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.