Checking in on the Dividend Growth Port

Investment Analysis Clubs Dividend Growth Investing
1

Hi all,

We created a model dividend growth portfolio on November, 22, 2022 which required at least a 3% current yield and recent dividend growth in excess of 10%. Here’s how the port sits as of the close on Friday:

Dividend Annual Current Value Value Dividend
Price Invested When Dividend Current Current Annual Current Change Change Change
Ticker Shares Paid Amount Purchased Purchased Quote Dividend Dividend Value Dollars % $
ABBV 75 $134.21 $10,066 $5.64 $423 $151.31 $5.92 $444.00 $11,348 $1,283 12.7% $21.00
AFL 178 $56.20 $10,004 $1.60 $285 $69.37 $1.68 $299.04 $12,348 $2,344 23.4% $14.24
AMGN 44 $225.40 $9,918 $7.76 $341 $240.53 $8.52 $374.88 $10,583 $666 6.7% $33.44
AVGO 23 $444.01 $10,212 $16.40 $377 $595.59 $18.40 $423.20 $13,699 $3,486 34.1% $46.00
BLK 18 $550.28 $9,905 $19.52 $351 $716.16 $20.00 $360.00 $12,891 $2,986 30.1% $8.64
FAST 217 $46.04 $9,991 $1.24 $269 $53.44 $1.40 $303.80 $11,596 $1,606 16.1% $34.72
FITB 313 $31.96 $10,003 $1.32 $413 $36.95 $1.32 $413.16 $11,565 $1,562 15.6% $-
HPQ 401 $24.92 $9,993 $1.00 $401 $30.16 $1.05 $421.05 $12,094 $2,101 21.0% $20.05
MDLZ 182 $54.83 $9,979 $1.54 $280 $66.85 $1.54 $280.28 $12,167 $2,188 21.9% $-
NJR 258 $38.70 $9,985 $1.56 $402 $51.70 $1.56 $402.48 $13,339 $3,354 33.6% $-
SNA 50 $201.35 $10,068 $5.68 $284 $252.28 $6.48 $324.00 $12,614 $2,547 25.3% $40.00
TGT 67 $148.39 $9,942 $4.32 $289 $173.22 $4.32 $289.44 $11,606 $1,664 16.7% $-
TXN 65 $154.78 $10,061 $4.96 $322 $175.32 $4.96 $322.40 $11,396 $1,335 13.3% $-
UPS 62 $161.54 $10,015 $6.08 $377 $183.21 $6.48 $401.76 $11,359 $1,344 13.4% $24.80
WEC 112 $89.43 $10,016 $2.91 $326 $92.87 $3.12 $349.44 $10,401 $385 3.8% $23.52
WHR 74 $134.81 $9,976 $7.00 $518 $145.00 $7.00 $518.00 $10,730 $754 7.6% $-
WSO 39 $257.46 $1

The port has seen the calculated annual dividend has increased from $6,004 to $6,309. That’s an increase of 5% in about 3 months.

The port value has increased by $32,196 or about 18.9% over that time frame.

I’d say this is a most satisfactory performance.

Rich

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2

Thanks for the reminder and the promising start, RR. For shiggles I ran a screen in Fidelity using what criteria from your original Nov 22 post they had, and came up with the below 47 companies. I didn’t compare for gaps. There is some overlap (BLK, AVGO, etc) but there are several ADRS and several oil/gas. If you’d care to comment on the criteria shown your input would be welcome. Fidelity doesn’t track # of consecutive years with dividend increases.

A few obvious issues - like PBR being driven into the ground in Brazil, BBY going bankrupt…

Criteria: Yield>2.7%, Div Growth Rate 5 yr avg >=9.5%, Cash flow growth rate >@11%, Interest coverage >7x.

