Saturday, September 16, 2017

A look back at 4 years of dividend growth

I took some time to open up the charts from my previous years. I tabulated the dividend increases for each of my position every year. I write down how many percent they increase their dividend per share compared to the amount they paid previously. My portfolio's goal is to average around 2.5-3.0% in dividend yield and average 7.0-8.0% in dividend growth. With the dividends reinvested this is around 10-11% income growth in my portfolio per year which will allow me to meet my income goals.

I hold a variety of companies that all pay dividends in my portfolio. Some are slow growers like utilities or AT&T which pay a high yield but have slower dividend growth. Some are fast growers like ROST or Visa so their yields are lower but the dividend growth is much higher. I look at my portfolio's average dividend performance based on each position's dollar weighting and how much the raise was for that year.

To summarize these are the results I saw in 2014, 2015, 2016, and so far 2017. I saw a decrease in total income growth as the years went on because I saw many headwinds from the strong dollar. I also transitioned my portfolio over the years to emphasize more non-cyclical businesses that are higher quality (better credit rating and more conservative management). These type of companies grow slower and have a lower yield than riskier cyclical businesses that I used to hold when I started out. I hate to admit but when I started out I was victim of chasing yield and I got burned on each of those greedy positions.
Year Dividend Growth Dividend Yield Total Income Growth
2014 10.30% 2.81% 13.11%
2015 9.68% 2.94% 12.62%
2016 10.11% 2.76% 12.87%
2017 8.28% 2.70% 10.98%

I show more of the breakdown for each year below:

2014: My first year
In 2014 I had my first attempt at dividend growth investing. I held more cyclical companies than I do now and my preference over the years has been to shift away from technology, oil (energy), and industrial names and more into conservative non cyclical businesses. I also held a lot of Vanguard index funds in my 401k since that time I did not take the effort to open a brokerage account for my 401k. All my companies raised their dividend that year except the Vanguard bond fund which had a dip in income received.


Company Ticker Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Raise 2014 yr, Comments
Apple Inc AAPL 3.0500 3.2900 0.4700 0.4700 7.87% 1 to 7 split
Baxter International Inc BAX 0.4900 0.4900 0.5200 0.5200 6.12%
Church & Dwight CHD 0.3100 0.3100 0.3100 0.3100 10.71% was .28 last year
ConocoPhillips COP 0.6900 0.6900 0.7300 0.7300 5.80%
Chevron Corporation CVX 1.0000 1.0700 1.0700 1.0700 7.00%
The Walt Disney Company DIS 0.8600 14.67% paid .75 last yr, Pays 1x
General Mills, Inc. GIS 0.3800 0.4100 0.4100 0.4100 7.89%
HCP, Inc HCP 0.5450 0.5450 0.5450 0.5450 3.81% Was .525 last yr
Johnson & Johnson JNJ 0.6600 0.7000 0.7000 0.7000 6.06%
Kellogg Company K 0.4600 0.4600 0.4900 0.4900 6.52%
Kimberly-Clark KMB 0.8100 0.8400 0.8400 0.8400 3.70%
Kinder Morgan, Inc KMI 0.4100 0.4200 0.4300 0.4400 7.32% Do .44 / .41. Irregular.
The Coca-Cola Co KO 0.3050 0.3050 0.3050 0.3050 8.93% Last yr .28
Kraft Foods Group, Inc KRFT 0.5250 0.5250 0.5250 0.5500 4.76%
McDonald's Corporation MCD 0.8100 0.8100 0.8100 0.8500 4.94%
Altria Group Inc MO 0.4800 0.4800 0.4800 0.5200 8.33%
Realty Income Corp O 0.1822 0.1822 0.1822 0.1825 0.1825 0.1825 0.1828 0.1828 0.1828 0.1831 0.1831 0.1831 0.69% Take Dec 2014/Dec 2013
PepsiCo PEP 0.5675 0.5675 0.6550 0.6550 15.42%
Procter & Gamble Co PG 0.6015 0.6436 0.6436 0.6436 7.00%
Philip Morris International Inc PM 0.9400 0.9400 0.9400 1.0000 6.38%
Ross Stores Inc ROST 0.2000 0.2000 0.2000 0.2000 17.65% .17 last year
Starbucks Corporation SBUX 0.2600 0.2600 0.2600 0.3200 23.08%
Southern Co SO 0.5075 0.5250 0.5250 0.5250 3.45%
AT&T Inc T 0.4600 0.4600 0.4600 0.4600 2.22% .45 last yr
TJX Companies Inc TJX 0.1450 0.1750 0.1750 0.1750 20.69%
Union Pacific Corporation UNP 0.7900 0.9100 0.4550 0.5000 26.58% split, hike 2x
United Technologies Co UTX 0.5900 0.5900 0.5900 0.5900 10.28% 5qtr cycle, take .59/.535
Visa Inc V 0.4000 0.4000 0.4000 0.4800 20.00%
Total Bond Fund VBTIX 0.0242 0.0242 0.0224 0.0243 0.0238 0.0239 0.0231 0.0235 0.0232 0.0225 0.0227 0.0221 -6.51% Bond, 12 '13 was.02367
Institutional Index Fund VIIIX 0.8180 0.8100 0.9000 1.0570 17.44% Index, 12 '13 was .9
Mid Cap Index Fund VMCPX 0.0310 2.1550 23.00% Index, 12 '13 was 1.752
Small Cap Index Fund VSCIX 0.0080 0.8010 16.93% Index, 12 '13 was .685
Verizon Communications Inc VZ 0.5300 0.5300 0.5300 0.5500 3.77%
Wal-Mart Stores Inc WMT 0.4700 0.4800 0.4800 0.4800 2.13%
Exxon Mobil Corp XOM 0.6300 0.6900 0.6900 0.6900 9.52%

