Recent Buy: AAPL (Apple Inc.)

Recent Buy: 2/2/18

Today, I purchased 19 shares of AAPL (Apple Inc.) for $163.32/share or $3,103.07 in total capital. I had 0 shares of AAPL prior to this purchase. This increases my forward dividends by $47.88/year.

Although not a purist’s “dividend stock,” AAPL is a solid company that over the past few years has been increasing it’s dividend payout by nearly 10% yearly. That’s about as much as you can ask for, especially coupled with the natural growth of Apple as a business which should translate into increased share price. The price of AAPL is also at a near 6 month low, which looks like a good entry point to me. Throw in a quarter of disappointing iPhone sales, and you have a great company at a pretty good discount!

Forward Yearly Dividends: $1006.56

Dividend Increase – T (AT&T)

AT&T (T) increased it’s quarterly dividend by 2% on 12/15/17, bringing its total quarterly dividend to $0.50/share, up from $0.49/share. This marks 34 years of reliable dividend increases. When companies increase their dividends with consistency, you can rest-assured that the company is making a profit and wants to share them with their shareholders.

Recent Buy: OHI (Omega Healthcare Investors) – Repurchase at 14% Discount

Recent Buy: 12/5/17

Today, I purchased an additional 55 shares of OHI (Omega Healthcare Investors) for $26.9861/share or $1489.19. in total capital. I had 58 shares of OHI prior to this purchase in my Traditional IRA, bringing my total shares to 113. This increases my forward dividends by $143.00/year. By far my largest increase of forward dividends in a single purchase!

On my last purchase of OHI, I outlined the main reason for the sell off. It seems it’s still an issue that Wall St. doesn’t like. I don’t care, though. Baby Boomers are expected to  equal to about 20% of the population by 2029 and are they aren’t getting any younger.

Pervious guidance for recent stock price discount:  For Q3 of 2017, OHI underperformed what was expected by Wall St. consensus. The company missed their expected revenue figure by $44.4 million, despite being up 4.4% since the same time last year. These troubles stem from tenant, Orianna Health Systems is essentially behind on their rent. Trouble is, with the types of properties that OHI operates, you can’t simply close down and kick out current tenants because a large majority of them are the elderly with longterm care needs.

Invest on! It looks like another dividend growth investor, DivGro, also took advantage of the recent, additional sell off. Great minds think alike!

Total Forward Dividends: $961.98

Dividend Increase – TU (Telus)

Telus (TU) increased it’s quarterly dividend by 2.54% today, bringing its total quarterly dividend to $0.505/share up from $0.425/share. When companies increase their dividends with consistency, you can rest-assured that the company is making a profit and wants to share them with their shareholders.

Forward Yearly Dividends: $822.45

Hormel Foods Acquires Columbus Manufacturing for $850 million

Hormel announced today that it will be acquiring Columbus Manufacturing, an artisanal packaged meat company for $850 million dollars.

Last year, Columbus had an annual sales figure of around $300 million with an estimated 5% annual growth moving forward.

As you can see from the landing page for Columbuscraftmeats.com, it’s similar to those companies that also seem to be targeting the millennial generation. Buzz words like: Crafted, Anti-biotic free, & Authentic are all the craze with the under 35 crowd that is staying away from highly processed products.

“Most people in the food business regard Columbus as the Gucci of premium deli meat,” Gregory Purcell said, the CEO of the private equity group that originally purchased Columbus for $213 million in 2012. I really like this comment, it defines a company with a good reputation within its customer base, something paramount with any food company. Look at the struggles Chipotle is having right now after years of branding itself as a healthy, real ingredients with no antibiotics , fast-food chain.

I believe this acquisition was the right move for Hormel as it works to capture more and more market share within the pre-packaged meats industry.

Recent Buy: OHI (Omega Healthcare Investors) – Repurchase with 8% off

Recent Buy: 10/31/17

Today, I purchased an additional 21 shares of OHI (Omega Healthcare Investors) for $28.585/share or $605.24 in total capital. I had 37 shares of OHI prior to this purchase in my Traditional IRA, bringing my total shares to 58. This increases my forward dividends by $54.60/year.

For Q3 of 2017, OHI underperformed what was expected by Wall St. consensus. The company missed their expected revenue figure by $44.4 million, despite being up 4.4% since the same time last year. These troubles stem from tenant, Orianna Health Systems is essentially behind on their rent. Trouble is, with the types of properties that OHI operates, you can’t simply close down and kick out current tenants because a large majority of them are the elderly with longterm care needs.

The missed earnings caused a pretty big sell off after-hours on the 30th, and today it looks like it’s recovered some of it’s losses. It’s a great dividend player that just went on sale. Time to pick up some more with a little bit of capital.

It will be interesting to see what the next dividend increase looks like, although management did say on their earnings call that they don’t expect much change.

Invest on! It looks like another dividend growth investor, My Dividend Pipeline, also took advantage today, with a lot more capital, too! Way to go!

Total Forward Dividends: $822.45

Recent Buy: T (AT&T) – Repurchase

Recent Buy: 10/25/17

Today, I purchased an additional 21 shares of T (AT&T) for $33.49/share or $708.33 in total capital. I had 25 shares of T prior to this purchase bringing my total shares to 46. This increases my forward dividends by $41.46/year.

