Sunday, February 17, 2019

TROW raised its dividend by 8,6%

A few days ago T. Rowe Price (TROW) announced a quarterly dividend raise from $0,70 to $0,76. This raise of almost 9% adds just over € 4 to my annual dividend income.

I am an owner of TROW since July 2016. I purchased share for a price of around $75. Currently shares are worth over $ 97, so in price appreciation alone this position has netted me about 11% per year. However, if you add in the dividend along the ride, the total return is bumped up to 14,4%. I honestly have nothing to complain here!

The dividend has grown from $0,54 quarterly to $0,76. This is an awesome dividend growth rate of 15%. However, its payout ratio is still rather comfortable at just over 40% based on the new dividend! I therefore expect the growth to continue. Its P/E-ratio looks solid as well (13x). Together with the dividend yield of 3,1% I consider adding to this position in the near future.

So far I received 7 dividend raises in 2019. These raises combined have added almost € 20 to my forward annual dividend income. Of course I expect more raises during the rest of the year. I'll keep you updated!

Did you like the dividend raise of TROW? Do you consider purchasing TROW at this moment? How have your dividend raises been so far in general?

Monday, February 11, 2019

UNP raised its dividend by 10%

A few days ago Union Pacific (UNP) declared a $0.88/share quarterly dividend, which is a 10% increase from its prior quarterly dividend of $0.80. Since I own 15 share of UNP this raise adds about € 4 to my forward annual dividend income. This is a really solid dividend increase in my book!

I purchased my shares about 4 years ago for $108 a piece. Currently they are worth around $162, so that's roughly an 11% annual rate of return, based just on the price appreciation alone.

In the past years I've received about 10% of my original purchase price in dividends. The dividend has grown from $0,55 per share (quarterly) to its current level of $0,88 per share. That's an awesome growth rate of 13% each year. At this pace the dividend is expected to double in value about every six years! I am really content to have added this company to my portfolio a few years ago.

What do you think the dividend raise by UNP? Do you consider adding shares to your portfolio at its current price?

Thursday, February 7, 2019

Aflac raised its dividend by 3,8%

A few days ago Aflac decided to raise its quarterly dividend by $0,01 to $0,27. This is a raise of 3,8% and adds roughly € 2 to my annual dividend income! Ka ching!!

So far Aflac has been a solid perfomer in my dividend portfolio. I bought a block of 56 shares, about 4,5 years ago. Its share adjusted price at that time was $30,70. Currently it's price is around $48. That is a rate of return of 10% per year, without accounting for the dividends.

Its quarterly dividend at the time of my purchase was $0,185. This means that the dividend compounded at roughly 9% each year.

Solid dividend income that grows rather nicely, with a nice rate of return on the share price as well. What more do you want from a stock?

Do you own Aflac? What did you think of its latest dividend raise?

Friday, February 1, 2019

Dividend report - January 2019

It's time to give an update of the dividends I received last month. Five companies decided to pay me a dividend for my ownership. Total dividends (after tax) are around €80, 250% more than last year.

Obviously this growth rate is skewed by the special dividend from BBL. However, if you remove the BBL dividend the growth rate is still more than 20%. I really like this growth and hope to further increase it this year!

You can see the breakdown in the table below.

What is nice to notice is that this is the result of pure dividend growth and reinvestment. As you may have read earlier, I didn't deposit any new funds into this account for the last two years. So any increase in dividend income is because of the raises I received earlier this year. Big growers this month are BAX and in a lesser extent PM. Furthermore, last year I bought a position in O with the cumulative dividends I received so that's also a big plus to the monthly dividend income. I am curious to see by how much Walmart will raise its dividend in the upcoming period.

None this month.

Yearly forward dividend
Yearly dividend income (before taxes) remains unchanged around €1225.

Friday, January 25, 2019

Intel raises dividend by 5%

It's time for the second dividend raise of the year! Intel (ticker: INTC) decided to send me more money each quarter! They raised their quarterly dividend to $0.315 per share. That works out to a raise of $0,06 per share each year. I currently own 63 shares, so that's an extra $4 each year!

I have been a long-term shareholder of Intel. I bought my shares back in July 2013. The dividend growth is not exceptional but with slightly more than 6% per year nothing to sneeze at either.

However, if you look at it from a total return perspective, this investment has been quite amazing! The annual return of the stock price is around 13%. The fact that I received over 25% of my original investment in the form of dividends, adds around 3% to the return. Finally I have had some luck with foreign currency exchange rates, so that adds another 3% to the return. In total my return on investment has been 19% per year for almost 6 years!

How has your Intel investment performed over the years? Are you contemplating adding to your Intel position on the backdrop of its recent earnings report?

Sunday, January 20, 2019

Dividend raise - Realty Income

It's time for the first dividend raise of the year! Realty Income (ticker: O) decided to send me more money each month! They raised their monthly dividend to $0.2255 per share. That works out to a raise of $0,06 per share each year. I currently own 25 shares, so that's an extra $1.50 each year! Ka-ching!

All jokes aside, Realty Income increases their dividend on more than one occasion each year, so hopefully there's more to come this year!

Wednesday, January 16, 2019

Recent buy: AT&T (T)

Earlier in January I purchased my first shares in 2019. I used around $1.200 to purchase 42 shares in AT&T (ticker symbol: T) for a price of $28.65. This will add around €75 to my annual forward dividend income.

My reasoning is as follows:
  • T seemed undervalued based on a PE-ratio, compared to earlier years.
  • T's yield at the time of my purchase was monstrous. There's no need for high growth with a yield of 7,1%. T's recent dividend growth is muted but coupled with a historically high yield this seems fine.
  • Major, recent acquisitions of T are TimeWarner for $85 billion (in 2016) and DirectTV for $48 billion (in 2015). Hopefully this will provide top line growth and a strengthening of AT&T's position in the content space.
  • Its current debt leven is worring, but muted dividend growth combined with some asset sales should provide enough wiggle room in order to reduce debt levels.
  • Finally, I had no exposure towards telecommunications in my dividend portfolio. The addition of T seems logical from that perspective.
What do you think of my purchase of T? Did you recently purchased shares of T?