Saturday, November 1, 2014

Planning my monthly dividends

Since I am a picky planner, I prefer having consistently increasing dividends month after month. My current dividend picks favor more dividend payers in Mar/Jun/Sept/Dec months. My Jan/Apr/July/Oct months are the weakest. Even though I have a preference in picking stocks that will even out my distributions every month, I will still prioritize good deals over preferred planning (such as the very low price of CVX and XOM in the last couple of weeks).

Currently with my present portfolio holdings, I am on my way to receiving the following dividends in November and December of this year (these stocks deposit their dividends checks to me on the following months):
November ,,, December ….
AAPL $10.41 CHD $7.78
GIS $15.78 COP $16.87
KMI $20.14 CVX $25.01
KMR $16.83 JNJ $19.13
O $14.18 KO $13.82
PG $12.34 MCD $12.87
T $15.73 O $14.18
VZ $11.07 ROST $4.02
SBUX $4.60 TJX $3.17
V $2.46
XOM $20.30
SO $13.02




$121.08 $152.64

The growth of the Nov & Dec dividends per month are in line with my goals. However, when January and February of next year comes, my dividends with my current holdings is estimated to be:
January . ,.. February ..
KMB $8.49 AAPL $10.41
MO $24.63 GIS $15.78
O $14.18 KMI $20.14
PEP $7.93 KMR $16.83
PM $26.68 O $14.18
WMT $5.32 PG $12.34
BAX $12.02 T $15.73
UNP $5.55 VZ $11.07
SBUX $4.60




$104.79 $121.08

Note that how February is essentially the same as November and January is similar to October (not shown). This is because these months are paid by the same companies (with a few irregulars who pay at weird dates). The graph below summarizes this data:
The green bars represent the forecast and the blue are the ones already received. The Nov & Dec guidance appear in line; however, the Jan forecast is lagging. February is not shown since it's essentially the same as October.

My December holding is very heavy in oil and I do not plan to add anymore to oil unless there is an extreme drop since I have already added quite a bit into XOM and CVX. The following stocks that will pay dividends in January are shown below (the first couple I already own):

KMB KO MO O PM BAX UNP ITW
ADP BNS BF_B CB DEO DOW FDO GE
GPC GSK KRFT MKC MDT MRK NKE OXY
PNY RAI SLB TROW TD USB XEL SYY

Presently my Oct/Jan month is heavily tobacco. I prefer avoiding the financial sector which are stocks such as BNS and TD. For the month of January I am eyeing ITW, KMB, RAI, MKC, PNY, and KRFT. I have already recently added to KO. With my recent purchases in low yield growth stocks, I need companies that have higher  yields. RAI, KMB, PNY & KRFT fit the requirements. However most of these appear expensive aside from KRFT at the moment so I am willing to wait. This purchase doesn't have to be made until the ex-dividend dates which are in early-mid December.

For divs in February, the following list of stocks are on my watchlist, the first couple are ones that I own:

AAPL GIS KMI KMR O PG T VZ SBUX
ABT ABBV APD CAT CLX DE DEO HCP HCN
HRL NUE OHI YUM

I am presently eyeing HCP, PG, GIS, and YUM. To satisfy my preference for high yield, I believe the order of priority will be HCP > GIS > PG. Of the three, I believe GIS has the best value. PG looks overpriced. T, VZ, HCN, OHI, KMI/KMR, and CLX are attractive secondary options. I do not want to load anymore in telecom (T/VZ). For REIT I will take HCP over HCN and OHI due to HCP being the dividend champion. I do not want to overload my position any further in the Kinder family (KMI/KMR). And CLX has too much debt. The following stocks above have to be purchased before their ex-dividend date which is usually some time in early to mid January.

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