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Dividend Stocks Monthly Picks Reviewed

November 2021 – Stock Pick Review

Last month we screened for strong dividend paying stocks that are poised for growth and narrowed it down to 3 picks. I added to positions last month in all three positions. Here we will review how those stocks did in the month of October and how good our screener and our charting analysis was. Click here to read that article.

The stock screener gave us a list of 19 stocks which I narrowed down to 3 based off of the attractiveness of the chart and my general comfort with understanding the company. We picked Cardinal Health (CAH), Altria Group (MO), and Lockheed Martin (LMT) for the month of November 2021.

From the date the article was published through to the end of November 2021, the picks averaged a decrease of -2.11%. The three stocks averaged an increase of 0.61% before the Omicron variant news which flushed the market at the end of the month, so this review is very much skewed. Let’s review each stock and see how well our approach went.

Cardinal Health (CAH)

CAH went down 3.3% since the start of the month when I selected it as a stock pick. Currently, my position in CAH is down 3.27%, almost identical to the month’s loss. I am down 4.25% on it. CAH broke out of the trend and pushed close to the $52 area as I had called out at the start of the month. However, after the price didn’t push to $52, it declined back below it’s support level $47.50 and made a new 52-week low.

Yikes! Though no one likes a 52-week low, the decrease that we saw was exactly what I had warned about in my watchlist. CAH is still a strong healthcare company and a great hold. It would have been a great add to buy at the new low if you caught it.

Altria (MO)

Altria took the biggest hit this month with a decrease of 3.33%. Currently, my MO position is down 3.48%. I had purchased some MO shares before it hit my watchlist, so I’ve been holding at a higher cost before it was put into my watchlist. This month, MO continued its downward momentum following its 10% dip last month from a bad earnings report reception. MO dipped to $42.50 before bouncing, right around the support area that I had called out and recommended waiting for.

Lockheed Martin (LMT)

LMT was our best play this month with a gain of 0.30%. My LMT position is down 0.8%, I had purchased LMT share prior to this stock getting on the watchlist. Last month, LMT had a huge dip following an earnings report which I saw as a great buying opportunity. My position was up as much as 3% in the month before the Omicron news. The bottom at $327 that I had called out worked out very well and it pushed higher than the upside of $332 that I had estimated. At its highest, LMT hit $347! However, following the Omicron news, LMT has gone back down to the $330 support area, so it is still in a good buy zone in my opinion.

Conclusion

Overall, the plays mostly worked as planned! But the market towards the end of the month decided it had other plans! So far, my chart analysis for the monthly picks have been pretty accurate! May I should day trade these plays? JUST KIDDING. I would never. All these stocks are long term buy and holds for the purposes of building passive income. We will keep at it and find more good picks for next month. Look for that article later this weekend.

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Dividend Stocks Portfolio

Dividend Portfolio: 11/26/2021 Week in Review

Welcome back to Dividend Dollars! I hope you’re doing well and had a great week of investing. I hope you had a nice Thanksgiving as well!

Every week I write an update on the dividend portfolio so that we can track its progress. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions.

Nearly all economic data released this week was positive. The market looked poised to continue climbing to new highs. However, markets dipped by over 2% on Friday following news of a new Covid-19 strain found in South Africa that seemed to scare the market.

Black Friday for stocks on an actual Black Friday! How fun! Some investors were worried, but as a dividend investor we have no need to be. Every stock we buy is a purchase that secures passive income for us, therefore the price of the stock itself is not super important. Flash sales like Friday are great days for us to add more dividends to our wallet at a discounted price.

As you’ll see in this article, I made a handful of purchases on Friday and will keep watching the market reaction to the news in the following weeks. I would not be surprised if we see more downside, so prepare your account to buy as opportunities present themselves!

Portfolio Value

To date, I have invested $3,360 into the account, the total value of all positions plus any cash on hand is $3,468.78. That’s a gain of $108.78 for a total return of 3.24%. The account is up $45.99 for the week and up from 2.38% total return as of last week.

Love seeing these gains! This week we invested pretty heavily! We added $435 to the account. I’ll need to hold back on investing so much as the holidays get closer. I also recently started a new job and have been without income this month as I wait for the payroll cycle at my job to pick me up!

