Monday, May 12, 2014
Weekly Purchase - GE
I'm honestly not that excited by this week's purchase. I like General Electric as a company and all, but would much rather accumulate shares are lower prices. I guess this is what happens when the stock market goes up, but the investor is committed to dollar cost averaging. Kind of inevitable in a way, stocks are bound to go up at some point.
At the end of the day my primary objective is being met even if I didn't get a ton of value. This purchase will increase my income, and GE dividends are set to grow over time. Mission accomplished. GE now has a 0.55% weight (by income) for me so plenty of room still remains to acquire more shares. I was also thinking about SO and PG, but felt I should work on portfolio weightings a little bit this week.
This week's purchase was commission free. I plan to resume larger quantity buys later in the year.
Recent Dividend Increases
Southside Bancshares (SBSI) announced a 5.0% dividend increase from $.20 to $.21 per quarter. SBSI now has a 20 year streak and looks poised to become a dividend champion given more time. During 2013 the company did two raises so it's possible 2014 could repeat. I won't be terribly concerned if it doesn't because 1) the company pays a special dividend in December and 2) it just announced a sizable M&A.
Telus (NYSE: TU, TSX: T) announced a 5.6% increase from $.36 to $.38 per quarter in Canadian dollars. Telus proclaimed investors will get two dividend increases this year, so I fully expect another $.02 raise during November. In fact, Telus announced in advance that it intends to raise dividends twice per year for a total around 10% through 2016. TU's new dividend is 11.8% higher than what it paid last year at this point. It's certainly on schedule. Nice dividend contender here (10 year streak) that seems to have slipped past the CCC lists because it started an American ADR not too long ago.