Posts

Showing posts from February, 2018

Micro Blog #19: Know Your Objectives Before Investing In Stocks

Image
One of the things that I have found to be very useful in investing is setting clear objectives. Having clear objectives have helped me stay the course, especially during times when market anxiety is running at all times high.

I consider myself an income investor primarily with growth as a secondary objective. What does this mean?

Micro Blog #18: My Q4' 2017 REIT Dividend Update For OHI, WPC, and O

In this post, I will give you a brief dividend related highlights on three of my REIT holdings OHI, WPC, and O based on the latest earnings report.

Micro Blog #17: My Quarterly Dividend Health Update For Utilities: PPL, SO, DUK, D, and ED

Tracking dividend health is part of my job as a dividend investor. I don't like to solely depend on dividend ratings and other analysis provided by various professional websites, as they are covering hundreds of stocks and may miss or delay reporting issues/concerns related to a company I own.
Instead, I like to read the latest available earnings report to determine what management is saying about dividends and the overall health of the company. 
Here are the quarterly dividend health highlights for utilities I own as of Q4 '2017 Earnings Reports:

Micro Blog #16: A Brand New Dividend Stock Tool For You To Try For Free

Image
I've been testing a new dividend stock screener tool. It's called "The Dividend Growth Screener".

The tool is based in Germany and so is the developer/owner. I was contacted by the developer to help him test it for the US audience. In return, I get the full complementary access to it ;) But don't fret, there is an option for you to get a free limited access as well. I will talk about it at the end of this post.

Micro Blog #15: My 2018 Early Dividend Growth Update

Image
For a dividend investor, it is important to track dividend growth as well as when a company is expected to announce its dividend increase.

A slowing or frozen dividend growth rate could indicate a problem with company's business or an overall industry slowdown. An increasing dividend growth on the other hand, indicates improving business and cash flows.

I track both dividend growth and the actual/expected announcement dates for all my stocks and here is how I'm doing so far:

Micro Blog #14: Which Is A Better Staple Stock KMB or PG?

Image
I'm now focusing on building up my staple positions. I currently own Kimberly-Clark and want to add more shares to its position. However, Procter & Gamble is also a good choice. I don't currently own PG, but could start a position.

With the market correction, both stocks are yielding over 3% and have a very long dividend history of consecutive yearly growth.

Micro Blog #13: How Do I Define A Core Stock?

Before I go and share my own definition or rules for a core stock position, I want to share how some of the most popular and very respected DGI investors on SA define core stock positions in their portfolios.

I have followed these investors for years on SA and tried to learn from their DGI investment wisdom.

Micro Blog #12: Has The Southern Company (SO) Reached Bottom?

Image
The Southern Company (ticker SO) is one of my favorite utility stocks. It is not only one of the largest utilities in the US, but also a great dividend stock with a 17 years of consecutive annual dividend growth history.

SO is currently yielding at slightly over 5% at a blended P/E of 15, which makes it fairly valued at the current price. A fair value is indicated by the orange line in the FastGraphs.

Micro Blog #11: Selling Is Harder Than Buying

Image
Knowing when to sell a stock is one of the hardest things, when it comes to investing.

Many times the reason to sell is simply risk management, such as the case with my GE and MAT positions in 2015. These companies were struggling and there was ample warnings that things will get worse for them.

Micro Blog #10: Next Week Is A Big Dividend Week

Image
Next week is going to be a big dividend week for most of us as many of the dividends for February are paid next week. For my portfolio, there would be at least seven companies paying dividends next week:


Micro Blog #9: Taking Advantage Of This Market Pullback

Image
Given the recent pullback in the market, a rather quick and steep pullback, many utilities have come down below fair value.

I took advantage of this pullback and added to all my utility positions. Below are the utilities I currently own and have added to during this pullback. I'm listing them here along with the fair values that I have determined using FastGraphs valuation method.

Micro Blog #8: O Say Can You See, What A Wonderful Value Is O

Image
Folks,

With the recent market turmoil, the Monthly Dividend company, The Reality Income Corporation (ticker O) is on sale.

All you have to do is look at the 20 year FastGraphs chart below and decide for yourself.

Micro Blog #7: I Survived The Crazy Day

Image
I woke up this morning thinking it would be a nice day to buy some stocks after the Friday's selloff.

I had some money sitting in my brokerage account from a recent sale and some dividends. I also had a good idea of what I wanted to buy, since I keep a buy list at all times. But little did I know that today was going to be one of the largest one day declines market has seen in a long long time.

So what gives? What caused such a decline?

Micro Blog #6: How To Decide Between Low vs. High Yielding Stocks

Image
Some experts say it's better to own a higher dividend growth stock than a low dividend growth stock as the high yield is likely a sign of a higher risk.

But what if the risks are the same as there are high quality blue chip stocks that are also the high yielders? Many of the blue chip utilities/telecom and REITs would fall under this group, especially as the increasing interest rates drive their yields higher.

If you have to pick between say T (AT&T) yielding a 5.3% yield with only 2% annual dividend growth and HRL (Hormel Foods) with 2.2% yield and 10% annual dividend growth? Which one would you pick and why?

This is what I would do. I would look at my objectives first, which is to earn more cash flow or income from my investments in a period of about 10 years. The more cash I earn now in dividends, the more of it can go to generate even more dividends in future by re-investing.

I picked a 10 year period as it is more realistic for me in terms of making forward estimation on …

Micro Blog #5: Did The Toilet Flush Today?

Image
I was watching CNBC today when Mr. Wonderful made the following comment on market's 600+ point drop today:

"I love when the toilet flushes on Friday"

I would have to agree with him. Friday is a perfect day for the market to flush as there is a full weekend to cool things off and think about what happened and to strategize for the next week's buying opportunities.

Micro Blog #4: So HCN (Welltower) Froze Its Dividend. What Now?

Image
Well, I was eagerly waiting for a 1% dividend increase from HCN (Welltower) as I track when each one of my dividend stocks are expected to raise their dividends.

Therefore, when HCN announced its next quarter dividend yesterday, which did not include the raise, I was quite disappointed.

Let's see what management said about dividend and FFO in their Q3 Earnings Report: