Buys and Sells for the Week 1/28

Received 4 dividend raises for the week; Independent Bank Corp. (IBCP) 4.76%, Kimberly-Clark Corp (KMB) 1.75%, Chevron (CVX) 5.97%, and GATX Corp. (GATX) 4%. Volatile markets continue to make pockets of buying opportunities. Here are my trades for the week:

  1. 3M (MMM) – increased position – Price volatility over small lawsuits could be overblown. Grabbed 1 share @ $169.75 and a 3.49% yield and 2 shares $165.58 and a 3.58% yield.
  2. Snap-On Inc. (SNA) – increased position – A little dollar cost averaging to get my average share price down. Grabbed 2 shares @ $202.59 and a 2.8% yield.
  3. Hasbro Inc. (HAS)increased position – Investors did not HAS lost the Disney Frozen license, taking a small gamble they will start increasing their dividend again next month. Grabbed 2 shares @ $86.00 and a 3.16% yield.
  4. T. Rowe Price (TROW) increased position – It has been awhile since I have seen TROW at these levels. Grabbed 1 share @ $144.00 and a 3% yield.
  5. Leggett and Platt (LEG) increased position – Still on sale and decided use my February ROTH contribution a couple days early. Grabbed 15 shares @ 37.33 and a 4.5% yield.

Buys and Sells for the Week 1/21

10.7% dividend raise from Fastenal (FAST), now that is how to start a new year on the right note . Here are my trades for the week:

  1. Unilever (UL) – increased position – News about their failed bid for GSKs consumer until did not go over well as shares sold off. Grabbed 4 shares @ $48.38 and a 4.13% yield.
  2. T. Rowe Price (TROW) – increased position – More than 24% off its 52 week high and yielding just a smidge over its 5 year average. Grabbed 1 share @ $170.10 and a 2.54% yield.
  3. Snap-On Inc. (SNA) – increased position – Slowly adding to this high dividend growth position. Grabbed 1 share @ $209.89 and a 2.71% yield and 1 share @ $207.01 and a 2.74% yield.
  4. Leggett and Platt (LEG) – increased position – Below $40 a share is hard to ignore. Grabbed 4 shares @ $39.03 and a 4.3% yield.

2021 Annual Dividend Income Summary

The best way to classify my portfolio for 2021 was a year of recovery and unexpected dividend growth.  This wasn’t limited to just my portfolio as every fellow dividend growth blogger reported larger than expected dividend growth.  It was amazing how many companies increased their dividends at a rate much greater than we anticipated or restored their dividend payouts.  And it wasn’t just dividends that grew, my portfolio over at Fidelity grew 25.8%.  My Fidelity account performed much better than my M1 finance account but still under performed the S&P 500 and SCHD but on par with VYM.

I knew coming into 2021 it was going to be a decent year as I freed up cash in 2020 and went on a stock buying tear from June to October.  In 2020 I made $35,836 and predicted 2021 to come in circa $40K and with dividend raises maybe $42K. Actual dividend raises were coming in well above forecasts and the only stock that disappointed me last year was UPS with its paltry 1% raise.  When all was said and done, I received a total of $44,821.11, a 25% increase from 2020!

For 2022 I expect my growth rate to be more muted and to be closer to my targeted 12.5% growth rate.  Unlike 2020, I did not add a lot of new capital outside of my weekly M1 Finance & Roth IRA contributions so 2022 will be reliant on dividend reinvestment and raises.  The best news I received last year was that with the massive growth in income it shorted my FI date by an entire year and I am now down to just 5 years & 10 months to FI.

My 12 month forward annual dividend is a little hard to forecast as I need to adjust for some companies that will be cutting their dividend payout in 2022 (I’m talking about you AT&T).  Adjusting for the cut I’m currently sitting at $45.8K. Using this figure I updated my comparison to median household income in the U.S and the results improved quite a bit from 2020 as I now meet at least 80% of median household income in 18 states (+13 states).   Too bad that I live in one of those expensive red states lol.

