Monday, August 31, 2015

Dividend Growth Investing at Work - A Double Helping of Dividend Increases


Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who really doesn't like getting a raise for doing nothing?

Sunday, August 30, 2015

Is Procter & Gamble a Value Play?

Volatility has spiked over the last week with large swings in share prices both lower and higher. This could lead some to take up defensive positions for their portfolio. That means consumer staples and how many consumer staples can spout a 59 consecutive year dividend growth streak? The Procter & Gamble Company (NYSE:PG) closed trading on Thursday, August 27th at $71.48 giving a current yield of 3.71%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from The Procter & Gamble Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

Over the last decade, owners of Procter & Gamble have earned fairly poor returns. According to longrundata.com, PG has delivered investors a total return of just 71.0% or 5.5% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Procter & Gamble has delivered.

Continue reading the Procter & Gamble Company stock analysis on Seeking Alpha. For more stock analyses check out this page.

Saturday, August 29, 2015

Weekly Roundup - August 29, 2015


What a week!  As I'm sure everyone is aware of the stock markets took a big step back to start off the week.  The DJIA dropped almost 1,100 points in the first 10 minutes of trading Monday morning.  I almost couldn't believe what I was seeing as I was scanning my portfolio and seeing nothing but RED.  Lots of the early morning losses were recovered throughout the day but volatility had definitely spiked.  The S&P 500 and DJIA were both essentially flat for the week so the markets went everywhere but nowhere.

Unfortunately I didn't get to participate in the turmoil, aside from seeing my portfolio's value decline.  That's right no purchases for my FI Portfolio.  Although that's not because I was scared, worried, or didn't want to.  It was just a factor of not having available capital at the time.  It was one of the worst times as a long term investor to be caught without capital.  However, I'm quite pleased with the fact that my first instinct was to rush out and make purchases but in the end I knew it was the wrong thing to do because our finances took a big hit with the loss of our son.  $12k in expenses we always knew were a possibility but never really thought would happen will do that.  So I held off for now.  I have no idea if the bull run will continue marching on or if this is just the start of something worse, or better depending on your perspective, but over the next month or two I'll be doing my best to save as much as I can to get ready to load up on any other opportunities that we get.

Thursday, August 27, 2015

Opportunity Knocks To Power Your Portfolio With Eaton Corp. Plc

The industrial sector has taken a beating so far in 2015 and Eaton Corporation (NYSE:ETN) hasn't escaped the damage with the share price declining 26% from its high reached in May of this year. Of course, Mr. Market is a bit irrational from time to time and there's a big difference between value and price. Eaton Corporation is attractive for a long term investor at current prices. Eaton Corporation closed trading on Wednesday, August 26th at $54.57 giving a current yield of 4.03%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from Eaton Corporation's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates: 

Historically, owners of Eaton Corporation have earned average returns. According to longrundata.com, ETN has delivered investors a total return of 117.7% or 8.1% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Eaton has delivered.

Continue reading the Eaton Corporation stock analysis on Seeking Alpha. For more stock analyses check out this page.

Also, in case you missed the analysis on The J. M. Smucker Company make sure you check that out as well.

Filling Your Portfolio with The J. M. Smucker Company

At this point I don't think anyone has escaped notice that the markets have been on a whirlwind over the past week with the DJIA dropping almost 1,100 points in early trading Monday morning. However, that just means that excellent companies are offering up much better long term valuation prospects. One such company that has been on my target list for a while now has been The J.M. Smucker Company (NYSE:SJM). J.M. Smucker closed trading on Tuesday, August 25th at $106.85 giving a current yield of 2.51%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from The J.M. Smucker Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates: 

Historically, owners of J.M. Smucker have earned solid returns. According to longrundata.com, SJM has delivered investors a total return of 219.6% or 12.3% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that J.M. Smucker has delivered.

Continue reading The J. M. Smucker Company stock analysis on Seeking Alpha. For more stock analyses check out this page.

Wednesday, August 26, 2015

Dividend Update - July 2015


It's the end of one month and the beginning of another so it's time for my favorite update: my dividend update.  These dividend updates reflect all dividends that I receive through my investing pursuits. I hope they can help inspire you to take control of your own finances and invest to build a passive income stream. What you use that stream for is up to you, whether it's to fund early retirement, just provide some FI/FU money, or even to provide for an annual vacation; the key is that it can provide options and open up all sorts of possibilities. You can check my dividend income or progress pages to see what dedication to an investment plan can give you.

Saturday, August 15, 2015

Heavy Hearts

This post is a bit old but our son Luke lost his fight almost 2 weeks ago.  We're taking a break to get away from real life and I'll most likely be taking a short break from blogging as well for the next week or so.


