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.

Dividend Income Update // June 2016

dividend income_june 2016

June Dividends

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

Total dividends received in the month of June: $39.73

Yay, for a high paying month! Almost $40 in dividends in a single month – Super exciting! My goal for this year was to receive $225 in dividends and we’ve just hit the halfway mark; so far, I’ve collected $101.59. I have a little ground to make up but I’m confident that I’ll be able to achieve my goal especially if I have more $40 months ahead!

Thanks for reading.

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

Dividend Income Update // March 2016

dividend income

Life has gotten in the way of this blog lately so this post is a little (well, a lot) long overdue but better late than never, right? Check out my dividend income update and leave a comment sharing your dividend income progress!

March Dividends

  • Johnson & Johnson (JNJ) – $15.00
  • Pepsi Co, Inc. (PEP) – $7.03
  • T. Rowe Price (TROW) – $16.20

Total dividends received for the month of March: $38.23

Whoa! My highest payout month so far! While I’m only approximately nine months into my investing journey, it feels great to know that the energy and effort that I’m putting into this is paying off – literally. This month I received almost $40 in dividends which could cover my groceries for two weeks (a need) or go towards a nice new top (a want). I will, of course, put these dividends back to work in a more shares of a dividend paying stock instead of spending it today in hopes that my dividend payouts are doubled, tripled, quadrupled or even more in years to come.

Thanks for reading.

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

Recent Buy // JNJ

Building a portfolio utilizing a dividend investing is pretty easy; once you find a stock you like, all you have to do is keep adding fresh capital to it (assuming of course, the fundamentals of the company haven’t changed and you still believe in the product/service they sell). The one thing to watch is price. As long as the stock is trading near or below fair value, figuring out which stock to allocate your fresh capital to is really a no-brainer.

That’s what I’ve done with JNJ.

I purchased 10 shares of Johnson & Johnson (JNJ) on 11/13/15 for $99.98 per share.Recentbuy_JNJ

If you recall, my first ever buy was JNJ back in July. Since then, the fundamentals of the company have not changed dramatically. The latest earnings report headline reflected a sales decrease of 7.4% of year-over-year growth; however, this was largely due to the impact of foreign currency issues and masked an underlying sales growth of close to 1% in business revenue.

Valuation

  • The P/E ratio is currently 19.2 which is slightly above it’s 5 yr average. In addition, JNJ P/E is currently below the broader market.
  • S&P Capital IQ Valuation: $105.90

Conclusion

Again, it’s hard to go wrong with JNJ. I anticipate I will continue to add shares of this stock to my portfolio, as long as I see value. For this stock, anywhere under $100 (barring a substantial change to management or financials) seems like a fair price to pay. And since I am starting early and not really focused on strict asset allocation at this time (I will once my portfolio gets to the $50K range), I am OK with adding whenever I have the capital to support a purchase.

This additional purchase of JNJ adds an additional $30 to my annual dividend income, based on the current $0.75 quarterly dividend.

Full Disclosure: Long JNJ

Thanks for reading.

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

 

Recent Buy // JNJ

Last week, in my mid-year review, I mentioned that I was disappointed to have to report that I hadn’t started investing. Between not taking the time to research online discount brokerages and feeling fearful of not having a large amount of cash on hand, I failed my 2Q goal of having $2,500 invested in a taxable brokerage account.  So I decided to but my fears aside and take action.

First, I researched online discount brokerage firms and decided to open my first account with Scottrade. With over 500 branch offices nationwide, reliable customer service, great trading platform, and good reviews, I really couldn’t go wrong. Also their fees are moderately priced. At $7 per trade, Scottrade isn’t the cheapest but it also isn’t the most expensive online discount brokerage out there. I may do a full review in the future after I’ve had more time to really use the platform.

Second, I analyzed the top ten stocks on my stock watch list. I wanted to make sure my inaugural stock was something that fits into my buy and hold strategy. So…

I purchased 10 shares of Johnson & Johnson (JNJ) on 7/8/15 for $98.10 per share.

Recentbuy_JNJ

Overview

Johnson & Johnson is a Fortune 500 company that researches and develops, manufactures, and sells various consumer products in the healthcare field. They operate in three main segments: Consumer, Pharmaceutical, and Medical Devices. You may have heard of/ already purchase some of their consumer products. Have a new baby? You probably use Johnson’s Baby products. Suffering from a headache or allergies of acting up? Maybe you pick up Tylenol or Zyrtec on your next drugstore trip. They sell quite a lot of popular brand products that people use in their every day lives.

Quantitative

  • Revenue has grown by average of 4.61 % per year over last 10 years.
  • EPS is 5.59 and has increased by 7.22% per year over last 10 years.
  • Current dividend yield is 3.06% and pays a dividend of $3.00 per share. JNJ has been increasing dividends for 52 consecutive years and the payout ratio is 48.9%.
  • Debt/Equity ratio is reasonable at 0.22.

Valuation

  • The P/E ratio is currently 17.8 which right in line with it’s 5 yr average. In addition, JNJ P/E is currently below the broader market.
  • I valued the shares using the Dividend Discount Model with a 10% discount and a 7% long term dividend growth rate. The DDM analysis gives me a fair value of $100.

Conclusion

The company is really high quality. It’s hard to go wrong here. And while I would have loved to have bought shares sooner (when it dipped as low as $96 in October 2014 or even $97 in June), I think JNJ is fairly priced.

This purchase adds $30 to my annual dividend income, based on the current $0.75 quarterly dividend.

Full disclosure: JNJ.

What do you think of JNJ? Think the fundamentals are solid for a beginner dividend investor?

Thanks for reading.

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