Eventually, someone else will have to manage your portfolio. Will this hand-tuned marvel you've spent a lifetime constructing collapse under a spouse or child's oversight? Now might be a good time to design a plan for your portfolio for the day when you are no longer available to call the shots. [more]
Marathon Petroleum Corporation (MPC) engages in refining, transporting, and marketing petroleum products primarily in the United States. July 25th the company increased its quarterly dividend 40% to $0.35 per share. The dividend is payable Sept. 10, 2012 to shareholders of record as of the close of business Aug. 16, 2012. The yield based on the new payout is 3.1%. [more]
After each quarter-end, I review my asset allocation and year-to-date total returns by category. The attached PDF contains my actual asset allocation as of 2012-Q2. Below is a high-level summary of the information contained in the PDF:
Continue Reading » [more]
Linked here is a detailed quantitative analysis of Brady Corp (BRC). Below are some highlights from the above linked analysis:
Company Description: Brady Corp. operates as an international manufacturer and marketer of identification solutions and specialty products which identify and protect premises, products and people. [more]
When the price of gold increases, Newmont Mining Corp.'s (NEM) shareholders prosper. NEM engages in the acquisition, exploration, and production of gold and copper properties.
July 15th the company increased its quarterly dividend 17% to $0.35 per share of common stock. The dividend is payable on September 28, 2012, to holders of record at the close of business on September 6, 2012. The yield based on the new payout is 3.0%. [more]
Linked here is a detailed quantitative analysis of United Technologies Corp. (UTX). Below are some highlights from the above linked analysis:
Company Description: United Technologies Corp. is an aerospace-industrial conglomerate's portfolio includes Pratt & Whitney jet engines, Sikorsky helicopters, Otis elevators, and Carrier air conditioners, among other products. [more]
When it comes to selecting a company to invest in, I like those that make a tangible product. Through patents, trademarks and other barriers, these companies can sometimes develop a formidable economic moat. Often times, the widest moats are found in the Basic Materials Sector. [more]
Stanley Black & Decker, Inc. (SWK) provides power and hand tools, mechanical access solutions, and electronic security and monitoring systems primarily in the United States, Europe, Latin America, and Canada. July 18th the company increased its quarterly dividend 20% to $0.49 per share. This marks the 45th consecutive annual dividend increase for the company. The dividend is payable September 18, 2012 to shareholders of record as of the close of business on September 7, 2012. The yield based on the new payout is 3.1%. [more]
Linked here is a detailed quantitative analysis of Air Products and Chemicals Inc. (APD). Below are some highlights from the above linked analysis:
Company Description: Air Products and Chemicals Inc. is a major producer of industrial gases and electronics and specialty chemicals also has interests in environmental and energy-related businesses. [more]
Linked here is a detailed quantitative analysis of AFLAC Incorporated (AFL). Below are some highlights from the above linked analysis:
Company Description: Aflac Incorporated provides supplemental health and life insurance in Japan (80% of earnings) and the U.S. Products are marketed at work sites and help fill gaps in primary coverage. [more]
I hate to sell a dividend growth stock. When I buy a stock, my intention is to hold it forever and enjoy its ever-growing dividend income. Unfortunately, it doesn't always work that way. Sometimes a things change and the stock no longer fits my criteria for inclusion in my income portfolio.
It could be a company that cuts its dividend or in some cases freezes its dividend (fails to raise its dividend at the appointed time). Let's take a look at a two-step process designed to help us determine if we should sell a stock after a dividend freeze. [more]
Solar Senior Capital Ltd. (SUNS) is a business development company primarily investing in senior secured loans, including first lien, unitranche, and second lien debt instruments. July 9th the company increased its monthly dividend 5% to $0.105 per share. The dividend is payable August 2, 2012 to stockholders of record on July 19, 2012. The yield based on the new payout is 7.4%. [more]
The Pocket Change Portfolio (PCP) was first introduced on September 13, 2008 as a real money dividend income portfolio funded by the "pocket change" earned from my various online endeavors. Each month I report on the portfolio's progress and dividends earned.
Total dividends received during the month were $731.25, consisting of: [more]
Linked here is a detailed quantitative analysis of Mercury General Corp. (MCY). Below are some highlights from the above linked analysis:
Company Description: Mercury General Corp. is an insurance holding company, operating primarily in California, writes a full line of automobile coverage for all classifications of risk. [more]
Any investor that understands the merits of asset allocation also understands the importance of including an international allocation in their portfolio. The concept is that in "normal" times there is always a market somewhere in the world rallying. To meet my set international allocation, I have focused on the following areas within my portfolio:
I. International Fund in my 401(k) [more]
Any investor that understands the merits of asset allocation also understands the importance of including an international allocation in their portfolio. The concept is that in "normal" times there is always a market somewhere in the world rallying. To meet my set international allocation, I have focused on the following areas within my portfolio: [more]
Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in June, extending the streak to 24 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 53 of the last 55 months.
My goals were defined in this December 1, 2007 Investing Goals post and last updated in my 2012 Investing Goals post. Below is an updated version of the table found in the original post.
Continue Reading » [more]
Linked here is a detailed quantitative analysis of ConocoPhillips Co. (COP). Below are some highlights from the above linked analysis:
Company Description: ConocoPhillips Co. is one of the largest independent oil and gas exploration and production (E&P) companies in the world, COP spun off its downstream assets in May 2012.