It will be interesting to note that 2 companies I held here will have issues paying the dividend later. KMI cut the dividend after the crash in oil prices in a few months and I sold out (lesson learnt). Conoco Philip also suffered in the coming months due to the oil crisis, and they did cut their dividend. KRFT (Kraft) eventually got bought out by 3G Capital and Buffett and became Kraft Heinz (KHC).

Company Dividend Raise Company Yield Portfolio Holding
AAPL 7.87% 1.72% $2,405.26
BAX 6.12% 2.84% $1,698.09
CHD 10.71% 1.57% $1,977.25
COP 5.80% 4.24% $1,585.16
CVX 7.00% 3.80% $2,939.82
DIS 14.67% 1.23% $1,221.42
GIS 7.89% 3.09% $2,018.18
HCP 3.81% 4.86% $762.45
JNJ 6.06% 2.68% $2,840.25
K 6.52% 2.99% $1,107.79
KMB 3.70% 2.91% $1,163.90
KMI 7.32% 4.11% $3,407.76
KO 8.93% 2.90% $1,910.42
KRFT 4.76% 3.51% $1,289.18
MCD 4.94% 3.65% $1,412.02
MO 8.33% 4.25% $2,350.53
O 0.69% 4.52% $3,845.92
PEP 15.42% 2.77% $1,524.68
PG 7.00% 2.84% $1,718.36
PM 6.38% 4.94% $2,204.47
ROST 17.65% 0.85% $1,878.59
SBUX 23.08% 1.57% $1,465.92
SO 3.45% 4.25% $1,234.25
T 2.22% 5.43% $1,717.82
TJX 20.69% 1.03% $1,223.28
UNP 26.58% 1.69% $1,310.19
UTX 10.28% 2.05% $1,271.93
V 20.00% 0.72% $1,590.12
VBTIX -6.51% 2.56% $1,332.64
VIIIX 17.44% 1.80% $10,724.09
VMCPX 23.00% 1.06% $2,333.30
VSCIX 16.93% 1.23% $1,064.47
VZ 3.77% 4.68% $1,187.81
WMT 2.13% 2.24% $950.18
XOM 9.52% 2.97% $2,692.07
. Weighted Div Raise Weighted Yield Stock Total (no cash)
10.30% 2.81% $71,359.57

The table above shows the dollar amount of each position and the yield and dividend raise. You can take a weighted average in Excel to get an overall portfolio value. Note that this table does not include my cash positions. I always hold a decent amount of cash in my portfolio to be conservative for emergencies and when new opportunities come up. Since cash yields nothing I did not include it in this table as it skews the results.

