85-Stock Portfolio Review By Dividend Payment Month Groups, CCC Status, Moats And New Purchases

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Includes: ABBV, ADP, AMGN, ARCC, ARI, BA, BDX, CAH, CAT, CL, CLDT, CMI, CNP, CSCO, CTO, CVS, CVX, D, DEO, DLR, DNP, EXC, FE, GAIN, GILD, GIS, GPC, GWW, HAS, HD, HTGC, JNJ, KHC, KMB, KO, LADR, LMT, LNT, LXP, MA, MAIN, MAT, MCD, MDLZ, MET, MGEE, MMM, MO, NEWT, NHI, NKE, NRZ, NSC, O, OHI, OXY, PEP, PG, PM, PNNT, RAI, SBRA, SBUX, SNR, SO, SPG, STAG, STWD, T, TGT, TROW, UBA, UL, UNP, V, VFC, VGSLX, VLO, VTR, VZ, WEC, WELL, WFC, WPC, XEL, XOM
by: RoseNose

Summary

My 61 portfolio Dividend Payment years for Champions, Contenders and Challengers and review of their Morningstar (M*) moats.

I review all of my 85 stocks and the dividend payment groups I call JAJO, F-MAN, MJSD, Odd Ball and monthly, and the reason to love September.

I discuss my 3 new purchases: Consolidated Tomaka (CTO), Simon Property Group (SPG) and Gilead (GILD).

Dividend income generated by my portfolio continues to grow along with its value. Dividend yield was 4.04% last year, but with the portfolio value up this year by 16.9% in the first 6 months and holding pretty steady the dividend yield is now only 3.88%.

The Q1 to Q2 increase in dividends was 6.3%. I am projecting another 10% increase in dividends from there to the end of this year.

For me it's mostly all about dividends and reliable increasing income. Capital gain is also nice but not as important as income, but it does follow most dividend grower payers.

Growing dividend payments are expected, but it is also good to know when you will get paid. Let's take a look at dividends and what months they pay.

DIVIDENDS-they are the bonus payments for your investment in a company.

I have grouped my dividend payers- 85 of them now- as follows into quarterly (4x per year) paying groups. The % income shown also includes monthly payers and is approximate for Q1 only.

JAJO = January, April, July and October - 22 stocks = 27.8% of income

F-MAN = February, May, August and November - 17 stocks = 28.1 %

MJSD = March, June, September and December - 35 stocks = 44.1%

ODD BALL = 5 stocks of which 1 is actually 2x per year (included in the income % above)

JAJO and F-MAN together = 39 stocks which is almost equal to all of MJSD of 35 stocks.

My 3 new stocks are SPG, CTO and GILD. CTO and SPG fall into the F-MAN group and are shown in the chart below. GILD pays in MJSD. I will give these new purchases all a short review at the end of this article and reveal my buy prices.

Months
Jan-April Feb-May-
July & Oct August-Nov
JAJO F MAN
22 Stocks 17 Stocks
Ticker Name Ticker Name
(NYSE:ARI) Apollo Inv
(NASDAQ:ADP) Autom Data (NYSE:ABBV) AbbVie
(NYSE:CAH) Cardinal Health (NYSE:CAT) Caterpillar
(NASDAQ:CSCO) Cisco (NYSE:CL) Colgate Palmolive
(NYSE:DLR) Digital Realty Trust (NYSEMKT:CTO) Cons Tomaka
(NYSE:GPC) Genuine Parts (NYSE:CVS) CVS Inc
(NYSE:KMB) Kimberley-Clark
(NYSE:LADR) Ladder (NYSE:EXC) Exelon Energy
(NYSE:LXP) Lexington (NYSE:GIS) General Mills
(NASDAQ:HAS) Hasbro
(NYSE:NKE) Nike (HCN) Welltower
(NYSE:OXY) Occidental Petrol
(NASDAQ:PNNT) Pennant Park (NYSE:LNT) Alliant Energy
(NYSE:RAI) Reynolds Am (NYSE:MA) Mastercard
(NYSE:STWD) Starwood
(NYSE:UBA) Urstadt Biddle (NYSE:SPG) Simon Property
(NYSE:WPC) WP Carey (NYSE:OHI) Omega
(NASDAQ:KHC) Kraft Heinz (NYSE:PG) Procter Gamble
(NYSE:MO) Altria (NASDAQ:SBUX) Starbucks
(NYSE:NRZ) New Residential (NYSE:T) AT & T
(NASDAQ:MDLZ) Mondelez (NYSE:VZ) Verizon
(NYSE:XEL) Xcel
(NYSE:PM) Phillip Morris Int

See Snoopy Dance here, that is the Happy Dance or Hop, and I love this Joie de Vivre or joy of life. I actually practice this now and then, but stopped doing it on tables a few years ago. Now I must mostly smile.

