Month: May 2017

W. W. Grainger

W. W. Grainger’s 46th Consecutive Dividend Increase

Dividend Raises

On April 26th, W. W. “W.W. Grainger, Inc. (NYSE: GWW) announced today that its board of directors voted to raise the quarterly cash dividend by 5 percent to $1.28 per share payable on June 1, 2017, to shareholders of record on May 8, 2017. Grainger has delivered 46 consecutive years of increased dividends.” (invest.grainger.com)

This is a position I have been re-evaluating for quite some time and am thinking of exiting. I am down around 20% due to a very bad reaction to their latest earnings release.

Dividend Income increased 0.04%

Considering the Dividend Beginner portfolio contains 5 shares of W. W. Grainger, Inc., my annual income from GWW has increased by $1.20 USD, from $24.40 USD to $25.60 USD. My 12-month forward dividend income has increased from $2,899.83 to $2,901.03, an increase of 0.04% (this is probably the lowest net dividend income to the portfolio so far). GWW accounts for 0.88% of my annual dividend income. 

While a $1.02 increase in annual dividend income seems quite low, think about how it would require an investment of $45.45, at a yield of 2.64% (GWW’s dividend yield on the day of the raise) to generate $1.20 in dividend income. That’s the equivalent of getting four hours of your life back, at Quebec’s minimum wage of $11.25.

Note: I use a 1:1 ratio when calculating dividend income for $CAD and $USD since it would be too complicated to constantly account for currency difference and it’s constantly changing. The portfolio only generates $120 USD annually with all other income being $CAD.

Before Net Increase After
Annual Dividend Income $2,899.83 $1.20
$2,901.03
Monthly Dividend Income $241.65 $0.10
$241.75
Percentage Increase 0.04%
exchange income corp logo

Exchange Income Corp. Flies to Top Portfolio Position

Purchases

On May 3rd, I added 33 shares of Exchange Income Corp. (TSE: EIF) to The Dividend Beginner’s portfolio.

I purchased the shares at $33.75, with a trading cost of $6.95 for a total investment of $1120.70.

This pushes my total cost basis for my collection of 150 EIF shares to $5,014.95 (includes commissions).

My last purchase was in August 2016, where I purchased 42 shares of EIF.

Originally I had opened this position in May 11 of 2016, with a starting 75 shares of EIF.

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Apple Technology

Apple Announces a 10.5% Dividend Raise

Dividend Raises

On May 2nd, according to Apple’s second quarter results, “The Board has approved a 10.5% increase to the Company’s quarterly dividend, and has declared a dividend of $0.63 per share of the Company’s common stock, payable on May 18, 2017 to shareholders of record as of the close of business on May 15, 2017.” (apple.com)

At the same time, they increased their share repurchase authorization to $210 billion from last year’s $175 billion, as they expand their capital return program to $300 billion.

Since they started the capital program in mid 2012, Apple has spent $151 billion in share repurchases, propping up their earnings per share. I’m a big fan of how much capital Apple returns to their shareholders in share buybacks and dividend increases.

Dividend Income increased 0.20%

Considering the Dividend Beginner portfolio contains 23 shares of Apple Inc., my annual income from AAPL has increased by $5.52 USD, from $52.44 USD to $57.96 USD. My 12-month forward dividend income has increased from $2,825.02 to $2,830.53, an increase of 0.20%. My income from AAPL accounts for 2.05% of my annual dividend income.

While a $5.52 increase in annual dividend income seems quite low, think about how it would require an investment of $324.71, at a yield of 1.7% (AAPL’s dividend yield on the day of the raise) to generate $5.52 in dividend income. That’s the equivalent of getting twenty nine hours of your life back, at Quebec’s minimum wage of $11.25.

Note: I use a 1:1 ratio when calculating dividend income for $CAD and $USD since it would be too complicated to constantly account for currency difference and it’s constantly changing. The portfolio only generates $120 USD annually with all other income being $CAD.

Before Net Increase After
Annual Dividend Income $2,825.02 $5.52 $2,830.53
Monthly Dividend Income $235.42 $0.46
$235.88
Percentage Increase 0.20%
Dividend Income

April 2017 Dividend Income

Dividends

I return to growing my dividend income stream in a larger way this month with investments in very high-yielding stocks. I added $163, or 6% to my annual dividend income. I am getting very close now to an average of $250 per month; then moving on to $300.

April 2015 was the first month I ever received a dividend cheque, to the tune of $25. Two years later, and $262 have made their way into my brokerage account.

I am well on my way to my $3,000 dividend income goal for 2017.

Summary of April Investment Activities

Throughout April, I’ve purchased:

None of my holdings increased their dividend.

None of my holdings were sold to recuperate capital.

None of my holdings reduced their dividends.

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Disclaimer

My publishings on dividendbeginner.com references an opinion and is for information or entertainment purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice. I am not responsible for any decisions you make concerning finances, taxes, or investments. You must perform your own research and always take caution when extending capital.