago. This purchase boosted my net annual forward dividends by $13.20, which is equivalent to a 4.65% dividend yield.

My first non-dividend stock purchase during August was increasing my stake in Alphabet (GOOGL) by a share at a cost of $114.70. As I noted in my July 2022 Dividend Stock Purchases post, GOOGL dominates the digital advertising industry with the highest market share. And it isn't unreasonable to think that it will be an all-time great dividend growth stock in due time.

The other non-dividend stock addition for the month was Amazon (AMZN), which I added a share of at a cost of $140.01. Much like GOOGL is the unrivaled leader of the digital advertising industry, AMZN is the leader of cloud computing and e-commerce. This is why I will continue to add to my positions in the two stocks.

I also purchased two more shares of Visa (V) in August at an average cost per share of $213.57. The stock was also on my watch list for the month because of its leadership in the payments industry and the continued transition away from cash. This transaction added $3.00 to my net annual forward dividends, which works out to a 0.70% weighted average net yield.

Another dividend stock purchase that I executed for the month was two shares of Texas Instruments (TXN) at an average cost of $177.65 a share. I was compelled to add to my stake in the stock due to its industry leadership and the promising outlook of the semiconductor industry. The $9.20 in net annual forward dividends that resulted from this purchase equates to a 2.59% net dividend yield.

The final dividend (distribution) stock purchase that I completed in August was 26 units of Energy Transfer (ET) at an average cost per unit of $11.80. The $23.92 boost to net annual forward distributions from this purchase is equivalent to a 7.80% weighted average net yield.

Concluding Thoughts:

I deployed $1,627.90 in capital during the month of August. Given the $49.32 in net annual forward dividends that were added from these purchases, my weighted average net dividend yield was 3.03% for the month.

Along with the $9.284 in dividend increases that I received in the month, this propelled my net annual forward dividend income higher from just under $3,070 at the start of the month to just over $3,125 heading into September. For the rest of this year and possibly into early next year, I anticipate that my capital deployment will closely resemble that of August 2022 as I shift my priorities to regaining my health above all else.

Discussion:

How did your dividend stock purchases fare in August 2022?

Did you add any new holdings to your portfolio during the month?

Thanks for reading. Please feel free to comment below!

August 2022 Dividend Income

As I'm writing this blog post, it's the Saturday of Labor Day weekend. The temperatures will be in the low- to high-70 degrees Fahrenheit range over the next few days here in Central Wisconsin. That's why I will be getting outside as much as I can this weekend.

With that aside, I will turn my attention to my dividend income for the month of August since it is a few days in the books.

Analysis:

During August 2022, I received $209.05 in net dividends. This equates to a 13.7% quarterly growth rate compared to the $183.89 in net dividends collected in May 2022.

And my net dividends were 60.9% higher year-over-year against the $129.94 that I received in August 2021.

Digging more into my income, I collected $194.98 in net dividends from 29 companies in my Robinhood portfolio. Three companies within my Webull account chipped in another $13.70 in net dividends. And 16 companies in my M1 Finance portfolio contributed the remaining $0.37 in net dividends during the month.

The net dividends that I received from May 2022 to August 2022 surged $25.16 higher, which was the result of the following activity within my accounts:

I collected an extra $0.78 in net dividends from Williams-Sonoma (WSM) in my Robinhood portfolio, which was due to my addition of a share in April.

My net dividends received from British American Tobacco (BTI) dipped $0.52 within my Robinhood and Webull accounts. This was the result of unfavorable foreign currency translation with the dollar strengthening against the Pound sterling in recent months.

I collected an additional $1.80 in distributions from Energy Transfer (ET) in my Robinhood and Webull portfolios. This was due to the recent 15% hike in its quarterly distribution to $0.23 per unit.

My net dividends received from Main Street Capital (MAIN) edged $0.86 higher within my Robinhood account, which was the result of my purchase of four more shares back in May.

I collected an extra $0.01 in net dividends from Realty Income (O) in my Robinhood portfolio. This was due to the recent 0.2% increase in its monthly dividend per share.

My net dividends received from ONEOK (OKE) were boosted by $4.68 within my Robinhood account, which was the result of my purchase of five more shares in July.

I collected an additional $4.99 in net dividends from Kinder Morgan (KMI) in my Robinhood portfolio. This was due to my purchase of another 18 shares in June.

My net dividends received from National Retail Properties (NNN) inched $0.24 higher within my Robinhood account, which was the result of its 3.8% dividend raise in July.

I collected first-time net dividends of $3.36 from A.O. Smith (AOS) in my Robinhood portfolio. This was due to my purchase of 12 shares in April.

My net dividends received from Clorox (CLX) were $0.04 higher within my Robinhood account, which was the result of its 1.7% payout increase in July. 