Portfolio

Below is a table of everything we are invested in so far. The tickers in green are stocks that I added to this week. I added $435 to the portfolio this week and made some nice buys! A lot of my buys throughout the week are buys from this month’s stock picks. You can read that article here. I use a stock screener to find potentially undervalued stocks with safe and growing dividends. I will add to positions on the picks and others as good buying opportunities (like the dip on Friday) presents themselves. Stock picks for this month are LMT, CAH, and MO. I added to my MO position from the stock picks but I made many other purchases as well.

This week our buys added $20 to our annual dividend income. Our dividend yield dropped by .04% and our beta went up by 0.02. Neither of those are particularly a bad or good thing. High dividend yields can mean that a company is paying too much in dividends and could be at risk of needing to cut dividends depending on the healthiness of the balance sheet. 4.69% dividend yield is a little higher than most dividend portfolios I’ve seen. Since I am young and just starting off, a high yield, though risky, is better for my long term time horizon.

Dividends

This week we did not receive any dividends

Dividends received for the week of November 2nd: $0

Dividends received for November 2021: $3.52

Year-To-Date Dividends: $4.16

Trades

Here’s the breakdown of the trades I made this week:

On November 22nd I added one share of T at $24.10.

On November 23rd I added two shares of AQN at $13.93 for a new position.

On November 24th I added two shares of EPD at $22.04 for a new position and added 0.127153 shares to SCHD at $78.65.

On November 25th I added lots of turkey to my gut. Happy Thanksgiving!

On November 26th I added one share of XOM at $59.84 for a new position, one share of WBA at $45.95, one share of AMGN at $202.51, and one share of T at $24.24.

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio. There was not too much direct news which affects our stock positions; however I will keep a close eye on the Covid variant situation and try my best to gauge information be prepared for how it may affect the market.

A few days a week I post market updates on my twitter account which contains statistics from that day’s economic data releases. Go follow me on twitter to see those updates and any other news I deem noteworthy!

  • Canada rules Boeing out of C$19 billion fighter jet contract – Canadian Press
    • With Boeing out of the deal, this leaves Lockheed (LMT) and one other company in the running for the contract. A decision is said to be made next year and would be a substantial booster to Lockheed’s backlog of work if they are awarded.
  • Juul to pay $14.5 million to settle AZ lawsuit over youth marketing – Reuters
    • Altria (MO) owns a significant stake of Juul. Though $14.5 million is a drop in the bucket for a company like Altria who isn’t even a sole owner of the Juul, these youth marketing lawsuits are popping up in multiple states and can add up to substantial fees. This is something to keep an eye on. These lawsuits could provide us with discounted stocks momentarily and does not change my outlook of the stock at all.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! Let’s see how the market reacts to the Covid variant news and see if we can capitalize on it by continuing to add aggressively. Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading and take care!

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Dividend Stocks Portfolio

Dividend Portfolio: 11/20/2021 Week in Review

Welcome back to Dividend Dollars! I hope you’re doing well and had a great week of investing. Every week I write an update on the dividend portfolio so that we can track its progress. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions.

Manufacturing, employment, and retail data all came in this week either reaching a new high or beating expectations. All good things! The market continues to look good for a strong finish through the end of the year.

Overall, it was a good week for us with some new and exciting plays!

Portfolio Value

To date, I have invested $2,925 into the account, the total value of all positions plus any cash on hand is $2994,49. That’s a gain of $69.49 for a total return of 2.38%. The account is up $30.07 for the week and up from 2.02% total return as of last week.

Love seeing these gains! This week we invested pretty heavily! We added $810 to the account. I’ll need to hold back on investing so much but there were just so many good moves to make this week! We added heavy to a speculative position in UWMC and bought other positions on red days. We will get into those trades later.

Portfolio

Below is a table of everything we are invested in so far. The tickers in green are stocks that I added to this week. Every week $25 is automatically deposited into my account. When there is a stock I want to buy I’ll just throw some more funds in the account (if needed) and make the order. Sometimes I may also put that $25 towards a cheap stock that pays monthly dividends so that if I am saving to buy a larger position in something else my cash on hand isn’t sitting idle. You will sometimes see those temporary positions in the portfolio below.

As you see with the portfolio this week, I didn’t just stick with the $25 deposit. I added $810 this week and made some nice buys! I will usually add funds to my account like this so that I can take advantage of good buying opportunities which are usually called out in my monthly stock picks or other timely articles. Stock picks for this month are LMT, CAH, and MO. I added more to MO this week and LMT last week.

