Sunday, May 31, 2015

May Update

Hello, this is Div4Son,


This May has been very hectic in terms of activities. Since my last update in April, I managed to initiate 6 buys. I also gained new shares in SOUHV from the BBL demerger. In all, I invested close to $10k this month thanks to my tax returns, my high savings rate and a small bonus from work. I don't anticipate this level of investments going forward. 



DateStockPriceAmount
4/29/2015WMT7822
4/30/2015DEO111.1715
4/30/2015PG79.4320
5/13/2015BAX68.2425
5/13/2015HCP39.0945
5/18/2015SOUHV8.116
5/29/2015PG78.520

I took some time to learn how to evaluate REITs and bought some HCP. 

Saturday, May 23, 2015

Baxter International (BAX) Dividend Stock Analysis


Hello, this is Div4Son.



Baxter International Inc. is an American healthcare company that focuses on products to treat hemophilia, kidney disease, immune disorders and other chronic and acute medical conditions.

Baxter currently has two main businesses: BioScience and Medical Products. Baxter’s BioScience business produces medicines, therapies and vaccine products to treat blood related disorders such as hemophilia and immune deficiencies. Baxter’s Medical Products business produces intravenous and inhaling solutions and other products used in the delivery of fluids and drugs to patients. 

Last year, Baxter announced plans to create two separate, independent global healthcare companies—one focused on developing biopharmaceuticals and the other on medical products. The move is expected to be completed by middle of this year. The medical products company will keep the name Baxter International Inc. and the biopharmaceuticals company will be named Baxalta.

Baxter International Dividend Stock Analysis

In general, my basic DGI strategy is:

Good quality + high yield + high growth (+ time & patience)

This strategy follows the same framework as the SBI book.

I use a simple screen for stocks:
  • Yield over Avg Yield > 1.10
  • Yield > 2.5% (but less than 7%)
  • Payout Ratio < 0.8
  • Chowder > 10
BAX meets my simple screen in all areas. The next step to to apply my due diligence process to analyze the fundamentals based on several criteria on Quality, Dividend Growth/Yield and Valuation.


Wednesday, May 20, 2015

What to do with SOUHY?

Hello, this is Div4son,

Earlier this year, I bought 40 shares of BBL (uk version of BHP ADR) when it met my January screen. This investment has served me well with a good dividend yield (>5%). 

As some of you may know, BHP spun off SOUHY yesterday. 

Now, I have (.4x40) 16 freshly minted shares of SOUHY. When I started dividend stock investing, I never really thought too much about events like this. Sure, it is a good problem to have. Usually, I like to analyze the stocks before they get into my portfolio, but it is difficult to see the trends this early.

So, I have a couple of options:

1) sell SOUHY
2) wait and see

Also, what should I do with BBL?

For now, I've decided to wait for a bit until the dust settles. I will be looking out for impacts to BBL as well as dividend information on SOUHY. 

Div4son

Monday, May 18, 2015

Evaluating REITs

Dividend Growth Stock Blog Hello, this is Div4son,



Over the last several weeks, I spent some time researching how to evaluate REITs (Real Estate Investment Trusts). I had previously skipped over REITs because I wasn't fully aware of the tax implication. After brushing up my tax skills for last year's tax season, I think REITs can add further diversification to my portfolio. 

This article summarizes my evaluation process for REITs.



Monday, May 11, 2015

Wal-Mart (WMT) Dividend Stock Analysis

Hello, this is Div4Son. 


With the recent dip in the price for Walmart, I began to run it through my screen:
  • Yield over Avg Yield > 1.10
  • Yield > 2.5% (but less than 7%)
  • Payout Ratio < 0.8
  • Chowder > 10
It's Yield over Avg Yield ratio is 1.09, but the other metrics passed or exceeded the screen. I currently don't have any positions in WMT, and definitely would like to add to the portfolio if the fundamentals are in place. I have implemented (a quick) due-diligence process to follow when I buy (or sell) any stocks. This article summarizes my thought process about WMT.


In general my basic strategy is:

Good quality + high yield + high growth (+ time & patience)

This strategy follows the same framework as the SBI book. 


Sunday, May 3, 2015

Diageo PLC (DEO) Dividend Stock Analysis

Hello, this is Div4Son. 


Diageo PLC (DEO) didn't show up on my April screener. http://div4son.blogspot.com/2015/04/my-screen-for-april-2015.html

However, I am aware of DEO since I started dividend stock investing last year. Moreover, DEO seems to pay a 'non-standard' twice yearly dividend. In Yahoo, the dividend yield is 2.3% whereas Morningstar (which uses the TTM) sets it at 3.1%. 





After readjusting the dividend yield, DEO easily passes my screen set for April:
  • Yield over Avg Yield > 1.10
  • Yield > 2.5% (but less than 7%)
  • Payout Ratio < 0.8
  • Chowder > 10
I currently don't own any positions in DEO, and definitely would like to add to the portfolio if the fundamentals are in place. I have implemented (a quick) due-diligence process to follow when I buy (or sell) any stocks. This article summarizes my thought process about DEO.

In general my basic strategy is:

Good quality + high yield + high growth (+ time & patience)

This strategy follows the same framework as the SBI book. 

Saturday, May 2, 2015

Coca Cola (KO) Dividend Stock Analysis

Hello, this is Div4Son. 




Coca Cola (KO) is one company that showed up on my April screener. http://div4son.blogspot.com/2015/04/my-screen-for-april-2015.html. I currently have a single position in KO, and wouldn't mind adding more. However, it is useful to repeat the due-diligence process when you buy (or sell) any stocks. Therefore, this article summarizes my thought process about KO.

My basic strategy is:

Good quality + high yield + high growth (+ time & patience)

This strategy follows the same framework as the SBI book.