Symbol Company Name Security Type Security Price Dividend Yield Dividend Growth Rate (5 Year Avg) Cash Flow Growth Rate (3 Yr) Interest Coverage (Most Recent Qtr) Sector Industry
PBR/A Petroleo Brasileiro S.A.- Petrobras Depository Receipt 10.25 74.02 35.85 15.52 15.63 Energy Oil, Gas & Consumable Fuels
PBR Petroleo Brasileiro S.A.- Petrobras Depository Receipt 11.55 65.69 73.69 15.52 15.63 Energy Oil, Gas & Consumable Fuels
HIMX Himax Technologies Inc Depository Receipt 7.98 15.66 39.10 188.26 20.67 Information Technology Semiconductors & Semiconductor Equipment
CIG Companhia Energetica de Minas Gerais CEMIG Depository Receipt 2.08 14.62 21.26 14.65 9.25 Utilities Electric Utilities
GGB Gerdau SA Depository Receipt 5.54 12.65 114.16 44.32 10.51 Materials Metals & Mining
PXD Pioneer Natural Resources Co Common Stock 208.96 12.47 218.11 15.87 83.47 Energy Oil, Gas & Consumable Fuels
ICL ICL GROUP LTD Common Stock 7.39 11.89 43.71 42.51 8.60 Materials Chemicals
CTRA Coterra Energy Inc Common Stock 23.40 10.64 59.66 23.84 89.35 Energy Oil, Gas & Consumable Fuels
UMC United Microelectronics Corp Depository Receipt 8.10 9.92 36.07 22.17 66.66 Information Technology Semiconductors & Semiconductor Equipment
BGFV Big 5 Sporting Goods Corp Common Stock 10.12 9.88 10.76 95.76 121.42 Consumer Discretionary Specialty Retail
BHP BHP Group Ltd Depository Receipt 66.44 9.78 31.39 22.49 139.45 Materials Metals & Mining
DVN Devon Energy Corp Common Stock 53.33 9.69 76.72 78.50 17.05 Energy Oil, Gas & Consumable Fuels
RIO Rio Tinto Group Depository Receipt 74.44 9.19 23.65 13.29 46.41 Materials Metals & Mining
VALE Vale SA Depository Receipt 17.02 8.62 28.90 39.52 13.88 Materials Metals & Mining
EQNR Equinor ASA Depository Receipt 30.65 8.42 18.58 41.12 35.79 Energy Oil, Gas & Consumable Fuels
IIPR Innovative Industrial Properties Inc Common Stock 86.76 8.30 48.41 153.65 9.34 Real Estate Equity Real Estate Investment Trusts (REITs)
PHXHF PHX Energy Services Corp Common Stock 5.50 8.05 71.88 37.19 14.21 Energy Energy Equipment & Services
EPM Evolution Petroleum Corp Common Stock 6.27 7.66 9.86 23.44 97.64 Energy Oil, Gas & Consumable Fuels
TOSYY Toshiba Corp Depository Receipt 16.09 6.67 19.36 70.48 16.68 Industrials Industrial Conglomerates
TX Ternium SA Depository Receipt 40.89 6.60 21.98 28.21 35.74 Materials Metals & Mining
NGLOY Anglo American PLC Depository Receipt 19.39 6.24 38.20 21.67 20.99 Materials Metals & Mining
MED Medifast Inc. Common Stock 115.31 5.69 27.86 41.91 189.40 Consumer Staples Personal Products
CIG/C Companhia Energetica de Minas Gerais CEMIG Depository Receipt 3.20 5.55 27.09 14.65 9.25 Utilities Electric Utilities
COP Conocophillips Common Stock 104.12 5.13 37.66 23.04 24.10 Energy Oil, Gas & Consumable Fuels
BESIY Be Semiconductor Industries NV Depository Receipt 71.89 4.88 19.49 25.45 22.25 Information Technology Semiconductors & Semiconductor Equipment
DRD DRDGold Ltd Depository Receipt 7.52 4.70 57.34 66.87 367.33 Materials Metals & Mining
CNQ Canadian Natural Resources Ltd Common Stock 55.70 4.47 25.32 20.92 30.13 Energy Oil, Gas & Consumable Fuels
CMCL Caledonia Mining Corp Plc Common Stock 12.70 4.41 15.28 20.97 311.02 Materials Metals & Mining