Dividends

This week we received three dividends. $0.30 from 1 share of SLG, $0.47 from 2 shares of O, and $0.14 from 1 share of PBA. The SLG and PBA dividends were not reinvested since we sold those positions a few weeks ago.

Dividends received for the week of November 15th: $0.91

Dividends received for November 2021: $3.52

Year-To-Date Dividends: $4.16

Trades

Here’s the breakdown of the trades I made this week:

On November 15th I added one share of T at $24.81 and one share of UWMC at $6.82.

On November 16th I added one share of O at $70.55, one share of MMP at $49.19, and one share of UWMC at $6.72.

On November 17th I added 12 shares of UWMC at $6.18, another 10 shares of UWMC at $6.02, one share of MO at $44.28, and lastly one more share of UWMC at $5.99

On November 18th I added 24 shares of UWMC at $5.69, another 10 shares at $5.65, and another 35 shares at $5.71

On November 19th I bought one share of SCHD at $78.33.

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

While writing this article, I am currently on a small getaway in Sedona, AZ so I am not going to spend much more time on this post! Lucky for me, there wasn’t much news to share aside from UWMC.

UWMC had lots of news which is why I added heavy this week. If you want to read more about the news and why I’m bullish click here.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! This has been my most aggressive week yet, let’s keep up the pressure! Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading and take care!

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Dividend Stocks Portfolio

Dividend Portfolio: 11/12/2021 Week in Review

Welcome back to Dividend Dollars! I hope you’re doing well and had a great week of investing. Every week I write an update on the dividend portfolio so that we can track its progress. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions.

This week high inflation signals continued to be at the forefront of market sentiment. Both the PPI and CPI came in above expectations at multi-decade highs. What’s a great way to protect yourself from rising inflation? The best hedge is to invest! In a rising-rate and rising-inflation environment, value and cyclical parts of the market tend to outperform. Our whole strategy is centered around strong value investing in companies that pay dividends. In addition to that, companies that pass on inflationary changes to their customers instead of absorbing those costs tend to hold up in periods like this. Consumer staples, energy, and healthcare do well in these environments. With these things in mind, our portfolio is prepared for a period of high inflation.

Overall, it was a good week for us despite most indexes ending the week slightly down. Let’s dive into the portfolio and see how we fared.

Portfolio Value

To date, I have invested $2,115 into the account, the total value of all positions plus any cash on hand is $2,157.69. That’s a gain of $42.69 for a total return of 2.02%. The account is up $6.75 for the week, but the overall total return of 2.02% is flat from last week.

Love seeing these gains! It tells me that our method of screening for undervalued stocks that pay strong dividends is working. As we stick with the strategy, we will start to rack up more and more dividends which will one day snowball to a great source of passive income!

Portfolio

Below is a table of everything we are invested in so far. The tickers in green are stocks that I added to this week. Every week $25 is automatically deposited into my account. When there is a stock I want to buy I’ll just throw some more funds in the account (if needed) and make the order. Sometimes I may also put that $25 towards a cheap stock that pays monthly dividends so that if I am saving to buy a larger position in something else my cash on hand isn’t sitting idle. You will sometimes see those temporary positions in the portfolio below.

As you see with the portfolio this week, I didn’t just stick with the $25 deposit. I added $550 this week and made some nice buys! I will usually add funds to my account like this so that I can take advantage of good buying opportunities which are usually called out in my monthly stock picks or other timely articles. Stock picks for this month are LMT, CAH, and MO. As of this week I now have positions in all of the stock picks and they are performing fairly well.

Dividends

This week we received one dividend. $1.04 from T. I own two shares and received $2.08.

Dividends received for the week of November 12th: $2.08

Dividends received for November 2021: $2.60

Year-To-Date Dividends: $3.24

Trades

Here’s the breakdown of the trades I made this week:

On November 8th I bought one share of MKC for $79.50.

On November 9th I added one share of T to my position at $24.61.

On November 10th I bought one share of MO at $45.15 and 5 shares of UWMC at $7.17.

On November 11th I added one share of MO to my position at $45.00.

On November 12th I sold my two shares of AQN for $14.01 per share and put that capital towards buying one share of LMT at $338.77. I also added one share of UWM to my position at $7.04.

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

  • Independent Director Stephen Luczo Just Bought 25% More Shares In AT&T Inc.

