Monthly Update: December 2014

A little bit earlier than usual, but in a few days I can post my annual results, so why not post the monthly update in advance? All in all, December was a pretty solid month in terms of market and portfolio return, even though most oil stocks took a beating. I was unable to pounce on the continued price weakness in these stocks because of a lack of fresh capital.

Stock markets rose slightly here in The Netherlands as well as abroad. The US Dollar also rose in value against the Euro, which is fine for my portfolio because it's mostly denominated in USD.

Indicator	As of 30-11	As of 29-12	% change
S&P 500 Total Return	3.779	3.827	+1.3%
Dow Jones Industrials Total Return	35.507	36.081	+1.6%
AEX GR	1.235	1.244	+0.8%
USD.EUR	0,8019	0,8227	+2.6%
Portfolio value	€ 20.881	€ 21.390	+2.4%

Monthly Update: November 2014

A little bit late, but better late than never, right? The month has passed and it's my favorite time, giving an update of my dividend portfolio. All in all, November was a pretty solid month in terms of market and portfolio return. Stock markets surged ahead, here in The Netherlands as well as abroad.

Indicator	As of 31-10	As of 30-11	% change
S&P 500 Total Return	3.680	3.779	+2.7%
Dow Jones Industrials Total Return	34.619	35.507	+2.6%
AEX GR	1.195	1.235	+3.3%
USD.EUR	0,7987	0,8019	+0.4%
Portfolio value	€ 20.323	€ 20.881	+2.7%

Monthly Update: October 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I've updated my benchmarks to include the total return indices, instead of only the stockprice indices. This seems like a better comparison.

Indicator	As of 30-9	As of 31-10	% change
S&P 500 Total Return	3.545	3.680	+3.8%
Dow Jones Industrials Total Return	33.417	34.619	+3.6%
AEX GR	1.210	1.195	-1.3%
USD.EUR	0,7924	0,7987	+0.8%
Portfolio value	€ 20.095	€ 20.323	+1.1%

Recent buy: IBM

In my monthly recap I mentioned I had enough funds to open a new position. I have used these funds to purchase 7 shares of IBM for $190 per share. This purchase adds €25 to my annual forward dividends which now stands at €750.

My reasoning for this purchase is as follows:

• IBM currently yields 2.3% and has increased the dividend 13% per year in the last five years.
• The payout ratio is extremely low (25%) which leaves ample room for future dividend increases.
• P/E-ratio is low (<12).
• IBM is buying their own common stock hand over fists. Especially at current prices, this provides a floor to the stock price and leaves me with a bigger piece of the profit pie.
• IBM shifted from begin a low margin hardware company to a higher margin supplier of business solutions, software and IT consulting.
• Big Data, Cloud and Mobile are important trends. IBM is a key player in this segment and should be able to profit from these developments.
• IBM estimates to earn $20 in operating earnings per share in 2015. The company currently earns $15-16 per share. This results in $18 billion in net income in 2013!

It's my 2nd purchase in the technology sector after Intel. I think IBM will complement my portfolio very well as I consider it to a stable and big player during one of the major societal developments in the next decade.

What do you think of this purchase?

Monthly update: September 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I've updated my benchmarks to include the total return indices, instead of only the stockprice indices. This seems like a better comparison.

Indicator	As of 31-8	As of 30-9	% change
S&P 500 Total Return	3.645	3.545	-2.7%
Dow Jones Industrials Total Return	33.910	33.417	-1.5%
AEX GR	1.203	1.210	+0.6%
USD.EUR	0,7616	0,7924	+4.0%
Portfolio value	€ 19.313	€ 19.195	-0.6%

Northrop Grumman: Beacon Of Stability In An Unstable World

Earlier this week I wrote a new article on Northrop Grumman for Seeking Alpha.You can check it here! Some people are opposed to investing in military and defense companies like NOC. I am not one of those, because it's not the companies or their products that cause war and turmoil, it's people and their politicians. As an investor you might as well profit and hedge yourself in times of geopolitical tensions.

