Monthly Review Of DivGro: May 2016

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Includes: AAPL, ABBV, CAT, CB, DE, EXG, GD, HCP, MAIN, MIC, NEA, NOC, O, OHI, PG, RTN, STAG, T, TD, TXN, UPS, VLO
by: FerdiS

Summary

My portfolio of dividend growth stocks is doing a great job generating dividend income. Compared with the year-ago month, dividend income in May 2016 increased by 69%.

Eighteen of the stocks in my portfolio paid dividends and 3 stocks announced dividend increases.

Projected annual dividend income increased to $11,383. My goal is to reach $12,000 by year-end.

Trading in DivGro was on the light side in May. I added shares to 2 positions and initiated one new position, increasing the number of positions in DivGro to 64.

I expect to focus more on adding shares to existing holdings rather than increasing the number of new positions. That said, there are a few candidates that I'm considering, but they're trading at levels I'm just not comfortable buying!

As usual, this monthly review gives a snapshot of DivGro and my trading activities in the past month. I'm well on my way to this year's goal of $12,000 in projected annual dividend income. When that target is reached, it means the portfolio will be generating $1,000 per month of dividend income, on average, in perpetuity!

Please see my Performance page for various visuals summarizing DivGro's performance.

May Highlights

I recorded dividend income totaling $751 this month, up 69% from the amount received in May 2015. This month, 18 of my stocks paid dividends, bringing the year-to-date dividend income total to $8,257.

In May, 3 stocks announced dividend increases and I recorded 4 buy transactions. These activities added $322 to DivGro's projected monthly dividend income (PADI), which now stands at $11,383.

DivGro's average yield on cost (YoC) decreased slightly to 4.39%, as did the payback percentage, which now stands at 8.27%.

Here is DivGro's PADI (red line) plotted against monthly dividends:

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Comparing dividend income by month is another way to see progress:

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I'm looking forward to seeing June's dividend income total. Because it is a quarter-ending month, I expect to see another record-breaking month!

Transactions

In May, I added shares to 2 existing positions:

• Apple Inc. (NASDAQ:AAPL) (two buys)

• Valero Energy Corporation (NYSE:VLO)

Also, I initiated a new position by buying shares of United Parcel Service, Inc. (NYSE:UPS), increasing the number of positions in DivGro to 64.

Dividends

I received dividends from 18 positions in May:

• Apple Inc. (NASDAQ:AAPL)

• AbbVie Inc. (NYSE:ABBV)

• Caterpillar Inc. (NYSE:CAT)

• Deere & Company (NYSE:DE)

• Eaton Vance Tax-Managed Global Diversified Equity Income Fund (NYSE:EXG)

• General Dynamics Corporation (NYSE:GD)

• HCP, Inc. (NYSE:HCP)

• Macquarie Infrastructure Corp (NYSE:MIC)

• Main Street Capital (NYSE:MAIN)

• Nuveen Premium Income Municipal Fund (NYSE:NPM)

• Realty Income Corporation (NYSE:O)

• Omega Healthcare Investors, Inc (NYSE:OHI)

• The Procter & Gamble Company (NYSE:PG)

• Raytheon Company (NYSE:RTN)

• STAG Industrial, Inc. (NYSE:STAG)

• AT&T Inc. (NYSE:T)

• Toronto-Dominion Bank (NYSE:TD)

• Texas Instruments Inc. (NASDAQ:TXN)

Dividend income in May totaled $751. The following positions received dividend increases:

• The Chubb Corporation (NYSE:CB) increased its dividend by 2.99%

• Northrop Grumman Corporation (NYSE:NOC) increased its dividend by 12.5%.

• Toronto-Dominion Bank (NYSE:TD) increased its dividend by 7.8%.

In May, DivGro's projected annual dividend income increased by 2.91% to $11,383. Total dividend income year to date is $8,257.

Markets

Apr 30, 2016
DOW: 17,773.64 S&P 500: 2,065.30 10-YR BOND: 1.82%
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May 31, 2016
DOW: 17,787.20 S&P 500: 2,096.95 10-YR BOND: 1.83%
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In May, the Dow gained 0.08% and the S&P 500 gained 1.53%. In comparison, DivGro declined slightly by 0.11%.

Looking Ahead

I'll be taking a little time off in June. I'm planning to have some articles ready for publication for some of the time we're away. One of my goals for June is to initiate my first covered call trade. I'm looking forward to boosting DivGro's dividend income with a covered call strategy.

Thanks for reading and take care, everybody!

This article is a summary of my May 2016 monthly review of DivGro, which first appeared on my blog on June 9. Interested readers can click on the link for more details.

Disclosure: I am/we are long ALL THE STOCKS MENTIONED.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.