I invest in stocks and options. I manage DivGro, a portfolio of dividend growth stocks created in January 2013. The primary goal of DivGro is to generate a reliable and growing dividend income stream. I sell options to boost my income stream, both covered calls and secured puts. My blog hosts a ...
moreI invest in stocks and options. I manage DivGro, a portfolio of dividend growth stocks created in January 2013. The primary goal of DivGro is to generate a reliable and growing dividend income stream. I sell options to boost my income stream, both covered calls and secured puts. My blog hosts a live and public spreadsheet with full details of DivGro so that readers can follow my investment journey. I write articles about dividend growth investing, options trading, investment decisions, stock selection, portfolio management, and passive income generation. I generate active income as an effects artist at a well-known animation studio in the Bay Area.
less
Latest Comments
Automatic Data Processing Dividend Increase
Mad About Money -- I inadvertently removed your comment -- so sorry about that. Here is your original comment and my reply:
"You note that your yield on cost is 4.60% based on your original purchase price — how do you think recent share-price appreciation (to roughly $255.22) affects the attractiveness of Automatic Data Processing (ADP) going forward? In other words — given the lower forward yield (~ 2.66 %), do you expect future dividend growth to compensate, and what dividend-growth rate would make ADP still compelling at today’s price?"
Yes, I think ADP is still a compelling buy. At today's price, the stock is modestly undervalued (by about 12%). Since I haven't updated my own database in a while, I'll quote GuruFocus dividend data:
Forward yield: 2.64%
5-Year DGR: 12.2%
5-Year YOC: 4.27%
Dividend Payout Ratio: 0.61
My ADP investment delivered a YOC of 4.6% over 5.75 years. Using GuruFocus' data, investing now could deliver 4.9% over the next 5.75 years.
(4.27*5.75/5 = 4.91)
McDonald's Dividend Increase
Starbucks Dividend Increase
Why Invest In Low Dividend Yield Stocks?
I'm certainly restoring the balance between HiG and HiY stocks in my portfolio. Of course, I also own stocks that offer both yield and growth, like ABBV.
Covid-19 Dividend Cuts
Agreed. Add to that many "shared experience industries" -- restaurants, theaters, shows, theme parks, concerts, festivals, conferences, etc. etc. Any "comeback" will be muted by reduced attendance (enforced or by choice).
Covid-19 Dividend Cuts
You're welcome! Thanks for commenting!