Monday, August 3, 2015

Baxter and Baxalta Dividends


Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who really doesn't like getting a raise for doing nothing?

Sunday, August 2, 2015

Weekly Roundup - August 2, 2015


Quick update this week because Luke has decided to keep the doctors scratching their heads once again.

One article that really stuck with me this week was on Business Insider.  It's about a guy that has completely broken free from societal norms and does what he enjoys.  He works 6 months each year then spends the rest of the year living on $10 a day and biking around the world.   Sounds awesome if you ask me although a little harder to implement with a wife and child in tow.

"I like to romanticize the ideals of being out on your own and that ultimate freedom of not having any ties. I understand that you need to have some ties — we can't go directly back to that. At this point we've gone too far. And I'm not one to get held up in a mountain like a hermit. I like my internet and I love Instagram and all that stuff — I love Whole Foods. There are plenty of modern conveniences that I love." - UltraRomance

You can read the full article here.

Monday, July 27, 2015

Recent Buy


Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details. I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.

Saturday, July 25, 2015

Weekly Roundup - July 25, 2015


The S&P 500 is up a little less than 1% so far in July, but it sure feels like there's a lot more companies trading for better valuations right now.  This past week I initiated a new position in Hershey (Full Stock Analysis Here) which I'd love to add more to.  I also made another purchase towards the end of the week as well that I'll get the details out about over the next couple of days.  There's just a lot more companies that are looking attractive here.  Union Pacific, 3M, Toronto-Dominion, T. Rowe Price Group, and  Johnson & Johnson.  I know my plan is to not add to many more companies to my portfolio but there's some other intriguing options out available right now with J.M. Smucker, Caterpillar, Eaton, and BlackRock.  Despite the markets continuing to inch higher, there's still opportunities available for the value and dividend growth investor.  What companies have you been buying?  Are any of these companies on your watchlist?

Thursday, July 23, 2015

Recent Buy


Whenever I make a new purchase for my portfolio I feel it's only fair to get a post written giving all of the juicy details. I want to be as transparent as possible with my journey to reach financial independence through dividend growth investing. Being open about the moves I make allows for better discussion with all of you and helps spread ideas around as well as letting me create my own "investing journal" to chronicle why I purchased a company in the first place and that way I can revisit if something changes and make the decision on whether to continue owning the company or not.

Wednesday, July 22, 2015

Dividend Growth Investing at Work - A Trifecta of Raises


Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who really doesn't like getting a raise for doing nothing?

Tuesday, July 21, 2015

Building an Empire with PepsiCo Inc.

Earlier this month, PepsiCo Inc. (NYSE:PEP) announced Q2 earnings which they knocked out of the park with a beat on both the top and bottom line. PepsiCo has 22 different brands that generate over a billion dollars in annual revenue. Even better is that those 22 brands are well diversified coming from carbonated soft drinks, orange juice, tea, coffee, and chips. PepsiCo's numbers are currently being hurt due to currency exchange due to the strength of the US dollar but eventually the US dollar will lose some of its strength, leading to increased profits above organic growth seen by the company. PepsiCo's shares closed trading on Friday, July 17th at $96.78, giving a current yield of 2.90%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from PepsiCo Inc.'s investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates: 

Historically, owners of PepsiCo have earned solid returns. According to longrundata.com, PEP has delivered investors a total return of 132.0% or 8.8% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that PepsiCo has delivered.

Continue reading the PepsiCo stock analysis on Seeking Alpha.  For more stock analyses check out this page.

Monday, July 20, 2015

Exclusive Club: Members Only!

In a recent post by Income Surfer, he mentioned that his recent purchase would immediately be joining the $500 club meaning that the position would provide $500 per year in dividends.  I think that's a pretty prestigious club for a holding to be in because it generally means that you have a lot of conviction in the future of the company.  So that got me wondering how many members of my portfolio belong to the different milestone clubs.  Let's start with some general information before I narrow down my portfolio to the undisputed dividend champ.  I own 51 different companies within my FI Portfolio, excluding my employers stock, and those companies will provide $5,997.39 in forward 12-month dividends.  Each club level is inclusive of clubs in a higher level, i.e. a company that provides $205 in annual dividends will show up in the $100 Club and the $200 Club.

Saturday, July 18, 2015

Weekly Roundup - July 18, 2015


I'm back home now and now that means it's back to the grind with our son, Luke.  They had him medically paralyzed for about a week to let his body relax and build up some strength and lifted that on Thursday.  The unfortunate side effect of him being paralyzed is that his fluid balance gets out of whack and he starts to swell up.  And the worst part about that is that almost all of the swelling is in his head because of the way his vasculature is which just makes it extra uncomfortable.  So we've made a few changes to his ventilator settings and so far so good since taking off the paralysis.  He still has some issues but it's nowhere near like it was before.  Now we just need to hope that Luke has a great weekend.  For some reason he seems to not enjoy weekends and tends to act up then.

