Tuesday, April 28, 2015

IBM raises dividend 18.18% --- New Yield is 3.03% & Weekly Purchases


Here are my automatic investments for this week.

  • SO:  4.50 shares @ $44.44 --- Yield  4.88%
  • PG:  2.48 shares @ $80.72 --- Yield  3.28%
  • WMT:  2.52 shares @ $79.36 --- Yield  2.47%

Total capital invested is $600 ($200 in each company). The combined yield on the purchases is 3.54% and will add $21.26 to my yearly dividends.

Even though PG and WMT did not raise their dividends by very much, they are both still very high quality businesses and should provide reliable and increasing dividends for many years to come. The fact that WMT has dramatically underperformed TGT in the last year also is a factor with my purchase. PG has been left behind by everything for the last couple of years. Typically companies like these don't accept losing ground to their rivals lightly. We shall see.

Companies on my radar for next week include to ones listed above as well as NOV, JNJ, CAT, AXP, PM, XOM, PFE, and KO.

Then again, I may not buy anything.


IBM Dividend

In other news IBM announced that it will be raising its quarterly dividend from $1.10 to $1.30. This is simply amazing!!! This is an 18.18% increase from last year and the new yield is 3.03%.

The ex-dividend date is May 6th and the pay date is Jun 10th.

Currently I own 37.33 shares so my yearly dividends will increase by $29.86. This increase alone increases my yearly dividends by $8 more than this week's purchases. Very nice!!!


DEFY MEDIOCRITY

17 comments:

  1. IBM's dividend hike is pretty solid. The yield is pretty high, yet it seems they still have room to boost the dividend too. Hope their turnaround goes well, so that EPS grows too.

    By the way, what is your Twitter handle? I re-tweeted this post, but couldn't find you.

    ReplyDelete
    Replies
    1. DGI,

      Twitter? Hmmmm....technology and I don't play well together. Does that connect to my Packard Bell computer? :-)

      The payout ratio is low, but IBM's revenue drop seems to be endless. At some point they need to accelerate their turnaround.

      MDP

      Delete
    2. Haha! Packard Bell was my grandparent's first computer. I remember playing that snake game (where it lengthens as you eat things)!

      I'm thankful for IBM's increase. I was also surprised to see that I'm almost back to even with capital gains/losses on the stock. Hopefully they'll be able to turn their revenue decreases around! IBM is always near the top for research spending and patents...I hope that will pay off in the long run.

      Delete
  2. Thats a massive div increase from IBM. Congrats on the pay raise!

    R2R

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    Replies
    1. R2R,

      Thanks my friend. Now they need to work on increasing revenue.

      MDP

      Delete
  3. Congrats on the great increase. I am surprised they are increasing their dividends by so much when they have stagnant/declining revenues.

    Great purchases with WMT. I also added WMT this week in addition to DIS and V. With respect to PG, I am looking for it to drop back to a P/E of less than 20 before I want to add more.

    ReplyDelete
    Replies
    1. DGI,

      The revenue is the elephant in the room no doubt. I do have faith in a turnaround and plan on keeping the shares. With the yield above 3% a different more stable type of investor will probably be attracted to the company which is a good thing in my book.

      MDP

      Delete
  4. Awesome increase MDP. Glad to be a fellow shareholder. Keep it up bud. Cheers to us.

    ReplyDelete
    Replies
    1. DH,

      Every month a few of my soldiers are making up for that big ESV cut. Slow and steady my friend. Congrats on your raise as well!

      MDP

      Delete
  5. MDP,

    That increase = phenomenal. SO pumped. IBM just killing it for us!

    -Lanny

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    Replies
    1. Lanny,

      Awesome news indeed. I have owned IBM for about a year and a half and it looks like it is finally turning the corner. Sometimes it literally pays to be patient.

      MDP

      Delete
  6. MDP,

    congratulation! Unfortunately, I didn't triggered a buy, when I saw it falling below 150 (my buy target at the time). And thereafter I only hoped that it would fall again - it didn't ;-)

    That's why I love your weekly purchases - no market timing, no regret.

    ReplyDelete
    Replies
    1. DivRider,

      Don't worry too much about missing shares of IBM at $150. There are always going to be stockst that we missed out on. Remember BP at $35 a few months ago or MO at $33 in 2013. I wish I had bought more of both of these companies. I just remember that it is best not to look backwards because we aren't going that way.

      MDP

      Delete
  7. Congrats on the buys and that solid increase. AAPL had an 11% increase as well, but they are a low yield stock. Still AAPL works for me, wish I had IBM though.

    - Gremlin, long AAPL

    ReplyDelete
    Replies
    1. DG,

      I saw that AAPL increase. That company can do no wrong. IBM, on the other hand, has done plenty wrong in the last few years, but hopefully the finally are getting their act together.

      MDP

      Delete
  8. 18% is very very nice indeed! Congrats. I also got some WMT today among others.

    ReplyDelete
    Replies
    1. Fab,

      Thanks! You are really killing it with your weekly purchases. It kinda of reminds me of someone. :-)

      MDP

      Delete