Independent Director Stephen Luczo bought $2.5 million dollars’ worth of additional T shares for his position. Earlier this year he also $3 million dollars’ worth of shares. This suggests that he has confidence in the company’s future giving me greater confidence in my position! In the last 6 months, insiders have bought about $4.5 million of T shares.

  • Amgen: Lumykras Gets Positive CHMP Opinion

The Committee for Medicinal Products for Human Use of the European Medicines Agency gave a positive opinion recommending conditional marketing authorization of Amgen’s Lumykras for the treatment of advanced non-small-cell lung cancer based on results from Phase 2 clinical trials.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! This has been my most aggressive week yet, let’s keep up the pressure! Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading and take care!

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 11/5/2021 Week in Review

Welcome back to Dividend Dollars! I hope you’re doing well and had a great week of investing. Every week I write an update on the dividend portfolio so that we can track its progress. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions.

This week the market was hot! DJI set an all time high on November 3rd, SPX set an all time intraday high on November 4th, IXIC set a high on the 4th, and DJT set one on November 2nd. As you can see, all these major equities ended October strong and had a great week following it! The Feds also calmed some nerves this week with a message from the chair that reiterated that inflation is expected to be transitory and that the Fed will be patient with raising rates. While inflation remains high, job numbers are looking good and favorable seasonality looks to continue the market’s positive momentum through to the end of the year.

Overall, it was a great week. Let’s dive into the portfolio and see how we fared.

Portfolio Value

To date, I have invested $1,565 into the account, the total value of all positions plus any cash on hand is $1,596.66. That’s a gain of $31.66 for a total return of 2.02%. This is greater than the reported gain on the account of 0.57% last week!

Love seeing these gains! It tells me that our method of screening for undervalued stocks that pay strong dividends is working. As we stick with the strategy, we will start to rack up more and more dividends which will one day snowball into a great source of passive income!

Portfolio

Below is a table of everything we are invested in so far. The tickers in green are stocks that I added to this week. Every week $25 is automatically deposited into my account. When there is a stock I want to buy I’ll just throw some more funds in the account (if needed) and make the order. Sometimes I may also put that $25 towards a cheap stock that pays monthly dividends so that if I am saving to buy a larger position in something else, my cash on hand isn’t sitting idle. You will sometimes see those temporary positions in the portfolio below. We have no temporary positions for this update.

As you see with the portfolio this week, I didn’t just stick with the $25 deposit. I added $165 this week and made some nice buys! I will usually add funds to my account like this so that I can take advantage of good buying opportunities which are usually called out in my monthly stock picks or other timely articles. Stock picks for this month are LMT, CAH, and MO. I own positions in two of these and am watching MO for good opportunity to buy.

Dividends

This week we received one dividend. $0.52 from T. I own four shares of T, however, I only owned one at the time of the last ex-date (bummer).

Dividends received for the week of October 25th: $0.52

Dividends received for November 2021: $0.52

Year-To-Date Dividends: $1.16

Trades

Here’s the breakdown of the trades I made this week:

On November 2nd, I bought 1 share of CAH from the November Stock Pick Article at $49.25. I also purchased 1 share of REYN for $27.37 (REYN was a great pick, it had an 8% gain this week and we caught most of that with this add).

On November 3rd, I bought 1 share of INTC for $50.09.

On November 4th I bought 1 share of STAG for $42.51.

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

Verizon and AT&T delay 5G rollout amid FAA concerns

The Federal Aviation Administration claims that 5G service could interfere with cockpit safety systems of airplanes. Verizon and AT&T claim that the FAA is just skeptical. Both companies have postponed the launch of their new 5G systems due to the concerns by about a month. Both companies are set to launch in January of 2022. This headline causeed T and VZ to drop by about 3.5% on 11/4 but they have since climbed back to prices pre-headline. Was a great quick dip to buy some if you caught it.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading and take care!

Categories
Dividend Stocks Monthly Picks

November Dividend Stock Picks

Welcome to another monthly dividend stock pick post! Here I will explain my screening process for finding high-quality dividend stocks. I will highlight which stocks are currently in my portfolio as well as my favorite picks this month that I will be looking to add. Please keep in mind, all suggestions or chart interpretations are all my opinion, I always high advise you do your own research and make sure you understand a company before you invest in it.

Now let’s dive into the stock screening criteria and our picks for this month (or scroll down to see the picks if you’re already familiar with the screen)!

