OK, My Turn

[Dividend Watcher]

(03-18-2015, 11:48 PM)EricL Wrote: I believe that trailing PE isn't taking into account one time adjustments to earnings due to the merger with Alliance Boots. The PE on 2015 earnings is about 24 and forward PE on 2016 estimates is 19.6. Still pretty high, but not so high that I am thinking about selling anything yet.

Yup, I knew about the adjustment. Forward P/E was still a little high and the potential acquisition still has me wondering. Maybe I was looking for an excuse to add some cash to boost the dividend stream. Both are still about where I want them to be in both our portfolios.

In the meantime, RTN's recent dividend hike made up for 2/3 of the loss of the dividend from those shares for me. My wife's cost basis actually went down since we account for them using FIFO.

[Dividend Watcher]

Added another lot of SO to the wife's portfolio today. It's almost back down to where it was trading before the 2014 jump and about just below the price of the first batch. The added dividend stream more than made up for the drop when I sold WBA a week ago. On top of that, should have a bump in the dividend next quarter.

Still have a little cash leftover and a low limit order on EMR. If it hits, I'll be fine. If something else is cheaper in the meantime, we'll cancel that and move on to the next.

The KRFT buyout news yesterday did wonders for the portfolio value but nothing for the income stream . . . yet. Looking forward to that big lump special dividend and the new company should be very rewarding in the long run.

[Dividend Watcher]

Yesterday added some W.P. Carey (WPC) to my wife's existing holdings. Today, the limit order hit for another batch of Omega Healthcare (OHI). Both about 10% off their highs. I'm sure if interest rates ever normalize, they'll take a hit but when is that going to happen? I forecast years. In the meantime, I'll happily compound the 5+% yields versus 0.1% in the money market.

[rayray]

WPC's dividend was paid today. Great company, well managed. Almost added myself but didn't pull the trigger. My cash balance in the Roth is not really at the amount I like to invest.

[cannew]

Lots of good portfolio's, so I thought I'd look at trying to pick only 15 stocks I would recommend. Came up with the following, mainly for their long history of paying and increasing their dividend and that all offer Dividend Reinvestment and Optional Purchases. I'd consider it a very conservative portfolio and could have easily added 10 to the list.

ABT Abbott Laboratories
AFL Aflac
CB Chubb
CL Colgate-Palmolive
DOV Dover
HRL Hormel
JNJ Johnson & Johnson
KO Coca-Cola
MCD McDonald’s
MMM 3M
PEP PepsiCo
PG Procter & Gamble
VFC VF Corporation
WMT Wal-Mart
XOM ExxonMobil

[cannew]

Looked at the Price and Dividend change for each of the 15 stocks from 2005 to beginning of 2015. Not bad performance through the financial crisis.

Comp 2005 Price Div 2015 Price Div Cap Inc Div Inc
ABT 24.68 0.55 46.15 0.96 86.99% 74.55%
AFL 45.10 0.44 63.88 1.56 41.64% 254.55%
CB 42.35 0.86 100.32 2.28 136.88% 165.12%
CL 25.78 0.15 69.53 1.52 169.71% 948.28%
DOV 37.08 0.64 72.52 1.60 95.58% 150.00%
HRL 15.00 0.26 56.61 1.00 277.40% 284.62%
JNJ 64.32 1.32 99.55 2.80 54.77% 112.12%
KO 22.02 0.56 40.63 1.32 84.51% 135.71%
MCD 32.32 0.67 95.08 3.40 194.18% 407.46%
MMM 75.00 1.68 162.05 4.08 116.07% 142.86%
PEP 55.76 1.04 95.78 2.60 71.77% 150.00%
PG 54.75 1.12 82.51 2.57 50.70% 129.86%
VFC 15.30 0.27 73.65 1.28 381.37% 374.07%
WMT 48.93 0.60 77.93 1.92 59.27% 220.00%
XOM 58.15 1.16 86.66 2.76 49.03% 137.93%

Sorry for the jumbled numbers, looked ok when I entered them. The last 2 columns show Capital % Increase and Dividend % Increase.

[Dividend Watcher]

Sold 1/3 of my miniscule (now microscopic) position in MAT on Friday. Narrowed my loss from 39% to 20% on that lot. If I weren't in my late-50s and trying to build the income stream on the home stretch, I probably would've bought more in the 22 range. Now it's in no man's land -- too expensive for a value play and too iffy as even a supporting player. Still waiting for the dividend cut.

[Dividend Watcher]

Last week added 5 more shares of GILD at $112. Once I decided to add, it kept inching up above my limit order so spent the week chasing it.

Also opened a 1/3 position in WPC in my own portfolio. My wife already owned it and that 6% yield, reasonable P/AFFO and strong DGR for a REIT was just too tempting.

With the BBL demerger and the WPC add, the number of my portfolio positions is bumping up against my business plan limits. Think it's time to let the rest of the MAT position go. Still thinking of what to do with the South32 shares. Utilities still aren't cooperating either.

[earthtodan]

(05-23-2015, 08:54 PM)Dividend Watcher Wrote: Last week added 5 more shares of GILD at $112. Once I decided to add, it kept inching up above my limit order so spent the week chasing it.

Also opened a 1/3 position in WPC in my own portfolio. My wife already owned it and that 6% yield, reasonable P/AFFO and strong DGR for a REIT was just too tempting.

Sounds like money well spent. I've looked at WPC and I noticed that most of their dividend growth happened right after they converted to a REIT in 2012, so I don't know how much of it to attribute to the change of identity and ramping up their payouts of existing revenues to the full REIT pass-through level. Still watching on the sidelines.

[navyasw02]

I gave up hope on MAT, no dividend increases and seems like an apparent lack of direction for how to recover.

[Dividend Watcher]

(05-24-2015, 12:08 AM)navyasw02 Wrote: I gave up hope on MAT, no dividend increases and seems like an apparent lack of direction for how to recover.

Agree. If I were younger and had more cash to play with, I might sit on it for a couple more years. But, since neither is true, time to put that money to work someplace else. It's past the ex-div date now so the sell limit order is in. Chalk it up to another of my mistakes.

[Dividend Watcher]

Sold the rest of MAT this week. Will be using the proceeds for a REIT or PM to make up for the yield but be more sure of the dividend continuing. As I've said previously, if I were younger and had the time, I probably would've held on for the eventual turnaround but that may take a few more years.

In the meantime, I added a little Eversource Energy (ES) to bring me up to half a position. It's down about 14% from it's irrational peak last year and 11% below where I trimmed it since the valuation made no sense at the time. Expecting around 6% dividend boosts looking ahead and maybe a little more when the Spectra Energy gas supply expansion is completed as they'll have more capacity to add gas customers as well as sell to the power plants in their region during the winter months.

I have limit orders for adding to WPC and PM which almost hit today. That should use up the non-productive cash sitting on the sidelines. Now trying to figure out what to do with my South32 shares.

In my wife's portfolio, trimmed a wee bit of HAS. It had gotten to #2 in the portfolio, yield was down to 2.5% and it's P/E was way higher than normal. I know you should let the winners run but I had other plans to diversify the portfolio a little more. It's now at the planned allocation I have for it 2 years in the future.

In the meantime, I have 2 limit orders in: one for PG at $78.50 & one for LNT at the $60.00 level.