2019 May Dividend Summary

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.

UPDATE: initial post for May dividends reflected a total of $675.61 and inadvertently excluded the $17.50 in dividends received from DAL in the month of May, which can now be seen in the revised summary above.

Total dividends for the month of May came in totaling $693.11, a whopping 67.6% increase over the same period last year.  The primary driver of this increase was a result of the BAYRY position within the portfolio, which I noted above, only pays a dividend once each year in May or June.  This large dividend from BAYRY lead to favorable volume variance of 65.5% followed by a meager 2.1% favorable rate variance.  The only new dividend rate for the month of May was for PG, which resulted in a 4.0% rate increase in the quarterly dividend.  Aside from BAYRY, CVS and DAL are the other news position reporting dividends in the month of May this year as noted above and in a previous blog post, OHI is not longer a position held in the PIV portfolio.

In closing, here is a summary of where the major indexes are trading and their corresponding yields.