Merry Christmas Everyone! My cash is a bit low but some last minute dividends came in. Here are my trades for the week:
How people buy dividend stocks is dependent on each individual investor. Some are building out diversification, maxing out income, or looking for a lower yield but high growth. Today’s post will focus on the last item; lower yield with high growth.
To start this exercise I ran a stock screen with the following criteria to identify large companies with a history of raising dividends, retaining significant capital to reinvest back into the company while keeping a low debt load in case of rising interest rates:
This screen resulted in 28 stocks with an average dividend yield of 1.41% and an average 10 year dividend growth rate of 17.11%.
| Symbol | Company | Price | Div Yield |
| ACN | Accenture plc | 396.36 | 0.98% |
| AFL | Aflac Incorporated | 56.84 | 2.81% |
| ALL | The Allstate Corporation | 114.14 | 2.84% |
| AOS | A. O. Smith Corporation | 80.91 | 1.38% |
| APH | Amphenol Corporation | 82.48 | 0.97% |
| ATVI | Activision Blizzard, Inc. | 61.36 | 0.77% |
| AVGO | Broadcom Inc. | 634.96 | 2.58% |
| AVY | Avery Dennison Corporation | 206.89 | 1.31% |
| BBY | Best Buy Co., Inc. | 100.07 | 2.80% |
| BRO | Brown & Brown, Inc. | 65.87 | 0.62% |
| COST | Costco Wholesale Corporation | 547.61 | 0.58% |
| CTAS | Cintas Corporation | 438.51 | 0.87% |
| EXPD | Expeditors International of Washington, Inc. | 129.93 | 0.89% |
| GGG | Graco Inc. | 76.36 | 1.10% |
| HIG | The Hartford Financial Services Group, Inc. | 67.7 | 2.27% |
| JKHY | Jack Henry & Associates, Inc. | 164.24 | 1.12% |
| KLAC | KLA Corporation | 391.55 | 1.07% |
| MCO | Moody’s Corporation | 393.64 | 0.63% |
| MKTX | MarketAxess Holdings Inc. | 410.42 | 0.64% |
| MSFT | Microsoft Corporation | 323.8 | 0.77% |
| NOC | Northrop Grumman Corporation | 377.46 | 1.66% |
| POOL | Pool Corporation | 540.64 | 0.59% |
| RHI | Robert Half International Inc. | 106.51 | 1.43% |
| SCI | Service Corporation International | 67.87 | 1.36% |
| SNA | Snap-on Incorporated | 209.35 | 2.71% |
| TROW | T. Rowe Price Group, Inc. | 193.36 | 2.23% |
| TSCO | Tractor Supply Company | 226.65 | 0.92% |
| WSM | Williams-Sonoma, Inc. | 169.43 | 1.68% |
The 5 year average dividend and 52 week high was added to help identify which stocks are yielding above their average and which stocks are coming off their high and into correction territory.
