It turns out I did not have to wait long for the last dividend increase of 2013 to be announced:
Becton, Dickinson and Company (BDX) is increasing its quarterly dividend by 10.1%, from $0.495 to $0.545 per share, putting the company on track for its 42nd consecutive fiscal year of dividend growth (news release). Given that I own 25 shares of BDX, my quarterly dividend increases from $12.38 to $13.63 and my yield on cost becomes 3.06%. The extra $5.00 in annual dividend income raises my forward 12-month dividend total to $3,503.
In summary, 32 of the 33 stocks in my portfolio had dividend increases that took effect in 2013, with the lone holdout being INTC. The mean and median dividend increases were 11.7% and 10.1%, respectively, with a total of 18 double-digit percent increases. For comparison with last year, 24 of the 25 stocks in my portfolio (at the time) had dividend increases that took effect in 2012, with mean and median increases of 10.4% and 8.5%, with a total of 12 double-digit percent increases. Overall, I think this shows that my portfolio continues to maintain a strong rate of organic dividend growth.
Hi DGM,
ReplyDeleteNice to see those, i am looking forward for your details year end analysis on the portfolio, always nice to read those. Was expecting T to announce the div increase my be by one or two cents by end of this year or likely in Jan 2014.
Div: Thanks! I look forward to preparing my annual review for you and others to read. As for T, I think we might hear about a dividend increase sometime in December. I'm predicting the quarterly dividend increase will be just one cent, but maybe they'll surprise me with an extra cent!
DeleteIS there any value in looking at the weighted average? versus mean and median, although i would expect the value should be close due to about equal weights in the holdings and yield across, just would be interesting to see if it makes any difference overall portfolio returns by holding high yield. thanks as always
ReplyDeleteAnonymous: I have looked at the weighted average for dividend growth in the past, but not recently. I am not sure how different it will be from the unweighted average, though it could be an interesting comparison. I am in the process of updating some aspects of my portfolio spreadsheets, so I can add a calculation for that.
DeleteBDX is a great company and one that I'd really like to get my hands on. Would love to see it get back to a ~2.4% yield but that could be a while. Looks like you're getting solid dividend increases out of your portfolio.
ReplyDeletePIP: Yes, I was fortunate to buy BDX a while back at a pretty good price, resulting in a total return over 50%. It's nice that my YOC is now over 3%. I think it nicely complements the other healthcare stocks in my portfolio.
DeleteBDX has a very good dividend growth. But the current dividend yield is very low. Therefore, this comany is not on my buy list. The shares has yet to fall in price, then the company is interesting for me.
ReplyDeleteRegards
D-S
D-S: I would also have to see a better valuation before increasing my position; in the meantime, I'm content to continue holding my shares of this solid company.
DeleteI'd love to get my hands on some BDX but would prefer a slightly lower price at the moment. I really wish I would have bought awhile back. Hard telling the next time this company will be offering a valuation I'd like to purchase at since it is such a good company. One of these days I'll probably bite the bullet and add to my portfolio just to own some!
ReplyDeleteDan Mac: I also wish BDX was trading at a better valuation so that I could add to my position. Hopefully at some point in the near future we'll get a good price for buying shares.
DeleteGreat blog you haave here
ReplyDelete