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Posted by Martin March 06, 2019
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WMT increased dividend by 1.92%


WMT, Walmart increased the dividend by 1.92% making this dividend champion’s 46th consecutive year dividend increase.

The old dividend rate was 2.08 annual dividend payout (0.52 quarterly), the new rate is 2.12 (0.53 quarterly).

Our current fair value of the company is $49.20 a share so at the current price of $97.85 the stock is overvalued. In order for this stock to be marked a “buy” our three conditions must be met for us to buy the stock.

The three conditions that the stock must meet are:

1) in a correction mode – fail
2) the current stock price must be below a fair value – fail
3) the 5 year average dividend yield must be lower than the current yield – fail

Since only two of the conditions are met, we mark it a “HOLD”.

The current yield is 2.17%.

The 10 year YOC would be 2.59% with no dividend reinvestment and 3.20% with DRIP. This is a mediocre dividend growth and it would not reach 10% YOC in 10 years at the current price even with reinvesting the dividends. The average 5 year dividend growth of this stock is only 2.00%.

The company share price outperforms the S&P 500 index in long term. If you invested 10,000 dollars in 1995 and held for the last 24 years, the stock average total return would be 10.67% vs 8.74% of the index, and your holding would grow to $109,483.11 dollars as opposed to $74,181.33 dollars of the index.

This makes this stock an acceptable source of income by a stable and solid dividend growth payer, but I would recommend adding this stock to a portfolio only when trading at a better price or when your portfolio is already matured. It would be a good capital growth position as it is in some sense a great competitor to Amazon (AMZN) as long as they keep doing it right and getting involved in online shopping the way they do. If the trend of adjusting their business continues, this may be a good cheap alternative to Amazon. However, to buy in, we would need a price drop to a more favorable level.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I am long WMT shares. It is in our watch list and since it is now ranked as “HOLD” I do not plan adding more shares to our portfolio at current price.




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Posted by Martin March 05, 2019
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KO increased dividend by 2.56%


KO, Coca Cola increased the dividend by 2.56% making this dividend champion’s 57th consecutive year dividend increase.

The old dividend rate was 1.56 annual dividend payout (0.39 quarterly), the new rate is 1.60 (0.40 quarterly).

Our current fair value of the company is $35.44 a share so at the current price of $46.65 the stock is overvalued. In order for this stock to be marked a “buy” our three conditions must be met for us to buy the stock.

The three conditions that the stock must meet are:

1) in a correction mode – pass
2) the current stock price must be below a fair value – fail
3) the 5 year average dividend yield must be lower than the current yield – pass

Since only two of the conditions are met, we mark it a “HOLD”.

The current yield is 3.50%.

The 10 year YOC would be 6.33% with no dividend reinvestment and 9.50% with DRIP. This is a good dividend growth but it would not reach 10% YOC in 10 years at the current price even with reinvesting the dividends. The average 5 year dividend growth of this stock is of 6.80%.

The company share price doesn’t outperform the S&P 500 index in long term. If you invested 10,000 dollars in 1995 and held for the last 24 years, the stock average total return would be 6.83% vs 8.74% of the index, and your holding would grow to $47,568.28 dollars as opposed to $74,181.33 dollars of the index.

This makes this stock an acceptable source of income by a stable and solid dividend growth payer, but I would recommend adding this stock to a portfolio only when trading at a better price or when your portfolio is already matured. It would not be a good growth position when you need it the most in the accumulation phase.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I am long KO shares. It is in our watch list and since it is now ranked as “HOLD” I do not plan adding more shares to our portfolio at current price..




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Posted by Martin March 05, 2019
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Are we stuck below resistance and heading lower?


The market seems to have a lack of strength (not enough buyers) at 2800 level to break and move higher. Fortunately, bears do not have enough power to push the market lower either. You can see that, so far, every selloff has been bought up; but this strength seems to be weakening every day.

