Notable additions to our portfolios in the last month or so.
"Dominion
increased dividend by 6%, delivering first raise since the payout was reduced in 2020
The regulated utility has one of the strongest underlying growth rates in the sector after shedding its natural gas transmission and storage business last year. Management expects to deliver 6% annual dividend growth through 2025, beginning with this raise."
About a 3.4% current yield. Dividend growth of 6% a year throughy 2025. Dividend Safety score 0f 80. I can live with that. Opened in early December and have brought it to a full weight position since then.
EOG.
Also started this position in Deceember and I have brought it up to a full weight position. Oil. One word.
With recent 82% dividend increase, and a $2 a share special dividend paid in December, the payout ratio has only increased 2 percentage points, to a forward estimate of 28%. As a bonus, I suppose, the position has increased its market value by 20% in the month or so since I first purcashed it.
Here is a bit from Simply Safe Dividends about EOG's valuation.
"Valuation
EOG's current dividend yield of 2.84% is 112% above its 5-year average of 1.34%, which indicates that the stock may be undervalued unless you believe that the company's outlook has weakened.
It's worth noting that EOG's forward P/E ratio of 9.9 is well below its 5-year average of 20.1 and the Energy sector average of 12.1. An unusually low P/E ratio means that investors may have become pessimistic about EOG's prospects for growth.
"Dominion
increased dividend by 6%, delivering first raise since the payout was reduced in 2020
The regulated utility has one of the strongest underlying growth rates in the sector after shedding its natural gas transmission and storage business last year. Management expects to deliver 6% annual dividend growth through 2025, beginning with this raise."
About a 3.4% current yield. Dividend growth of 6% a year throughy 2025. Dividend Safety score 0f 80. I can live with that. Opened in early December and have brought it to a full weight position since then.
EOG.
Also started this position in Deceember and I have brought it up to a full weight position. Oil. One word.
With recent 82% dividend increase, and a $2 a share special dividend paid in December, the payout ratio has only increased 2 percentage points, to a forward estimate of 28%. As a bonus, I suppose, the position has increased its market value by 20% in the month or so since I first purcashed it.
Here is a bit from Simply Safe Dividends about EOG's valuation.
"Valuation
EOG's current dividend yield of 2.84% is 112% above its 5-year average of 1.34%, which indicates that the stock may be undervalued unless you believe that the company's outlook has weakened.
It's worth noting that EOG's forward P/E ratio of 9.9 is well below its 5-year average of 20.1 and the Energy sector average of 12.1. An unusually low P/E ratio means that investors may have become pessimistic about EOG's prospects for growth.