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.
Of the companies shown above, Delta Air Lines (DAL) was the most recent addition to the PIV portfolio and based on the payout timeline in 2017, I was not expecting to receive the dividend until December 2018 so I was surprised when I found the dividend hit the account in November. The stock has rallied a bit since I initially made the purchase at $50 share. I don't envision DAL becoming a core position. With this surprise, total dividend income for November amounted to $319.30, a 31.2% YoY increase. The bulk of this increase is attributed to reinvestment of dividends and deployment of new capital as reported under the column labeled "Volume $." The favorable YoY rate impact was much lower at 2.2%, as this month's income is largely derived from high yielding telecom stocks AT&T and Verizon and whose dividend growth rates (DGR) tend to have an inverse relationship with their current yields. Contrast this with American Express who has a low current yield but tend to experience a much higher DGR in the double digits. In any event, the portfolio is working as hard as ever and perpetually turning out more and more income!
Portfolio News
Of the companies shown above, Delta Air Lines (DAL) was the most recent addition to the PIV portfolio and based on the payout timeline in 2017, I was not expecting to receive the dividend until December 2018 so I was surprised when I found the dividend hit the account in November. The stock has rallied a bit since I initially made the purchase at $50 share. I don't envision DAL becoming a core position. With this surprise, total dividend income for November amounted to $319.30, a 31.2% YoY increase. The bulk of this increase is attributed to reinvestment of dividends and deployment of new capital as reported under the column labeled "Volume $." The favorable YoY rate impact was much lower at 2.2%, as this month's income is largely derived from high yielding telecom stocks AT&T and Verizon and whose dividend growth rates (DGR) tend to have an inverse relationship with their current yields. Contrast this with American Express who has a low current yield but tend to experience a much higher DGR in the double digits. In any event, the portfolio is working as hard as ever and perpetually turning out more and more income!
Portfolio News
- Campbell launches sale of Bolthouse Farms business - it is anticipated that cash from this sell will be used to pay down debt incurred with the rather recent acquisition of Snyder's-Lance earlier this year. Also, separately declared $0.35 dividend - no change in rate. No surprise here - this is a long term play in a dividend paying stock whose valuation was hard to ignore relative to the options available at the time of purchase. I hold BAYRY in the same account and this stock has been getting more attention in terms of capital due to the relative valuation and total return prospects, otherwise, I would be increase my position in CPB.
- Lamar Advertising declares $0.92 dividend - a 1.1% increase over prior quarter. Perhaps they will continue with nominal quarterly increases? They increased the dividend rather significantly in first quarter of 2018.
- Walt Disney declares $0.88 dividend - an 4.8% increase from prior dividend. A rather modest dividend increase for a rather low yield stock with a low payout ratio, however, DIS did just recently agree to acquire a rather large value of assets from FOXA which likely weighed on the decision to limit the raise. Looking at the DIS dividend CAGR for 1, 3, 5, and 10 year periods, the trends fluctuate greatly.
- J.M. Smucker released its latest quarterly results and misses on revenue. Also, revises guidance downward.
- United Technologies (UTX) confirms split into three companies
- National Grid (NGG) declares $1.0616/ADS dividend - this is a 4.39% increase over the same period last year ($1.017/ADS).
- National Oilwell Varco (NOV) announces $500M share repurchase program - for a short-time the company valuation seemed to be turning a corner as it approached $50 not too long ago, but with the recent declines oil, NOV's valuation receded as well. I am hoping this share repurchase proves to be well timed when we look back a year or two from now.
- Emerson (EMR) increases quarterly cash dividend by $0.005 to $0.49 - Meh, this increase amounts to a whole whopping 1%. This is much lower than their five year DGR of 3.64%. With a payout ratio just shy of 54%, I think they should raised the divided by at least a few pennies. Per the separate earnings release, EMR has returned $2.2B YTD to shareholders via a combination of stock buybacks and dividends, which equates to roughly 5% on a current market cap value of ~$43B and 96% of the free cash flow (FCF) reported for the fiscal year at $2.3B.
Current Market Index Valuations and Corresponding Yields
Very solid income, congrats. Love your YOY growth number.
ReplyDeleteWe received a little bit short of $1,600 for the month of Nov. Very happy with our dividend income, needless to say. :)
Thanks! Congrats to you as well. You definitely have a nice stream of dividend income that no doubt motivates many investors.
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