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.
|Annual Dividend Income||$2,899.83||$1.20||
|Monthly Dividend Income||$241.65||$0.10||