Growth Update: May 2014

My portfolio continued to climb higher in May. I got a little trigger happy with the departure of Target’s CEO and jumped on the first drop in its stock price, only to see better entries for the remainder of the month. Price movements are hard to predict and I don’t even try. Instead, I find a valuation that I’m comfortable with and make the purchase. While the company has challenges ahead, I’m hoping this will ultimately be a good addition to the portfolio in the long run. I have a feeling my only future complaints with most of these early buys will be that I didn’t buy more. With this purchase, my portfolio value increased by 8.84% from $16117.27 to $17,541.28. 140503PortfolioValueHistory

I’m still well ahead of my “New Capital Invested” goal with $12,222.03 for the year so far.  With my recent food planner and another opportunity I will talk about below, I’m hoping to invest at least $2,000 a month going forward in order to demolish this goal.

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I now own thirteen companies; two of them gave me raises in May, including a huge 17.65% increase from John Deere. I continue to like John Deere and might add more soon. The dividend growth percentages in 2011-2013 were 31%, 18% and 11% respectively. The current low PE and dividend yield are attractive for investors willing to deal with the cyclical nature of this stock. I definitely believe this stock is worth looking into for dividend growth investors. Baxter also increased its dividend in May.  It currently represents a great buying opportunity based on forward earnings, growth, and a company split next year. During April and May, over half of the companies in my portfolio gave dividend raises, and I absolutely love watching my money make money!

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Speaking of money, I had another record month for dividends received at $68.80. I’m finally seeing amounts that can cover certain expenses and am excited to see this growth accelerate toward the end of the year.

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I currently use a dividend reinvestment plan for all my stocks. At some point I’ll likely stop doing this for the positions that I determine are overweight or overvalued, but this month I was able to pick up shares for the following dividends I received:

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With the larger purchases in the coming months, I hope I’ll still be able to hit my dividends received goal for the year. It’s going to be a close one.

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Why the bigger purchases? I have continued to work at the same secure TV Network job for the sixth straight month. I’ve had a few other job offers recently which led to a conversation with my employers about my goals and more specifically my weekly rate. I’m doing much more work than when I first started and they’ve noticed which might lead to a raise.  Nothing is cemented yet, but I hope the raise will be substantial so I can aggressively put that capital to work by generating more passive income. Even if the raise isn’t as big as I’d like, I still have stability until I choose my next gig.

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I’m loving all the content everyone in this community has been putting out lately. I’m very lucky to have found dividend growth investing and all the wonderful people who are actively supportive and helpful. Thanks for reading and stopping by.

How did you do in May?

Photo Credit: Israel Sundseth – http://unsplash.com

My Dividend Growth

http://www.mydividendgrowth.com

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14 thoughts on “Growth Update: May 2014
  1. DGJourney

    Congratulations on the dividend growth. I also started documenting my dividend growth journey just a couple of months back even though I have been investing for a while. Like you, I have set some targets for new investments and dividends received for this year and with almost half way through the year, I am on pace to hit those targets. Good luck with meeting your targets.

     
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    1. My Dividend Growth

      DGJourney,

      Thanks for sending luck my way and right back at you. You had a great month in May as well and I’m excited see what you purchase next! Keep it up!

      I had some great news from work today and did end up getting a very substantial raise. They promoted me and raised my rate by 26%!!! I should have a bunch of extra capital to put to work now.

      Wishing you all the best,
      Ryan

       
      Reply
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  3. DivHut

    Thanks for sharing your most recent updates. I enjoy looking at your graphs and see the trend of your new capital and dividend income. It’s always great visualize your progress. Keep at it!

     
    Reply
    1. My Dividend Growth

      Thanks a ton DivHut!

      The graphs are helping me a lot too because I’m seeing real results. I love watching the dividend income march higher and higher. I should be able to invest more aggressively now that I feel more stable in my job and I got a 26% raise!

      You’ve been putting out some really great content lately and I especially like to read your easy to read and informative analysis posts. Your experience is really showing and it’s been fantastic work!

      I appreciate you taking the time to stop by!

      Thanks,
      Ryan

       
      Reply
  4. Nicola

    Congratulations on higher dividends for this month! I’m just starting to look at dividend investing but it seems quite a confusing place, so I need to do more research before I take the leap. I particularly like all the graphs and analysis on your post – it makes for an easy read.

     
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    1. My Dividend Growth

      Nicola,

      Thank you for the very kind comment and welcome to the dividend growth investing community. Hope to have you aboard as a fellow investor soon! I’ve found everyone to be so supportive and helpful and if you ever have questions someone will have an answer. Nice blog over there, I’m happy to see you have the frugal part down. Dividend growth investing will help you make very good use of all that money you’re saving and make it grow over time. I highly recommend digging into Dividend Mantra’s past posts because he has a very solid quantitative writing style I find especially helpful for those just starting to look at DGI. I also recommend checking out Seeking Alpha, especially the articles / dividend income page. On that site I’m a big fan of Chuck Carnevale who helped me understand the valuation of stocks. I look for his new articles every day. You will see other great helpful articles on that site like “Dividend Growth Investing: Creating a Portfolio – http://seekingalpha.com/article/2256253-dividend-growth-investing-creating-a-portfolio“. Definitely worth exploring.

      So have fun absorbing information and I wish you all the best in your journey of frugality and hope you’ll check in from time to time and I’ll be watching your blog over there!

      All my best,
      Ryan

       
      Reply
  5. My Dividend Pipeline

    Your portfolio is progressing nicely. Keep feeding the beast every month and I look forward to seeing your future results. By the way don’t dwell on the drop in Target’s price drop after buying shares…just keep focused on methodical, consistent, and most importantly unemotional investing.

    MDP

     
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    1. My Dividend Growth

      MDP,

      Great words of encouragement there, thank you very much! I will indeed keep focused and feeding the beast, in fact today I added to two positions which I’ll post soon. It’s great to have you picking up shares so often so I can always stop by and see what you’ve been purchasing for ideas. Keep it up!

       
      Reply

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