Monday, June 29, 2015

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.




6/2/2015
Buy
WMT
74.49
22
6/3/2015
Buy
UNP
101.7
17
6/4/2015
Buy
XOM
84.46
19
6/5/2015
Buy
DEO
107.34
15
6/5/2015
Buy
PM
80
20
6/5/2015
Buy
KO
40.19
40


My companies allocation is:
My Sector Allocation is:



I plan to increase my other percentages in the sectors other than Consumer Goods in the coming months.


For dividends, I received the following amounts in June:


6/1/2015
Div
AFL
10.99
6/1/2015
Div
WMT
10.78
6/3/2015
Div
UL
12.66
6/9/2015
Div
JNJ
26.34
6/10/2015
Div
EMR
13.74
6/10/2015
Div
XOM
27.96
6/15/2015
Div
DOV
11.26
6/15/2015
Div
MCD
16.29


Total
130.02


As you can see below, the dividends are on a nice upward trend - which is what you should expect.




My forward dividends for each of the companies:


Overall, the summary of my portfolio is:


Summary Totals
Total Valuation
61239.81

Total Cost
59931.81

Total Gain
2.18%

Est FW Div
2029.03

Est Yield
3.39%


The portfolio fluctuates based on the market - which is okay. In fact, lower share prices are preferred since this means I can buy good quality companies at a discount. 

I am glad that I am over the $2K mark. The next step - $3K. How soon can I achieve this?


June Dividend Stock Analyses


In June, I shared my analyses of some of the companies I bought recently or will be buying more in the case of EMR. The only exception is MMM which is slightly expensive for me now (but if the market dips a little...) :
Also, I showed how you can create your own criteria/watchlist:

July Screen


As fresh capital comes in, I look forward to new investments. I re-ran my screen for next month 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


The P/E criteria is new per my research on the use of earnings multiple and P/E valuation in general. For more information, please read: http://div4son.blogspot.com/2015/06/using-pe-for-dividend-stock-valuation.html



Name
Price
Yield
Payout Ratio
P/E
P/E / Med PE
Yield/Avg Yield
NOV
National Oilwell Varco, Inc. Co
49.41
3.70
0.35
9.44
0.70
2.85
EMR
Emerson Electric Company Common
56.58
3.20
0.47
14.98
0.79
1.10
BAX
Baxter International Inc. Commo
72.11
3.00
0.48
16.59
0.87
1.11
IVZ
Invesco Ltd Common Stock
38.56
2.80
0.41
15.82
0.89
1.17
WMT
Wal-Mart Stores, Inc. Common St
72.13
2.70
0.39
14.49
0.93
1.17
CAT
Caterpillar, Inc. Common Stock
86.83
3.50
0.43
13.9
0.94
1.46
UNP
Union Pacific Corporation Commo
96.77
2.20
0.34
16.49
0.95
1.16
IBM
International Business Machines
165.49
3.10
0.37
13.79
0.98
1.55


I have existing positions in WMT, CAT, UNP, BAX and EMR. I will try to add to UNP, WMT and EMR - to average down further. CAT showed up on this list due to its 10% dividend hike earlier this month, but I am not sure if I want to add more to it at this time.


I will hold off on BAX until the spin-off is completed.


I will review NOV, IVZ and IBM a little more. In particular, IVZ is very interesting. Here is a short summary based on my dividend stock analysis criteria.


IVZ 6/2015
Area
Criteria
CheckList
Comment
Quality Company
Dividend Growth
>5 years
Yes
6 Years
ROE/Op Margin
Stable
Yes
Stable
Long term Avg Growth
Stable
Yes
Stable
FCF over Dividends
Yes
Yes
FCF covers Dividends
M* Moat
Wide Moat
No
Narrow
M* & S&P
Credit Rating
> BBB+
Yes
A-
Cash to Debt & Interest Coverage, Debt to Equity
Cash Debt >1 or Interest Coverage > 5
Yes - but TTM Debt/Equity > 50
Cash to Debt 0.36
Interest Coverage 6.17
Debt to Equity 78.32
M* & S&P Stars
> 3 Stars for both
Yes
M* 4 Stars
S&P CapIQ 4 Stars A+ Quality
Payout Ratio
<60%
Yes
41.00%
Dividend Growth
& Yield
Dividend Yield
>3%
No
2.80%
Dividend Growth
>5%
Yes
21.00%
Chowder
>12%
Yes
23.80%
Valuation
Yield/Avg Yield
>1.1
Yes
1.17
Dividend Yield Theory Mid Point
Below Mid Point
Yes
Mid Point 52.86
Low Point 34
P/E
Below Mid Point
Yes
Median 16.05 Current 15.82
DRRM
~10%
Yes
Assuming 6% growth; projected return=9.34%
M* Estimate
<M* est
Yes
M* 45
S&P Estimate
< S&P cap IQ est
Yes
S&P Cap IQ 45


That’s all for now. Was June a good month for you? What do you think of my screen for July?


Thanks
D4S

6 comments:

  1. Great progress over the month of June..and thanks for sharing your selection process and all the quality dividend stock analyses. I really enjoyed reading your posts.
    Congrats on a great June and looks like some solid blue chip companies on your watchlist in July. Looking forward to see which ones you add to your portfolio.

    Best
    R2R

    ReplyDelete
    Replies
    1. R2R, thanks for your comments and all your support. I will definitely make some purchases this week mostly to average down some more in my other sectors.
      D4s

      Delete
  2. Great buys for June. Always nice when you can average down your cost on some solid long term dividend payers. You July screen looks interesting as EMR and CAT are catching my eye as well. Keep that great progress moving forward. Thanks for sharing your potential picks for next month.

    ReplyDelete
    Replies
    1. Divhut, Thanks for visiting. It is definitely good to be able to average down. The market is really crazy today with some many opportunities. I will try to be defensive.
      D4S

      Delete
  3. Hi,
    where do you get the median P/E and median dividend values from please?

    ReplyDelete
    Replies
    1. For the dividend yield, look for 5 yr average dividend yield on yahoo key stats -- e.g. JNJ example https://finance.yahoo.com/q/ks?s=JNJ - not exactly median, but good enough. Guru focus has the median P/E values. Look for it in the definitions on their web page. I actually dump the companies' 10 yr data - PE and yield data to get it.
      I hope it helps.
      D4s

      Delete