Friday, February 1, 2019

2019 January Dividend Summary

Other than collecting dividends in the month, all other investment activity has been on pause for longer than usual.  However, the many purchases that occurred in 2018 resulting in the additional of fresh capital infused into the PIV portfolio and reinvestment of dividends set up 2019 to see a nice YoY gain of 91% despite one particular dividend cut from a very unloved, and understandably so, company.  Take look below for the details of last months dividend income.

Tuesday, January 8, 2019

2018 December Dividend Summary

I have been really excited to compose this blog entry to not only report December's dividend income, but to also look back on the YTD activity as a whole compared to last year and also document where the portfolio stands at the of 2018 going into 2019.  Without further ado, let's take a look at how year in dividends came to close.

Friday, December 21, 2018

Recent Buy - Phillips 66 (PSX) and Bayer AG (BAYRY)

Phillips 66 (PSX) valuation has come down quite a bit in, coinciding of course, withe the fall in the price of crude oil.  This company is a cash flow generating machine that nearly prints money despite the volatility in the oil market.  What makes it an even better company is that management very shareholder oriented; consistently raises dividends and buys back stock.  See below for details on the purchase of PSX and BAYRY.

Friday, December 14, 2018

Recent Buy - Cardinal Health, Inc (CAH), Kraft Heinz Co (KHC), and Bayer AG (BAYRY)

Today with the market further it's decline as of late I initiated a new position in, Cardinal Health, Inc. (CAH), which has increased its annual distributions each year for over two decades.  In addition, I bolstered my equity weight in two existing positions, KHC and BAYRY, which I have been buying frequently as of late.  See below for details on the transactions.

Friday, December 7, 2018

Recent Buy - Broadcom Inc (AVGO) and General Mills Inc (GIS)

We've all witnessed the volatility of the market in recent months and in particular, the wild swings within the technology sector.  Broadcom Inc.(AVGO) has not been immune to these swings and despite what many would agree was a fairly good earnings report for Q4 and full fiscal year 2018, the after hours spike was tempered Friday afternoon as the general negative market sentiment as of late weighed heavily on nearly all stocks.  AVGO is a new position for the portfolio and while adding this position, I also picked up some additional share of General Mills Inc. (GIS).  General Mills, along with what seems all other consumer staple stocks, remains out of favor on wall street despite rapidly approaching a 5.0% dividend yield and 10% FCF yield.  Take a look below for details of the purchase and a few of the metrics that are considered prior to purchase.

Monday, December 3, 2018

2018 November Dividend Summary

Favorable trends continue for November's dividend summary with an earlier than anticipated dividend payment received from a new position that was just added recently.  Through November 2018, YTD dividend receipts are up 54% compared to same period for 2017 (excludes special dividend from NGG in 2017).  Rate increases in 2018 amount to 6.5% and reinvested dividends combined with investment of additional capital accounts for an increase 47.5%.  See below for a breakout of the monthly dividend income.

Monday, November 19, 2018

Recent Buy - Kraft Heinz Co (KHC) and Bayer AG (BAYRY)

I know what your thinking, "c'mon mix it up a little bit, same 'ol, same 'ol."  While I don't blame anyone for thinking that, I can't promise the companies I've been actively purchasing will change anytime soon.  KHC and BAYRY are two positions I have been adding to quite frequently it seems as of late.  KHC may not be an aggressive growth stock with a corresponding high dividend growth rate, but it does remain a cash cow with a yield getting closer to 5% week by week it seems as overall market valuation continues to decline.

With respect to BAYRY, nothing has changed with my rather strong conviction concerning what I believe to be a rather significant price discrepancy between Mr. Market's perceived risk associated with the company versus the potential long term reward with owning the stock.  My plan to continue to make purchases of BAYRY remains in tact so long as the valuation remains at unusually depressed levels.

Monday, November 12, 2018

2018 October Dividend Summary

October, the first month of Q4, is a wrap. As this post goes live, it is nearly half way thru November and just over a week away from the Thanksgiving holiday.  October's dividend summary brings bittersweet reflection and analysis.  To start, the bitter part is the impact of the dividend reduction GE announced in late 2017 (which at the time announced was a 50% cut) is now showing up as an unfavorable rate variance in my dividend summary (initial purchase was made in the later half of 2017 and prior to commencing this blog) and what is worse is that this will continue for the next year so long as GE remains a part of my portfolio due to another dividend rate cut announced here from $0.12 a quarter to $0.01 - a 92% cut, ouch! I am holding my position for now and will continue to keep a close eye on it.  It is far from a DGI opportunity at this point and, if anything, may be a speculative play or valuation play at some point (may be worth mentioning that the new CEO, H. Lawrence Culp, Jr., recently purchased 225,000 shares at $9.73 on 11/1/2018).  Today's closing price was $7.99/sh 😣.  If there is anything sweet to be salvaged from this month's summary, it is that despite the rate cut in GE's stock, YoY dividend income in October is up 41.5% over last year.  See below for additional details.

Thursday, November 1, 2018

Recent Buy - Leggett & Platt Inc (LEG)

I must admit I was pretty excited when I checked the market this past week and saw that Leggett & Platt (LEG) was trading down > 7% after their earnings release.  Apparently, Mr. Market not too happy to hear management revise guidance lower for 2018.  The latest earnings presentation for Q3 2018 can be seen here and corresponding press release can be read here. Despite the revised EPS guidance for the current year, the company's decline in valuation leaves investors paying a Forward P/E ratio of less than 15x, which is a very reasonable valuation for this industrial company that is also very shareholder oriented.  See below for additional details on this purchase.

Friday, October 26, 2018

Recent Buy - Bayer AG (BAYRY)

Part of my routine each morning is to open the Yahoo! Finance application on my phone and see what the market is up to.  On Tuesday morning, it was clear heading into the market open that the market would open in negative territory based on where the DOW futures where trading leading into the open.  One stock on my watch list stood out like a sore thumb and it is a current holding of mine, namely, Bayer AG.  Within the first few hours the stock had fallen > 8.5% which brought it back down to similar levels as when I first picked up shares not too long ago.  As the week progressed, the valuation continue to decline with the rest of the market and I continued to buy.  See below for the details on this most recent purchases.

Friday, October 12, 2018

Recent Buy - Delta Air Lines (DAL)

I realized things got interesting Wednesday afternoon when I checked in on the markets and saw that they were in midst of a precipitous decline for the day.  I keep a lengthy list of stocks on my watch list and whether the markets panic for one day or weeks on end, I have always made sure to have a pile of cash handy to take advantage of perceived price discrepancies.  From this watch list, I always have an even shorter list of stocks that are presently in or are nearing a valuation range where I would be willing to initiate a new position (or add to an existing position) should the right price present itself.  I think this is a pretty typical characteristic of any self directed long term investor.  Well, on Wednesday, the stock I decided to pull the trigger on was DAL.  The stock has retreated back to the low $50s and I have decided the value offered for the price provides and adequate margin of safety.  See below for the details of the purchase, some metrics, and additional commentary.

Friday, October 5, 2018

Recent Buy - J.M. Smucker Co (SJM)

Recently made my first purchase for this month.  I've had a handful of companies on my shortlist of potentials buys and most of them are companies I have a current position in, such as J.M. Smucker.  This company is back down near their 52 week lows and the industry as a whole is out of favor with Wall Street.  SJM along with GIS have made some acquisitions recently to spur some growth and questions remain surrounding the price paid versus value received. See below for the details of the purchase along with some additional notes regarding valuation and purchase.