Holy cow. What a month for dividend increases.
The whole reason I picked the stocks to buy was because of a track record of increasing the dividend. With each dividend increase, my original investment pays me back at a higher rate.
Eventually, with ever increasing dividends, you could earn back your original investment annually.
And with each increased return, the risk lowers. If you have received over 100% of your original investment in dividends, you have no risk and all gain.
Last month, I received 19 dividend increases. That is a full 25% of all of the companies in my portfolio. These increases add up to an extra $119 in dividends per year.
The big winner was a 32% gain from OMF as well as a 18.4% increase from T. Rowe Price. As you can see on the "Yield on Purchase" column, a handful of dividend increase from T. Rowe Price has me earning 4.25% on my cost basis. That's inflation beating. Same with Best Buy (BBY).
That is the whole goal of investing in dividend increasers.
You may notice the OMF had a lower return than the current rate. That's a result of recently buying this company right before the Coronavirus crash of the previous week. That will eventually change.
I'm looking forward to seeing what happens in March.
The whole reason I picked the stocks to buy was because of a track record of increasing the dividend. With each dividend increase, my original investment pays me back at a higher rate.
Eventually, with ever increasing dividends, you could earn back your original investment annually.
And with each increased return, the risk lowers. If you have received over 100% of your original investment in dividends, you have no risk and all gain.
Last month, I received 19 dividend increases. That is a full 25% of all of the companies in my portfolio. These increases add up to an extra $119 in dividends per year.
|
TICKER
|
OLD DIV
|
NEW DIV
|
% Gain
|
old annual
|
new annual
|
INCREASE
|
Yield
|
Yield on Purchase
|
Date
|
|
CNP
|
$0.2875
|
$0.2900
|
0.9%
|
$146.05
|
$147.32
|
$1.27
|
4.35%
|
3.95%
|
2/3/20
|
|
AFL
|
$0.2700
|
$0.2800
|
3.7%
|
$95.04
|
$98.56
|
$3.52
|
2.15%
|
2.46%
|
2/4/20
|
|
MMM
|
$1.4400
|
$1.4700
|
2%
|
$126.72
|
$129.36
|
$2.64
|
3.76%
|
3.12%
|
2/4/20
|
|
AVA
|
$0.3875
|
$0.4050
|
4.5%
|
$144.15
|
$150.66
|
$6.51
|
3.19%
|
3.79%
|
2/5/20
|
|
OMF
|
$0.2500
|
$0.3300
|
32%
|
$3.00
|
$3.96
|
$0.96
|
2.93%
|
2.22%
|
2/10/20
|
|
HE
|
$0.3200
|
$0.3300
|
3.1%
|
$192.00
|
$198.00
|
$6.00
|
2.74%
|
4.96%
|
2/12/20
|
|
TROW
|
$0.7600
|
$0.9000
|
18.4%
|
$142.88
|
$169.20
|
$26.32
|
2.61%
|
4.25%
|
2/12/20
|
|
CSCO
|
$0.3500
|
$0.3600
|
2.9%
|
$107.80
|
$110.88
|
$3.08
|
2.88%
|
2.78%
|
2/12/20
|
|
NWE
|
$0.5700
|
$0.6000
|
4.3%
|
$140.30
|
$146.40
|
$6.10
|
3.1%
|
3.71%
|
2/12/20
|
|
UPS
|
$0.9600
|
$1.0100
|
5.2%
|
$142.08
|
$149.48
|
$7.40
|
3.84%
|
3.72%
|
2/13/20
|
|
PPL
|
$0.4125
|
$0.4150
|
0.06%
|
$211.20
|
$212.48
|
$1.28
|
4.56%
|
5.33%
|
2/14/20
|
|
WMT
|
$0.5300
|
$0.5400
|
1.8%
|
$43.40
|
$44.18
|
$0.78
|
1.84%
|
2.75%
|
2/18/20
|
|
KO
|
$0.4000
|
$0.4100
|
2.5%
|
$148.80
|
$152.52
|
$3.72
|
2.76%
|
3.77%
|
2/20/20
|
|
HD
|
$1.3600
|
$1.5000
|
10.3%
|
$81.60
|
$90.00
|
$8.40
|
2.5%
|
3.88%
|
2/25/20
|
|
DK
|
$0.3000
|
$0.3100
|
3.3%
|
$3.60
|
$3.72
|
$0.12
|
4.65%
|
3.67%
|
2/27/20
|
|
CM
|
$1.4400
|
$1.4600
|
1.4%
|
$253.44
|
$256.96
|
$3.52
|
5.53%
|
6.38%
|
2/27/20
|
|
ORI
|
$0.2000
|
$0.2100
|
5%
|
$168.80
|
$177.24
|
$8.44
|
3.94%
|
4.43%
|
2/27/20
|
|
TD
|
$0.7400
|
$0.7900
|
6.8%
|
$236.80
|
$252.80
|
$16.00
|
4.31%
|
6.24%
|
2/27/20
|
|
BBY
|
$0.5000
|
$0.5500
|
10%
|
$138.00
|
$151.80
|
$13.80
|
2.68%
|
6.35%
|
2/27/20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$2525.66
|
$2645.52
|
$119.86
|
|
|
|
The big winner was a 32% gain from OMF as well as a 18.4% increase from T. Rowe Price. As you can see on the "Yield on Purchase" column, a handful of dividend increase from T. Rowe Price has me earning 4.25% on my cost basis. That's inflation beating. Same with Best Buy (BBY).
That is the whole goal of investing in dividend increasers.
You may notice the OMF had a lower return than the current rate. That's a result of recently buying this company right before the Coronavirus crash of the previous week. That will eventually change.
I'm looking forward to seeing what happens in March.
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