Now that 2021 is behind us we can focus on 2022.  Not sure what I will be buying going into 2022 but it should be interesting where the economy goes considering inflation, rising interest rates, supply chain woes and tight labor markets.  One thing I am confident in predicting is that not just myself but all the DG community we are opportunistic and will jump into a stock the moment a value buy presents itself.

Buys and Sells for the Week 1/14

Investors moving to defensive positions in value and/or dividend paying stocks has really pushed valuations up making me cautious about pouring money into the market. But there is always a bargain somewhere right? Here are my trades for the week:

  1. Leggett and Platt (LEG) – increased position – Since being bumped out of the S&P 500 index its share price has leveled out in the low $40 range. Decided to use this months Roth IRA contribution to add more shares. Grabbed 14 shares @ $41.32 and a 4.07% yield.

M1 Portfolio End of Year Update

It is time to wrap up my annual M1 portfolio stats here on the site.  During that time there have been some very minor adjustments and now is a good time to summarize how it has grown, changed and what future changes I would like to make.

Contributions

I started the year making weekly contributions of $120 but in March I received a raise at work and was able to increase it to $130 and then $140 in November as my oldest daughter takes on more of her own expenses.  My total contributions for the year were $6,750. 

I do not foresee weekly contributions changing going into 2022 but I think the 3rd quarter will be a different story as my middle daughter will graduate college and if she gets a job that should reduce my expenses and allow an additional $40 per week.

Portfolio Performance

My portfolio balance at the beginning of the year was $7,634, adding in the 12 months of contributions that is a total of $14,384.  My portfolio balance at the end of December was $17,784 which represents a total gain of $3,400 for a total return of 23.64%.  The S&P500 YTD return was 26.89% but a better comparison would be to compare to dividend growth ETFs VYM and SCHD. VYM’s YTD return was 25.97% and SCHD’s YTD return was 29.78%.  The portfolio significantly underperformed in comparison.

The portfolio yield has dropped from 3.21% to 3.04%. This is a reflection of the capital gain growth that has exceeded dividend growth. However, when I compare it to VYM and SCHD, they yield 2.76% and 2.78% so I am receiving a slightly better yield.

Holdings

My portfolio holdings grew from 55 to 64. 

In my Healthcare pie I picked up Organon (OGN) in a Merck spin-off.

The Technology pie I added Broadcom (AVGO) and picked up Kyndryl Holdings (KD) in an IBM spin-off though undecided if I want to keep it.

The Industrials pie I added Packaging Corp of America (PKG) and Watsco (WSO).

The Telcom pie was expanded to include Canada’s two largest telcom companies BCE Corp. (BCE) and Telus Corp (TU). 

And finally in my Utilities pie I added Pinnacle West Capital Corporation (PNW) and OG&E Corp (OGE).

Possible Portfolio Changes

Going forward I am considering cleaning up a little to remove some holdings that have been in a penalty box for either suspending or cutting their dividend.

Transports Pie – I held Alaska airlines for two years, but alas COVID has won out. My plan is to remove it completely. and reallocating the entire % to Union Pacific (UNP) or possibly replacing it with Canadian National Railway (CNI).

Basic Materials/Energy Pie – Compass Minerals (CMP) cut their dividend in the 4th quarter with plans to reallocate the capital to fund development of lithium mining making this a growth opportunity and it no longer fits into this portfolio. My plan is to remove completely and reallocate the entire % to Air Products (APD).

December Dividend Income

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 look at how this past month is getting me there.

For the month of December I made $5,351.51; an increase of 23.74% versus this time last year. A large portion of this jump was from Newtek Business Services (NEWT) which was able to payout a massive dividend because of all the PPP loan originations.  Now that PPP loans are a thing of the past the dividends from NEWT will decline making Dec 2022 a tough month next year for year over year gains.

In December I received 7 dividend raise announcements from Amgen (AMGN), Broadcom (AVGO), CBIC (CM), Enbridge (ENB), Pfizer (PFE), W.P. Carey (WPC) and Waste Management (WM). I love this time of year as it signals the beginning of steady dividend raises that usually come in from December through March for the bulk of my portfolio.