What do you think?

Omega Healthcare Investors: Sensitivity To Rising Interest Rates Compared To Other Healthcare REITs

Last weekend I wrote a post about Omega Healthcare Investors, one of the companies I own in my DGI portfolio. I compared the sensitivity to interest rate changes to other healthcare REITs like Ventas, HCN and HCP. Do you want to know what the outcome is? Read it here!

I am curious to know what you thought of the article. Let me know and drop a comment below or at Seeking Alpha. Thanks!

Monthly update: August 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I've updated my benchmarks to include the total return indices, instead of only the stockprice indices. This seems like a better comparison.

Indicator	As of 31-7	As of 31-8	% change
S&P 500 Total Return	3.503	3.645	+4,0%
Dow Jones Industrials Total Return	32.786	33.910	+3,4%
AEX GR	1.168	1.203	+3,0%
USD.EUR	0,7446	0,7616	+2,3%
Portfolio value	€ 18.629	€ 19.313	+3,7%

Monte Carlo Simulation Techniques Show 9% Total Return For Donaldson Company Inc. During The Next 5 Years

My new article about Donaldson Company Inc on Seeking Alpha got "Editor's Pick" status. In the article I used Monte Carlo simulation techniques to show the sensitivity of the annual total return for DCI in the coming 5 years. It was not only a great way to investigate a company like Donaldson, but it was also awesome to sharpen my skills with this particular analysis. Check it out here.

I am curious to know what you think about the article. If there are any questions about the article or spreadsheets, or if you have suggestions for future analysis, let me know!

Evaluation of first year DGI

I have started DGI last year around July/August. Already a year has passed and it's time for me to evaluate my first year as a dividend growth investor. The aim of the portfolio is to provide replacement income when I would like to work less in the future, to help put my kids through college or whatever is necessary in the future. This update summarizes the portfolio progress from August 2013 till August 2014.

A.O. Smith Heats Up Your Portfolio Returns But At A Hefty Price

I am on fire lately! My 2nd article has been published on Seeking Alpha, check it out here. I've reviewed the prospects of A.O. Smith, a leading company in the water heating business. Take a look ff you want and tell me what you think!

Once again I have to think Roadmap2Retire for being so kind as to check my grammar and provide me with advice!

I published my first article on Seeking Alpha!

Hello all, today Seeking Alpha published my first official article! It's called: "Evaluation Of My Position In Textainer Group Holdings: Sell, Hold, Or Add?". I focused on the increasing debt and weather this is sustainable or not. Go check it out on Seeking Alpha and tell me what you think of it!

I do have to thank Roadmap2Retire for his help on fixing the grammar mistakes. With his help the article was much better to read. Thanks again R2R!

I need help with English grammar!

Dear readers, a few days ago I wrote an updated article for Seeking Alpha about Textainer Group Holdings, a position of mine. I got feedback suggesting the content of the article was fine, however it needed a good copyedit. Since English is not my native language, are there any readers out there willing to proofread an article and show me where I need to fix the grammar?

Your help would be much appreciated, thank you very much! :)

Liebster Award

Dividend for Starters nominated me for a Liebster Award. Thanks again for your nomination Dividend for Starters, I was unaware such a nice award exists! This is an award bloggers could give to each other in order to get to know him/her better. The goal is to answer their questions and then invite 5 other bloggers to do the same, with questions of my choosing.

Monthly Update: July 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I've updated my benchmarks to include the total return indices, instead of only the stockprice indices. This seems like a better comparison.

Indicator	As of 30-6	As of 31-7	% change
S&P 500 Total Return	3.549	3.503	-1,3%
Dow Jones Industrials Total Return	33.264	32.786	-1,4%
AEX GR	1.194	1.168	-2,1%
USD.EUR	0,7310	0,7446	+1,9%
Portfolio value	€ 18.404	€ 18.629	+1,2%

Monthly Update: June 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I've updated my benchmarks to include the total return indices, instead of only the stockprice indices. This seems like a better comparison.

