- KMI: 20.05 shares @ $32.42 --- Yield 5.18%
- VZ: 13.49 shares @ $48.20 --- Yield 4.40%
- PFE: 22.28 shares @ $29.18 --- Yield 3.56%
- CLX: 7.33 shares @ $88.70 --- Yield 3.34%
Total capital invested is $2600 invested equally in each company. The combined dividend yield is 4.12% and will add $107.12 to my yearly dividend income.
Note: Clorox raised its quarterly dividend from $.71 to $.74 per quarter and I am using the new yield for my calculation.
$100/week Challenge---Week 3
This is my third consecutive week in which I have increased my yearly dividends by $100. This is more difficult than I first envisioned, but like training for a marathon I plan on taking it one week at a time. I have become hyperaware of my spending habits. If nothing else this renewed focus on extreme savings is a nice byproduct of the challenge.
Solid long term picks for the most part. I am partial to CLX having it in my portfolio for many, many years. I think KMI is too aggressive with its dividend payout. The payout ratio for KMI is well over 100% and long term I'm not sure how sustainable that yield is.
ReplyDeleteKeith,
DeleteIf you look at the Kinder cash flow statements you will notice a lot of depreciation (non cash) expense. I believe KMI will be able to not just maintain, but continue its dividend growth for the forseeable future based on solid operations.
MDP
Nice purchases...the only way to grow your dividend income is to grow your portfolio. Keep it up. Wishing you continued success in your journey!
ReplyDeleteA Frugal Family's Journey,
DeleteThanks for the comment. You are correct about growing your portfolio. I know there is a lot of talk about overvalued markets, but the same comments have been made during the past four years. I am going to keep buying income producing companies and not worry about market timing. It's not going to matter 10 years from now whether I bought Clorox at $88 or $78 dollars this week. My concern is whether the dividends are increasing over time since that is what will be paying my bills.
Best wishes on your journey as well.
MDP
I own all but PFE (sold after dividend cut), but think they are all solid companies for the long-term. You are making some sizable purchases there, keep it up! I hope to be able to add much more the second half of the year. I've had some unexpected expenses with my new office building.
ReplyDeleteBrent,
DeletePfizer is ok I think it's a little undervalued since the AZN acquisistion news. I was hoping to add more VZ in the coming weeks, but new that Warren Buffett has been acquiring shares has made it pop. Clorox never seems to pullback but I want to diversify my portfolio so I like the company even if it is a bit pricey. KMI continues to confound me. It is continually undervalued. I am overweight so probably won't add more unless it dips into the 20's.
MDP
Pretty amazing that you've been able to increase yearly dividends by $100 for three consecutive weeks. How long can you keep that pace up? Are you sitting on excess free cash.
ReplyDeleteJosh,
DeleteI have very little cash. I work six days a week in a sales career that typically requires 10 hour days. Fortunately my house and car is paid off and I am able to save 75-80% of my take home pay. Hopefully I can continue this pace for the rest of the year.
MDP