On the home front we are dealing with some health issues with extended family members, which is a bit draining on me and the wife. There is a tale for expenses in this experience, but I will wait until after the crisis’s have been resolved before I share the story. Let’s see the things we all love to see…charts and dividend payouts:

DateSymbolCompanyAmount
12/1/21ALEALLETE INC COM NEW$131.73
12/1/21PNWPINNACLE WEST CAPITAL CORP COM NPV$115.50
12/1/21PSXPHILLIPS 66 COM$26.74
12/1/21SJMSMUCKER J M CO COM NEW$16.69
12/2/21CMICUMMINS INC$40.46
12/3/21ENBENBRIDGE INC COM ISIN #CA29250N1050 SED$236.07
12/3/21ULUNILEVER PLC SPON ADR NEW$36.17
12/6/21PFEPFIZER INC$229.56
12/6/21SOSOUTHERN CO$66.79
12/7/21JNJJOHNSON &JOHNSON COM USD1.00$184.29
12/8/21AMGNAMGEN INC$8.74
12/8/21UPSUNITED PARCEL SERVICE INC$227.88
12/9/21DFSDISCOVER FINANCIAL SERVICES$12.95
12/9/21MSFTMICROSOFT CORP$67.57
12/9/21VLOVALERO ENERGY CORP COM$35.28
12/10/21CVXCHEVRON CORP NEW COM$22.61
12/10/21IBMINTERNATIONAL BUS MACH CORP COM USD0.20$150.10
12/10/21WBAWALGREENS BOOTS ALLIANCE INC$65.41
12/13/21MMM3M CO$57.77
12/15/21AVAAVISTA CORP$139.18
12/15/21EPREPR PROPERTIES SBI USD0.01$77.71
12/15/21FAFFIRST AMERICAN FINANCIAL CORP COM USD0.$163.33
12/15/21NWLNEWELL BRANDS INC COM$25.56
12/16/21DUKDUKE ENERGY CORP NEW COM NEW ISIN #US26$66.14
12/16/21OGNORGANON &CO COMMON STOCK$5.60
12/16/21PRUPRUDENTIAL FINANCIAL INC$487.72
12/16/21QCOMQUALCOMM INC$160.93
12/17/21BHBBAR HARBOR BANKSHARES$49.09
12/17/21BPBP PLC SPONSORED ADR$8.59
12/17/21KHCKRAFT HEINZ CO COM$9.49
12/17/21RRYDER SYSTEM INC$54.57
12/17/21WMWASTE MANAGEMENT INC$41.50
12/20/21CMPCOMPASS MINERALS INTERNATIONAL INC$28.65
12/22/21HYGISHARES TR IBOXX HI YD ETF$36.26
12/22/21PFFISHARES TR PFD AND INCM SEC$87.58
12/23/21PSECPROSPECT CAP CORP COM$155.54
12/27/21LMTLOCKHEED MARTIN CORP COM USD1.00$25.43
12/28/21NUSIETF SER SOLUTIONS NATIONWIDE NASDQ$12.79
12/29/21BLVVANGUARD BD INDEX FDS LONG TERM BOND$40.98
12/29/21VCLTVANGUARD SCOTTSDALE FUNDS LONG-TERM COR$31.08
12/30/21ARCCARES CAPITAL CORP COM$502.58
12/30/21CTOCTO RLTY GROWTH INC NEW COM$56.13
12/30/21NEWTNEWTEK BUSINESS SVCS CORP COM NEW$868.27
12/30/21TROWPRICE T ROWE GROUPS COM USD0.20$16.96
12/31/21AVGOBROADCOM INC COM$8.32
12/31/21BEPBROOKFIELD RENEWABLE PARTNERS PARTNERSH$266.34
12/31/21BEPCBROOKFIELD RENEWABLE CORP CLASS A SUBOR$66.52
12/31/21GATXGATX CORP COM STK USD0.625$53.15
12/31/21WEYSWEYCO GROUP INC$25.63
12/31/21M1 FinanceM1 DIVIDEND GROWTH ACCOUNT$47.58