Stock Screening Criteria

My stock screening criteria contains a mix of hard stats combined with a few fundamental ratios that I use as rules of thumb in order to identify stocks that reliably pay increasing dividends while also identifying if the stocks are undervalued and poised for growth. My criteria gave me a list of 19 stocks which I narrowed down to 3 based on the attractiveness of the chart and my general comfort with understanding the company.

Market Capitalization

Market Capitalization, also called market cap, shows us how much a company is worth as determined by the stock market. A company’s market cap is equal to the total value of a company’s outstanding shares of stock. For example, if a company has a total of 1 million shares selling for $10 each, that company’s market cap would be 10 million.

I screen for companies with a market cap of at least 10 billion. These are generally called large-cap companies. These companies are large, established, are the most common stocks to pay dividends, and are not generally at risk of going under any time soon. For a dividend portfolio, large cap stocks will be our bread and butter. These companies do not usually bring in huge gains in the short term, but in the long term they generally trend upward with consistent increases in share value and dividend payments, which is the name of game with a dividend portfolio.

I will do some experimenting with smaller companies; however, these monthly stock picks will be the majority of my portfolio and thus I will stick to screening for companies with a market cap of at least 10 billion.

Dividend Yield

The dividend yield is a financial ratio which shows how much a company pays out in dividends each year in relation to its stock price (annual dividends per share/price per share). For example, if a stock pays $5 per year and has a market price of $100, the dividend yield would be 5%.

As a dividend investor, you would think that the higher the yield the better because we want to maximize dividends. While that logic is correct, it is important to understand why certain stocks may have uncommonly high dividend yields. If a company has healthy finances, a high dividend yield may mean that the company is unnecessarily shelling out lots of money in the forms of dividends when it could be utilizing some of those funds instead to better position the company for long term success. Every dollar a company pays out as a dividend is a dollar the company is not using to generate capital gains. We want to see healthy balance of dividends and capital growth and sometimes a high dividend yield indicates the opposite.

A high dividend yield could also mean the stock’s price is declining while the dividend payout remains the same. The stock’s price is the denominator in the equation, so if the stock is trending downwards and the dividend payout remains the same, it will inflate the yield. Take for example a stock that paid a $1 dollar dividend per share last year with a cost of $20 dollars per share. That results in a 5% dividend yield. Imagine this year that same stock still paid $1 but now the stock was worth $10. The dividend yield would now be 10%, which is an increase from last year at the expense of the stock going down 50%.

In summary, a high dividend yield is not always bad, it just calls to our attention that we should review other metrics of the stock to confirm that the company is healthy. With all those things in mind, I screen with a dividend yield of greater than 3%. The average dividend yield of the S&P 500 is 2.22%. This screen keeps us higher than that average while also not being too high that we must worry about unhealthy dividend yields. We still may see some suspiciously high yields in our list, this just means we will dive into those stocks in more depth.

Consecutive Years of Dividend Growth

This criterion is straight forward. Past performance isn’t always a great indicator of future performance, but in the case of dividends I don’t think this mindset is overly risky. If a dividend has increased year over year for a substantial amount of time, it is fair to expect that it will continue to do so. A lot of dividend investors like to look for 10 years of growth, but I prefer to cut that short by a couple of years so that I am able to benefit earlier from the stocks that aspire to hit that mark of 10 years of increases. That is why I screen for stocks that have grown their dividends consecutively for at least 7 years.

P/E Ratio

This criterion I use as a rule of thumb and not a hard stat. P/E ratio is the price-to-earnings ratio and is calculated by market value per share divided by earnings per share. This ratio is commonly used by investors and analysts to determine if a stock is relatively undervalued and overvalued. This is where Warren Buffett found lots of success, he was great at finding companies that had discounted stock prices.

There are many complex methodologies that one can use to determine a stock’s relative value, however I believe the P/E ratio is the quickest and most straightforward way to understand a stock’s relative value. Generally, a high P/E ratio means that a stock is overvalued, and a low ratio means it is undervalued.

Seems simple enough, but there are a few limitations to keep in mind. With earnings per share as the denominator, if a stock has a very small earnings per share or none at all the P/E ratio won’t give you a true understanding of the stock’s relative value. P/E ratios also vary greatly from industry to industry. Therefore, it is helpful to view a stocks P/E ratio year over year to see how it is trending relative to stock price. It is also helpful to understand the P/E ratio of the market or the industry a certain stock is in. This information can give you context clues to determine if a stocks P/E ratio is healthy or not.