June ended up being a stellar month for me.  I ended up crossing over 1,000,000 total pageviews for Passive-Income-Pursuit and also had my best month of "non-work" income.  Between dividends, interest, and writing I earned over $1k in income that's not related to my regular job.  I know I'm not at the point where I can repeat that month after month, but eventually I'll get there.  And doing it even once is amazing to me.  I hope to continue the writing from this past week and keep that momentum going over the second half of July.  I've got lots of ideas for posts, as well as some stock analyses to write, and if Luke will be stable I'll be able to get more a lot more done.

Friday, July 17, 2015

Net Worth Update - June 2015


While cash flow is more important when it comes to financial independence, it's still good to look at the balance sheet too, which is why I provide these net worth updates.  Since more and more of my net worth is tied to the markets, there's a larger correlation between my net worth and the markets but in the long run as I continue to save and invest the net worth trend should be higher even though short term fluctuations can vary wildly.  As a dividend growth investor I'm not overly concerned with the short-term gyrations as long as the dividend stream remains in tact, but the markets' effect is noticeable.  It's been a while since my last update which was all the way back in March.  Since then my net worth has decreased $738.77.  Although all of the loss was due to June's poor showing with almost a $8.7k decrease alone which wiped out the gains from April and May.

Thursday, July 16, 2015

Dividend Growth Investing at Work - Cummins Continues to Keep the Dividend Engine Running


Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who really doesn't like getting a raise for doing nothing?

Wednesday, July 15, 2015

Does The Coca-Cola Company Still Have The Recipe For Out-Sized Returns?

There's no mistake that one of the greatest wealth creators of the last century is The Coca-Cola Company (NYSE:KO). With 20 different beverage brands generating over a billion dollars in annual revenues they are the envy of plenty of companies. Especially when you consider that most of their profits are generated from water, sugar, and flavoring. That's a truly tremendous feat. They also have a vast distribution network which is the strength of their company with access to over 200 different countries around the world. Coca-Cola Company also belongs in the exclusive club of 50+ consecutive years of dividend increases. Shares closed trading on Friday, July 10th at $40.39 giving a current yield of 3.27%.

The following tables/graphs are taken from my personal stock analysis spreadsheet. Data for the stock analysis was sourced from The Coca-Cola Company's investor relations page, Morningstar, and Yahoo Finance.

Historic Growth Rates:

Historically, owners of Coca-Cola Company have earned solid returns. According to longrundata.com, KO has delivered investors with a total return of 152.8% or 9.7% annualized returns over the last 10 years. Those numbers are market returns at specific snapshots in time and aren't necessarily indicative of the business results over the same time period. Looking at the historic growth rates for per share dividends, earnings, revenue, and free cash flow gives a better idea of the true operational results that Coca-Cola has delivered.

Continue reading The Coca-Cola Company stock analysis over at Seeking Alpha.  You can also find the rest of my stock analysis reports on my stock analysis page.

Tuesday, July 14, 2015

Dividend Growth Investing at Work - Walgreens Boots Alliance


Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who really doesn't like getting a raise for doing nothing?

Monday, July 13, 2015

Blog Milestone - 1,000,000 Lifetime Views!!!



Thanks a million to all of you!  In late June I crossed over the 1,000,000 lifetime pageviews, so I can officially say that I'm a millionaire at something.  The first million is the hardest, right?  I know it hasn't been the fastest that a blog has been able to reach a million views but I can honestly say it's been a lot faster than I expected.  Especially after the painfully slow start.  Don't believe me?  Here's a chart of all my monthly pageviews as well as the cumulative total.  I didn't cross the 100,000 lifetime views until my 20th month.  

Saturday, July 11, 2015

Weekly Roundup - July 11, 2015




Well, the stock markets went everywhere and nowhere this past week.  With Greece, China, Fed interest rate hike and maybe just because it's the summer, the stock markets went on a wild ride this past week.  But the important thing to remember is that just because the share prices of companies you own change that doesn't mean there's commensurate changes in the outlooks of said companies.  It's not very often that a company's prospects can change by billions of dollars over the course of a few days; however, if you look at the stock quotes that's exactly what you see.  Unfortunately I wasn't able to take advantage of the market volatility because I was out of cash in my brokerage account.  By the time I was able to move some funds around it was too late and the markets had recovered some taking away a lot of the value that was presenting itself.  Oh well, I'm sure we'll have a catastrophe of the week next week to unlock some more of that value.