It is how I enjoy MJSD and actually all my dividend payments.

MJSD

Most stocks pay quarterly dividends and the majority do so starting with March Madness, then June Jubilee, now September Surprises and finally December Delights: (Maybe in December, Heidi and the girls from Sleepless in the Alps, can get Schnitzel dressed up for us to do a delightful dance).

The 35 stocks in MJSD:

Mar-Jun-
Sept-Dec
MJSD MJSD
35 Stocks
Ticker Name Ticker Name
(NASDAQ:ARCC) Ares Cap (NYSE:MET) Met-Life
(NASDAQ:AMGN) Amgen (NASDAQ:MGEE) Madison Gas &E
(NYSE:BA) Boeing (NYSE:MMM) 3M
(NYSE:BDX) Becton-Dickinson
(CCP) Care Capital Prop (NYSE:NSC) Norfolk So
(NYSE:CMI) Cummins (NYSE:SNR) New Senior Inv
(NYSE:CNP) Centerpoint Energy (NYSE:SO) Southern Co
(NYSE:CVX) Chevron (NYSE:TGT) Target
(NYSE:D) Dominion (NASDAQ:TROW) T Rowe Price
(NYSE:FE) First Energy (NYSE:UL) Unilever
(NASDAQ:GILD) Gilead (NYSE:UNP) Union Pacific
(NYSE:GWW) WW Grainger (NYSE:V) Visa
(NYSE:HD) Home Depot (NYSE:VTR) Ventas
(NASDAQ:HTGC) Hercules (NYSE:VLO) Valero
(NYSE:JNJ) Johnson & Johnson (NYSE:VFC) VF Corp
(NYSE:LMT) Lockheed Martin (NYSE:WEC) Wis Energy
(NASDAQ:MAT) Mattel (NYSE:WFC) Wells Fargo
(NYSE:MCD) Mcdonalds (NYSE:XOM) Exxon Mobil

ODD-BALL: 5 stocks

April Apr-July Jan-Mar Jan-Mar Jan-May-
October Oct- Dec June-Sept June-Nov-? Aug-Nov
A-O AJOD JMJS JMJN JMAN
2x/yr 4x oddly 4x 4x-? 4x
1 stock 1 stock 1 stock 1 stock 1 stock
Ticker & Name
(NYSE:DEO) (NYSE:KO) (NYSE:PEP) (NASDAQ:NEWT) (NYSE:NHI)
Diageo Coca-Cola Pepsico Newtek Nat Health

KO and PEP actually compliment each other, giving 8 separate months of payments being:

Jan-Mar-Apr-June-July-Sept-Oct-and Dec

What is not to like about that? It's an excellent reason to own them both.

NEWT is new for me and I have no idea what it will do. It did pay an extra dividend in 2015.

MONTHLY

6 monthly stocks for me and that is quite exciting and pleasing way to spread the income joy around more evenly.

Monthly
6 Stocks
Ticker Name
(NYSE:CLDT) Chatham Lodging
(NYSE:DNP) Duff N Phelps
(NASDAQ:GAIN) Gladstone Inv
(NYSE:MAIN) Mainstreet
(NYSE:O) Realty O
(NYSE:STAG) Stag Industrial

Next I would like to show the 61 Dividend Champions, Contenders and Challengers in my portfolio.

Here is the link to that website from David Fish. I give a huge debt of gratitude to him for maintaining this FREE very important compendium of dividend payers. I include the # of years in the chart that they have paid the dividend without interruption. They are listed alphabetically mostly by ticker.

Morningstar (M*) also has been mentioned lately as providing moat designations and I have included them in this chart. Mike Nadel's most recent article here was the impetus for me to add this and he did address the M* meanings. I believe moats are over rated and a strange measure for any company, but don't rule them out as a possible part of due diligence. I don't rate them highly in my evaluations as I want high credit investment grade ratings and safety ratings to lead my investing into companies.

My last article here exclusively showed the credit ratings and Value Line safety ratings for my then 82 stocks and a well built dividend castle portfolio without ever thinking of a moat.

As you can see in the chart below, the moats vary, mostly from wide to narrow, but even Target a 49 year dividend champion has no moat. Some stocks are not even classified or followed by M* and have no available moat to record, they are the equity REIT stocks, DLR, O and OHI and the small utility MGEE. Quality sometimes just has no moat to measure.

