Thursday, 19 May 2016

Dividend growth at work - JP Morgan

In case you missed it, on May 17, JP Morgan increased its quarterly dividend to $0.48 from $0.44, or 9.1%.

I purchased shares of JPM during the London Whale incident in 2012. My initial purchase in May was for 100 shares @$36.65. I then bought 100 more in June @$32.05. My average dividend yield at the time was $1.20 / $34.35 = 3.49%.

Since this time, the yearly dividend has been bumped up from $1.20, to $1.52, to $1.60, to $1.76, and lately to $1.92.

In 4 years, my dividends have risen from $240 to $384, which gives me a YOC of 5.59%. I wish all my investments were as successful!

On another note, I sold my 200 shares of Baxalta this week. If I did the math right, my cost basis was $6,388.00 and I sold them for $8,683.86. The dividend was pretty shitty but the capital gain of 35% was fantastic.

2 comments:

  1. Congratulations on your investment -- JPM certainly has served you well. YoC of 5.59% is fantastic.

    Cheers
    FerdiS, DivGro

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    Replies
    1. Thanks Fredi. I can see lots of dividend growth to come as well. This is one of my "forever stocks" and look forward to a great YOC in 10 and 20 years.

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