November 2017 Dividend Growth Portfolio Update

by Evan

While this account is tiny compared to my assets in general, it is absolutely my favorite part of my financial empire hut, and that is the reason I share my active moves within it.  I truly believe that one day, this account will be able to provide my family with a viable stream of income that can keep up with inflation as I get older.

My November Dividend Champion/Contender Purchase

The following information was written in real time when I made the purchase.

After creating my November dividend watch list I ended up with the following Companies:

NameSymbolMarket Cap (mil)P/EShiller PEOp. MarginIndustry Op. MarginYieldPayout Ratio
AFLAC Inc.AFL$33,476,690,913.0012.2214.9818.798.162.0425%
Community Trust Banc.CTBI$857,212,879.0016.9919.2137.1532.072.7647%
Farmers & Merchants BancorpFMCB$540,182,160.0016.9519.8540.3532.072.0234%
Genuine Parts Co.GPC$12,570,640,662.0019.2920.816.423.623.160%
International Business MachinesIBM$140,609,239,107.0012.6911.6315.534.783.8948%
Southside BancsharesSBSI$1,031,642,014.0018.1719.0638.5732.073.1154%
Target Corp.TGT$31,200,763,203.0012.0715.676.462.884.2449%
United TechnologiesUTX$93,656,281,940.0018.0218.3314.214.872.3341%

Some months I want to open a new position and in others I feel like just adding to a current position, and with that in mind I have positions in:

  • AFL
  • CTBI
  • TGT
  • UTX

I just bought UTX last month, so I am not particularly compelled to keep adding to the position.  Maybe, if the P/E were a little lower I would pile in month after month.  As far as Target,  I already have a sizeable position compared to my account value through Puts I was assigned (that have added to my income below selling covered calls), so really I am down to comparing AFL and CTBI.

Interestingly, their 5 year charts look pretty close:

On 11/22 I decided by 6 shares of Aflac at 86.19/share (with fees).  I went with Aflac over CTBI, since the metrics that I care about P/E, PE10, etc were a little bit better than CTBI at the current time.

My Dividend Growth Portfolio Income – November 2017

The income from this account is made up of two parts that should be tracked.  The first is naturally the dividends earned from this account.  While I have years of records buried through this blog, I decided to start from scratch this last reboot.  The second source of income that should be monitored is the cleared income from selling (and the subsequent buying) of naked puts.  As time goes on I’ll start to graph the income, but with only a few months under my belt, it seems silly to create a graph with nothing to compare.

Lastly, I think it is important to reduce the total of those two numbers with the margin interest I paid.  Hopefully, that number will be reduced over time to a nominal amount, but at the current time I am holding some stocks that were put to me driving that number up.

Dividend IncomeCleared Options IncomeMargin Interest PaidNet Income

One of my goals next year is to clean up this reporting.  I don’t particularly like the way I am currently reporting it.  This may change the numbers a bit but I’ll retroactively change the posts if need be.  I think there should be more separation, explanation and transparency of everything.  This may help me in the future figure out what works and what doesn’t work.

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