| Symbol | Company | Price | Div Yield | 5Y Avg Yield | Yield Above 5Y Avg | 52 Week High | % below 52 Week High |
| ACN | Accenture plc | 396.36 | 0.98% | 1.50% | 413.65 | 4.18% | |
| AFL | Aflac Incorporated | 56.84 | 2.81% | 2.35% | Y | 58.52 | 2.87% |
| ALL | The Allstate Corporation | 114.14 | 2.84% | 1.91% | Y | 140 | 18.47% |
| AOS | A. O. Smith Corporation | 80.91 | 1.38% | 1.45% | 84.78 | 4.56% | |
| APH | Amphenol Corporation | 82.48 | 0.97% | 0.92% | Y | 86.05 | 4.15% |
| ATVI | Activision Blizzard, Inc. | 61.36 | 0.77% | 0.57% | Y | 104.53 | 41.30% |
| AVGO | Broadcom Inc. | 634.96 | 2.58% | 2.88% | 644.75 | 1.52% | |
| AVY | Avery Dennison Corporation | 206.89 | 1.31% | 1.77% | 229.24 | 9.75% | |
| BBY | Best Buy Co., Inc. | 100.07 | 2.80% | 2.33% | Y | 141.97 | 29.51% |
| BRO | Brown & Brown, Inc. | 65.87 | 0.62% | 0.96% | 68.53 | 3.88% | |
| COST | Costco Wholesale Corporation | 547.61 | 0.58% | 0.94% | 566.55 | 3.34% | |
| CTAS | Cintas Corporation | 438.51 | 0.87% | 1.24% | 461.44 | 4.97% | |
| EXPD | Expeditors International of Washington, Inc. | 129.93 | 0.89% | 1.23% | 137.8 | 5.71% | |
| GGG | Graco Inc. | 76.36 | 1.10% | 1.19% | 80.98 | 5.71% | |
| HIG | The Hartford Financial Services Group, Inc. | 67.7 | 2.27% | 2.25% | Y | 78.17 | 13.39% |
| JKHY | Jack Henry & Associates, Inc. | 164.24 | 1.12% | 1.07% | Y | 179.98 | 8.75% |
| KLAC | KLA Corporation | 391.55 | 1.07% | 2.04% | 428.22 | 8.56% | |
| MCO | Moody’s Corporation | 393.64 | 0.63% | 0.93% | 407.94 | 3.51% | |
| MKTX | MarketAxess Holdings Inc. | 410.42 | 0.64% | 0.59% | Y | 601.42 | 31.76% |
| MSFT | Microsoft Corporation | 323.8 | 0.77% | 1.41% | 349.67 | 7.40% | |
| NOC | Northrop Grumman Corporation | 377.46 | 1.66% | 1.56% | Y | 408.03 | 7.49% |
| POOL | Pool Corporation | 540.64 | 0.59% | 0.91% | 582.27 | 7.15% | |
| RHI | Robert Half International Inc. | 106.51 | 1.43% | 2.02% | 120.83 | 11.85% | |
| SCI | Service Corporation International | 67.87 | 1.36% | 1.68% | 70.03 | 3.09% | |
| SNA | Snap-on Incorporated | 209.35 | 2.71% | 2.23% | Y | 259.99 | 19.48% |
| TROW | T. Rowe Price Group, Inc. | 193.36 | 2.23% | 2.52% | 224.56 | 13.89% | |
| TSCO | Tractor Supply Company | 226.65 | 0.92% | 1.31% | 238.28 | 4.88% | |
| WSM | Williams-Sonoma, Inc. | 169.43 | 1.68% | 2.43% | 223.32 | 24.13% |
Filtering down to stocks trading near 20% or more off their 52 week high and yield above their 5 year average narrows this list down to five potential stocks:
| Symbol | Company | Price | Div Yield | 5Y Avg Yield | Yield Above 5Y Avg | 52 Week High | % below 52 Week High |
| ALL | The Allstate Corporation | 114.14 | 2.84% | 1.91% | Y | 140 | 18.47% |
| ATVI | Activision Blizzard, Inc. | 61.36 | 0.77% | 0.57% | Y | 104.53 | 41.30% |
| BBY | Best Buy Co., Inc. | 100.07 | 2.80% | 2.33% | Y | 141.97 | 29.51% |
| MKTX | MarketAxess Holdings Inc. | 410.42 | 0.64% | 0.59% | Y | 601.42 | 31.76% |
| SNA | Snap-on Incorporated | 209.35 | 2.71% | 2.23% | Y | 259.99 | 19.48% |
This screening is based on historical data so each stock will need to be investigated further. For example: Activision Blizzard is being punished by investors over internal rifts between management and software programmers over allegations of sexual harassment and discrimination. I would need to see their latest quarterly report to see how this is impacting financials and what the company’s outlook is going forward and if their products are getting stale (COD 4 is still my favorite installment).
