Tuesday, July 3, 2012

Monthly Review: June 2012

Here is a review of what happened in June:

Dividends: I received a total of $131.60 in dividends from the following stocks:
  • ADM: $10.50
  • BDX: $11.25
  • CVX: $18.00
  • JNJ: $21.35
  • MCD: $35.00
  • NSC: $23.50
  • UTX: $12.00
This was my second highest monthly total for dividends thus far this year. I now have a year-to-date total of $700.40, which puts me 53.9% of the way toward my goal of receiving $1,300 in dividends for 2012. It is nice to be slightly over the 50% mark halfway through the year.

Dividend Increases: I was pleased to see dividend increases announced for three of my stocks (click on each stock to see my post about the increase):
  • GIS: 8.2% increase, $7.00 more in annual dividend income
  • MDT: 7.2%, $3.84
  • UTX: 11.5%, $5.48
These are all good-sized increases, so I am quite pleased. Thus far this year, there have been dividend increases for 16 of the 22 dividend growth stocks in my portfolio.

Savings: This month I saved $916 (31.4%) of my net income, which is my lowest monthly total thus far this year. I mentioned in previous posts that I anticipated my savings rate would take a hit in June due to some large annual expenses and travel costs (I went on a road trip to visit some friends at the start of the month). This results in year-to-date savings of $8,306, which puts me 69.2% of the way toward my goal of $12,000 in savings for 2012. Thus, in spite of lower savings in May and June, I remain on track to meet my goal.

Transactions: This was the first month of 2012 in which I did not buy any stocks. (I did not sell any stocks for the sixth consecutive month.) There are two main reasons why I stayed on the sidelines. First, I anticipated my low savings for June, so I wanted to conserve my limited cash. Second, even though I did have sufficient cash on hand to make one purchase, I could not make up my mind as to what to buy. I decided it might be best to exercise some patience and wait until I had a stronger sense of what I wanted.

Portfolio: My portfolio currently consists of 22 stocks and has a market value of $54,207.63 (including cash), which is a 4.5% increase compared with last month's value of $51,861.12. About half of the increase came from capital gains and the other half came from dividends and new capital.

Seeking Alpha: I did not publish any new articles on the investing website Seeking Alpha in June. However, I did earn $6.59 from additional page views of my previous articles, raising my Q2 total (to be paid in July) to $343.94.

Looking Ahead: July will be a good month for dividends, although I am not expecting any dividend increases to be announced for my stocks. I anticipate a substantial rebound in my savings rate, which will be nice after two below-average months. Given that I did not buy any stocks in June, I will have enough cash to make two purchases in July. However, I may wait until the second half of the month to see whether any good buying opportunities arise when companies report earnings.

8 comments:

  1. Congrats on a great month. It's nice to see your progression of dividends. I'll be watching to see what you decide to buy. The market has moved up about 1,000 points since the correction a month ago and I feel like I missed some good opportunities. If I had to make a purchase now I would probably add more BDX or TWGP to my portfolio. Anything in particular you are watching?

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    1. Hi austinbroker,

      Thanks for your comment. I also felt like I missed some opportunities at the start of June, but I was out of town with limited internet access, so there wasn't much I could do about it. (Although I suppose I could have set a limit order in advance.) Once I got back, the market had already started to rally.

      I have about 20 stocks on my watch list, but none are within 5% of my target prices at the moment and no company in particular has strongly drawn my attention. My plan for now is to just wait and see what happens with earnings reports later this month. I've read that there are expectations for weak results in general, so that might create some market volatility and good buying opportunities.

      Cheers,

      Deedubs

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  2. Deedubs,

    Great to see you making solid progress. Awesome month for dividends!

    I received my highest dividend total ever in June...hitting just above $300. The DGI strategy is proving to be quite fruitful.

    It's great to hear that you're also having fun. It's awesome to have goals and save for the future...but also important to live in the moment. Tomorrow is not promised.

    Best wishes for your July!

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    Replies
    1. Hi Dividend Mantra,

      Thanks! Congratulations on reaching the $300 mark -- that's an impressive accomplishment. I think milestones like that are great for measuring the progress of a DGI approach. My next monthly dividend milestone is $200, which I will probably reach in early 2013.

      I agree that it's good to have fun once in a while. I will likely be traveling again to see the same friends (plus another who is coming from out of the country) at the beginning of August. I always have a good time with them. Aside from that, I have no other travel plans this summer.

      Cheers,

      Deedubs

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  3. Great results, Deedubs!

    I had set some limit orders, but too aggressively to take advantage of the pullback. Hopefully we see some new buying opportunities this summer, but I'm really not anticipating any significant movement until the U.S. elections are played out.

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    1. Hi Dividend Maven,

      Thanks! I also hope some good buying opportunities come up over the next month or two. It will be interesting to see what happens with all the earnings reports later in July.

      Cheers,

      Deedubs

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  4. It's okay to have a down month once in a while, it's going to happen. Saving $900 in a month is still pretty awesome, not many people do it.

    Currently looking at GPC which I see you own. If it falls to around 56-57 I will consider a purchase. We'll see what happens later this month with earnings reports.

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    1. Hi Compounding Income,

      Thanks for your comment. I agree that saving $900 in a month is a lot better than what most people do, so I don't feel too bad about it. Moreover, as I mentioned in my post, I expect my savings rate to rebound in July.

      GPC is a solid company and I am happy to own it. I think a price of around $56 would be a good entry point.

      Cheers,

      Deedubs

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