Unfortunately, this is to the advantage for bears and if we do not break 2800 level (and ultimately 2814 level too) soon, this market will drop.

The odds of going lower are larger every minute. As of now I favor a drop back to 2750 level (200 DMA) to find buyers down there. Tomorrow seems to be crucial to determine the market’s direction. If declining keeps accelerating, more and more bulls will start panicking and running to exit to avoid an imaginary rout they have experienced in December. And they will self-fulfill their own “prophecy”. We need a breakout soon, ideally this week. If it won’t happen, expect going down.
 

S&P 500
 




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Posted by Martin March 05, 2019
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HD increased dividend by 32.04%


HD, Home Depot increased the dividend by 32.04% making this dividend contender’s 10th consecutive year dividend increase.

The old dividend rate was 4.12 annual dividend payout (1.03 quarterly), the new rate is 5.44 (1.36 quarterly).

Our current fair value of the company is $210.25 a share so at the current price of $183.81 the stock is undervalued. In order for this stock to be marked a “buy” our three conditions must be met for us to buy the stock.

The three conditions that the stock must meet are:

1) in a correction mode – pass
2) the current stock price must be below a fair value – pass
3) the 5 year average dividend yield must be lower than the current yield – pass

Since all of the conditions are met, we mark it a “BUY”.

The current yield is 2.96%.

The 10 year YOC would be 17.59% with no dividend reinvestment and 33.34% with DRIP. This is a great dividend growth and it would reach 10% YOC in 10 years even without reinvesting the dividends. This makes this stock a great payer and dividend grower for matured portfolios already allowing an owner to redirect dividend stream to different stocks and still get a great dividend growth and YOC. The average 5 year dividend growth of this stock is of 21.90%.

The company share price outperforms the S&P 500 index in long term. If you invested 10,000 dollars in 1995 and held for the last 24 years, the stock average total return would be 15.09% vs 8.74% of the index, and your holding would grow to a staggering $275,944.40 dollars as opposed to $74,181.33 dollars of the index.

This makes this stock a great source of income in the long run, but also provides a good source of growth for your portfolio. I consider this stock a good addition for dividend portfolio accumulation and growth phase. If you are looking for both – dividend yield, dividend growth, and capital appreciation outperforming the index, then this stock is for you.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I am long HD shares. It is in our watch list and since it is now ranked as “buy” we may initiate a position in this stock in the near future (given, it still stays ranked as BUY at the time of purchase).




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Posted by Martin March 04, 2019
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DPZ increased dividend by 18.18%


DPZ, Domino’s increased the dividend by 18.18% making this dividend challenger’s 7th consecutive year dividend increase.

The old dividend rate was 2.20 annual dividend payout (0.55 quarterly), the new rate is 2.60 (0.65 quarterly).

Our current fair value of the company is $255.16 a share so at the current price of $248.57 the stock is undervalued. In order for this stock to be marked a “buy” our three conditions must be met for us to buy the stock.

The three conditions that the stock must meet are:

1) in a correction mode – pass
2) the current stock price must be below a fair value – pass
3) the 5 year average dividend yield must be lower than the current yield – pass

Since all of the conditions are met, we mark it a “BUY”.

The current yield is 1.05%.

The 10 year YOC would be 6.52% with no dividend reinvestment and 8.29% with DRIP. This is a great dividend growth but won’t be able to reach 10% YOC in 10 years, at least not at current yield. However, the average 5 year dividend growth rate of 22.50% makes this stock a great holding in a dividend growth portfolio.

The company share price outperforms the S&P 500 index in long term. If you invested 10,000 dollars in 1995 and held for the last 14 years, the stock average total return would be 28.05% vs 8.74% of the index, and your holding would grow to a staggering $374,142.76 dollars as opposed to $32,949.48 dollars of the index. And since DPZ is also involved in technology, rather than just making great pizza, there is a great potential for more growth in the long run (just ignore what others say and all the gloom-doom scary cats say, they just see the stock until the next quarter and due to their short sight they miss the bigger picture). Therefore, the recent selling is a good opportunity.