The S&P 500 has averaged a P/E ratio of 15.95 since its inception. With the above information in mind, I like to look for P/E ratios that range from 15-30, but sometimes exceptions will be made for stocks that require further research.

D/E Ratio (TTM)

The debt-to-equity ratio compares a company’s total liabilities to its shareholder equity which lets us know how much leverage they are using. It measures how much debt versus equity they are using to finance their operations. In general, a high D/E ratio means higher leverage which means the company is aggressively financing its growth with debt which is risky.

If a lot of debt is used to finance the business, the cost of that debt could outweigh the benefits of the increase in earnings that it produces, however the opposite can also be true in some cases. Cost of debt can vary with market conditions and D/E ratios can vary greatly depending on industry, so it’s not always clear if a company is over leveraged or not.

In general, a high D/E ratio usually means more risk, especially to stocks that pay dividends. If a company is needing to pay down its debts, it has less cash on hand to pay dividends. My general rule of thumb for D/E trailing 12 month average is less than 15. Best case scenario, the D/E is less than 2, but some stocks will be in industries that are capital intensive which generally require more debt, so I will not immediately remove a stock from this list if they have a high D/E, these stocks will just require further research.

November Picks

Above is a table of the stocks, their data that meets my screening criteria, plus some other information that is beneficial for evaluating dividend strength and good times to buy. LMT is highlighted yellow because that is one stock that I already have in the portfolio. Next let’s look at each stock.

Cardinal Health (CAH)

Cardinal Health, Inc. is a healthcare services and products company, which engages in the provision of customized solutions for hospitals, healthcare systems, pharmacies, ambulatory surgery centers, clinical laboratories, and physician offices. It also provides medical products and pharmaceuticals and cost-effective solutions that enhance supply chain efficiency. Cardinal Health was founded in 1971 and is headquartered in Dublin, OH. CAH has a good dividend yield, P/E, D/E and history of continued to grow their dividends.

Cardinal’s chart looks promising. CAH has been in a downtrend for the last three months but is looking like it is going to bounce a second time at this $47.80 level which was the start of CAH’s big run at the start of the year. If it bounces off of this level and then breaks through the down trend, we could see prices return to the +$52 area. However, keep in mind, it is always risky to play around with prices near 52-week lows, which is where CAH is. If it breaks down it will break down hard. So watch for confirmation of bounce.

Altria (MO)

Altria Group, Inc. operates as a holding company, which engages in the manufacture and sale of cigarettes in the United States. They have smokeable and smokeless product segments. Between the two segments, they produce just about any tobacco product you can think of. They also own a wine segment. I personally have qualms with supporting the tobacco market, however, I don’t have any qualms with profiting off of it. The tobacco industry is seeing the global number of users has been rising and expect it to continue. over the next decade. MO has a good dividend yield, P/E, and D/E ratios. Their payout ratio is fairly large; however tobacco products can be lumped into the consumer staples category and the payout ratio for that industry tends to run high. It is a stable and consistent industry.

MO’s chart took a hit last week with their recent earnings report, going down nearly 10%. Great opportunity for us to grab some cheap shares! I do see that the chart could go back to previous resistance turned support levels around the $42 area. With reactions to earnings being so volatile, it would be good to wait for more downside before entering. If it bounces early, great, I’ll buy! If it keeps going down, I’ll keep watching for a bounce to get in at.

Lockheed Martin (LMT)

Lockheed Martin Corp., founded in 1961 and headquartered in Bethesda, MD, operates as a global security and aerospace company, which engages in the research, design, development, manufacture, integration, and sustainment of technology systems, products, and services. Their defense business has a great backlog of guaranteed work and their expansion into the space realm is very enticing. I think LMT has a great long term future.

Like Altria, they had an earnings report last week that knocked the stock down from $377 all the way down to $325. In last week’s portfolio update, I wrote a paragraph reviewing the report, read that article here. Unlike Altria, however, LMT has already bounced and established a bottom on this knife. I caught a share last week at $327. I’ll keep watching how this plays out by chance I want to add some more. If this bounce proves to be significant, I see potential upside towards the $332 area. If not and this support level at $330 breaks, then there is potential downside to the 52 week low at $320. I feel good about the bounce, but if you don’t, it is always good to wait for a better confirmation as selling strength is still evident in these candles.

