A blog about financial independence and early retirement. I am a former Intel engineer who retired in his early 40s to become a full time investor. I now share my personal finance and investing ideas through this blog and enjoy interacting with like minded people.
Tracking dividend health is part of my job as a dividend investor. I don't like to solely depend on dividend ratings and other analysis provided by various professional websites, as they are covering hundreds of stocks and may miss or delay reporting issues/concerns related to a company I own.
Instead, I like to read the latest available earnings report to determine what management is saying about dividends and the overall health of the company.
Here are the quarterly dividend health highlights for utilities I own as of Q4 '2017 Earnings Reports:
I've been testing a new dividend stock screener tool. It's called "The Dividend Growth Screener".
The tool is based in Germany and so is the developer/owner. I was contacted by the developer to help him test it for the US audience. In return, I get the full complementary access to it ;) But don't fret, there is an option for you to get a free limited access as well. I will talk about it at the end of this post.
For a dividend investor, it is important to track dividend growth as well as when a company is expected to announce its dividend increase.
A slowing or frozen dividend growth rate could indicate a problem with company's business or an overall industry slowdown. An increasing dividend growth on the other hand, indicates improving business and cash flows.
I track both dividend growth and the actual/expected announcement dates for all my stocks and here is how I'm doing so far: Read more »
I'm now focusing on building up my staple positions. I currently own Kimberly-Clark and want to add more shares to its position. However, Procter & Gamble is also a good choice. I don't currently own PG, but could start a position.
With the market correction, both stocks are yielding over 3% and have a very long dividend history of consecutive yearly growth. Read more »
Before I go and share my own definition or rules for a core stock position, I want to share how some of the most popular and very respected DGI investors on SA define core stock positions in their portfolios.
I have followed these investors for years on SA and tried to learn from their DGI investment wisdom.
The Southern Company (ticker SO) is one of my favorite utility stocks. It is not only one of the largest utilities in the US, but also a great dividend stock with a 17 years of consecutive annual dividend growth history.
SO is currently yielding at slightly over 5% at a blended P/E of 15, which makes it fairly valued at the current price. A fair value is indicated by the orange line in the FastGraphs. Read more »
Knowing when to sell a stock is one of the hardest things, when it comes to investing.
Many times the reason to sell is simply risk management, such as the case with my GE and MAT positions in 2015. These companies were struggling and there was ample warnings that things will get worse for them. Read more »
Next week is going to be a big dividend week for most of us as many of the dividends for February are paid next week. For my portfolio, there would be at least seven companies paying dividends next week:
Given the recent pullback in the market, a rather quick and steep pullback, many utilities have come down below fair value.
I took advantage of this pullback and added to all my utility positions. Below are the utilities I currently own and have added to during this pullback. I'm listing them here along with the fair values that I have determined using FastGraphs valuation method. Read more »