This make this stock a great source of income in the long run, but also provides a good source of growth for your portfolio. I consider this stock a good addition for dividend portfolio accumulation and growth phase. If you are looking for both – dividend yield, dividend growth, and capital appreciation outperforming the index, then this stock is for you.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I do not own DPZ stock at this moment. It is in our watch list and since it is now ranked as “buy” we may initiate a position in this stock in the near future (given, it still stays ranked as BUY at the time of purchase).




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Posted by Martin February 26, 2019
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PPL increased dividend by 0.61%


PPL increased the dividend by 0.61% making this dividend contender‘s 18th consecutive dividend increase.

The old dividend rate was 1.64 annual dividend payout (0.41 quarterly), the new rate is 1.65 (0.4125 quarterly).

Our current fair value of the company is $36.27 a share so at the current price of $31.93 the stock is undervalued.However, in order for this stock to be marked a “buy” our three conditions must be met for us to buy the stock.

The three conditions that the stock must meet are:

1) in a correction mode – fail
2) the current stock price must be below a fair value – pass
3) the 5 year average dividend yield must be lower than the current yield – pass

Since only two of the conditions are met, we mark it a “hold”.

The current yield is 5.17%.

The 10 year YOC would be 6.23% with no dividend reinvestment and 10.20% with DRIP. This small dividend growth makes this stock more of a lagging stock however, as a utility stock, it appears to be a stable stock and dividend payer. In my opinion it is an acceptable holding in a dividend growth portfolio.

The company share price outperforms the S&P 500 index long term. If you invested 10,000 dollars in 1995 and held for 23 years, the stock average total return would be 10.83% vs 8.74% of the index.

This make this stock an acceptable source of income but also provides a good source of growth making this a good stock for dividend portfolio accumulation and growth phase. If you are looking for both – dividend yield, dividend growth, and capital appreciation outperforming the index, then this stock is for you.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I am long PPL and own shares of this company. It is in our watch list and when it appears as “buy” we may buy more shares of this stock.




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Posted by Martin February 14, 2019
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VLO increased dividend by 12.50%


VLO increased the dividend by 5.88% making this dividend champion‘s 9th consecutive dividend increase.

The old dividend rate was 3.20 annual dividend payout (0.8 quarterly), the new rate is 3.60 (0.9 quarterly).

Our current fair value of the company is $81.97 a share so at the current price of $82.33 the stock is overvalued and in order for this stock to be marked a “buy” the three conditions must be met for us to buy the stock.

The three conditions that the stock must meet are:

1) in a correction mode – pass
2) the current stock price must be below a fair value – fail
3) the 5 year average dividend yield must be lower than the current yield – pass

Since only two of the conditions are met, we mark it a “hold”.

The current yield is 4.37%.

The 10 year YOC would be 71.89% with no dividend reinvestment and 360.44% with DRIP. This rapid growth is something which worries me a bit as I think it is too steep so be prepared to possibly see a decline in this growth. On the other side, I do not think this makes the dividend safety endangered.

The company share price outperforms the S&P 500 index long term. If you invested 10,000 dollars in 1995 and held for 23 years, the stock average total return would be 16.37% vs 8.74% of the index.

This make this stock a great source of income but also provide a great source of growth making this a good stock for dividend portfolio accumulation and growth phase. If you are looking for both – dividend yield, dividend growth, and capital appreciation outperforming the index, then this stock is for you.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I am long VLO and own shares of this company. It is in our watch list and when it appears as “buy” we may buy more shares of this stock.




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Posted by Martin February 14, 2019
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MMM increased dividend by 5.88%


MMM increased the dividend by 5.88% making this dividend champion‘s 61st consecutive dividend increase.

The old dividend rate was 5.44 annual dividend payout (1.36 quarterly), the new rate is 5.76 (1.44 quarterly).

