Once again, as I sip on a delicious, warm cup of coffee, I have found myself shaking my head. This time, the disappointment was at the hands of Pepsico (PEP). Their recent 3% dividend increase left a lot to be desired. It is significantly lower than last year and their 5-year average dividend growth rate. But Pepsi wasn’t the only company that has made me feel this way in 2019. We’re noticing a frustrating trend in 2019….slowing dividend growth.
When talking about dividend increases, this is us talking about dividend investing, at it’s finest! Given another quarter-end had recently passed, I wanted to reflect on what occurred over the last 9 months. I do not mean just any old reflection, but I am going to be specifically talking about dividend increases and their impact on my portfolio this year. Tax reform has been rewarding, as companies have been sending portions of the cost savings to their shareholders.
Dividend investing at it’s finest! I thought now would be a great time to reflect on what has occurred over the last 6 months in the dividend income portfolio of mine. I do not mean just any old reflection, but I am going to be specifically talking about dividend increases and what the impact has been on my portfolio this year. Tax reform has truly showed their colors and companies have been sending the savings, or part of, to their shareholders.
If you want to talk about how fast time flies, here is a perfect example. I was prepared to re-visit a dividend stock analysis that I thought I performed over Realty Income (“O”) a couple of quarters ago. When I looked at the date on the original analysis…it was November 2015. I cannot believe 12 months have flown by that quickly…where has time gone? Even though I have reviewed the company in the past, I thought it would be a good idea to update the stock analysis I performed considering the recent pullback in price, the fact that they were one of the four stocks on my October Watch List, and the company’s recent earnings release. A lot can change over 12 months, I think we can all attest to that in some capacity. So let’s re-run Realty Income through our stock screener.
We are now entering December! Gearing up after this one for the FINAL dividend posting and last month + to reach your annual goals. Extremely excited for things coming down the pipeline and dividend income will be looking solid going into December. Now… to the numbers!
As I sit here with the desire to “crank out” an article before the day starts (going for an 8 minute post) – it dawned on me that this year hasn’t been the “strongest” in terms of dividend increases for large companies that we all share, hold and love. Some are even dividend aristocrats that increase their dividend year, after year, after year. Some are big name companies that over the last 5 to 10 years have had large or more than the average dividend growth rates, say between 5 and 15% increases, vs the 0-5% increases from some of the others. This has been a very different year for dividend investors as we navigate the playing field and start seeing action events from companies on their annual increases, which – we can’t blame them at all, given the facts displayed out below. Let’s see what I’m talking about so far this year, with 5 examples of companies that haven’t provided that historical or thought of dividend increase year. Continue reading
As a great band once said….”Another one bites the dust.” Another month bites the dust and we are now entering May. April was a crazy month that consisted of more transactions than I can remember for a while, the capstone of which was my investment in one of the largest railroad companies Norfolk Southern. Unfortunately though, I will not be reaping the dividend benefits from these transactions until next quarter. After seeing a minimal YOY increase of 8% in my dividend income in March, I am hoping that my investing throughout the first four months of the year will begin to show in April. Looks like it is time to dive in and review my April dividend income summary.