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 :
- Dividends received: 16
- Dividend amount in total: $100
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:
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.
- 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.
- 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