Our current fair value of the company is $191.49 a share so at the current price of 206.57 the stock is overvalued and in order for this stock to be marked a “buy” the three conditions must be met for us to buy the stock.

The three conditions that the stock must meet are:

1) in a correction mode – pass
2) the current stock price must be below a fair value – fail
3) the 5 year average dividend yield must be lower than the current yield – pass

Since only two of the conditions are met, we mark it a “hold”.

The current yield is 2.79%.

The 10 year YOC would be 9.66% with no dividend reinvestment and 15.18% with DRIP. The company share price outperforms the S&P 500 index long term. If you invested 10,000 dollars in 1995 and held for 23 years, the stock average total return would be 11.64% vs 8.74% of the index.

This make this stock a great source of income but also provide a great source of growth making this a good stock for dividend portfolio accumulation and growth phase. If you are looking for both – dividend yield, dividend growth, and capital appreciation outperforming the index, then this stock is for you.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I am long MMM and own shares of this company. It is in our watch list and when it appears as “buy” we may buy more shares of this stock.




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Posted by Martin February 13, 2019
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KMB increased dividend by 3.00%


KMB increased the dividend by 3.00% making this dividend champion‘s 47th consecutive dividend increase.

The old dividend rate was 4.00 annual dividend payout (1.0 quarterly), the new rate is 4.12 (1.03 quarterly).

Our current fair value of the company is $76.01 a share so at the current price of $116.00 the stock is overvalued and in order for this stock to be marked a “buy” the three conditions must be met for us to buy the stock.

The three conditions that the stock must meet are:

1) in a correction mode – fail
2) the current stock price must be below a fair value – fail
3) the 5 year average dividend yield must be lower than the current yield – pass

Since only one of the conditions are met, we mark it a “hold”.

The current yield is 3.55%.

The 10 year YOC would be 5.28% with no dividend reinvestment and 7.68% with DRIP. The company share price tracks the S&P 500 index long term. If you invested 10,000 dollars in 1995 and held for 23 years, the stock average total return would be 8.99% vs 8.74% of the index.

This make this stock a good source of income but also provide a good source of growth making this a good stock for dividend portfolio accumulation and growth phase. If you are looking for both – dividend yield, dividend growth, and capital appreciation outperforming the index, then this stock is for you.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I long KMB and own shares of this company. It is in our watch list and when it appears as “buy” we may buy more shares of this stock.




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Posted by Martin February 13, 2019
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CVX increased dividend by 6.25%


CVX increased the dividend by 6.25% making this dividend champion‘s 32nd consecutive dividend increase.

The old dividend rate was 4.48 annual dividend payout (1.12 quarterly), the new rate is 4.76 (1.19 quarterly).

Our current fair value of the company is $295.01 a share so at the current price of $118.72 the stock is undervalued but in order for this stock to be marked a “buy” the three conditions must be met for us to buy the stock.

The three conditions are that the stock must be:

1) in a correction mode – fail
2) the current stock price must be below a fair value – pass
3) the 5 year average dividend yield must be lower than the current yield – pass

Since only two of the conditions are met, we mark it a “hold”.

The current yield is 4.01%%.

The 10 year YOC would be 4.88% with no dividend reinvestment and 7.17% with DRIP. The company share price outperforms the S&P 500 index long term. If you invested 10,000 dollars in 1995 and held for 23 years, the stock average total return would be 10.59% vs 8.74% of the index.

This make this stock a good source of income but also provide a great source of growth making this a good stock for dividend portfolio accumulation and growth phase. If you are looking for both – dividend yield, dividend growth, and capital appreciation outperforming the index, then this stock is for you.

Note, that during accumulation phase, I recommend seeking both – the dividend growth and capital appreciation. If you are a retiree and plan on living solely from your dividends then you do not need capital growth and this income stock is a safe investment.

 
Disclosure: Currently, I long CVX and own shares of this company. It is in our watch list and when it appears as “buy” we may buy more shares of this stock.




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