Indicator	As of 31-5	As of 30-6	% change
S&P 500 Total Return	3.474	3.549	+2.2%
Dow Jones Industrials Total Return	32.981	33.264	+0.9%
AEX GR	1.178	1.194	+1.4%
USD.EUR	0,7348	0,7310	-0.5%
Portfolio value	€ 18.099	€ 18.404	+1.7%

10 Reasons why I bought Aflac

I already mentioned earlier that I've opened a position in Aflac. What are my reasons for buying this company? I've got at least 10!

1. Great business model: getting paid up front (premiums), earn investment income from these premiums (float) and deduct incurred losses. It's simple as that and the insurance industry is here to stay for decades to come.
2. Sturdy revenue growth. In last decade Aflac has increased revenue 7% per year (CAGR)
3. Increased profitability. In the same decade, the operating earnings per share grew by 14% per year.
4. Enough oppurtunities for revenue growth in the future, both in Japan and USA.
5. Dividend champion: this company has raised dividends for over 31 consecutive years. In the last decade Aflac raised dividends with on average 15% per year. The dividend growth rate has been slightly lower in the last few years however.
6. Pay-out ratio: Aflac only pays out 21% of its earnings to shareholders. This provides ample safety in the dividend and future increases.
7. Share repurchases: in the last decade Aflac retires between 1-1.5% of their outstanding shares per year.
8. Great balance sheet: debt/equity-ratio of only 0.3. Interest coverage ratio of over 16x.
9. Valuation: with a price/earnings-ratio of 9.5 it is really cheap to purchase shares in such a quality company.
10. Diversification in my DGI portfolio: before this purchase I had no exposure to any insurance company.

To summarize, I've bought 28 shares @ $61.45 per share. This purchase adds around €30 to my annual forward income. As of now my DGI portfolio will earn €675 per year.

A Dutch Dividend Challenger, Acomo: Slightly Too Expensive Right Now?

Most if not all the Dividend Growth Investors on Seeking Alpha have used the so called CCC-list, maintained by David Fish. On this list are companies which have increased their dividend payout for at least 5 years (challengers), 10 years (contenders) or 25+ years (champions). Even though these companies are American based, a lot of these companies on this list have global exposure. However, in any case, they are still listed on American stock exchanges, valued in American dollars and also pay regular dividends in American dollars. For someone based in other areas of the world (in this case Europe), this poses a risk due to changes in the EUR.USD-rate.

As a DGI I would like to diversify my dividend income stream between companies listed in Europe and the USA. Of course the most important thing is that I want to invest in great companies with solid business fundamentals, good history of earnings and dividends and shareholder friendly management. Acomo is certainly one of them!

Monthy Update: May 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I've updated my benchmarks to include the total return indices, instead of only the stockprice indices. This seems like a better comparison.

Indicator	As of 28-4	As of 31-5	% change
S&P 500 Total Return	3.400	3.474	+2.2%
Dow Jones Industrials Total Return	32.629	32.981	+1.1%
AEX GR	1.144	1.178	+3.0%
USD.EUR	0,7209	0,7348	+1.9%
Portfolio value	€ 16.506	€ 16.899	+2.4%

What to buy this month?

I've deposited another 1.200 euros to initiate a new position. However, since markets are at all-time highs it's getting harder to find decent valued companies which fit the bill. Right now my watchlist consists of the following stocks: Microsoft, Aflac, Visa and Acomo.

Deere raises quarterly dividend with 18%!

Great news, Deere & Company raises the dividend with 18%. This adds roughly $6.5 to my annual forward dividends. What did I do for it? Nothing really, just being a patient shareholder!!

Monthly update: April 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I've updated my benchmarks to include the total return indices, instead of only the stockprice indices. This seems like a better comparison.

