Sunday, March 9, 2014

February Recap

Pretty solid month with a record setting amount of transactions.  Nine of those buys were commission free so trading costs weren't all that bad considering I did some pretty serious portfolio retooling.  I'm now very pleased with my holdings and don't think I'll have to sell additional positions for a long time.  Finally!

All in all dividend increases were pretty decent this month.  Gotta love the LO, PEP, and TD raises.  I was disappointed to see that Deere (DE) chose not to increase the dividend right after I bought it.  Not a great start for that position, but I don't have plans to sell because I feel it is significantly undervalued at the moment.  OMI and WMT had pretty weak increases, although I realize dividend growth will not be outstanding each and every time.  I plan to accumulate more WMT and OMI shares regardless of the sub par increases (depending on valuations).

DOW: 16,322 /// S&P 500: 1,859 /// 10-YR BOND: 2.64%

New Purchases:
1) 3 shares CVX at $111.37: $12.00 annual income
2) 5 shares PM at $77.63: $18.80
3) 11 shares UL at $38.67: ~$16.17
4) 7 shares WMT at $73.38: $13.16 (the dividend has since increased)
5) 8 shares PEP at $78.94: $20.96
6) 18 shares COP at $65.46: $49.68
7) 9 shares DE at $85.00: $18.36
8) 91 shares MO at $35.40: $174.72
9) 47 shares OHI at $30.70: $92.12
10) 32 shares TD at $44.71: ~$51.20 (the dividend has since increased)
11) 9 shares TGT at $56.45: $15.48
12) DRIP: .930 shares OHI:  $1.84

Sales:
1) 129 shares EIFZF at $20.18: ($210.20) annual income
2) 100 shares LNCO at $30.63: ($289.92)

Dividends Received: $434.98
AT&T (T) $84.18
General Mills (GIS) $26.81
iShares Emer Mkt Bnd (EMB) $2.53
Raytheon (RTN) $31.35
Air Products (APD) $22.01
Exchange Income Corp. (EIFZF) $16.27
LinnCo (LNCO) $24.16
Abbott Labs (ABT) $11.88
Kinder Morgan, Inc. (KMI) $62.73
Omega Healthcare (OHI) $28.42
Procter & Gamble (PG) $46.92
Realty Income (O) $15.67
Realty Income Series F (O-PF) $6.76
HCP (HCP) $26.71
LTC Properties (LTC) $28.58

Dividend Increases:
1) AVA: $.3050 to $.3175 per quarter: $7.84 annual income
2) KO: $.28 to $.305 per quarter: $14.52
3) LO: $.55 to $.615 per quarter: $21.84
4) OMI: $.24 to $.25 per quarter: $3.56
5) PEP: $.5675 to $.655 per quarter: $28.00
6) TD: $.43 to $.47 (in Canadian $) per quarter: ~$16.60
7) WMT: $.47 to $.48 per quarter: $1.28

New Deposits:
$1,450 to taxable account, $100 to Lending Club

Lending Club Interest:
$9.63

Stock Split:
TD (2:1): 37 shares gained.  TD also announced a third dividend increase in the past 12 months.  This time by a respectable 9%.  Quite a nice little boost there, even factoring out the other two raises.  I purchased additional TD shares in February after the stock split, but before the dividend raise.

18 comments:

  1. Solid moves in getting away from those two. I don't know much about them but looking at their charts on google finance and fastgraphs.com... there isn't much to get excited about.
    Dividend investors want to buy and hold forever but we also have to be realistic that reality happens and we have to make adjustments.

    Solid month!

    ReplyDelete
    Replies
    1. Thanks Pully for the reasonable assessment. Both those companies have problems. LINE/LNCO paid too much for the latest acquisition target and has an uncomfortably high payout ratio. I was starting to doubt LNCO's management which I don't want with my holdings! EIFZF grew too fast and was forced to pay ridiculous amounts when hiring an outside consultant. Again the payout ratio is too high. Both companies haven't raised dividends in quite a while. I did enjoy nice dividends from those businesses for a few years, but I felt it was time for them to go. Replacing high yields like that is painful, but I did learn a valuable lesson.

