Recent dividend raises

I am a bit behind with my updates on dividend raises I received in the last few weeks (or months?!). However I did receive some nice raises.

• On August 25 Deere (DE) declared an increased quarterly dividend of $1.05 per share.
• On September 15 PM increased the company's regular quarterly dividend by 4.2% to an annualized rate of $5.00 per share. The new quarterly dividend is $1.25 per share, up from $1.20 per share.
• On October 29 Exxon Mobil (XOM) declared a quarterly dividend of 88 cents a share, up by a penny or about 1%.
• On November 16 Realty Income announced an increase in the company's common stock monthly cash dividend to $0.246 per share from $0.236 per share.

All the raises in 2021 combined delivered an annual income boost of almost € 200. 

Dividend raise: Exxon Mobil (+6%)

On 24th of April Exxon Mobil (XOM) announced their yearly dividend raise. It's quarterly dividend was raised from $ 0,82 to $ 0,87, which is a 6% increase. Since I own 17 shares, my annual dividend income grows by about € 3 before taxes. Not much but I'll take it any day!

This marks the 6th dividend raise I receive from XOM since purchasing shares back in 2013. The average dividend growth during this period is roughly 6%. Coupled with a dividend yield of 4% makes this a reasonable investment. Nothing special, but still ok.

In 2019 I received 13 dividend raises so far. My annual dividend income increased by € 38 (before taxes). Exxon's raise is about average. In any case, let's keep 'em coming!

First purchases in my DGI-portfolio

Today I made my first two purchases: ExxonMobil (XOM) and Wal-Mart Stores (WMT).

ExxonMobil

Exxon Mobil Corporation, or ExxonMobil, is an American multinational oil and gas corporation. ExxonMobil is one of the largest companies in the world in terms of revenue and market capitalization.

Why do I want to own this company?

• Forward yield of 2.8% is decent and higher than the 5-year average historic yield (2.3%)
• Dividend has grown on average 10% per year in the last 10 years
• Payout-ratio is hovering around 20-30%. This is quite low and dividend payments can thus be considered relatively safe, even in times when earnings might fall short.
• Current Price/Earnings-ratio of 9.2 is lower than the 5-year average PE-ratio of 11.0 so the stockprice seems to be on the lower side.
• Diversification in geographical terms as well as operations. It is a relatively stable company with a low beta.

Of course there are concerns: geopolitical stability, protectionist policies or more long-term issues about future energy scenarios and what the role of companies like Exxon, Chevron or Royal Dutch Shell will be. These are however long term issues and may provide chances as well. These companies don't sit idle, but are actively preparing for the future.

Wall-Mart Stores

Wal-Mart Stores is a multinational retail corporation that runs chains of large discount department stores and warehouse stores. The company is one of the world's largest public corporations and the biggest private employer in the world with over two million employees.

Why do I want to own this company?

• Forward yield of 2.5% which is slightly higher than the 5-year average historic yield (2.2%)
• Dividend has grown on average 18% per year in the last 10 years!
• WMT has increased the payout ratio over the last 10 years from 18% in 2004 to 32% in 2013. This still leaves ample room for growth.
• Current Price/Earnings-ratio of 14.7 is around this years average PE-ratio and slightly higher than the 5-year average PE-ratio of 14.2. Seems like the current price is fair value; but not a bargain.
• Earning growth for the next 5 years is forecasted to be almost 10% per year.

I think both companies are great investments. Not neccesarily cheap but fair value! These purchases will bring my 12-month forward yield to $105. It's not much but it's the first step!