Fair Value: In calculating fair value, I consider the NPV MMA Differential Fair Value along with these four calculations of fair value, see page 2 of the linked PDF for a detailed description:
1. Avg. High Yield Price
2. 20-Year DCF Price
3. Avg. P/E Price
4. Graham Number
COP is trading at a discount to all four valuations above. The stock is trading at a 35.9% discount to its calculated fair value of $87.19. The stock is trading at a 35.9% discount to its calculated fair value of $87.19.
Dividend Analytical Data: In this section there are three possible Stars and three key metrics, see page 2 of the linked PDF for a detailed description:
1. Free Cash Flow Payout
2. Debt To Total Capital
3. Key Metrics
4. Dividend Growth Rate
5. Years of Div. Growth
6. Rolling 4-yr Div. > 15%
COP earned two Stars in this section for 1.) and 2.) above. A Star was earned since the Free Cash Flow payout ratio was less than 60% and there were no negative Free Cash Flows over the last 10 years. The stock earned a Star as a result of its most recent Debt to Total Capital being less than 45%. The company has paid a cash dividend to shareholders every year since 1934 and has increased its dividend payments for 12 consecutive years.
Dividend Income vs. MMA: Why would you assume the equity risk and invest in a dividend stock if you could earn a better return in a much less risky money market account (MMA) or Treasury bond? This section compares the earning ability of this stock with a high yield MMA. Two items are considered in this section, see page 2 of the linked PDF for a detailed description:
1. NPV MMA Diff.
2. Years to > MMA
COP earned a Star in this section for its NPV MMA Diff. of the $4,776. This amount is in excess of the $2,300 target I look for in a stock that has increased dividends as long as COP has. The stock's current yield of 4.72% exceeds the 3.1% estimated 20-year average MMA rate.
Memberships and Peers: COP is a member of the S&P 500 and a member of the Broad Dividend Achievers™ Index. The company’s peer group includes: BP plc (BP) with a 4.7% yield, Chevron Corp. (CVX) with a 3.4% yield and Exxon Mobil Corporation (XOM) with a 2.7% yield.
Conclusion: COP earned one Star in the Fair Value section, earned two Stars in the Dividend Analytical Data section and earned one Star in the Dividend Income vs. MMA section for a total of four Stars. This quantitatively ranks COP as a 4-Star Strong stock.
Using my D4L-PreScreen.xls model, I determined the share price would need to increase to $74.92 before COP's NPV MMA Differential decreased to the $2,300 minimum that I look for in a stock with 12 years of consecutive dividend increases. At that price the stock would yield 4.7%.
Resetting the D4L-PreScreen.xls model and solving for the dividend growth rate needed to generate the target $2,300 NPV MMA Differential, the calculated rate is 6.3%. This dividend growth rate is lower than the 9.1% used in this analysis, thus providing a margin of safety. COP has a risk rating of 2.00 which classifies it as a Medium risk stock.
COP has made significant acquisitions over the past few years to increase its reserves and production capacity. In July 2011 the company announced its intent to spin off its downstream business into a standalone Refining & Marketing pure play. In May 2012, it completed the spin off of its downstream assets into a separate company, Phillips 66 (PSX).
In July 2011, Jim Mulva, ConocoPhillips Chairman and CEO stated,
"..there will be no change in the dividend for ConocoPhillips. We're not reducing the dividend in ConocoPhillips. And as it goes forward, the dividend will, with time, subject to Board certainly approval, of raising the dividend. If you look at the downstream company, it is going to have a dividend that is competitive and comparable to others and the pure plays in the downstream part of the business. So the shareholder gets the current dividend from ConocoPhillips, plus when done, is going to get cash in a form of a new dividend from the downstream company."
I have restated COP's dividend history to eliminate the portion of dividend that is now associated with PSX. As such, 2012 will show a dividend increase for COP although the amount is the same that was paid by the combined company in 2011. COP is now trading well below my calculated fair value of $87.19. I will continue to add to my position, as my allocation allows.
Disclaimer: Material presented here is for informational purposes only. The above quantitative stock analysis, including the Star rating, is mechanically calculated and is based on historical information. The analysis assumes the stock will perform in the future as it has in the past. This is generally never true. Before buying or selling any stock you should do your own research and reach your own conclusion. See my Disclaimer for more information.
Full Disclosure: At the time of this writing, I was long in COP (4.3% of my Dividend Growth Portfolio). See a list of all my dividend growth holdings here.
- Sysco Corporation (SYY) Dividend Stock Analysis
- Procter & Gamble (PG) Dividend Stock Analysis
- The Clorox Company (CLX) Dividend Stock Analysis
- Abbott Laboratories (ABT) Dividend Stock Analysis
- More Stock Analysis [more]
Linked here is a detailed quantitative analysis of Colgate-Palmolive (CL). Below are some highlights from the above linked analysis: [more]
The Broad Dividend Achievers™ Index is comprised of companies incorporated in the United States or its territories, trade on the NYSE, NASDAQ or AMEX, and have increased their annual regular dividend payments for the last ten or more consecutive years. Unlike the more recognized Dividend Aristocrats list, The Broad Dividend Achievers™ Index is not limited to only stocks included in the S&P 500 Index. Thus it also includes small cap stocks. [more]
BB&T Corporation (BBT) operates as a financial holding company for Branch Banking and Trust Company that provides various banking and trust services for retail and commercial clients. June 26th the company increased its quarterly dividend 25% to $0.20 per share. The dividend is payable Aug. 1, 2012, to shareholders of record as of July 6, 2012. The yield based on the new payout is 2.7%. [more]