The fed made it clear their plan for 2022 and markets soared for the week. Not much cash left but I plan on putting every dividend dollar I receive to work to close out the year. Here are my trades for the week:
Received five dividend raises this week; 3.03% raise from Enbridge (ENB), 13.89% raise from Broadcom (AVGO), 14.03% raise from Waste Management (WM), 0.29% raise from W.P. Carey (WPC), and a 2.56% raise from Pfizer (PFE). Most of my free cash was spent during last week’s dip so trading was light as I used up the last of my cash balance. Here are my trades for the week:
After 34 years of clocking in and out of work and religiously saving at least 10% annually in my 401K every year, my countdown to financial independence is in sight. Each month is a step closer and let’s take a look at how this past month is getting me there.
For the month of November I made $3,235.39; an increase of 39.76% versus this time last year. As a note some dividend growth can be deceiving and that is what I have. For November I had two large payouts from CM & BGS that normally fall in the October time so my number was inflated. Discounting these two payouts my YoY growth would be 16.6% which is well above my 12.5% target.
In November I received 4 dividend raise announcements from Telus (TU), Pinnacle West Capital (PNW), Bank of Nova Scotia (BNS), and Merck (MRK). I also received my first dividend cut for the year from Compass Mineral as they decided to redirect cash flow from dividends to R&D and Capex for their lithium discovery.
On the home front my oldest daughter moved from our auto insurance policy and onto her own plan. This reduced my expenses which allowed me to increase my 401K savings rate by 1% and I increased my weekly M1 finance contribution by $10. All this resulted in my savings rate growing from 24.9% to 26.2%.
Let’s see the things we all love to see…charts and dividend payouts:
| Date | Symbol | Company | Amount |
| 11/1/21 | BGS | B&G FOODS INC | $264.82 |
| 11/1/21 | CM | CANADIAN IMP BK COMM | $271.20 |
| 11/1/21 | GIS | GENERAL MILLS INC | $94.11 |
| 11/1/21 | T | AT&T INC | $624.04 |
| 11/1/21 | VZ | VERIZON COMMUNICATIONS INC | $97.67 |
| 11/4/21 | BLV | VANGUARD BD INDEX FDS LONG TERM BOND | $14.47 |
| 11/4/21 | VCLT | VANGUARD SCOTTSDALE FUNDS LONG-TERM COR | $15.35 |
| 11/5/21 | HYG | ISHARES TR IBOXX HI YD ETF | $17.31 |
| 11/5/21 | PFF | ISHARES TR PFD AND INCM SEC | $47.76 |
| 11/8/21 | APD | AIR PRODUCTS AND CHEMICALS INC | $34.00 |
| 11/15/21 | ABBV | ABBVIE INC | $196.18 |
| 11/15/21 | EPR | EPR PROPERTIES | $77.71 |
| 11/15/21 | HAS | HASBRO INC | $38.70 |
| 11/15/21 | IBCP | INDEPENDENT BK CORP MICH | $41.30 |
| 11/15/21 | OHI | OMEGA HEALTHCARE INVESTORS INC | $722.72 |
| 11/15/21 | PG | PROCTER AND GAMBLE CO | $113.48 |
| 11/18/21 | PSEC | PROSPECT CAP CORP | $155.54 |
| 11/19/21 | ARTNA | ARTESIAN RES CORP | $201.09 |
| 11/23/21 | FAST | FASTENAL | $11.47 |
| 11/26/21 | ODC | OIL DRI CORP OF AMERICA | $22.09 |
| 11/26/21 | WSM | WILLIAMS-SONOMA INC | $12.87 |
| 11/30/21 | NUSI | ETF SER SOLUTIONS NATIONWIDE RSK | $13.31 |
| 11/30/21 | SBRA | SABRA HEALTH CARE REIT INC | $86.36 |
| 11/30/21 | M1 Finance | M1 DIVIDEND GROWTH ACCOUNT | $61.84 |
Received four dividend raises this week; 6.15% raise from Merck (MRK), 11.1% raise in C$ from Bank of Nova Scotia (BNS), 10.3% raise in C$ from Canadian Imperial Bank of Commerce (CM), and a 10.2% raise from Amgen (AMGN). Markets picked up where they left off on Black Friday continuing to drop when the Fed hinted at accelerating the tapering process by a few months which made quite a few buying opportunities. Here are my trades for the week:
Simple Dividend Growth 