      Best wishes!

      Delete
  2. Looks like an awesome month. Lots of new buys, $400+ in dividends, and 7 dividend increases. That's a great formula for success right there. Looks like I probably should have bought TD instead of BNS when I went after a Canadian bank but we'll see what the future holds.

    ReplyDelete
    Replies
    1. Thanks buddy. I have a stake in both TD and BNS, but I must say TD has the edge in recent dividend growth. Past results don't always predict the future, so I guess we'll have to see what unfolds...

      Delete
  3. I'm glad you're around again CI. That looks like a great month. More than $400 in dividends......and purchasing plenty more shares. You're growing CI and looking great!
    -Bryan

    ReplyDelete
    Replies
    1. I will be away from time to time because of my job. It looks like I might have to travel for a few weeks in April as well. Even though it was not possible to update my blog while in Korea (blogger is blocked on government networks), I still managed to get some buys in.

      Thanks for dropping by!

      Delete
  4. Good to see you back CI! Pretty solid month as you crank away towards hitting your goals. If I'm not mistaken, you should have pushed yourself over the $6,000 mark in forward 12-month dividends after this month. Congrats on that if that is the case!

    ReplyDelete
    Replies
    1. Plowing through the $6,000 mark will be delayed a little bit because I chose to unload those two high risk/high yield positions. I think I may just hit that mark in April however!

      Take care!

      Delete
  5. Those purchases look awesome. You added some serious heavyweights to your lineup. I have been wanting to add a financial stock to my portfolio and I am really considering TD.

    Keep up the great work!

    ReplyDelete
    Replies
    1. I have been very pleased with TD, and the best part is that the share price hasn't really gone up that much. The downside is that dividends fluctuate with exchange rates so I never know exactly what I'm going to get. This last increase was quite nice, but part of me wonders if it means the end of a raise every 6 months. We'll find out later this year.

      Thanks for the comment!

      Delete
  6. Compounding Income,

    Its great to see you back. That is a real nice month for February. That dividend amount would cover several hours of income from my job. Although I don't make much from work and no signs of any raises coming those dividend raises are much more consistent and reliable. Nice job with WMT and TD!

    ReplyDelete
    Replies
    1. Thanks SWAN I hope you're doing well. Those three weeks in Korea were excruciating. I think we were working 15 hour duty days + commute... with one day off the whole time. Don't get me started on the long flight... and the noisy fighter planes interrupting the little sleep we did have. I'm coming back with a whole new appreciation of just how awesome the U.S. really is. It's great to be home!

      Take care

      Delete
  7. CI,

    Nice month! That was some serious capital deployment, and a bunch of dividend raises to boot. Awesome.

    Congrats on hitting over $400 in dividends this month as well. February tends to be a little slower for many of us, but you hit a pretty big number once again. Keep up the great work!

    Best wishes.

    ReplyDelete
    Replies
    1. Thanks DM, I hope you're doing well! Pretty sure that you are seeing as how your blog has really taken off. Are you aware that your blog is more valuable than your portfolio? Well done!

      Delete
    2. CI,

      It does produce more income at this stage. Pretty crazy. I guess I should stop blogging about dividend income and start blogging about blogging income!

      Thanks for all the support.

      Best regards.

      Delete
  8. CI -

    Congrats on an awesome month! Good to see you back in action. I've actually been pretty quiet the last couple weeks. Had a lot going on but should have some acitvity going on soon.

    Hope all is well!

    Warrior

    ReplyDelete
    Replies
    1. Yeah I've been busy myself and it looks like I'll be away for a bit in April as well. Looking forward to seeing which moves you made!

      Delete
  9. It looks like you had a great month here. Awesome dividend income. An income like this can help boosting your portfolio significantly. That's why I love dividends, because it is "free" money on top of your contribution ready for more buying and more dividends, and more buying, and more dividends, and more buying, and more dividends, until the very end....

    ReplyDelete