Home Investments My Dividend Growth Portfolio February 2017 Update

My Dividend Growth Portfolio February 2017 Update

by My Journey to Millions

When writing last month’s dividend growth portfolio investment update I wrote, “I have been dreading writing this post since I already know I screwed up in December.”  I ignored my self imposed rules, and have still be paying for it.  Nothing I can do except, learn and grow.

My January 2017 Investment Activity

My Undervalued Dividend Growth Stock Purchases

January, like most months, I made my normal $500 purchase.  Since I had a loss in December when it came to my options income, there was no extra.

  • On 1/17/2017 I bought 26 Shares of Old Republic International Corporation (ORI)

According to Google Finance, ORI,

is engaged in business of insurance underwriting and related services. The Company conducts its operations through various regulated insurance company subsidiaries, which are organized into three segments: General Insurance Group, Title Insurance Group and the Republic Financial Indemnity Group (RFIG) Run-off Business. The Company’s General Insurance segment consists of property and liability insurance, and offers coverages to businesses, government and other institutions. The Company’s Title Insurance Group’s business consists of the issuance of policies to real estate purchasers and investors based upon searches of the public records, which contain information concerning interests in real property. The Company’s RFIG run-off business consists of its mortgage guaranty and consumer credit indemnity (CCI) operations.

At the time of purchase:

  • ORI’s PE was 12.7 vs 19.1 industry average
  • ORI’s Margin 10.9 vs 11.3
  • ORI’s Book Value was 1.1 vs 1.2
  • ORI’s Yield was 3.91%
  • ORI’s Payout Ratio was 50.20%
  • Lastly, it had a Market Cap of 5bil

This added to the 35 shares I already owned for a total of 61 shares.

My Investment Income

  • I received $14.70 in dividend income (automatically reinvested)

I have decided to alter how I share my options income a little bit.  Since screwing up royally last month, I have learned how to roll a negative put assigned (and then learned yet another lesson about closing that rolled put) and as such it seems useless at this point to provide monthly snapshots.  Instead I think providing quarterly updates makes much more sense (I will start with Q1 2017 in April for Jan to March).

My Current Holdings & Ratios

Company Ticker Shares Price Value Cost Basis Current Dividend Payout Current Expected Annual Income Yield on Cost
Aflac AFL 25.063 $69.98 $1,753.91 $70.42 $1.72 $43.11 2.44%
CATERPILLAR INC CAT 22.385 $96.31 $2,155.90 $84.39 $3.08 $68.95 3.65%
Community Trust Bankcorp CTBI 32.132 $46.10 $1,481.29 $39.24 $1.28 $41.13 3.26%
Emerson Electric EMR 26.461 $63.26 $1,673.92 $51.55 $1.92 $50.81 3.72%
CULLEN FROST BANKERS INC CFR 10.141 $90.22 $914.92 $69.01 $2.16 $21.90 3.13%
Franklin Resources BEN 22.226 $40.88 $908.60 $34.56 $0.80 $17.78 2.31%
Old Republic ORI 61.351 $20.77 $1,274.26 $18.54 $0.76 $46.63 4.10%
SONOCO PRODS CO SON 22.31 $52.70 $1,175.74 $51.33 $1.48 $33.02 2.88%
PRICE T ROWE GROUP TROW 35.496 $69.40 $2,463.42 $69.58 $2.16 $76.67 3.10%
TARGET CORP TGT 28.461 $65.73 $1,870.74 $72.57 $2.40 $68.31 3.31%
UNITED TECHNOLOGIES CORP UTX 20.249 $111.05 $2,248.65 $102.58 $2.64 $53.46 2.57%
306.275 $17,921.35 $521.75

The value of the account month over month is not all that important to me.  I am really interested in two numbers, the amount of shares and the expected annual income.  Both those numbers should increase month over month, otherwise something is wrong.  I went from 280 to 306 shares this month and an expected income of $501 to $521.  Everything checks out.

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DivHut 02/13/2017 - 1:09 pm

Thanks for sharing your recent update with us. I missed on ORI a few months back when it dipped to around $16. I have had that name on my watch list for a long time and that was the time to add a little to the portfolio. Oh well. Nice to see you reinvested your dividend income for the month. I set all my holdings to automatically reinvest. I’m still reading and watching others options experiences. I;m still not comfortable jumping on that train yet. Great update and some lessons learned too.

Evan 02/15/2017 - 1:22 pm

I just did my screen for February 2017 (it is going live in the morning) and in spite of the recent run up ORI is still showing up!

Amber tree 02/13/2017 - 2:59 pm

Great update/ Progress is progress.

For options, I stick to monthly reporting of realized Profit or loss in that month

Evan 02/15/2017 - 1:23 pm

I think I am mainly discouraged at sharing monthly because of the few rolls I had to do – so it shows it as a HUGE loss, where the profit (is hopefully) realized months and months later. I think a quarterly share my flatten/normalize the results….ORRRRRRR I am just lying to myself to feel better lol

Data lore 02/20/2017 - 4:20 am

The last point you made I think is key. Focus on the number of shares and the expected annual income. That’s what I try to do. Over the long term, and all else being equal, the higher the number of shares, the higher the expected annual income.

I have always been fascinated by options. I think I’m going to start with the covered call strategy, but we’ll see. Great blog Evan.

Evan 02/27/2017 - 8:57 am

Covered calls are fantastic for income generation, but remember if you are doing it on a stock that you are long on – the strike has to be something you aren’t pissed about when or if the stock gets called away.


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