Indicator	As of 28-3	As of 28-4	% change
S&P 500 Total Return	3.349	3.400	+1.5%
Dow Jones Industrials Total Return	32.084	32.629	+1.7%
AEX GR	1.142	1.144	+0.2%
USD.EUR	0,7272	0,7209	-0.9%
Portfolio value	€ 15.945	€ 16.506	+3.5%

The Dutch market was more or less flat (+0.2%), and the American markets were up this month (+1.5 - 1.7%). The dollar lost some ground against the euro. And what did my portfolio do? It gained 3.5% which is great. Even though I am focused on dividend income and growth, It's always nice to see portfolio value increase. There seems to be a bit of a rotation going on from different asset classes towards dividend paying stocks, because investors are looking for yield and safety.

Monthly update: March 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I haven't done anything this month in terms of buying or selling stocks. I have deposited €1.000 a few days ago which enables me to open another position in the next week. More on that later. So how did the last month go?

Indicator	As of 28-3	As of 28-3	% change
S&P 500	1.859	1.858	-0,1%
Dow Jones Industrial Average	16.322	16.323	+0,0%
AEX	399	402	+0,9%
USD.EUR	0,7234	0,7272	+0,5%
Portfolio value	€ 14.554	€ 14.945	+2,7%

American markets were more or less flat, the Dutch AEX gained almost 1% during the last month. The dollar gained some ground against the euro, which is good for my portfolio since the majority is listed in American dollars. And what did my portfolio do? It gained almost 3% which is great. Even though I am focused on dividend income and growth, It's always nice to see stock prices rise.

Monthly update: February 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. I haven't done anything this month in terms of buying or selling stocks. I might be able to come up with new funds to invest in a new company next month! So how did the last month go?

Indicator	As of 31-1	As of 28-2	% change
S&P 500	1.783	1.859	+4.3%
Dow Jones Industrial Average	15.699	16.322	+4.0%
AEX	387	399	+3.0%
USD.EUR	0.7418	0.7234	-2.5%
Portfolio value	€ 14.415	€ 14.554	+1.0%

Markets were up across the board! However, USD.EUR declined alongside rising stock prices. Considering the majority of my portfolio is listed in US dollars, it didn't advance with numbers as seen in US markets.

Monthly update: January 2014

The month has passed and it's my favorite time, giving an update of my dividend portfolio. Generally markets have been down, especially in the last two weeks. I've initiated a new position in RDS. You can read about it here.

Recent buy: Royal Dutch Shell

The last month I've blogged several times about my wish to diversify in European companies to reduce my exposure to changing EUR.USD-rates. However, it is more important to buy companies with great quality, sound business fundamentals and with a lasting commitment to shareholders. I think I've combined these traits in my purchase of Royal Dutch Shell.

European Dividend Contenders And Better

Most if not all the Dividend Growth Investors (DGI) on Seeking Alpha have used the so called CCC-list, maintained by David Fish. On this list are companies which have increased their dividend payout for at least 5 years (challengers), 10 years (contenders) or 25+ years (champions). Even though these companies are American based, a lot of these companies on this list have global exposure. However, in any case, they are still listed on American stock exchanges, valued in American dollars and also pay regular dividends in American dollars. For someone based in other areas of the world (in this case Europe), this poses a risk due to changes in the EUR.USD-rate.

Help me look for European companies which pay quarterly dividends!

Right now the most of my income comes from US dollars which makes it volatile due to changing EUR.USD-rates. I would like to diversify my dividend income stream between companies listed in Europe and USA. Maybe in the future I can add other currencies as well (UK or CHF, to be able to purchase GlaxoKlineSmith or Nestle). Of course the most important thing is that I want to invest in great companies with solid business fundamentals, good history of earnings and dividends and shareholder friendly management.

Monthly update: December 2013

The month has passed and it's my favorite time, giving an update of my dividend portfolio. Generally US markets have been up. I've iniated a new position in OHI. You can read about it here and here.