Dividend Income Update // June 2017

June Dividends

  • Johnson & Johnson (JNJ) – $16.80
  • Amgen, Inc. (AMGN) – $9.20
  • Pepsi Co, Inc. (PEP) – $8.05
  • T. Rowe Price (TROW) – $17.10

Total dividends received for the month of June: $51.15

Hey there! Another month has come to an end, I’ve tallied up my dividends and low and behold…I’ve crossed the $50 mark in monthly dividend income. Now this doesn’t mean that I’m making $50 in dividend income every month (I’m currently averaging ~$22 per month) but it feels fantastic to have crossed that mark.

June is historically a higher payout month and June 2017 surely did not disappoint. In addition to having a majority of my holdings paying out this month, I also saw a 5% increase from JNJ and a 7% increase from PEP- not too bad for merely holding on to those shares!

Thanks for reading.

Images: Death to the Stock Photo with graphics added by One Woman’s Worth.

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Dividend Income Update // March 2017

dividend income

March Dividends

  • Johnson & Johnson (JNJ) – $16.00
  • Amgen, Inc. (AMGN) – $9.20
  • Pepsi Co, Inc. (PEP) – $7.53
  • T. Rowe Price (TROW) – $17.10

Total dividends received for the month of March: $49.83

Sorry for the radio silence here over the last two months! Life has gotten in the way (yet again) of me being able to consistently post on time. But now that I’m here, we might as well jump right to it.

This March update represents a 30% yoy increase over last year’s published dividends; such a wonderful feeling! Though I’ve deploying my available capital to other accounts (more on that in a future post), I haven’t been allocating as much over the last twelve months to my taxable brokerage account. However, it’s still amazing to see how my dividends keep growing; even without having to do anything at all!

Thanks for reading.

Images: Death to the Stock Photo with graphics added by One Woman’s Worth.

Dividend Income Update // December 2016

dividend income

December Dividends

  • Starbucks Corporation (SBUX) – $8.25
  • Johnson & Johnson (JNJ) – $16.00
  • Amgen, Inc. (AMGN) – $8.00
  • T. Rowe Price (TROW) – $16.20

Total dividends received for month of December: $48.45

That’s a 105% increase over December 2015! I am super thrilled to know that, month by month, I am earning income that I don’t even have to work for; it gets deposited into my account whether I ask for it or not.

Unfortunately, due to Pepsi’s weird payout schedule, I technically will not meet my 2016 dividend income goal. However, receiving almost $220 isn’t bad! I more than doubled the amount of dividends I received this year over last year and for that I am extremely proud.

Thanks for reading.

Images: Death to the Stock Photo with graphics added by One Woman’s Worth.

Dividend Income Update // September 2016

dividendincome_sept2016

September Dividends

  • Johnson & Johnson (JNJ) – $16.00
  • Amgen, Inc. (AMGN) – $8.00
  • Pepsi Co, Inc. (PEP) – $7.53
  • T. Rowe Price (TROW) – $16.20

Total dividends received for month of September: $47.73

Wow, that’s a 114% increase over September 2015! I spoke last month about my disappointment in not posting a YOY increase due to a dividend cut from KMI. However, I think I more than made up for it this month when I more than doubled my dividend income! This was accomplished through increasing the number of shares I own and through dividend increases from Johnson & Johnson, PepsiCo., and T. Rowe Price. While I am happy to have added a new position in Amgen, Inc. I’m really more so excited by the fact that JNJ and PEP decided to return $0.05 more per share and TROW, $0.02 per share to me. All I had to do was continue to hold my shares…it’s like getting a raise for doing absolutely nothing!

At nearly $50, this is my highest paid out month to-date and I’m really excited to see what the future hold for me and my freedom fund. Stay tuned for more updates on my dividend income, as well as, updates on progress on my portfolio value.

Thanks for reading.

Images: Upsplash with graphics added by One Woman’s Worth.

Recent Buy // AMGN

Hi Friends – Long time, no speak!

This summer has been a busy one. Especially for Mr. Market. There have been so many swings caused from anything as small as a small comment made by a US Presidential candidate to something as big as one of Europe’s largest economies deciding to leave the EU (#brexit). So, to say it’s been hard to time the market, is putting things mildly. However, as I mentioned many times before, time in the market is much more important than timing the market; which means when I have the money in hand and I find a compelling buy, I should pull the trigger. Which is exactly how I came to own this next buy.

I purchased 8 shares of Amgen, Inc. (AMGN) on 6/16/2016 for $150.84 per share.

recent buy_amgen

Overview

Amgen, Inc. is the worlds largest independent biotechnology company that works in discovering, developing, manufacturing & delivering human therapeutics worldwide. Their principal products include Nuelesta/Neupogen which are used to prevent infections in patients undergoing cancer chemotherapy; Enbrel, used in the treatment of rheumatoid arthritis and other autoimmune diseases; and Epogen, used to treat anemia.

AMGN makes money by selling these medicines/treatments to treat diseases/life threatening illnesses. Since they hold patents to prevent other healthcare competitors from creating generic brand options, they not only have 100% market share but they also have a multi-year head start before competitors can come in and start developing their own versions of the medicines. Their customers are typically patients through pharmaceutical wholesale distributors, physicians (in clinics, dialysis centers, hospitals and pharmacies), and direct consumers.

Quantitative

  • Revenue grew by approximately 10% over the last 5 years.
  • EPS is 9.06 and has increased by 24.6% over the last 5 years.
  • Dividend yield at time of purchase was 2.65% and AMGN pays a dividend of $4 per share. AMGN has been increasing dividends for 6 years and the payout ratio is currently 35.6%.
  • Debt/Equity ratio: 1.04

Risks

As a biotechnology firm, Amgen is not without its risks. While they do hold multiyear patents that prevent other companies from competing in the same space, there are many other macro risks that affect Amgen; particularly in the US. Drug pricing issues, uncertainty about health care policies with the next US president and an overall lack of investor confidence in the industry present risks that one should be cognizant of when evaluating this company.

Valuation

  • The P/E at the time of purchase was 16.1 which is lower than AMGN 5 year average of 17.8.
  • Morningstar valuation (at time of purchase): $153, rated a 5 star “BUY”
  • S&P Capital IQ valuation (at time of purchase): $171.20, rated a 4 star “BUY”

Conclusion

Amgen overall is an attractively valued company. Fortunately/Unfortunately, there has been a run up in the stock price (price is $170.68 per share at the time this post was published). However, I do feel that this is a still a great entry price for someone to initiate a new position in this company. In the biotech industry, AMGN is regarded as a leader and is highly respected. With a good balance sheet, low dividend payout ratio and attractive entry price, I am happy with my latest purchase and will look for more opportunities to acquire more.

This purchase adds $32 to my annual dividend income based on the current $1.00 quarterly dividend.

Full disclosure: Long AMGN

Thanks for reading.

Images: Death to the Stock Photo with graphics added by One Woman’s Worth.