Well, that was a fun month. Great food. Fun football games. Tricked out the house for the Holidays
Got some dividend increases.
Yep, not only am I being paid for being alive, I got a pay raise for being alive...
Eight companies rewarded their shareholders with dividend increases, some by quite a big chunk to boot! Dividends are simply a company sharing their profits with their co-owners.
The big one last month was Sysco Systems (SYY). 15.4% rise.
That's right. Its a can of whoop-ass....
As you can see from the chart below, I averaged an 8.44% raise in the 8 companies that announced raises.
You may notice my last column. "Yield on purchase". That's what I am earning from these companies thanks to buying at a lower price in the past and experiencing a dividend raise or two.
For example, Westrock will pay you 4.74% annually if you buy today. I get 5.22% from my purchase a few months ago.
EMR is a good example of holding a company for a longer period of time and going through multiple div increases. My money now earns 4.28%.
That's the snowball I am looking for.
Most of these companies will continue to raise their dividend annually for years to come. Eventually, I will earn 100% of my initial investment annually. Eventually...
You can see ABBV pays me less that if I had bought today. That company has lost some ground since my purchase. Even if the stock is a bit underwater, multiple div increases will keep my yield up to the current one.
A friend of mine who does not quite understand the dividend thing commented "why aren't they growing their company instead? Dividends do not seem like a smart thing to do". Well, what owner would never want to reap the rewards of a profitable company?
In fact, these companies are growing. But there is a realistic limit to growth. Unrestrained growth could, and often does, result in a free fall when sales do not match growth. Smart companies grow in a measured pace and give the rest of their profits back to the shareholders that have entrusted this company to perform for them.
Enoy!
Got some dividend increases.
Yep, not only am I being paid for being alive, I got a pay raise for being alive...
Eight companies rewarded their shareholders with dividend increases, some by quite a big chunk to boot! Dividends are simply a company sharing their profits with their co-owners.
The big one last month was Sysco Systems (SYY). 15.4% rise.
That's right. Its a can of whoop-ass....
As you can see from the chart below, I averaged an 8.44% raise in the 8 companies that announced raises.
| TICKER | OLD DIV | NEW DIV | % Gain | old annual | new annual | INCREASE | Yield | Yield on Purchase |
| ABBV | $1.070 | $1.180 | 10.3% | $171.20 | $188.80 | $17.60 | 5.93% | 4.68% |
| EMR | $0.490 | $0.500 | 2% | $66.64 | $68.00 | $1.36 | 2.74% | 4.28% |
| WRK | $0.4550 | $0.465 | 2.2% | $203.84 | $208.32 | $4.48 | 4.74% | 5.22% |
| TSN | $0.375 | $0.420 | 12% | $40.50 | $45.36 | $4.86 | 1.89% | 2.81% |
| NKE | $0.220 | $0.245 | 11.4% | $40.48 | $45.08 | $4.60 | 1.07% | 1.14% |
| SYY | $0.390 | $0.450 | 15.4% | $98.28 | $113.40 | $15.12 | 2.21% | 2.84% |
| MRK | $0.550 | $0.610 | 10.9% | $107.80 | $119.56 | $11.76 | 2.90% | 3.02% |
| HRL | $0.2325 | $0.210 | 10.7% | $37.00 | $41.85 | $4.85 | 2.18% | 2.33% |
| $765.74 | $830.37 | $64.63 | 8.44% |
You may notice my last column. "Yield on purchase". That's what I am earning from these companies thanks to buying at a lower price in the past and experiencing a dividend raise or two.
For example, Westrock will pay you 4.74% annually if you buy today. I get 5.22% from my purchase a few months ago.
EMR is a good example of holding a company for a longer period of time and going through multiple div increases. My money now earns 4.28%.
That's the snowball I am looking for.
Most of these companies will continue to raise their dividend annually for years to come. Eventually, I will earn 100% of my initial investment annually. Eventually...
You can see ABBV pays me less that if I had bought today. That company has lost some ground since my purchase. Even if the stock is a bit underwater, multiple div increases will keep my yield up to the current one.
A friend of mine who does not quite understand the dividend thing commented "why aren't they growing their company instead? Dividends do not seem like a smart thing to do". Well, what owner would never want to reap the rewards of a profitable company?
In fact, these companies are growing. But there is a realistic limit to growth. Unrestrained growth could, and often does, result in a free fall when sales do not match growth. Smart companies grow in a measured pace and give the rest of their profits back to the shareholders that have entrusted this company to perform for them.
Enoy!
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