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Monthly Review Of DivGro: June 2020

Jul. 13, 2020 9:03 AM ETBMY, ETO, GD, HON, JPM, LMT, PEP, PNW, WFC27 Comments
FerdiS profile picture
FerdiS
27.11K Followers

Summary

  • My monthly review of DivGro provides a summary of transactions and explains how those transactions affected projected annual dividend income. DivGro is my portfolio of dividend growth stocks.
  • In June, I opened one new position and added shares to eight existing positions. DivGro now contains 92 different positions.
  • Five DivGro stocks announced dividend increases in June. Unfortunately, I suffered a dividend cut as well.

Once a month, I review my portfolio of dividend growth [DG] stocks, DivGro. I present details of any buys or sells, and I provide a summary of dividends collected. Additionally, I look at how the month's activities have impacted DivGro's projected annual dividend income (PADI).

In June, I opened one new position and added shares to eight existing positions. Five DivGro stocks announced dividend increases in June, but I also suffered a dividend cut. The net result of these changes is that PADI increased by about 6.0% in June. Year over year, PADI increased by about 27%.

As for dividend income, in June I received dividends totaling $4,000 from 46 stocks in my portfolio, a year over year increase of 13%. So far in 2020, I've collected $14,112 in dividends or about 52% of my 2020 goal of $27,000.

Source: Author's blog (DivGro)

DivGro's PADI of $30,743, means I can expect to receive $2,562 in dividend income per month, on average, in perpetuity, assuming the status quo is maintained. But DivGro's PADI should increase over time because I invest in DG stocks. Furthermore, I plan to reinvest dividends until I retire, so DivGro's PADI should continue to grow through dividend growth and through compounding.

Source: Author's blog (DivGro)

Dividend Income

In June, I received a total of $4,000 in dividend income from 46 different stocks, which is a new record for monthly income!

Source: Author's blog (DivGro)

Following is a list of the dividends I collected in June:

Stocks:

  • Archer-Daniels-Midland Company (ADM) β€” income of $108.00
  • Aflac Incorporated (AFL) β€” income of $28.00
  • Amgen Inc. (AMGN) β€” income of $80.00
  • Anthem, Inc. (ANTM) β€” income of $9.50
  • Broadcom Inc. (AVGO) β€” income of $97.50
  • Blackrock, Inc. (BLK) β€” income of $127.05
  • Cummins Inc. (CMI) β€” income of $78.66
  • Canadian National

This article was written by

FerdiS profile picture
27.11K Followers
FerdiS invests in dividend growth stocks and writes options to boost dividend income. He manages DivGro, a portfolio of mainly dividend growth stocks created in January 2013. With investment and trading experience spanning nearly 20 years, FerdiS enjoys writing articles about dividend growth investing, options trading, stock selection, portfolio management, and passive income generation. His DivGro blog hosts more than 1,000 posts and a live, public spreadsheet with full details of his DivGro portfolio, allowing readers to follow along in his investment journey. FerdiS is collaborating with the founders of Portfolio Insight, an online platform for portfolio management and investment analysis. Together, we maintain and publish Dividend Radar, a free spreadsheet of dividend growth stocks, on a weekly basis.

Analyst’s Disclosure: I am/we are long AAPL, ABBV, ACN, ADM, ADP, AFL, AMGN, AMZN, ANTM, APD, AVGO, BLK, BMY, BNS, CB, CMCSA, CMI, CNI, COST, CRM, CSCO, CVS, CVX, D, DIS, DLR, ETO, FDX, GD, GILD, GOOG, HD, HON, HRL, IBM, ICE, INTC, ITW, JNJ, JPM, KO, LMT, LOW, MA, MAIN, MCD, MDT, MMM, MO, MRK, MSFT, NEE, NFLX, NIE, NKE, NNN, NOC, O, ORCL, PEP, PFE, PG, PM, PNW, PSA, PSX, QCOM, ROST, RTX, RY, SBUX, SNA, SPG, SYK, T, TD, TJX, TROW, TRV, TSM, TXN, UNH, UNP, UPS, V, VLO, VZ, WBA, WFC, WPC, XEL, XOM. 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.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (27)

D
DanaW
01 Aug. 2020
I have followed your articles religiously and enjoy the information provided.

Can you tell me, is the spreadsheet that you use for DivGro a commercial product? If yes can you provide the product name and company.

If one developed on your own would you consider sharing it?

I would like to use it for my retirement portfolio because the data is presented in a logical order, easy to understand, and key information to determine progress at your fingertips.

Thank you for your time.

DanaW
w
Great job here FerdiS, you have done a great job.
FerdiS profile picture
Thanks, woodland -- I appreciate your comment! Take care!
Surinder profile picture
@FerdiS
Thanks for sharing your portfolio update. You have solid selection of equities in your portfolio.
I sold part of my D and added to Pnw.
Surinder
FerdiS profile picture
Thanks for your comment and for sharing your moves with $D and $PNW. All the best and happy investing!
turk617 profile picture
Solid portfolio of stocks. Ever consider adding DGRW which covers your theme of dividend growth? Enjoyed the reading!
FerdiS profile picture
Thanks, @turk617 -- earlier, I invested in ETFs to diversify my portfolio while I slowly added individual positions. Now I feel I'm diversified enough. Few ETFs deliver the yield and growth I look for, plus their expenses eat into one's total return potential. I own two CEFs with significantly higher yields than most ETFs offer.
buddyrow4 profile picture
πŸ‘
FerdiS profile picture
Cheers!
A
Thanks for your update Ferdi....The two REITs were really skimpy but better than a cut.
FerdiS profile picture
Yes, though remember these REITs raise their dividends (skimpily) every quarter... better than a cut for sure, and better than nothing also.
u
Your reports are required reading for me, FerdiS, including your monthly portfolio review. Thank you for sharing.

Not easy to let my D go, but I went ahead and did it after a very pleasant several years' hold. Replacing D with smaller utilities NWE and OGE. Am hanging on to SPG for now, but not adding.

Plan to begin accumulating UNP in my IRA as cash comes available. The same with RGA, a stock I'm high on and notice it's not among your holdings.

Retired dividend-growth investor
FerdiS profile picture
Hi, @usiah -- I appreciate the comment and kind words.

Unlike you and others, I've decided to hang on to D. While the dividend cut is bitter to swallow, at least the company seems to be aiming for annual increases of 6% (versus about 2% lately). That would be nice.

Take care and happy investing!
u
@FerdiS

I might revisit D at some future time when the price settles in to a 4-5% yield.
FerdiS profile picture
OK, all the best usiah !
m
mpTEX
13 Jul. 2020
Thanks, Ferdi. Always check out your monthly updates!
FerdiS profile picture
Hi, mpTEX -- I appreciate your comment and support!
j
Good article. Love the graphs and charts but what is the difference between Yield on Cost and Payback?
FerdiS profile picture
Payback is cumulative and realized. YoC is annualized and "promised".

The longer I hold a DG stock, the larger its payback will become. So, payback is how much I've ever received in dividends from a position divided by how much I invested in that position.

YoC is how much a position is expected to throw off in dividends in the next year divided by how much I invested in that position.
Ramon_13 profile picture
So you will continue to hold D ? I sold on monday's open. I might get back in later. The reduced div cut in the 4Q will drive the share price lower
FerdiS profile picture
Yes, at least through December when I usually make decisions that would impact my taxes. Perhaps you're right about a lower share price, though that may have been priced in when the stock fell 12% after the announcement. We'll see how it goes. It looks like D will be aiming for much higher dividend growth (6% vs about 2%).
jgilger profile picture
Always nice to read about your portfolio moves... I have a very similar portfolio & am too overweight in AAPL and a huge pop today...
My recent adds include: JPM, GD, LMT, GDX
FerdiS profile picture
Those are good stocks, @jgilger -- and $AAPL continues to amaze me! Take care and enjoy the ride!
Bradley Guichard profile picture
Thanks for the article - interesting read. We share a similar portfolio strategy. All the best.
FerdiS profile picture
I appreciate your comment, BradGu -- thanks and all the best with your investments!
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