I wanted to make a quick post before the holiday festivities begin regarding the recent dividend growth stocks I purchased. After looking back at my dividend growth portfolio performance from the year, I discovered I was a little short in the growth section. Fortunately, that’s not an issue as there are plenty of “dividend growth stocks” to choose from. While they all have a much lower yield than I would normally choose, they all have significantly higher dividend growth rates!
Here are the dividend GROWTH stocks I picked up last week.
Company: Visa (Ticker Symbol: V)
Average Buy price: $76.61
Shares bought: 4
5yr Average Dividend Growth Rate: 18.78%
Annual Dividend Income: $2.24
Total Cost: $306.48
Company: Mastercard (Ticker Symbol: MA)
Average Buy price: $96.29
Shares bought: 2
5yr Average Dividend Growth Rate: 28.81%
Annual Dividend Income: $1.52
Total Cost: $193.12
Company: Nike (Ticker Symbol: NKE)
Average Buy price: $125.86
Shares bought: 2
5yr Average Dividend Growth Rate: 11.65%
Annual Dividend Income: $2.56
Total Cost: $251.72
Company: Main Street Capital (Ticker Symbol: MAIN)
Average Buy price: $28.86
Shares bought: 15
5yr Average Dividend Growth Rate: 6.24%
Annual Dividend Income: $32.40
Total Cost: $432.90
Main Street was bought to offset the lower yields of the big dividend growers I purchased. And its another monthly payer, sweet!
These purchases totaled $844.22 and have added $38.72 to my annual dividend income! That averages out to a yield of 4.58%! Not too bad (thanks to MAIN)! I paid a total of $4.00 in trading costs for all these buys over the last week.
Sadly, I also had to make my first sale of the year.
Company: Kinder Morgan (Ticker Symbol: KMI)
Average Sell price: $17.00
Shares sold: 20
Total Proceeds: $340.00
As I’m sure you know, KMI cut their dividend by roughly 75% last week. My reaction was to cut my position by roughly the same proportion. I lost $312.25 on this holding over the year (that’s a bit over 5 years of KMI dividend payments prior to the cut). I also only received $11.22 in KMI dividend payments. Ouch!
My dividend portfolio has been updated with the recent purchases and sales.
As you can see I’m making small buys (even for me) as I’m not convinced we’re heading straight up anymore. I’m concerned we might have seen the top for awhile and I’ll be buying cautiously over the next few weeks until things become more clear. However, I will try to hit my monthly investment goal of $3,000 this month.
I must say, I do kind of hope the top is in as I have a huge watch list of dividend growth stocks I’m itching to buy at better valuations. As far as the FED raising rates last week; not much of a move. Now that current projection estimates show the FED will be raising rates to slightly south of 1.5% in 2016, I expect there will be a real price impact on REITs coming up… but it hasn’t happened yet. We’ll know more very soon.
Did you sell your KMI position after the dividend cut?