Dividend Growth Stocks

Money in the Trough – Buying Some Growth

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Dividend growth stocksI 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.

 

I Added:
Company: Visa (Ticker Symbol: V)
Average Buy price: $76.61
Shares bought: 4
Yield: 0.73%
5yr Average Dividend Growth Rate: 18.78%
Annual Dividend Income: $2.24
Total Cost: $306.48

I Added:
Company: Mastercard (Ticker Symbol: MA)
Average Buy price: $96.29
Shares bought: 2
Yield: .79%
5yr Average Dividend Growth Rate: 28.81%
Annual Dividend Income: $1.52
Total Cost: $193.12

I Added:
Company: Nike (Ticker Symbol: NKE)
Average Buy price: $125.86
Shares bought: 2
Yield: 1.02%
5yr Average Dividend Growth Rate: 11.65%
Annual Dividend Income: $2.56
Total Cost: $251.72

I Added:
Company: Main Street Capital (Ticker Symbol: MAIN)
Average Buy price: $28.86
Shares bought: 15
Yield: 7.48%
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.

I SOLD:
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.

Merry Christmas!

Did you sell your KMI position after the dividend cut?

I'm a dividend growth investor who is aiming to retire early in 6 years at the age of 45. My goal is to live off the income my dividend portfolio and rental property produce exclusively and leave the corporate rat race. I hope you will join me in this journey!

4 Comments

  1. Looks like the KMI selling has accelerated. After the cut was announced most dividend bloggers said they’d hold on to their shares. I guess that cut was too deep for many as I’m reading more and more posts about dropping KMI. Like the NKE buy the most from above. Tanks for sharing.

    • Blake

      Hi DivHut,

      I suspect KMI has a lot of work to do before people trust them again. NKE is a good one… I’m hoping to pick up quite a bit more in 2016. Good luck in the new year. Thanks for stopping by and commenting!

  2. thanks for the report,
    1) did you mean 300 dollar /month or 3 thousand ?

    2) do you have any explanation about growth stocks and core stocks ? i understand that you can also purchase growth stocks that don’t pay dividends ? or you prefer always them ?

    • Blake

      Hi Mati,

      I did mean 300 dollars (small right?). I’ll explain. I’m in the process of building my taxable dividend portfolio. I just started this a few months ago with the goal to build a well diversified, medium yielding portfolio that will grow solidly into the future. I’m working on the portfolio by investing very small amounts of money per position ($300 – $500 per trade) in many different sectors a few times a month. I have a 2015 review post i’m working on now that will go into this in more depth coming up soon.

      As for growth stocks, I’m referring to dividend growth. While reviewing my 2015 performance, I noticed my average dividend growth rate was a bit low on my holdings. That’s why I was buying some higher dividend growth (companies that are raising their dividends by a high percentage per year). Companies that don’t pay dividends aren’t for me. You can read more about why I invest in dividend growth stocks here.

      Thanks for the message!

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