Monday, November 21, 2016

2016 Total Dividend Increase Summary

Today my last company reported their dividend hike for the year of 2016. It was Becton Dickinson and they raised the dividend by 10.6%. I was very satisfied of this hike since I was expecting 10% since the start of the year. This is very much in line with what BDX does in the past, so business as usual.

At the end of the year after every company has announced their dividend policy, I tally up how each company did and try to see how my income grew just from dividend increases alone. Below is a table on the dividend history this year for each month in 2016. The second table below shows for each company the dividend hike, the dividend yield as of 11/21/2016, and the current company holding size as of 11/21/2016. From these numbers I can calculate my overall portfolio dividend increase and the overall portfolio dividend yield.


Company Ticker Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Raise 2016 yr, Comments
Abbott Laboratories ABT 0.2600 0.2600 0.2600 0.2600 8.33%
Automatic Data Proc, Inc ADP 0.5300 0.5300 0.5300 0.5300 8.16% from .49
Air Products & Chemicals, Inc APD 0.8100 0.8600 0.8600 0.8600 6.17%
C R Bard Inc BCR 0.2400 0.2400 0.2600 0.2600 8.33% usuall pay 2/5/8/11
Becton Dickinson and Co BDX 0.6600 0.6600 0.6600 0.7300 10.61%
Church & Dwight CHD 0.3600 0.3600 0.3600 0.3600 5.88%
Colgate-Palmolive Co CL 0.3800 0.3900 0.3900 0.3900 2.63%
Clorox Co CLX 0.7700 0.7700 0.8000 0.8000 3.90%
Dominion Resources, Inc D 0.7000 0.7000 0.7000 0.7000 8.10%
General Mills, Inc. GIS 0.4400 0.4600 0.4800 0.4800 9.09% raised 2x this yr!
Home Depot Inc HD 0.6900 0.6900 0.6900 0.6900 16.95% from .59
Hormel Foods Corporation  HRL 0.2900 0.1450 0.1450 0.1450 16.00% split, raise from .25
Johnson & Johnson JNJ 0.7500 0.8000 0.8000 0.8000 6.67%
Kraft Heinz Co KHC 0.5750 0.5750 0.5750 0.6000 4.35%
Kimberly-Clark KMB 0.8800 0.9200 0.9200 0.9200 4.54%
The Coca-Cola Co KO 0.3500 0.3500 0.3500 0.3500 6.06%
Mastercard Inc MA 0.1900 0.1900 0.1900 0.1900 18.75%
McDonald's Corporation MCD 0.8900 0.8900 0.8900 0.9400 5.62%
Medtronic, Inc. MDT 0.3800 0.3800 0.4300 0.4300 13.16%
McCormick & Company MKC 0.4300 0.4300 0.4300 0.4300 7.50%
3M Co MMM 1.1100 1.1100 1.1100 1.1100 8.29%
Altria Group Inc MO 0.5650 0.5650 0.5650 0.6100 7.96%
NextEra Energy Inc NEE 0.8700 0.8700 0.8700 0.8700 12.99%
Nike Inc NKE 0.3200 0.1600 0.1600 0.1600 14.29% split, raise from .28
Realty Income Corp O 0.1910 0.1985 0.1985 0.1990 0.1990 0.1990 0.1995 0.1995 0.2015 0.2020 0.2020 0.2020 6.04% Month / Month % gain
PepsiCo PEP 0.7025 0.7025 0.7525 0.7525 7.12%
Procter & Gamble Co PG 0.6629 0.6695 0.6695 0.6695 1.00%
Philip Morris International Inc PM 1.0200 1.0200 1.0200 1.0400 1.96%
Reynolds American Inc RAI 0.3600 0.4200 0.4200 0.4600 27.78% raised twice
Ross Stores Inc ROST 0.1350 0.1350 0.1350 0.1350 14.89%
Starbucks Corporation SBUX 0.2000 0.2000 0.2000 0.2500 25.00%
The J. M. Smucker Company SJM 0.6700 0.6700 0.7500 0.7500 11.94%
Southern Co SO 0.5425 0.5600 0.5600 0.5600 3.23%
Stryker Corporation SYK 0.3800 0.3800 0.3800 0.3800 10.14% from .345
AT&T Inc T 0.4800 0.4800 0.4800 0.4800 2.13%
TJX Companies Inc TJX 0.2100 0.2600 0.2600 0.2600 23.81%
Visa Inc V 0.1400 0.1400 0.1400 0.1650 17.86%
Verizon Communications Inc VZ 0.5650 0.5650 0.5650 0.5775 2.21%
WEC Energy Group, Inc WEC 0.4950 0.4950 0.4950 0.4950 8.20% Was .4575 last yr
Aqua America, Inc WTR 0.1780 0.1780 0.1913 0.1913 7.47%
Xcel Energy Inc XEL 0.3200 0.3400 0.3400 0.3400 6.25%