Overall for 2014 my average dividend raise was 10.3% and the average yield was 2.81% which totals a growth in dividend income of 13.11% which was rather high.

2015: The oil crash and move to noncyclical
In 2015 I shifted my portfolio to all dividend stocks. I held no more Vanguard index funds. In 2015 I also had some issues with oil companies. I held a few names in 2014 such as Kinder Morgan (KMI), Exxon (XOM), Chevron (CVX), Conoco Philips (COP), and I even speculated with Seadrill for a few weeks (SDRL). I lost a few bucks here and there. KMI and COP cut the dividend. I sold out before the news but I had some losses. Seadrill I sold out but the position was less than $1000 so the impact was not large. Chevron continues to hold the dividend still. And Exxon was conservative but I can tell it was suffering. 

In 2015 to 2016 I saw a large shift in my portfolio away from cyclical businesses to more conservative non-cyclical businesses. Technology, riskier biotech and pharma companies, industrials, energy, and material businesses were reduced or swapped for consumer staples, utilities, every day used discretionary companies, and non-cyclical healthcare companies (i.e. medical tools and equipment supplies and consumer products instead of biotechs).

Company Ticker Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Raise 2015 yr, Comments
Apple Inc AAPL 0.4700 0.5200 0.5200 0.5200 10.60%
AbbVie Inc ABBV 0.4900 0.5100 0.5100 0.5100 21.43% plus in 2 and 5, usually 2
Abbott Laboratories ABT 0.2400 0.2400 0.2400 0.2400 9.09% was 0.22 last year
Air Products & Chemicals, Inc APD 0.7700 0.8100 0.8100 0.8100 5.19%
Becton Dickinson and Co BDX 0.6000 0.6000 0.6000 0.6600 10.00%
Church & Dwight CHD 0.3350 0.3350 0.3350 0.3350 8.06%
Colgate-Palmolive Co CL 0.3600 0.3800 0.3800 0.3800 5.56%
CVS Health Corporation CVS 0.3500 0.3500 0.3500 0.3500 27.27% Was 0.275 last yr
Chevron Corporation CVX 1.0700 1.0700 1.0700 1.0700 0.00% still aristo. even no raise
Dominion Resources, Inc D 0.6475 0.6475 0.6475 0.6475 7.92%
The Walt Disney Company DIS 1.1500 0.6600 14.80% Change to biann from ann
General Mills, Inc. GIS 0.4100 0.4400 0.4400 0.4400 7.31%
HCP, Inc HCP 0.5650 0.5650 0.5650 0.5650 3.67%
Johnson & Johnson JNJ 0.7000 0.7500 0.7500 0.7500 7.10%
The Coca-Cola Co KHC 0.5500 0.5750 4.54% New merger,  schedule
Kimberly-Clark KMB 0.8400 0.8800 0.8800 0.8800 4.76%
The Coca-Cola Co KO 0.3300 0.3300 0.3300 0.3300 8.20% 4/7/10/12
Mastercard Inc MA 0.1600 0.1600 0.1600 0.1600 45.45% Was 0.11 last year.
McDonald's Corporation MCD 0.8500 0.8500 0.8500 0.8900 4.70%
McCormick & Company MKC 0.4000 0.4000 0.4000 0.4000 8.11%
3M Co MMM 1.0250 1.0250 1.0250 1.0250 19.88%
Altria Group Inc MO 0.5200 0.5200 0.5200 0.5650 8.65%
NextEra Energy Inc NEE 0.7700 0.7700 0.7700 0.7700 6.20%
Novo Nordisk A/S NVO 5.0000 11.11% Pays Denmark DKK 1x/yr
Realty Income Corp O 0.1834 0.1890 0.1890 0.1895 0.1895 0.1895 0.1900 0.1900 0.1900 0.1905 0.1905 0.1905 4.04% y/y increase not regular
PepsiCo PEP 0.6550 0.6550 0.7025 0.7025 7.25%
Procter & Gamble Co PG 0.6436 0.6629 0.6629 0.6629 3.00%
Philip Morris International Inc PM 1.0000 1.0000 1.0000 1.0200 2.00%
Praxair, Inc PX 0.7150 0.7150 0.7150 0.7150 10.00%
Ross Stores Inc ROST 0.2350 0.2350 0.2350 0.1175 17.50% stock split 2:1
Starbucks Corporation SBUX 0.3200 0.1600 0.1600 0.2000 25.00% they did a 2:1 split
Southern Co SO 0.5250 0.5425 0.5425 0.5425 3.30%
AT&T Inc T 0.4700 0.4700 0.4700 0.4700 2.17%
TJX Companies Inc TJX 0.1750 0.2100 0.2100 0.2100 20.00%
United Technologies Co UTX 0.6400 0.6400 0.6400 0.6400 8.47% weird 5qtr pay schedule
Visa Inc V 0.4800 0.1200 0.1200 0.1400 16.67% split  4:1
V.F. Corporation VFC 0.3200 0.3200 0.3200 0.3700 15.60%
Verizon Communications Inc VZ 0.5500 0.5500 0.5500 0.5650 2.73%
WEC Energy Group, Inc. XEL 0.3000 0.3200 0.3200 0.3200 6.67%
Exxon Mobil Corp XOM 0.6900 0.7300 0.7300 0.7300 5.80%