I collected an extra $5.19 in net distributions from Magellan Midstream Partners (MMP) in my Robinhood portfolio. This was due to my purchase of five more units in July.

My net distributions received from Enterprise Products Partners (EPD) increased by $0.36 within my Robinhood and Webull accounts, which was the result of a 2.2% increase in its distribution per unit announced in July.

I collected an additional $1.25 in net dividends from Lowe's (LOW) in my Robinhood portfolio. This was due to its 31.3% hike in its quarterly dividend in May.

My net dividends received from General Mills (GIS) were $0.12 higher within my Robinhood account, which was the result of a 5.9% raise in the quarterly dividend per share declared in July.

I collected an extra $2.00 in net dividends from JPMorgan Chase (JPM) in my Robinhood portfolio. This was due to my purchase of two more shares in May.

Concluding Thoughts:

August 2022 was the first middle month of the quarter in which I surpassed $200 in net dividend income. My monthly capital deployment will likely be reduced for the next several months to $1,000 to $1,500. That's because I am again working through and trying to figure out some health issues that have bugged me the last several years. I haven't been able to exercise quite like I used to at the peak of my physical condition and haven't been able to enjoy my life as much.

For all of my content regarding financial independence, this is a good reminder that many things like health, faith, family, and country are each of high importance as well. Financial success certainly isn't the end all be all. Admittedly, I have lost sight of this fact from time to time.

If you're a Christian as I am or of another religion, I humbly ask for your prayers that I receive some answers from my upper endoscopy scheduled on Thursday, September 8. Otherwise, please keep me in your thoughts. I'm grateful for all of the support that I have received from readers over the years. And by the grace of God, I am hopeful that I will emerge on the other side of this storm as a better person.

Discussion:

How did your dividend income fare in August 2022?

Did you receive any dividend payments for the first time as I did with AOS?

I appreciate your readership and look forward to your comments below!

Expected Dividend Increases for September 2022

As I'm writing this blog post on Friday, the high temperature is expected to reach 77 degrees Fahrenheit later today. And the next few days are going to remain around this temperature here in Central Wisconsin. That's why I plan on getting outside for at least a few hours this weekend.

With just a few days left in the month of August, now is a great time to look at the dividend raises received for the month and to look ahead to September. Since I am expecting a baker's dozen for dividend increases next month, I will cut to the chase and not elaborate on the assumptions behind my expectations for each raise.

Actual Dividend Increases for August 2022

Dividend Increase #1: Essential Utilities (WTRG)

Essential Utilities announced a 7% increase in its quarterly dividend per share to $0.2870. This was just slightly below my expectation of a 7.2% raise in the quarterly payout per share to $0.2875. Overall, I'm very happy with WTRG as a holding in the 13 months that it has been in my portfolio.

Across my 10 shares of WTRG, my net annual forward dividends edged $0.752 higher due to the dividend hike.

Dividend Increase #2: BP plc (BP)

BP plc declared a 10.1% boost in its quarterly dividend per share to $0.3606. This was far higher than the 3.8% increase to $0.3350 per share that I was anticipating. But the company has been immensely profitable the last few quarters, so it can certainly afford such a raise.

My net annual forward dividends surged $1.452 higher across my 11 shares of BP as a result of the payout hike.

Dividend Increase #3: Simon Property Group (SPG)

Simon Property Group announced a 2.9% increase in its quarterly dividend per share to $1.75, which was a raise that I wasn't expecting. That makes the slight bump that much sweeter as SPG works to restore its dividend to pre-COVID levels.

Across my nine shares of SPG, my net annual forward dividends ripped $1.80 higher due to the dividend increase.

Dividend Increase #4: Main Street Capital (MAIN)

Another bonus raise came from Main Street Capital, which inched its monthly dividend per share up 2.3% to $0.22. I have been very pleased with my position in MAIN over the last two and a half years.

My net annual forward dividends edged $1.44 higher across my 24 shares of MAIN as a result of the dividend raise.

Dividend Increase #5: Altria Group (MO)

Altria Group declared a 4.4% increase in its quarterly dividend per share to $0.94, which was precisely as I expected. MO was one of the very first dividend stocks that I purchased for my portfolio. And while the share price has been stagnant compared to my cost basis, the dividend growth has remained strong.

Across my 24 shares of MO, my net annual forward dividends soared $3.84 higher due to the payout boost.

Expected Dividend Increases for September 2022

Expected Dividend Increase #1: Realty Income (O)

The first dividend raise that I'm expecting in September will come from Realty Income. I believe O will announce a 0.2% increase in its monthly dividend per share to $0.248. 

If my prediction is correct, my net annual forward dividends would inch $0.078 higher across my 13 shares of O.

