Saturday, 16 August 2014

Dividend Increases and New Purchases

A few things happened while I was on vacation.

Two companies increased their dividend

On August 5th, Saputo increased its dividend 13%, from $0.23 to $0.26 per quarter.
When I bought shares in 2009, my initial dividend yield was 2.86%; the stock currently yields 1.56%. Many dividend increases later, my YOC is 5.31%.

On August 6th, Walgreens increased its dividend 7.1%, from $0.315 to $0.3375 per quarter. When I bought shares in 2010 & 2012, my initial dividend yields were 2.41% and 3.64%, respectively; the stock currently yields 2.19%. A few dividend increases later, my YOC are 4.66% and 4.47%, respectively.

These increases add $57.60 to my forward 12-month dividends. The strategy is working!

and I made two new purchases.

July 30: 100 shares of Tesco (TSCDY) @ $13.44 (+ $9.95 commission), for a dividend yield of 4.87%.

July 30: 15 shares of Occidental Petroleum (OXY) @ $98.17 (+ $9.95 commission), for a dividend yield of 2.91%.

These purchases add $109.20 to my forward 12-month dividends.

My yearly dividends stand at $6,569.29.


  1. You bet this strategy works. That's why I love it. It's also nice to see that although the current yield is small (only 2.5% or so), your real income on invested cash (YOC) is a lot bigger (some 5%), but that's what's not visible to people and therefore they misunderstand the dividend strategy. They don't see that a few years later they will be receiving bigger payouts than what is currently shown in Yahoo Finance. Once you realize that, you have found a Holly Grail of income generating strategy.

    1. My simple mind likes simpe things. That's why dividend growth jives so well with me. SAP and WAG are stocks I plan on holding for a very, very long time. Imagine the YOC in 20 plus years. If these companies keep thriving, it's going to be European vacations, year after year. Amarones and Brunellos à volontés...

  2. Tesco is a high yielding retailer from the UK. I also own shares of Tesco but I'm not sure if the dividend is safe. Do you think they will cut them?

    1. I have no idea if the dividend will hold, but I do know that shares are dirt cheap. I've held TSCDY before and made a healthy profit (bought @ $14.90, sold @ $16.90 + dividend). I couldn't resist getting back in at current prices.