Company Dividend Raise Company Yield Portfolio Holding
AAPL 10.60% 1.98% $2,355.06
ABBV 21.43% 3.85% $1,884.57
ABT 9.09% 2.32% $2,111.48
APD 5.19% 2.49% $1,151.42
BDX 10.00% 1.71% $2,849.79
CHD 8.06% 1.58% $4,828.45
CL 5.56% 2.28% $2,309.55
CVS 27.27% 1.74% $1,331.76
CVX 0.00% 4.76% $2,071.84
D 7.92% 3.83% $2,895.51
DIS 14.80% 1.35% $2,355.56
GIS 7.31% 3.05% $4,377.06
HCP 3.67% 5.91% $2,472.25
JNJ 7.10% 2.92% $9,086.29
KHC 4.54% 3.07% $4,156.76
KMB 4.76% 3.16% $3,796.19
KO 8.20% 2.77% $2,781.31
MA 45.45% 0.78% $4,579.62
MCD 4.70% 3.01% $1,850.45
MKC 8.11% 2.01% $3,473.84
MMM 19.88% 2.72% $2,277.72
MO 8.65% 3.88% $10,905.35
NEE 6.20% 2.96% $1,513.11
NVO 11.11% 1.26% $7,311.63
O 4.04% 4.44% $7,936.05
PEP 7.25% 2.81% $4,931.16
PG 3.00% 3.34% $2,710.80
PM 2.00% 4.64% $8,167.00
PX 10.00% 2.79% $1,785.12
ROST 17.50% 0.87% $3,441.97
SBUX 25.00% 1.33% $2,308.01
SO 3.30% 4.64% $2,444.45
T 2.17% 5.58% $4,207.92
TJX 20.00% 1.18% $2,181.83
UTX 8.47% 2.66% $1,747.23
V 16.67% 0.72% $6,207.52
VFC 15.60% 2.38% $762.83
VZ 2.73% 4.89% $1,911.52
XEL 6.67% 3.56% $652.01
XOM 5.80% 3.75% $4,260.77
. Weighted Div Raise Weighted Yield Stock Total (no cash)
9.68% 2.94% $140,382.76

The dividend increase in 2015 were less but still good. The statistic will be a bit lower if I included KMI and COP which I sold out and those two companies cut their dividend. The raise would be probably in the low 9% instead of 9.68% if I included those two cuts so it wasn't significant. I had sold COP and KMI early in 2015. Since my portfolio was diversified with many companies, if 2 companies were to partially cut the dividend the overall impact to the portfolio will be hard to see. Looking at just positions I held at the end of the year I saw income grow 9.68+2.94% = 12.62% which is above my 10% goal.

2016: Business as usual...
In 2016 I have had no dividend freezes or cuts so far. The income machine was working like clockwork this whole year. My portfolio continues to mold itself into a more conservative structure in 2016. Technology and industrials and energy and materials are very small positions in this portfolio. Non cyclical businesses are heavily emphasized such as consumer staples, utilities, and healthcare.

