Hello readers! From now on, I will start writing a dividend income update every third month. Hopefully, this will increase my focus and make it easier to track my performance. A lot of things has happened this quarter, and there have also been quite a few changes in my portfolio.

As I wrote in my blog post: DGI: Damn Straight It’s Right For Me, I had to do some changes to my portfolio. What happened was I increased my focus on dividend growth stocks, and decreased my focus on dividend stocks. I also started tracking my Yield on Cost in the US portfolio. The Yield on Cost is 3.95% right now, and my dividend yield is 3.75%. Go take a look at my portfolio for more details.

Since I had to clean up my portfolio, I will not talk about what I have done before April. It’s messy, and not that easy to summarize. Instead, let’s look at the dividend income for Q1 :

Dividend Income

  • Dividends received: 16
  • Dividend amount in total: $100

US portfolio

Nordic portfolio

Cool! I can really see the effect of Dividend Carpet Bombing. I received a dividend payment 16 out of the 90 days during Q1. That’s pretty awesome. I also didn’t receive a dividend from Vodafone this quarter due to late purchase, so that will for sure increase next Q1. Another thing is I have never received this much in Q1, because before, my portfolio consisted mostly of Nordic stocks and they pay in April or May.

I have done something else too, and that’s buying two great dividend growth stocks.  Let’s dig into that instead:

Purchases

First purchase: Hormel Foods Corporation (HRL)

HRL is primarily engaged in the production of a variety of meat and food products and the marketing of those products throughout the United States and internationally. It belongs to the Consumer Staples sector, which is a sector I wanted to increase my focus on. I have purchased 48 HRL stocks for a price of $34.25. That increased my annual income by $32.64.

Valuation

  • P/E Ratio: 20.8
  • Sector P/E: 25.3
  • FCF Yield: 3.4%
  • EV / EBIT: 13.7
  • Div. Yield: 1.99%
  • P/B Ratio: 4.0
  • Dividend Safety Score: 100
  • Dividend Growth Score: 82

Second Purchase: Target Corporation (TGT)

Target Corporation is a large consumer retailer that offers its customers everyday essentials and fashionable, differentiated merchandise at discounted prices. Even though TGT is having issues with earnings growth, I think it will be a decent long-term investment.  I bought 23 stocks for $53.45 which increased my annual dividend income by $55.02.  Target belongs to the Consumer Discretionary sector, specializing in Discount Retail. Again, this is where I want to have most of my money: The consumer sector.

Valuation

  • P/E Ratio: 11.3
  • Sector P/E: 20.1
  • FCF Yield: 12.7%
  • EV / EBIT: 8.0
  • Div. Yield: 4.51%
  • P/B Ratio: 2.7
  • Dividend Safety Score: 88
  • Dividend Growth Score: 57
 What have you done in the Q1? Has anything changed? Please let me know in the comments below.
– Stockles


16 Comments

ambertree · April 8, 2017 at 3:12 pm

Good to see that you start reporting regular. That indeed keeps your focus.

All the best
ambertree recently posted…Interview #11 – Roadmap2RetireMy Profile

    Stockles · April 8, 2017 at 11:07 pm

    Yes, not sure why I haven´t done that before, but now I will do it often. I said every quarter in the blog post, but I might just do it every month instead. As always, thanks for commenting ATL.

Dividend Portfolio · April 8, 2017 at 4:08 pm

HRL was one of the companies I started looking at as well. I just wish I was more familiar with the Company. I guess that’s what education is for.

I also like the fact that the portfolio is more focused. Before you know it, that Q1 report will exponentially increase.
Dividend Portfolio recently posted…April 2017 Major Update: Dividend Portfolio Freedom FundMy Profile

    Stockles · April 8, 2017 at 4:52 pm

    HRL is for sure a nice addition to the portfolio. Really looking forward to the dividend growth on this one. Are you going to add some soon?

      Dividend Portfolio · April 9, 2017 at 1:28 pm

      Possibly? I’ve included HRL as one of the potential stocks I invest in with my tax refund. I have a few days to make that decision, so we’ll see. Even if I don’t invest in HRL now, I’m sure I’ll eventually add it to my portfolio.
      Dividend Portfolio recently posted…How to Invest $3000?My Profile

Hazem Hussein · April 8, 2017 at 7:03 pm

Which website that report that nicely the dividend history?

    Stockles · April 8, 2017 at 8:23 pm

    Hello Hazem,

    This is data from Simplysafedividends.com

    Stockles

      Hazem Hussein · April 9, 2017 at 4:37 am

      thanks and the neat watch list is that Eikon reuter?

        Stockles · April 9, 2017 at 9:47 am

        Nope. That’s something I have made 🙂

Dividend Diplomats · April 9, 2017 at 11:13 pm

Glad you are posting your income on a regular basis now. 16 great companies paid you and you are setting yourself up for some more growth here with the purchases of Hormel and Target. Nice additions!

Bert

    Stockles · April 10, 2017 at 8:12 am

    Hi Dividend Diplomats,

    Thanks! Can´t wait for more growth, and I think I will do a monthly report aswell. It´s just so fun! Thanks for commenting and have a great easter.

Robert W · April 10, 2017 at 9:01 am

Looking good, it sure is a nice feeling to get a continuous stream of dividends, setting you up for FI. Keep growing that stash 😉

    Stockles · April 10, 2017 at 9:27 am

    Hi Robert,

    Yes, it´s amazing. Can´t wait to see the difference between 2017 and 2018. Thanks for commenting buddy =)

Stockles · April 11, 2017 at 8:26 am

Hi Team CF,

Not sure which stock you refer to, but most of my stocks are up around 10%. Even though I don´t like to look at return that much, here are my total returns on US portfolio: 34.85%, 14.45%, 11.01%, 15.29%, 6.37%, 10.16%, 8.46%, 1.51%, 7.86%, 4.42%, 17.12%. (This is without increased return due to high USD/NOK)

I think you might refer to the YOC on my REITs. Most REITs are up 10 – 20%, so that´s why the YOC are high for them. I like to buy when people are pessimistic. It usually works out just fine =) Thank you for the comment and good luck with your investment journey!

Tawcan · April 11, 2017 at 6:03 pm

Regular investing is a great idea. Congrats on a solid month.

    Stockles · April 13, 2017 at 9:52 am

    Yes, regular investing is essential when following our strategy. Can´t wait for the Q2 summary. It´s going to be amazing. Thanks for the comment buddy!

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