February Highlights

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It decided to snow in North Texas yesterday!  It gets crazy around here when people attempt to drive in it, unfortunately it canceled my plans to visit my brother for the weekend!  Ohh well, better to be safe.

February has once again been a rather uneventful month for me.  Which is great, I made a few trades and added a few high quality shares to the portfolio, but otherwise a good month.

Roth Activity

This account is fully invested and the positions are dripped.

I have watching the situation with SYY as it attempts to buy US foods. I have disliked the additional measures that SYY has taken to help the merger along and it would appear to me that the situation is not as beneficial as it once was.   SYY is probably one of my slowest compounding machines in my portfolio (~3% yield + 3% growth).  While slow growth isn’t necessarily an issue for me, I have come to the conclusion that there are many better potential candidates than SYY.  I sold my SYY position on Monday.  The total return was positive but not great, I held the position for about 2.5 years and ended up with a 33% return vs a 50% return for the S&P 500.  This reduces my income by $60.

I have been researching Canadian banks and wouldn’t mind avoiding some foreign taxes and freeing up some space in this account would be beneficial from that point of view.   After spending some time doing research, the choice came down to TD and BNS.   I ended up choosing BNS due to its track record of paying (never lowering dividends) for over 100 years and due to its diversification of its area of operations.  I like the more conservative nature of the Canadian banks and felt like now was a good time to buy, even if oil prices continue to drag on the Canadian economy.  This increase my income by around $85.

Additions

I purchased some additional shares of JNJ. This increases my exposure to the healthcare sector, which I am currently low on.

Raises

Six of my positions increased their dividends this month.

Company Raise PE (TTM)
Cisco (CSCO) 10.5 17.7
Dr. Pepper Snapple Group (DPS) 17.1 22.13
Hasbro (HAS) 6.97 19
Coca-Cola (KO) 8.2 26.32
Pepsi (PEP) 7.3 23.23
WalMart (WMT) 2.1 16.89

With the exception of Walmart, healthy raises all around.  The raises are at or above my desired 6-8% target.  On the slightly disappointing note, all of the beverage companies are above a 20 PE TTM.  However, my allocation to Technology is 8.19% by weight (6.28% by dividends), which is lower than the 10% desired weight.  I would like to have the chance to buy more CSCO, MSFT of INTC, but probably at a lower price.

Dividends Earned

I earned a total of $311.45, which is 40% higher than last January ($222.53).

$642.22 of $5750 (11.2% accomplished)

Forward Dividends

At the start of the month, my 12 month forward dividend was $5103.66 and ended up at $5202.29.  My future income is 38% higher than this time last year.  Which is great YoY, but growth like that won’t last.

My goal is to increase this to $6100 (increase of ~1339).  I am 441.29 of 1339 or 33% of the way there.

Fitness Goals

I have run at least a mile every day this year (or up to this posting).  I got a little sick and tired last week, but that passed without becoming much.  The weather has gotten a “little bad” in the last few days, but nothing like the Northeast.  I can run a mile even in 18 degree weather =) Just have to layer enough!

Conclusion

Disclaimer: Long all stocks mentioned besides SYY (which I no longer own).

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12 Responses to February Highlights

  1. Some pretty awesome year over year growth in dividends, supported by the added capital and of course the dividend increases. Of the list of six companies for you, I have exposure to four of them, and would love to add DPS to my portfolio. The ‘always’ expensive tag can be applied to them, and I’m regretting not picking them up a year ago when all the beverage companies were lower in price.

    Live and learn! Thanks for sharing your February with us.
    writing2reality recently posted…Trades – February 2015 Loyal3 Portfolio PurchasesMy Profile

    • ILG says:

      Thanks W2R! Yeah, I agree with DPS. I added to it at the beginning of last year, but the price got away quickly. I would love, to add more to it. Being my favorite drink too! I may consider adding to Pepsi and KO, I doubt I will regret either purchase in the following years.

      Thanks for stopping by!

  2. DivHut says:

    Great looking month for dividend income. I was happy about that KO raise. To be honest I did not expect such a high raise from them. Thanks for sharing your recent update with us.
    DivHut recently posted…Dividend Portfolio Sector Allocation February 2015My Profile

    • ILG says:

      Hi DH! Thanks, it is really moving along fairly quickly!

      I was happy with KO myself. Like you I was fairly surprised at the size of the increase. KO has been taking some interesting actions as of late (buying more GMCR and adding milk to the line up). We shall see if that translates into increase sales.

      Take care!

  3. Wow good stuff, ILG. Thats a great sum of money in dividends. You are well on your way to achieve your goal this year. Thats a neat list of stocks giving you a raise during the month as well. Congarts on that too.

    Best wishes
    R2R
    Roadmap2Retire recently posted…Chatter Around the World – 85My Profile

    • ILG says:

      Thank R2R! I have been at this for almost 3 years and it seems like it has taken a while to get where I am. However, I think i can keep it up!

      Thanks for stopping by!

  4. MU says:

    Another role model of mine on the DGI path. Thanks for the awesome data sharing. Congrats!
    MU recently posted…Monthly Review — February 2015My Profile

    • ILG says:

      Thanks for stopping by! I don’t consider myself a role model, just trying to do my best!

      Take care!

  5. ILG,

    Congrats on a great month. It’s been an interesting couple of weeks here in North Texas. We are on the west side of the metroplex (about 15 miles north of FW) so we didn’t get the snow as bad last night. Keep up the great work over there.

    FD

    • ILG says:

      Thank you. It sure has! I woke up this morning with about 4 inches of snow on the ground! It was nice having some actual powder on the ground!

      Thanks for stopping by!

  6. Always good to do some pruning. That allows you to put the cash in other areas. Also, nice dividend income report.

    Keep cranking,

    Robert the DividendDreamer