I have 20 Champions, 24 Contenders and 17 Challengers

I have 24 stocks not classified in that manner.

CVX* is in danger of loosing champion status (narrow moat-hard asset) and DEO* was recently removed for exchange rate reasons (wide moat). The dividend was increased in British pounds, but it did not translate to an increase in US dollars. Unilever all suffers from the same issue.

I have 4 stocks with Frozen dividends. Mattel (4.1% YOC), Pennant Park (11.5% YOC), Hercules (9.7% YOC) and First Energy (4.2% YOC). CAT might just be the next one to freeze, but I have 5.9% YOC, so why worry. I did just trim it to get that yield. I will exit Mattel someday. I am still under water on it, but not by much, and I have no reason to exit, at least right now. It is getting harder to find replacements and Barbie might just make it. I probably don't need it, but still rather like it.

CHAMPION years moat CONTENDER years moat CHALLENGER years moat
ADP 41 wide CAH 20 wide AMGN 6 wide
BDX 44 narrow CAT 22 wide BA 5 wide
CL 53 wide CMI 11 narrow CLDT 7
CVX 28* narrow CNP 11 narrow CSCO 6 narrow
GPC 60 narrow CVS 13 wide DEO 6* wide
GWW 45 wide D 13 wide HD 7 wide
JNJ 54 wide DLR 12 MA 5 wide
KMB 44 narrow GIS 13 narrow MAIN 5
KO 54 wide HAS 13 narrow SBUX 6 wide
MCD 40 wide HCN 13 STAG 6
MGEE 40 LMT 13 wide PM 8 wide
MMM 58 wide LNT 13 narrow UNP 9 wide
MO 46 wide NHI 14 V 8 wide
PEP 44 wide NKE 14 wide VLO 6 narrow
PG 60 wide NSC 14 wide VTR 6
T 36 narrow O 23 WFC 6 wide
TGT 49 none OHI 14 SPG 7 narrow
TROW 30 wide OXY 13 narrow
VFC 43 wide RAI 12 wide
XOM 34 narrow SO 16 narrow
VZ 11 narrow
WEC 13 narrow
WPC 19
XEL 13 narrow

NEW STOCKS-

CTO is Consolidated Tomaka Land company that wants to become an equity triple net REIT in early 2018. It has 51% debt/ cap and owns land (not swamp land) in Florida near Daytona Beach, some golf courses and income property. This purchase is purely speculative on my part and if Brad Thomas indicates it has a future, I decided to own some land in FL. Pure and simple, and he said it is cheap. Rose is a bargain hunter and I have trouble with those type words. His article on it is a must read if you want a capital gain adventure and the possibilities of a great growth Wannabe REIT. The dividend yield of 0.3% or 4c per quarter most certainly had nothing to do with me buying it. I am actually laughing at myself for this one and I even missed the ex dividend date for the 4c, only one more dividend left for this year to haul in. I paid $51.10 with closing fees, it is up a bit in value to $52.17. Time will tell if you can laugh with me on this one.

SPG is Simon Property Group, is a wonderful A credit rated equity retail mall REIT with 3% yield.

It is a 7 year dividend challenger. I wanted it, pure and simple and the quality of it called to me. I started a very small position and hope when interest rates do click up, this one will have its price click down. I had sold my Vanguard fund (MUTF:VGSLX) last month for being over priced and SPG was in that, another reason to own it. I paid $215.10 per share. I want to add below $210 or better, I can dream, but I have better patience now that I own some, it seems to help.

I am also dreaming about some storage REIT stocks, but they are not in my bargain range just yet.

GILD is Gilead Sciences a Drug Company. I owned it once and sold it in the $95 range. I now feel it is a better value and almost cheap (there is that word again, that I love - bargain). I paid $77.90 and will add more if it falls lower. It has many qualities that should make for it just being a value investment and of course it has a 2.4% yield. Plenty of free cash and good earnings, however flat.

They are trying to buy revenue and have an A credit rating. I don't see it falling too much lower, but who thought it would be where it is now? I do understand anything can still happen to the price. The basic fundamentals remain in place and I am speculating with it again.

I really don't mind owning this many stocks and won't hesitate to add others if the right bargain appears. I have no excuses, and it is always just what I do and I don't expect anyone to follow in my path. I have a very balanced well built solid castle like portfolio. It offers me some room to play once in awhile, so I do and keep it to a minimum.

I always appreciate your thoughts and wish you Happy Investing.

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

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