Company Dividend Raise Company Yield Portfolio Holding
ABT 8.33% 2.62% $2,378.21
ADP 8.16% 2.39% $4,079.62
APD 6.17% 2.46% $3,939.14
BCR 8.33% 0.48% $1,555.57
BDX 10.61% 1.53% $5,347.45
CHD 5.88% 1.58% $5,090.53
CL 2.63% 2.36% $2,347.27
CLX 3.90% 2.79% $1,616.40
D 8.10% 3.88% $4,250.93
GIS 9.09% 3.12% $7,901.47
HD 16.95% 2.15% $12,129.45
HRL 16.00% 1.66% $4,503.13
JNJ 6.67% 2.78% $11,215.79
KHC 4.35% 2.87% $7,684.81
KMB 4.54% 3.23% $7,090.38
KO 6.06% 3.38% $5,022.99
MA 18.75% 0.72% $6,032.95
MCD 5.62% 3.15% $3,834.73
MDT 13.16% 2.13% $4,576.40
MKC 7.50% 1.87% $3,784.24
MMM 8.29% 2.59% $5,967.47
MO 7.96% 3.83% $35,639.87
NEE 12.99% 3.04% $3,434.10
NKE 14.29% 1.25% $6,542.65
O 6.04% 4.39% $8,775.23
PEP 7.12% 2.94% $7,808.23
PG 1.00% 3.24% $2,199.10
PM 1.96% 4.64% $10,046.73
RAI 27.78% 3.39% $5,359.94
ROST 14.89% 0.79% $8,172.52
SBUX 25.00% 1.78% $6,840.36
SJM 11.94% 2.37% $1,738.23
SO 3.23% 4.71% $2,679.42
SYK 10.14% 1.36% $2,940.27
T 2.13% 5.19% $2,772.33
TJX 23.81% 1.34% $4,182.22
V 17.86% 0.81% $10,301.18
VZ 2.21% 4.78% $2,123.76
WEC 8.20% 3.54% $1,348.65
WTR 7.47% 2.58% $927.06
XEL 6.25% 3.46% $3,538.13
. Weighted Div Raise Weighted Yield Stock Total (no cash)
10.11% 2.76% $237,718.93
My overall portfolio had a dividend raise of 10.11% for 2016. This means that the portfolio by itself without any help from my contributions will be able to increase the annual dividend checks by 10.11%. In other words for every $1000 I received this year, I will be able to get $1101 the following year.

My overall portfolio had a dividend yield of 2.76%. This means that for every $100,000 invested, I will receive $2760 in annual dividends. 

I usually take the sum of the dividend raise and dividend yield to identify my total growth in income in the year of 2016. The reason I add the dividend yield to the raise is because I reinvest my dividends. Therefore my income increases in two ways, both from the dividend raise and from the dividend yield reinvested back into the company. In 2016 my total growth in income ignoring periodic contributions is 10.11+2.76 = 12.87%

The top 10 dividend hikers this year were the following companies. These companies far exceeded my expectations. Reynolds dividend raise was largely due to their acquisition of Lorillard.
Company Name Dividend Raise
Reynolds American Inc 27.78%
Starbucks Corporation 25.00%
TJX Companies Inc 23.81%
Mastercard Inc 18.75%
Visa Inc 17.86%
Home Depot Inc 16.95%
Hormel Foods Corporation  16.00%
Ross Stores Inc 14.89%
Nike Inc 14.29%
Medtronic, Inc. 13.16%
I am quite satisfied with the results of 2016. Although many companies slowed I was still able to have a income increase value over 12%. For reference, I included my total portfolio performance in 2014 and 2015 below as reference. Overall my portfolio has been able to increase its annual income all by itself in the range of 12-13%.

Year Dividend Raise Dividend Yield Total Raise
2016  Portfolio 10.11% 2.76% 12.87%
2015  Portfolio 9.68% 2.94% 12.62%
2014  Portfolio 10.30% 2.81% 13.11%

2 comments:

  1. i noticed you sold your CVS and DIS holdings awhile back. any particular reason why?

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    Replies
    1. No particular reason. Both are good companies and are consistent.
      I wanted to be more defensive. CVS to a large degree is brick and mortar and I wanted to reduce my exposure to those types of companies. DIS is discretionary and I wanted my portfolio to be heavier in companies people need all the time. People do not need movies, theme parks, and toys when there is a recession but people will always need things like food, water, toilet paper, toothpaste, and shampoo.

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