Conclusion

In this article, I screened for stocks that look like they will provide regular growing dividends while also having potential for capital gains. My screening criteria found 22 stocks which fit the mold, I then narrowed that list down to 3 based off of the attractiveness of the stock’s chart and my comfort with understanding the company.

I am long on all the stocks on this list. Of the picks, I already have a position in LMT. I will watch this list play out through the month and will either open new positions or add to current positions at key levels if my capital allows.

I do also take into account what months these stocks pay their dividends and I try to balance my portfolio so that I am earning roughly the same amount of dividends every month. This goal may influence my timing and decisioning when it comes to purchasing some of the stocks on this list.

All 3 stocks are suitable for further research and my article is not to be taken as financial advice. Thank you for reading and feel free to leave any replies or questions you may have on here or on my socials.

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Dividend Stocks Dividends Portfolio

Dividend Portfolio: 10/29/2021 Week in Review

Welcome back to Dividend Dollars! I hope you’re doing well and had a great week of investing. Every week I plan on writing one of these posts to give an update on the portfolio that we are building. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions. Let’s dive in!

Portfolio Value

To date, I have invested $1,400 into the account, the total value of all positions plus any cash on hand is $1,407.95. That’s a gain of $7.95 for a 0.57% return. This is lower than the reported gain of 1.66% last week. If you want to see last week’s portfolio review click here

Gains went down but we are not discouraged! We are in the thick of earnings season which tends to lead to volatility and great buying opportunities (which we took advantage of). As we continue to invest regularly and reinvest dividends, more substantial gains will come. The path to stable and reliable passive income through dividends is a long one, but by starting and investing heavily in the early stages we are working our way up the exponential curve towards financial freedom.

Portfolio

Below is a table of everything we are invested in so far. The tickers in blue are the stocks that were the picks of the month. The tickers in green are positions we added to this week. Every week I add $25 to the account.

I will throw that $25 at a stock that pays monthly dividends that I believe is in both a good fundamental and technical standpoint for short term gains, usually those stocks will be called out in this sheet, but I sold all those temporary holding vehicles this week to free up that capital for other purchases (this is touched on again in the “Trades” section below).

I generally leave that money in those stocks till it has compiled to an amount large enough to sell and reinvest the funds into a more expensive/substantial stock pick. That way my investments are never idle, and every dollar is put to work even while it sits and waits for a stronger long term position within the portfolio.

As you see with the portfolio this week, I don’t restrict myself to only $25 per week. If there is a good buy opportunity, I will add funds to my account through my personal finances in additional to selling temporary positions to make sure I have capital to take advantage of the discount!

Dividends

We received no dividends this week, but we are set to receive a dividend from AT&T on 11/1/2021. I have four shares of T, but at the ex-date I only had one, so it is just the one dividend for me next week.

Dividends received for the week of October 25th: $0

Dividends received for October 2021: $0.64

Year-To-Date Dividends: $0.64

Trades

Here’s the breakdown of the trades I made this week:

On the 25th, I bought two shares of WSR at $9.88 to use as a temporary position to hold capital.

On the 26th, LMT dipped by 8% after Q3 earnings report was released which I saw as a great buying opportunity (to read more about why I think LMT is good, continue to the “Noteworthy News” section below). In order to buy LMT at $327.61, I sold my temporary holding positions of PBA and SJR for a small loss of $0.88 and deposited funds into my account.

On the 27th, AQN dipped nearly 5% following news I bought one at $14.50.

On the 28th, I also bought INTC for $47.96.

On the 29th, I sold temporary holding positions in WSR and SLG for a total loss of $3.00 in order to have capital for a purchase of O at $72.25 and a purchase of AQN at 14.66.

I sold all my temporary positions in order to buy other substantial positions. Each time I did that I took a small loss and never held long enough to even be rewarded with a dividend. I’m beginning to think that strategy isn’t a constructive one and will trade differently next week.

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

LMT Q3 2021 Earnings

On Tuesday, LMT shares went down nearly 12% following the release of their Q3 quarterly earnings report. Within the report, Lockheed’s sales and revenues fell and the company stated that they would be reassessing their 5-year plan. Earnings were low this quarter following a $1.7 billion pension settlement. Regardless of that bad news, Lockheed reflects strong cash flow generation with a slight reduction in revenue for the next year. Not great news, but also not worthy of a 12% drop! I took advantage of this drop. LMT will be a long-term hold for me. They have a good dividend yield and as the national supply chain heals their business should improve.