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

The dividend growth in 2016 was good. I averaged 10.11+2.76 = 12.87%
However with the strengthening dollar I expect dividend growth to slow considerably. A lot of my dividend aristocrats have a tough time expanding the top and bottom line so dividends will slow.

2017: My progress so far this year
Like clockwork, 2017 is another boring normal year like 2016. Nothing out of the ordinary happened. In 2017 I have had no dividend freezes or cuts so far. I hold 40 companies in my diversified portfolio as of today. 36 of the 40 companies have announced dividend increases already. I am waiting for 4 more. I gave estimates of the dividend increase for the remaining 4. BCR will probably not announce a raise since they're being bought out by BDX. BDX may (now that I think about it) raise less than their usual 10% because they are spending a lot of money buying BCR this year.

Company Ticker Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Raise 2017 yr, Comments
Abbott Laboratories ABT 0.2650 0.2650 0.2650   1.92% .265 / .260
Automatic Data Proc, Inc ADP 0.5700 0.5700 0.5700 0.5700 7.55% .57 / .53
Air Products & Chemicals, Inc APD 0.8600 0.9500 0.9500   10.47%
C R Bard Inc BCR 0.2600 0.2600 0.2600   8.50% Being acquired by BDX
Becton Dickinson and Co BDX 0.7300 0.7300 0.7300   11.00% Educated guess
Church & Dwight CHD 0.1900 0.1900 0.1900   7.04% .19 / .1775
Colgate-Palmolive Co CL 0.3900 0.4000 0.4000   2.56%
Clorox Co CLX 0.8000 0.8000 0.8400   5.00%
Dominion Resources, Inc D 0.7550 0.7550 0.7550   7.86% .755 / .7
Federal Realty Investment Trust FRT 0.9800 0.9800 0.9800 1.0000 2.04%
General Mills, Inc. GIS 0.4800 0.4800 0.4900   2.08%
Home Depot Inc HD 0.8900 0.8900 0.8900   28.99% Was .69
Hormel Foods Corporation HRL 0.1700 0.1700 0.1700   17.24% 0.145 last year
Illinois Tool Works Inc. ITW 0.6500 0.6500 0.6500 0.7800 20.00%
Johnson & Johnson JNJ 0.8000 0.8400 0.8400   5.00%
Kraft Heinz Co KHC 0.6000 0.6000 0.6000 0.6250 4.17%
Kimberly-Clark KMB 0.9200 0.9700 0.9700 0.9700 5.43%
The Coca-Cola Co KO 0.3700 0.3700 0.3700   5.71% Was .35
Mastercard Inc MA 0.2200 0.2200 0.2200   15.79% .22 / .19
McDonald's Corporation MCD 0.9400 0.9400 0.9400   6.00% Educated guess
Medtronic, Inc. MDT 0.4300 0.4300 0.4600 0.4600 6.98%
McCormick & Company MKC 0.4700 0.4700 0.4700 0.4700 9.30% .47 / .43
3M Co MMM 1.1750 1.1750 1.1750   5.86% 1.175 / 1.110
Altria Group Inc MO 0.6100 0.6100 0.6100 0.6600 8.20%
NextEra Energy Inc NEE 0.9830 0.9830 0.9830   12.99% Was .87
Realty Income Corp O 0.2030 0.2110 0.2110 0.2110 0.2110 0.2110 0.2120 0.2120 0.2120 0.2200     5.47% month / last month
PepsiCo PEP 0.7520 0.7520 0.8050 0.8050 7.05%
Procter & Gamble Co PG 0.6690 0.6900 0.6900   3.14%
Philip Morris International Inc PM 1.0400 1.0400 1.0400 1.0700 2.88%
Ross Stores Inc ROST 0.1600 0.1600 0.1600   18.52% from .1350
Starbucks Corporation SBUX 0.2500 0.2500 0.2500   20.00% Educated guess
The J. M. Smucker Company SJM 0.7500 0.7500 0.7800   4.00%
Southern Co SO 0.5600 0.5800 0.5800   3.57%
Stryker Corporation SYK 0.4250 0.4250 0.4250 0.4250 11.84% .425 / .38
AT&T Inc T 0.4900 0.4900 0.4900   2.08% .49 / .48
TJX Companies Inc TJX 0.2600 0.3125 0.3125   20.19%
Visa Inc V 0.1650 0.1650 0.1650   22.00% Educated guess
WEC Energy Group, Inc WEC 0.5200 0.5200 0.5200   5.05% .52 / .495
Aqua America, Inc WTR 0.1910 0.1900 0.2050   7.89%
Xcel Energy Inc XEL 0.3400 0.3600 0.3600 0.3600 5.88%

