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 // TROW

recent buy trow

Remember when I essentially said; “if it ain’t broke, don’t fix it” in November when I added to my position in Johnson & Johnson? Well, I really meant it. While there were many, many stocks on “sale” due to a horrible January, I decided to stick to what I knew- T.Rowe Price Inc.

In a market where many people are foregoing mutual funds and focusing on ETFs, TROW managed to still post excellent results in their latest quarterly earnings report. I already wrote on the merits of TROW back in September so I won’t bore you with repeated information.

I purchased 15 shares of T. Rowe Price Group Inc. (TROW) on 1/28/2016 for $68.69 per share.

Valuation

  • The P/E ratio is currently 15.1 which is slightly below it’s 5 yr average. In addition, TROW P/E is currently below the broader market.
  • S&P Capital IQ Valuation: $80.90

Conclusion

T. Rowe Price Group Inc. overall is an attractively valued high-quality stock, I think. They have a business model that is easy to understand, are well-respected as leaders in their industry, have a clean balance sheet and have plenty of room to grow the dividend rate. Again, a clear winner in my book!

This purchase adds $31.20 to my annual dividend income based on the current $0.52 quarterly dividend.

Full Disclosure: Long TROW

Thanks for reading.

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

Dividend Income Update // September 2015

September is my third month in my dividend investing journey but my second month receiving dividends. Although I’m starting small, its exciting to see how my dividend streaming is growing with each passing month.

Since many companies who follow the calendar fiscal year, March, June, September and December are usually the largest payout months for dividend investors. My portfolio is no exception. Of the four stocks currently in my portfolio, three of them made payments this month.

dividendincome_sept2015

September Dividends

  • Johnson & Johnson (JNJ) – $7.50
  • Pepsi Co, Inc. (PEP) – $7.03
  • T. Rowe Price Group, Inc. – $7.80

Total dividends received for the month of September: $22.33

One of my goals is to receive $50 in dividend income this year and so far, I have collected $36.05. That’s 72% of the amount needed  to reach my goal. I have a feeling I will crush my goal by a healthy margin. Yeah!

Full disclosure: Long all aforementioned stocks.

Thanks for reading.

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

Recent Buy // TROW

I continued to take advantage of the late August market correction when many stock prices took a plunge. Many of these stock prices fell, not because the fundamentals of the business had changed, but mostly because of people pulling out of the market due to concerns over China’s currency devaluation. However, as a long term investor, China’s currency valuation does not affect me; I will continue to deploy capital to strong stable businesses in order to collect dividends and generate wealth.

I purchased 15 shares of T. Rowe Price Group Inc. (TROW) on 9/9/2015 for $70.60 per share.

recent buy trow

Overview

T. Rowe Price Group Inc. is a publicly owned asset management company that provides services to individuals, institutional investors, retirement plans, financial intermediaries and institutions. They provide a broad array of mutual funds, sub-advisory services, and sophisticated investment planning and guidance.

TROW makes money by charging fees on managing portfolio’s that include stock, bond, blended asset and money market funds. They also make money through fees collected from retirement planning advice, their discount brokerage service and trust services.

Quantitative

T. Rowe Price Group Inc. sports some of the most impressive fundamentals I’ve seen. Revenue in fiscal year 2005 was $1.512 billion and increased to $3.982 billion in fiscal year 2014. Double-digit top-line growth of 11.36% is not something you come across often in well established companies like TROW!

  • Revenue grew by approximately 11.36% over the last 10 years.
  • EPS is 4.65 and has increased by 8.69% over the last 5 years.
  • Dividend yield at time of purchase was 2.95% and TROW pays a dividend of $2.08 per share. TROW has been increasing dividends for 29 years and the payout ration is currently 30.6%. This tells me there is still plenty of room for the dividend to grow at a healthy rate.
  • Debt/Equity ration: None! TROW currently has no long term debt on their balance sheet.

Risks

While TROW is one of the largest and most respected “no load” mutual funds and they cater to people who do not want to actively manage their own money, they do not currently offer low index funds for people who want to save on fees and manage their money. If TROW were to offer low fee index funds, this could potentially mean sacrificing profits from the mutual fund side of the business.

Valuation

  • The P/E ratio is currently 15.20, which is lower than TROW’s 5 year average of 21.70 and the S&P 500 18.4.
  • Morningstar valuation: $85
  • S&P Capital IQ valuation: $83.10, rated a 4 star “BUY”

Conclusion

T. Rowe Price Group Inc. overall is an attractively valued high-quality stock, I think. They have a business model that is easy to understand, are well respected as leaders in their industry, have a clean balance sheet and have plenty of room to grow the dividend rate. A clear winner, in my book!

This purchase adds $31.20 to my annual dividend income based on the the current $0.52 quarterly dividend.

Full Disclosure: Long TROW

Thanks for reading.

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