Monday, June 29, 2015

Invesco Ltd (IVZ) Dividend Stock Analysis

Hello,
As you may know, I recently ran my screen for July based on the following set of criteria:


Using David Fish’s CCC list:
  • Yield over Avg Yield > 1.10
  • Payout Ratio < 0.8
  • Chowder > 10
  • PE over Median PE < 1.0


Basically, the screen looks out for companies with lower than average P/E and higher than average yield. I also wanted a high Chowder to make sure that the company has enough dividend growth. Lastly, I further filtered out companies based on excellent (A) credit ratings.


You can see the list here:




Invesco Ltd (IVZ) showed up on the list. I am aware of IVZ due to the PowerShares QQQ ETF that it manages. However, Invesco is one of those companies that is normally not on my watch list because I usually screen for large companies with wide moat. Invesco manages just under $800B worth of assets. While this seems to be a large number, if you compare with Fidelity with $3 Trillion of managed assets, then Invesco is a relatively small player.


However after reviewing the company, I believe IVZ is a very good dividend growth stock for my portfolio.

June Update & July Watchlist

Dividend Growth Stock Blog
Hello,


June has been another busy month. I invested mostly at the beginning of the month. I had to restrain myself from further investments - but this was relatively easy due to a lack of capital.


I averaged down my positions on KO, WMT, XOM, DEO, PM and DEO. I added a new position with UNP.


Saturday, June 27, 2015

Emerson Electric Company (EMR) Dividend Stock Analysis

Dividend Growth Stock Blog
Hello,


One company which I have constantly on my watchlist is Emeron Electric Company (EMR). 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


While EMR is slightly below my chowder criteria, it is one of the few companies with a dividend growth history > 50 years.

Wednesday, June 24, 2015

Using P/E for Dividend Stock Valuation (P/E & Earnings Multiple Google Spreadsheet)

Hello,

This is Div4Son. 

While P/E is one of the most popular valuation methods.


P/E = Market Price per Share / Earnings per Share

In general, one can use the current P/E or forward P/E (based on forward earnings/share) to compare with the market's P/E (around 19). In addition, the P/E can be compared with companies within the same sector and industry. Also, the historical P/E can be used to compare how favorable the current P/E with the past.

With my continuous quest to learn new things, I wanted to see how I can apply the P/E in my evaluations, more than just comparing with the P/E of an index or other company's P/E (which I do today as a quick check). Moreover, I wanted to 'visualize' the impacts of the earnings per share multiple. And lastly, I wanted to derive a high/low/fair price points.

Friday, June 19, 2015

ExxonMobil (XOM) Dividend Stock Analysis

Dividend Growth Stock Blog
This is Div4Son,



When I ran my simple screen at the beginning of this month, several well known companies appeared on the list. On company was ExxonMobil and I was particularly interested in the Yield/Avg Yield criteria (~around 36% above the average yield which represents good value). Moreover, I wanted to average down  on my positions with XOM.

This article is a summary of my dividend stock analysis of ExxonMobil (XOM) based on my notes.

ExxonMobil (XOM) Dividend Stock Analysis

About XOM

Thursday, June 18, 2015

Building your own Dividend Stock Criteria Table using Google Sheets

Dividend Growth Stock Blog Hello,


This is Div4Son. FIMonkey recently asked a question on my Dividend Stock Criteria table which I use for my dividend stock analysis. The question was whether I use automation.

First of all, I took the actual format came from various bloggers. In particular, please check out Money Unbinding's set of criteria. 

http://moneyunbinding.blogspot.com/2015/01/stock-purchase-criteria.html





My Criteria Selection

For me, I use the following criteria set:

Quality Criteria

Saturday, June 13, 2015

3M (MMM) Dividend Stock Analysis

Hello,

This is Div4Son,


When I ran my simple screen at the beginning of this month, I was surprised to see 3M on the list. I have incorporated a due diligence process to analyze stocks. This article is a summary of my 3M dividend stock analysis.

Monday, June 8, 2015

Union Pacific Corporation (UNP) Dividend Stock Analysis

Hello,

This is Div4Son. This is a dividend stock analysis of Union Pacific Corporation (UNP).





Normally, 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
However, I am missing good quality numbers with lower yields. Sometimes, a low yielding stock, with good dividend growth can provide excellent total return.

Sunday, June 7, 2015

My Screen for June 2015

Hello, this is Div4Son,





I regularly use Mr. David Fish's CCC list to screen for my initial criteria.

For June, I modified my screening criteria slightly within Google Sheets.
  • Yield over Avg Yield > 1.10
  • Payout Ratio < 0.8
  • Chowder > 10
  • Wide Moat from M*
Normally, I would screen Yield >2.5, but I was missing opportunities such as UNP.

Averaging Down

Dividend Growth Stock Blog Hello, this is Div4son,


After investing $10k last month in some good quality Dividend Growth Stocks, I didn't expect that level of investment again in the foreseeable future.

Definitely, not so soon.

Luckily, I got another bonus from work. I have a love/hate relationship with my work. I love the challenges (and bonuses!), but I hate the time it takes away from my family. But that's another story...

Normally, I would use my bonuses and extra savings to build up my "War Chest" (a.k.a savings/emergency fund).  The size of the fund will be different for different people - and I chose something that is comfortable with me. 

As the war chest is well funded, I am okay to invest anything extra. 

With my regular income and the extra cash, I took the opportunity to average down some of my positions. 

DateActionSecurityPriceQuantity
6/2/2015BuyWMT74.4922
6/3/2015BuyUNP101.717
6/4/2015BuyXOM84.4619
6/5/2015BuyDEO107.3415
6/5/2015BuyPM8020
6/5/2015BuyKO40.1940

That's another $10k which will make my portfolio size close to $60k. It also means my forward dividends will be around $2k a year. Anyway you slice it, that's a good thing. 

I have provided my analyses for 3 of the companies. 
DEO was interesting on Friday. Sometimes, rumors can cause a company stock to fluctuate. 

http://www.marketwatch.com/story/diageos-stock-jumps-in-late-trade-after-talk-of-buyout-interest-2015-06-05

The others (PM, XOM, UNP), I will update my analyses of these great dividends companies from my notes in the next couple of weeks.

UNP is a new position for me. The thing that caught my eye with this company is the growth of the key metrics over the last 10 years. This is even during the recession years!

That's it for now. I am all out of ammo until end of this month. 

D4S


Wednesday, June 3, 2015

Procter and Gamble (PG) Dividend Stock Analysis


Hello, this is Div4son,

Last month, I bought P&G a couple of times. This article captures my thought process.


Procter & Gamble Co. (P&G), is an American multinational consumer goods company founded by William Procter and James Gamble.
The company focuses on the following areas: Beauty Care; Baby, Feminine, and Family Care; Fabric and Home Care; Health and Grooming. It has world wide presence: Asia; Europe; India, the Middle East, and Africa (IMEA); Latin America & North America.