I don't have the finals for dividend growth averages and yield averages since the year has not come to a close yet. However from my estimates so far dividend growth in 2017 has considerably slowed compared to 2014, 2015, and 2016. It is likely because my portfolio has shifted towards more conservative consumer staples dividend aristocrat names (think KMB, PG, PEP) and these type of blue chip companies do not grow incredibly fast.

I am seeing a dividend growth in 2017 of around 8.28% and an average yield of 2.7%. This is around a 10.98% dividend growth with the dividends reinvested which is still not bad. Since when do I get a 10% raise at work every year!



Stay tuned until the end of the year to see my 2017 results.
Happy investing
 -YD

5 comments:

  1. Just another real world example of how dividend investing works over time. Thanks for sharing.

    ReplyDelete
  2. I've only been following your blog over the last year, so this historical perspective really gives us a sense of your strategy and progress.

    Regarding a few of your sales, specifically--AAPL, ABBV, CVS, CVX, DIS, UNP, UTX, VFC, VZ, WMT, XOM--these could all be described as quality dividend payers. Could you see yourself ever jumping back into any of these stocks (and if so, which ones) or do you see them all as inhabiting industries/sectors with too much cyclicality/risk?

    ReplyDelete
    Replies
    1. AAPL - looking back it looks like I made a mistake to sell. But I stay committed to focusing more on companies that offer products we use everyday that are in industries that do not change much. Technology has trends and trends change too fast. I don't want my dividend checks to be at risk.

      ABBV - Biotech and Pharma drug manufacturers is a risky business. And failure to develop new drugs or failure to be the only monopoly in town is risky. I treat drug makers like tech startups. Too risky for me. In healthcare I prefer less cyclical businesses such as medical equipment makers, consumer goods (i.e. tylenol), medical disposables like needles or surgeon gloves, surgery knives, medical tools like scanning machines etc.

      CVS - I stick away from brick and mortar. The only ones I am willing to have now are Home Depot (hard to Amazon what they do), TJX and ROST (bargain hunting is still alive and well).

      CVX / XOM - I see no need to be part of an industry (oil) that will likely exist in a much smaller scale or be phasing out in the next decades

      VZ - too much debt. Too many acquisitions and some don't make sense at all. I prefer AT&T. AT&T has a more established dividend history.

      DIS - I tend to not like discretionaries. Do I need to go to Disneyland or watch movies when I lost my job and the economy is in shambles?

      UNP - I prefer more diversified business industrial. Like a MMM or UTX or ITW or GD. UNP is too cyclical and is highly dependent on a growing economy.

      UTX - I think UTX is an interesting buy now especially after it dropped after announcing it is purchasing Rockwell. I am considering purchasing it back to pair along my MMM and ITW.

      VFC - I tend to want to stay away from discretionary companies. Clothes are discretionary. I won't be buying more clothes if I lose my job.

      WMT - I don't want to fight against Amazon. I got better use for my money.

      Delete
    2. thanks for the in-depth, commonsense reply. I'm long most of the above, AAPL, ABBV, CVS, CVX, DIS, XOM, VZ, WMT--but that being said, most are not core stocks within my portfolio. Specifically, I am considering trimming/selling CVS in the months to come and WMT after the new year (for tax purposes). Also interested in starting a position in AMZN, but need more of a pullback to make that happen.

      Delete
  3. Thanks for sharing YD. I'm looking forward to seeing your year-end results. Glad to see you're sticking to your strategy and I'm enjoying following your journey. It's also been nice that we've been riding a pretty significant bull market these last few years as well. Stick to it when things ultimately change. Take care,

    ReplyDelete