February has been Awesome!

17 Feb 2018 14:09
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I’m not shy when people ask if I’m in the market as my response is always I’m fully invested. Since my friends, family and co-workers understand how invested I am I was shocked at how many were cautiously avoiding discussing the stock market with me assuming it was a bad time with the recent correction. The few that did ask were shocked when I responded with a huge grin stating “I’m having my best month ever!” With the markets in correction it may seem weird for someone to be smiling like the Cheshire Cat from Alice in Wonderland but if you are a dividend growth investor you probably already know my reasons why.

February has been one of the best months in my investing career. Sitting at the middle of February there have been approximately 110 companies that reported dividend increases and an amazing 61% of those companies increased dividends greater than 9%! Also, January wasn’t too shabby either as 48% of dividend increases also exceeded 9% growth.

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We are not talking just small companies, there were a plethora of big names throwing their increases around like; 3M, AbbVie, Air Products, Allstate, Corning, Clorox, Gilead Science, Hasbro, Hormel Foods, NextEra Energy, Pepsi, T Rowe Price, UPS, Waste Management, and Wendy’s. I do not own all of these but enough to provide a nice boost. And if double digit increases were not enough even some of my high yield stocks got into the game with decent raises from: Brookfield Renewable Partners (BEP)
4.81%, EPR Properties (EPR) 5.88% and Medical Properties Trust (MPW) 4.17%.

All together these raises have increased my annual dividend income by 3.4% in just two months! This increase is not even reflecting any dividend re-investment or new purchases and we still have 10 months left to the year for even more raises! Typically the first and last quarter of every year represent the bulk of my dividend increases and going out on a prediction limb it appears my portfolio is on pace to grow 6 to 7%. Considering I designed my portfolio for 3.8 to 4% annual organic growth this will be a huge beat.

2018 will more than likely go down as one of the best all-around years for organic dividend growth among DG investors. It is years like this that help fan the flames for what has become my passion.

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