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DIVIDEND CAGR PORTFOLIO 2014

I finally got around to taking a fresh look at the dividend data for all the companies that have increased their dividends for 10 straight years or more. The data I used is up to date as of Jan 31st 2014. The Cash generating CAGR (Compound Annual Growth Rate) Dividend portfolio has been tweaked some and a few new names were added.

I don't get around to updating the list or the portfolio that often and that isn't a negative, that really is the point of the portfolio. To generate massive amounts of cash year in and year out that increases much faster than inflation. If you can get enough cash yield out of your stocks that on year 1 you can live off of the dividends then 30 years later you should not only still be generating enough cash to live off of you should be generating much more than you need. That is the power of CAGR Dividend Stocks, the ability to sleep well for the rest of your life no matter what is happening with the stock market. Very powerful.

MY PORTFOLIO:

Some changes I made recently are - I sold Walmart and Pepsi. Walmart only increased dividend by 2.1% (18% last year) and Pepsi is up 30% (39% with reinvested dividends) since I bought it 2 years ago, it was in a transition period at the time - the recovery has happened and now the dividend increases are slowing down to 5.5% last year. I would rather own higher yielding and higher increasing dividend companies. Also trimmed some Kinder Morgan, it was over 10% of his holdings and I don't think any one company (except for the best of the best like Walgreens) should be more than 10% of anyone's holding. Trying to diversify more.

Added to

PSX - Phillips 66, 2% yield but growing like gang busters, stock up 130% since the spin off a year ago and increasing dividend over 20%/year. Yup, add to that one on any dips.

TXN - Texas Instruments. Nice 2.7% yield and 20%/year dividend bumps.

New Positions:

WMB and WPZ - Williams Company / MLP - Oil and Gas company doing very well. Yields 3.8% and 7.3% respectively with 20% and 8% div growth rates. Diversifying out of KMP.

NU - Northern Utility. Energy Utility company. 3.5% yield and 12% growth/year. Solid.

GIS - General Mills - Food company. 3% yield and 10% growth/year. Nice swap from Pepsi

IPCC - Infinity Property - Insurance Company. 1.6% Yield but 20%+/year growth. Small position

STOCK NAME

TICKER

YIELD

% In Each Stock

ABBV

ABBV

3.11%

7.63%

Alliance Resource Partners

ARLP

5.85%

5.03%

ALTRIA GROUP

MO

5.42%

8.47%

Cardinal Health Inc

CAH

1.69%

1.33%

CONOCO PHILIPS

COP

4.26%

8.81%

Cracker Barrel Old Country

CBRL

3.06%

0.99%

General Mills

GIS

3.03%

1.54%

Infinity Property & Casualty

IPCC

1.95%

0.80%

KINDER MORGAN EP

KMP

6.94%

7.08%

MCDONALDS

MCD

3.34%

5.98%

Northeast Utilities

NU

3.51%

1.91%

OMEGA HEALTHCARE INV

OHI

6.26%

8.37%

Phillip Morris International

PM

4.74%

6.33%

Phillips 66

PSX

2.07%

3.67%

P&G

PG

3.07%

4.93%

Texas Instruments

TXN

2.70%

2.76%

WALGREEN

WAG

1.90%

11.25%

Williams Companies

WMB

3.85%

2.16%

Williams Partners LP

WPZ

7.24%

1.55%

WISCONSIN ENERGY

WEC

3.54%

3.17%

       
   

Current Dividend Portfolio Yield

4.11%

       
   

YIELD VS ORIGINAL INVESTMENT IN July 2011

5.14%

       
   

Yield Increase since July 2011

25.06%

Click to enlarge

The portfolio grew 22% last year (stocks themselves) plus over 4% in dividends paid that were reinvested for now for a nice 26%+ gain ~ the same gain as the Dow. Yield Vs Original investment is over 5% now.

I am going to try to market time the pullback I expect this summer by selling all of the dividend stocks when I think the pullback has started and see if I can get back in at a nice lower cost at the bottom. If it is a 10%+ pullback and I time it right I could increase the dividend yield by 6% or more. We shall see if it works :)

I hope this information helps you guys out! Never being worried about or forced to sell stock is a great luxury that I think is the whole purpose of saving and investing for retirement.