Nearly half way through 2019 and the dividend income is adding up nicely and is being reinvested almost as quickly as it is deposited into the investment accounts in an attempt to take advantage of relatively low valuations of particular securities with the hope of enhancing the compounding effect over the long term. Recent examples of such investments include BAYRY, CVS, and CAH. Each of these companies has its near term challenges such as legal battles, balance sheet leverage, and/or regulatory concerns. However, despite these challenges each offers a compelling valuation backed up by a very generous free cash flow yield and attractive corresponding dividend yields to boot, which patient investors can collect as they wait for business to adjust and respond to the near term headwinds. Recent operating cash flow yields for the aforementioned stocks equate to 16.6%, 11.8%, and 21.1%, respectively. In regards to BAYRY, May was the first time the portfolio has collected a dividend from the company as it only distributes a dividend once a year. Take a look at the summary below for a breakout of the dividend income received in May.