INTC Q3 2021 Earnings

Last week, on 10/21/2021, Intel released their Q3 earnings and it was not received well. The stock dropped nearly 15% at the lowest price this week. I wrote an article here, click to read more. The summary of the article is that I believe INTC’s recent drop was an overreaction which has provided us with another good buying opportunity. Intel’s financials are healthy and they are poised for success in a fast-growing high-demand market.

AQN Acquiring Kentucky Power Company

American Electric Power entered into an agreement to sell their Kentucky operations Kentucky Power Company to Liberty, the utility business of parent company Algonquin Power & Utilities Corp. for $2.846 billion enterprise value. The sale is expected to close Q2 of 2022. AQN provides electricity, natural gas, water, and wastewater services to 13 US states and Canada. AQN will be purchasing all the stock of Kentucky Power at $18.15 per share. This purchase will significantly grow AQNs electric utility operations and will contribute to growing their net earnings per share over the long-term. To me, that deal sounds great and provided a great buying opportunity to add some cheap energy shares to the portfolio.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for more good buying opportunities! Let me know what you think of the progress so far, share with me your progress and questions, interact with me on twitter and Instagram using the links below!

Thank you for reading and take care!

Categories
Dividend Stocks Dividends Portfolio

Dividend Portfolio: 10/24/2021 Week in Review

Welcome back to Dividend Dollars! I hope you’re doing well and enjoying the beginning of this journey. Every week I plan on writing one of these posts to give an update on the portfolio that we are building. I will give an overview of the portfolio and its value, the dividends received, trades made, and any news or business announcements made that may be of interest to our positions. I will do my best to be consistent with these updates, but as you know, life happens to all and we may miss an update or two here or there. All that aside, lets dive in!

Portfolio Value

As this is the first installment of the portfolio update, we will use this post as a baseline to gauge progress moving forward. To date I have invested a total of $1,050 and the account is valued at $1,067.41. That’s a total gain of $17.41 for a 1.66% gain. Not a crazy gain by any means, but we are in this for the long haul. Our approach to investing in discounted stocks with growing dividends is a slow game, so this gain in the portfolio value, to me, is a huge win and tells me our strategy of trying to find discounted growth dividends stocks could be working. As we continue to invest regularly and reinvest dividends, more substantial gains will come. We are at the very beginning of the exponential curve upwards towards financial freedom.

Portfolio

Below is a table of everything we are invested in so far. The tickers in blue are the stocks that were the picks of the month. The tickers in yellow are stocks that I am just using to hold money in. Every week I add $25 to the account. I will throw that $25 at a stock that pays monthly dividends that I believe is in both a good fundamental and technical standpoint for short term gains. I leave that money in those stocks till it has compiled to an amount large enough to sell and reinvest the funds into a more expensive stock pick. That way my investments are never idle and every dollar is put to work even while it sits and waits for a stronger long term position within the portfolio.

Dividends

Last week we received $0.06 in dividends. This came from PSEC which was a stock I was using as a temporary vehicle to hold funds while I gathered more funds for a larger planned position.

Dividends received for the week of October 18th: $0.06
Dividends received for October 2021: $0.64
Year-To-Date Dividends: $0.64

Trades

At the start of the week I bought 4 shares of PSEC for $33.04 and sold them later in the week for $33.55. I bought two shares of VZ for $106.55 and 1 share of PBA for $33.88 for a temporary holding position. Earlier in the month I had added to positions in T, MMM, WBA, KO, and O, all stock picks for the month.

Noteworthy News

This section of the post will identify some headlines that may be of import to our positions. If they are important enough, we will also call out in the posts if the news calls for actions to readjust our portfolio.

Walgreens WBA to make additional investment in VillageMD:
WBA popped off of this news. WBA will invest an additional $5.2 billion into the VillageMD position which is poised to open a large number of primary care practices in Walgreens stores to further progress the company’s goal of stepping into the full-service primary care practice.

AT&T Stock Below Covid Lows:
I believe at less than $26 per share AT&T looks undervalued. I added to this position within the last few weeks. It seems to have found a bottom at $25 but will keep watching closely for more downsides. I will not dive into my reasoning for this opinion within this post, however I always recommend you do your own research before entering into any position.

Summary

That is it for the update this week. Let’s kill it next week and keep our eyes open for good buying opportunities. Let me know what you think of the progress so far, share with us your progress, thank you for reading, and take care!