Expected Dividend Increase #2: W.P. Carey (WPC)

The next dividend increase that I'm anticipating next month will be from W.P. Carey. I'm projecting that WPC will declare a 0.2% increase in its quarterly dividend per share to $1.061.

Across my seven shares of WPC, my net annual forward dividends would increase by $0.056 if my estimation is right.

Expected Dividend Increase #3: STORE Capital (STOR)

The third dividend boost that I'm predicting in September will come from STORE Capital. It's my expectation that STOR will announce a 6.5% increase in its quarterly dividend per share to $0.41.

If this pans out, my net annual forward dividends would surge $3.30 higher across my 33 shares of STOR.

Expected Dividend Increase #4: Innovative Industrial Properties (IIPR)

The next dividend hike that I'm expecting for next month will be from Innovative Industrial Properties. I believe that IIPR will declare an 11.4% raise in its quarterly dividend per share to $1.95.

Across my six shares of IIPR, this would boost my net annual forward dividends by $4.80 if my prediction works out.

Expected Dividend Increase #5: American Tower (AMT)

The fifth dividend raise that I'm anticipating in September will come from American Tower. I'm projecting that AMT will announce a 2.8% increase in its quarterly dividend per share to $1.47.

If my projection is correct, my net annual forward dividends would edge higher by $0.48 across my three shares of AMT.

Expected Dividend Increase #6: VICI Properties (VICI)

The next payout boost that I'm predicting for next month will be from VICI Properties. I estimate that VICI will declare a 5.6% bump in its quarterly dividend per share to $0.38.

Across my 33 shares of VICI, my net annual forward dividends would be lifted by $2.64 by such a raise.

Expected Dividend Increase #7: Verizon Communications (VZ)

The seventh dividend increase that I'm expecting in September will come from Verizon Communications. I believe that VZ will announce a 2% raise in its quarterly dividend per share to $0.6525.

If this prediction is fulfilled, my net annual forward dividends would increase by $1.00 across my 20 shares of VZ.

Expected Dividend Increase #8: McDonald's (MCD)

The next payout raise that I'm anticipating for next month will be from McDonald's. I'm projecting that MCD will declare a 7.2% boost in its quarterly dividend per share to $1.48.

Across my three shares of MCD, my net annual forward dividends would be boosted by $1.20 by such a dividend increase.

Expected Dividend Increase #9: Starbucks (SBUX)

The ninth dividend increase that I'm predicting in September will come from Starbucks. I estimate that SBUX will announce an 8.2% hike in its quarterly dividend per share to $0.53.

If this is proven correct, my net annual forward dividends would be lifted $1.60 higher across my 10 shares of SBUX.

Expected Dividend Increase #10: Philip Morris International (PM)

The next payout raise that I'm expecting for next month will be from Philip Morris International. I believe that PM will declare a 0.8% increase in its quarterly dividend per share to $1.26.

Across my 13 shares of PM, my net annual forward dividends would inch $0.52 higher by this dividend announcement.

Expected Dividend Increase #11: Microsoft (MSFT)

The eleventh dividend hike that I'm anticipating in September will come from Microsoft. I'm projecting that MSFT will announce a 9.7% lift in its quarterly dividend per share to $0.68.

If this ends up being right, my net annual forward dividends would increase by $0.72 across my three shares of MSFT.

Expected Dividend Increase #12: Lockheed Martin (LMT)

The next payout raise that I'm predicting for next month will be from Lockheed Martin. I estimate that LMT will declare a 7.1% boost in its quarterly dividend per share to $3. 

Across my four shares of LMT, my net annual forward dividends would surge $3.20 higher as a result of this dividend increase.

Expected Dividend Increase #13: U.S. Bancorp (USB)

The thirteenth and final dividend increase that I'm expecting in September will come from U.S. Bancorp. I believe that USB will announce a 6.5% raise in its quarterly dividend per share to $0.49.

Assuming this is correct, my net annual forward dividends would be lifted $1.56 higher across my 13 shares of USB.

Concluding Thoughts:

I received $9.284 in dividend increases from five of my stocks during the month. This equates to investing $265.26 in fresh capital at an average net yield of 3.5%. Looking ahead to September, I am forecasting $21.154 in additional annual forward dividends stemming from dividend raises. That would be the equivalent of investing $604.40 in capital at a 3.5% net dividend yield.

As my portfolio grows larger, so too is the impact of dividend raises on my net annual forward dividends. I'm excited to continue accumulating shares of wonderful businesses to help this figure continue to grow.

Discussion:

How was your August for dividend boosts?

Are you projecting any first-time dividend raises for September like I am with IIPR, MCD, USB, and VICI?

I appreciate your readership and welcome your comments below!