Dividend Income Update Q1 2017

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 has 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 is that 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 recieved a dividend payment 16 out of the 90 days during Q1. That´s pretty awesome. I also didn´t recieve dividend from Vodafone this quarter due to late purchase, so that will for sure increase next Q1. Another thing is that 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 digg 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 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, specialising 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 my know in the comments bellow.
– Stockles

16 comments

    1. 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.

      1. 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.
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  1. 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

    1. 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.

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

  3. 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!

    1. 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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