For the past few years, I have searched out possibly undervalued companies that have increased their dividend for 20 or more years. My interest in the account has waxed and waned over the years, however, I think I would like to get refocused on building this asset and future income stream. Despite it not being a focus in my life for 9 to 12 months it is easily my favorite asset, because of how a little hard can reverberate for decades eventually providing a stream of passive income!
In doing so, I think the first step would be to take a look at the account and make sure that I want to keep all the open positions based solely on their dividend history. The positions shared are not the only investments in the account. I often will buy other companies, or trade options inside the same account. I know I won’t keep up sharing all those trades/investments so I am just going to focus on the dividend growth part. I think it is a cleaner way of sharing and one of my major financial goals is to create a dividend income stream.
My Current Dividend Growth Holdings
I haven’t done a deep dive in the account in some time, so I was shocked to find my very first holding (alphabetically) cut their dividend sometime recently, and as such destroyed their record:
|Company||Stock Symbol||QTY||Current Price||Value||Dividend Streak|
|ACME UNITED CORP COM||ACU||25||$28.08||$702.00||>1|
|AFLAC INC COM||AFL||108.988||$41.49||$4,521.91||38|
|ARROW FINANCIAL CORP COM||AROW||21.177||$28.45||$602.49||28|
|FRANKLIN RESOURCES INC COM||BEN||27.452||$20.42||$560.57||40|
|CARDINAL HEALTH INC COM||CAH||9.309||$55.41||$515.81||24|
|CARRIER GLOBAL CORPORATION COM||CARR||27.176||$38.80||$1,054.43|
|CHUBB LIMITED COM||CB||6.374||$146.98||$936.85||27|
|CH ROBINSON WORLDWIDE INC COM||CHRW||14.366||$93.92||$1,349.25||22|
|CARLISLE COS INC COM||CSL||8.228||$142.97||$1,176.36||44|
|COMMUNITY TRUST BANCORP INC COM||CTBI||66.456||$33.86||$2,250.20||40|
|EMERSON ELECTRIC CO COM||EMR||29.605||$76.29||$2,258.57||63|
|EATON VANCE CORP COM||EV||22.855||$64.31||$1,469.81||39|
|MCGRATH RENTCORP COM||MGRC||15.871||$62.01||$984.16||28|
|OLD REPUBLIC INTL CORP COM||ORI||127.677||$18.00||$2,298.19||39|
|OTIS WORLDWIDE CORP COM||OTIS||13.089||$63.50||$831.15|
|PARKER-HANNIFIN CORP COM||PH||5.12||$252.79||$1,294.28||63|
|PPL CORP COM||PPL||21.537||$28.75||$619.19||19|
|RAYTHEON TECH CORP COM||RTX||27.502||$64.99||$1,787.35||26|
|SMUCKER (JM) CO COM||SJM||5.407||$113.26||$612.40||23|
|SONOCO PRODUCTS CO COM||SON||24.988||$54.82||$1,369.84||37|
|AT&T INC COM||T||17.878||$28.30||$505.95||36|
|WEYCO GROUP COM||WEYS||17.667||$17.60||$310.94||38|
Three companies need some attention:
- ACU – Removed from CCC list on 9/20/2020. I’ll be selling the position.
- OTIS & – Carrier – These companies were spun off of a merger between RTX and UTX (United Technologies Corp). The CCC list doesn’t include these two companies, but dividend.com has applied the RTX/UTX history. For now I am going to follow the lead of Dividend Growth Investor on the topic and keep the spun off companies but not add for the time being.
Future of my Dividend Growth Investment Account
Buying Undervalued Dividend Growth Stocks
Starting in December of 2020 I am going to get back into screening for long term purchases of hopefully undervalued dividend growth stocks. This month I will highlight the metrics I will be using going forward. in the past I have used various metrics such as price to earnings, book value, payout ratio and operating margin.
Selling Positions of my Dividend Growth Stocks
I have had some very bad experiences selling positions within this account over the years. Almost every single position I sold, I wish I had back years later. As such, my plan going forward is going to be a once a quarter quick review to makes sure none of my holdings cut their dividend, and then twice a year (Jan and July) doing a deeper dive into some of the metrics that I’ll highlight for purchases.