Below is the chart of the companies I hold and their increases. The cells show how much (in US dollars) each share pays on that given month. The gray boxes are regular payments and the light green show increases announced. The red text mean that the company decided to not announce an increase, on those months I was expecting an increase given their past history. GIS and KHC (food stocks) did not announce a hike this year. They have both kept constant given the challenging environment they are in. Both have safe payout ratios so I am not worried so far. GIS has held the dividend constant in the past but they have paid dividends constantly for a hundred or so years, so this is not the first time.
| Company | Ticker | Jan | Feb | Mar | Apr | May | Jun | Jul | Aug | Sep | Oct | Nov | Dec | Raise | 2018 yr, notes |
| Abbott Laboratories | ABT | 0.2800 | 0.2800 | 0.2800 | 0.2800 | 5.66% | 0.265 previous | ||||||||
| Automatic Data Proc, Inc | ADP | 0.6300 | 0.6300 | 0.6900 | 0.6900 | 21.05% | irregular raise use12mo | ||||||||
| Air Products & Chemicals, Inc | APD | 0.9500 | 1.1000 | 1.1000 | 1.1000 | 15.79% | |||||||||
| Becton Dickinson and Co | BDX | 0.7500 | 0.7500 | 0.7500 | 0.7700 | 2.67% | |||||||||
| Church & Dwight | CHD | 0.2180 | 0.2180 | 0.2180 | 0.2180 | 14.74% | 0.19 before | ||||||||
| Colgate-Palmolive Co | CL | 0.4000 | 0.4200 | 0.4200 | 0.4200 | 5.00% | |||||||||
| Clorox Co | CLX | 0.8400 | 0.9600 | 0.9600 | 0.9600 | 14.29% | move Aug->May early | ||||||||
| Dominion Resources, Inc | D | 0.8350 | 0.8350 | 0.8350 | 0.8350 | 10.60% | irregular raise use12mo | ||||||||
| General Mills, Inc. | GIS | 0.4900 | 0.4900 | 0.4900 | 0.4900 | 0.00% | No raise | ||||||||
| General Dynamics Corporation | GD | 0.8400 | 0.9300 | 0.9300 | 0.9300 | 10.71% | |||||||||
| Home Depot Inc | HD | 1.0300 | 1.0300 | 1.0300 | 1.0300 | 15.73% | |||||||||
| Honeywell International Inc. | HON | 0.7450 | 0.7450 | 0.7450 | 0.8200 | 10.07% | |||||||||
| Illinois Tool Works Inc. | ITW | 0.7800 | 0.7800 | 0.7800 | 1.0000 | 28.21% | |||||||||
| Johnson & Johnson | JNJ | 0.8400 | 0.9000 | 0.9000 | 0.9000 | 7.14% | |||||||||
| Kraft Heinz Co | KHC | 0.6250 | 0.6250 | 0.6250 | 0.6250 | 0.00% | No raise | ||||||||
| Kimberly-Clark | KMB | 0.9700 | 1.0000 | 1.0000 | 1.0000 | 3.09% | |||||||||
| The Coca-Cola Co | KO | 0.3900 | 0.3900 | 0.3900 | 0.3900 | 5.41% | 0.37 previous | ||||||||
| Mastercard Inc | MA | 0.2500 | 0.2500 | 0.2500 | 0.2500 | 13.64% | |||||||||
| McDonald's Corporation | MCD | 1.0100 | 1.0100 | 1.0100 | 1.1600 | 14.85% | |||||||||
| Medtronic, Inc. | MDT | 0.4600 | 0.4600 | 0.5000 | 0.5000 | 8.70% | |||||||||
| McCormick & Company | MKC | 0.5200 | 0.5200 | 0.5200 | 0.5200 | 10.64% | 0.47 previous | ||||||||
| 3M Co | MMM | 1.3600 | 1.3600 | 1.3600 | 1.3600 | 15.74% | 1.175 previous | ||||||||
| Altria Group Inc | MO | 0.6600 | 0.7000 | 0.7000 | 0.8000 | 21.21% | Was 0.66 last yr | ||||||||
| Microsoft Corporation | MSFT | 0.4200 | 0.4200 | 0.4200 | 0.4600 | 9.52% | |||||||||
| NextEra Energy Inc | NEE | 1.1100 | 1.1100 | 1.1100 | 1.1100 | 12.92% | 0.983 previous | ||||||||
| Realty Income Corp | O | 0.1230 | 0.2190 | 0.2190 | 0.2200 | 0.2200 | 0.2200 | 0.2200 | 0.2200 | 0.2200 | 0.2210 | 0.2210 | 0.2210 | 4.25% | irregular raise use12mo |
| PepsiCo | PEP | 0.8050 | 0.8050 | 0.9275 | 0.9275 | 15.22% | |||||||||
| Procter & Gamble Co | PG | 0.6900 | 0.7170 | 0.7170 | 0.7170 | 3.91% | |||||||||
| Philip Morris International Inc | PM | 1.0700 | 1.0700 | 1.1400 | 1.1400 | 6.54% | irregular | ||||||||
| Ross Stores Inc | ROST | 0.2250 | 0.2250 | 0.2250 | 0.2250 | 40.63% | Was 0.160 last yr | ||||||||
| Starbucks Corporation | SBUX | 0.3000 | 0.3000 | 0.3600 | 0.3600 | 20.00% | Irregular | ||||||||
| Stryker Corporation | SYK | 0.4700 | 0.4700 | 0.4700 | 0.4700 | 10.59% | 0.425 previous | ||||||||
| AT&T Inc | T | 0.5000 | 0.5000 | 0.5000 | 0.5000 | 2.04% | |||||||||
| TJX Companies Inc | TJX | 0.3130 | 0.3900 | 0.3900 | 0.1950 | 24.60% | split | ||||||||
| Visa Inc | V | 0.2100 | 0.2100 | 0.2100 | 0.2500 | 28.20% | irregular raise use12mo | ||||||||
| WEC Energy Group, Inc | WEC | 0.5530 | 0.5530 | 0.5530 | 0.5530 | 6.35% | 0.52 previous | ||||||||
| Xcel Energy Inc | XEL | 0.3600 | 0.3800 | 0.3800 | 0.3800 | 5.56% |
I then took each of the stocks' dividend increase and also the weighting of that stock in my portfolio. I used these two data to calculate the portfolio's average dividend yield and dividend hike. In 2018 the portfolio generated a dividend increase of 13.20% all by itself (note this increase is independent of my individual contributions throughout the year). And the portfolio sits at around 2.76% yield. Since all dividends are reinvested the portfolio generated a 13.20+2.76 = 15.96% increase in income by itself in 2018.
| . | Weighted Div Raise | Weighted Yield |
| 13.20% | 2.76% |
This increase is huge. I think the bump this year is largely due to tax cuts enacted by the recent administration. I don't expect such a huge increase to continue into future years. I plotted below data from past years for comparison. Usually total income growth is in the 12% range, so 16% is way over my goals.
| 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 | 9.49% | 2.62% | 12.10% |
| 2018 | 13.20% | 2.76% | 15.96% |
Dividends are the key to my investing strategy. The income the assets generate and the growth of that income by itself is also very important. Which is why I track them so closely.
Happy investing
-YD
No comments:
Post a Comment