ATT suffered a big sell off back when I first posted that I was closely watching T.  Today, it dropped another ~4% after a not so investor friendly earnings report for Q3 ’17. It reported 74¢ earnings per share, but Wall St. was expecting it to be 1¢ higher. That might not sound that much, but when you take a penny of 6.4 billion shares currently in supply, its a bit of a shocker. The good thing though, AT&T managed to add more wireless subscribers than was expected. (1 million more, actually)

If I stick to my original thesis on buying for the long-term, this stock is only more of a sale. No reason to not buy more if the reason I first invested in T hasn’t changed. This is a long term investment, with a very nice dividend yield, to boot. There may be more short-term declines and possibly a bumpy ride, but it’s one I’m willing to take for the next 5-10 years.

I highly suggest other dividend investors follow suit. This stock hasn’t been this low since the beginning of 2016, and that was when the market was beaten down as a whole. When life gives you a %10 discount into your retirement, I take it.

Total Forward Dividends: $767.85

Recent Buy: GIS (General Mills)

Recent Buy: 10/23/17

On October 23rd, I purchased 27 shares of GIS (General Mills) for $51.91/share or $1401.66 in total capital. I had 0 shares of GIS prior to this purchase, so my total shares are 27. This increases my forward dividends by $52.92/year.

General Mills has been beat down in the last 52-weeks, dropping in value by about 14%. But, GIS is a dividend stalwart and has been paying a dividend for 119 years, consecutively. That’s serious commitment to shareholders, and I want in! They also pay out a very generous 3.77% yield at current price levels. I am happy to buy in at these discounted levels and ride out the temporary headwinds the’ve been facing as of late.

Forward yearly Dividends: $726.69 (almost to the $1k mark/year in dividends!)

Stock On Watch: AT&T (T)

On 10/12/17, AT&T stock saw almost its largest drop in price in 9 years. Dropping by over 5.5% in one trade day. This seems quite exaggerated, but the reasoning is justified. The massive hurricanes that have hit the US lately have utterly destroyed most of AT&T infrastructure in the affected areas. Because of this, they will have to spend big cash to get everything up and running again. On top of that, they will be waiving fees that would be typically passed onto the consumer to help rebuilding efforts.

So, there are some rough waters coming in the next quarter for T, but I am a long-term holder and will try to find some capital to buy more T while it’s still in the over-sold territory. Buying at ~$35-36/share locks in a juicy 5% yield. Well above the market average.

The P/E ratio for AT&T (T) is now at 16.91, meaning it’s still cheap compared to the overall market.

A basic, yet typical, way to measure how expensive a stock is, is by it’s P/E ratio. (Price/Earnings) You can compare most stocks to the current P/E ratio of the entire S&P for instance, which is currently around 24.6. So theoretically if a stock’s P/E is below 24.6, it could be considered cheap. 

 

The current payout ratio for it’s dividend is at 41%, meaning it still has room to grow the dividend in the future without affecting much on their bottom line. 

Current Dividend Yield: 5.13%    Payout Ratio: 83%

*I currently own 25 shares of T

Recent Buy: TU (Telus)

Recent Buy: 10/04/17

On October 4th, I purchased 13 shares of TU (Telus) for $36.33/share or $472.30 in total capital. I had 0 shares of TU prior to this purchase, so my total shares are 13. This increases my forward dividends by $25.61/year.

 

Telus is one of 4 major Canadian telecommunications companies, which all operate in a very competitive market similar to that of the US. In July of this year, Telus and Huawei worked together to build and test a 5g network and did so with outstanding results. They were able to achieve speeds up to 200x faster than the current LTE networks. This could result in homes being able to rely on wireless connectivity at speed comparable to a land line connection. (at current speeds)

Telus and Mojio have also worked together in creating a car-based wireless network allowing all vehicles to have super-fast connectivity to other cars. Think self-driving tech.

On top of these two catalysts for future growth, in May Telus paid for a large portion of Canada’s wireless spectrum in a nationwide auction for bandwidths. Telus spent C$478.82 million for 122 licenses in the 2.5 GHz band. (2.5Ghz allows for much greater distances the wireless signal can travel unobstructed and pairs nicely with their already existing bandwidths)

Pile all of that on a delicious 4.5% dividend yield for only $36.xx/share and I think we have a wonderful place to park some extra cash.

Dividend Yield: 4.5%.        Total Forward Dividends: $698.21

Recent Buy – HRL (Hormel Foods)

Recent Buy: 8/24/17

Today, I purchased 21 shares of HRL (Hormel Foods) for $31.99/share or $671.83 in total capital. I had 0 shares of HRL prior to this purchase, so my total shares are 21. This increases my forward dividends by $21.53/year.

Hormel Foods released their earnings report for the 3rd Quarter before the market opened this morning and people weren’t pleased, to say the least. The stock immediately dropped about 6%, creating a great level to start or add to a position.

Revenue for Q3 came in at $2.21 billion, a 3.9% decrease from the same time last year and $30 million less than expected by analysts. Hormel also announced a $425 million acquisition of Fontanini Italian Meats & Sausages.

Dividend Yield: 1.98%.        Total Forward Dividends: $668.07