ETD Ethan Allen Interiors Inc Common Stock 29.60 4.32 10.99 38.05 737.46 Consumer Discretionary Household Durables
RGR Sturm Ruger & Co Inc. Common Stock 57.45 4.21 12.22 29.98 225.67 Consumer Discretionary Leisure Products
FNF Fidelity National Financial Inc FNF Group Common Stock 42.95 4.19 10.76 56.34 15.86 Financials Insurance
BBY Best Buy Co Inc Common Stock 86.94 4.05 20.95 14.15 39.10 Consumer Discretionary Specialty Retail
MOV Movado Group Inc Common Stock 34.63 4.04 21.91 11.25 267.63 Consumer Discretionary Textiles, Apparel & Luxury Goods
AAP Advance Auto Parts Inc. Common Stock 149.99 4.00 90.37 9.56 15.30 Consumer Discretionary Specialty Retail
BDL Flanigan’s Enterprises Inc. Common Stock 28.09 3.56 37.97 11.75 10.62 Consumer Discretionary Hotels, Restaurants & Leisure
UPS United Parcel Service Inc Common Stock 183.21 3.54 12.23 29.41 21.00 Industrials Air Freight & Logistics
GFI Gold Fields Ltd Depository Receipt 10.10 3.37 34.87 65.74 16.63 Materials Metals & Mining
IPG Interpublic Group of Cos Inc (The) Common Stock 37.36 3.32 11.49 14.59 11.06 Communication Services Media
DRI Darden Restaurants Inc Common Stock 146.09 3.31 13.94 7.73 11.33 Consumer Discretionary Hotels, Restaurants & Leisure
JHX James Hardie Industries Plc Depository Receipt 22.44 3.12 13.00 21.52 14.87 Materials Construction Materials
AVGO Broadcom Inc Common Stock 595.59 3.09 21.32 24.37 9.98 Information Technology Semiconductors & Semiconductor Equipment
WSO/B Watsco Inc Common Stock 320.43 3.06 14.41 30.51 9673.79 Industrials Trading Companies & Distributors
WSO Watsco Inc Common Stock 323.94 3.03 14.41 30.51 9673.79 Industrials Trading Companies & Distributors
GROW U.S. Global Investors Inc Common Stock 3.08 2.92 24.57 21.86 1586.00 Financials Capital Markets
TXN Texas Instruments Inc Common Stock 175.32 2.83 14.87 17.04 37.07 Information Technology Semiconductors & Semiconductor Equipment
BLK Blackrock Inc Common Stock 716.16 2.79 14.87 11.78 28.13 Financials Capital Markets
PAYX Paychex Inc. Common Stock 114.75 2.75 9.58 9.23 51.34 Information Technology IT Services
3 Likes
3

Hi FlyingCircus,

I like the screening criteria you chose. From my personal POV, for purchasing I’d require a yield > 3%. But screening for 2,7% is good in that it doesn’t eliminate those that are close.

In addition, I only buy US based companies for several reasons. But that’s just me.

As I look thru the list, I’m going to investigate AAP further,

AVGO, WSO, TXN, BLK, UPS, FNF and PAYX I already own. So, obviously I like those businesses but not necessarily at the current prices.

Rich

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4

Cool. I’m beginning to transition to a priority on income producing stocks, like these high div growth but solid regular equities as well as solid preferreds with really good yields (healthy ones with beaten down prices that produce 7-8% plus yields), and global high yield funds. Of course, because I’ve been mechanically investing for 25 years, for better and worse, the proclivity to doing this mechanically is strong ;-).

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