Wednesday, April 16, 2014

Dividend Increase - Kinder Morgan, Inc. (KMI)



KMI announced today a quarterly dividend increase of from $0.41 to $0.42 per share that's payable May 16, 2014 to holders of record April 30, 2014.  This is up 11% from the same quarter of last year.

This is welcome news to investors as they held their last two quarterly payments the same.  If you follow KMI, you would know that they had a streak of increasing every quarter.  It looks like they may be back on track now.

KMI reported first quarter cash available to pay dividends of $573 million, up 12% from $513 million for the same quarter last year.  KMI is on track to declare dividends of $1.72 for 2014, which would be an 8% increase from the $1.60 declared in 2013.

I don't know about you, but I'll take a 5% yielder that grows dividends at 8% any day!  This would produce a 10% YOC in just 9 years.

Since I own 337.73 shares this will increase my yearly dividends by $13.51.  This is the 15th stock in my portfolio to increase their dividend already this year.

Dividend Increase - CSX



CSX announced yesterday a a dividend increase in the second quarter dividend by 7% from $0.15 to $0.16 per share that's payable June 13, 2014 to holders of record May 28, 2014.

This would mark their 10th consecutive yearly increase which will move them up to Contender status.

Since I own 200 shares this will increase my yearly dividends by $8.00.  This is the 14th stock in my portfolio to increase their dividend already this year.

Friday, April 11, 2014

Solar Electric Bill Update - March



Another month has passed and I've received my third bill of the year since going on solar.   You can find previous monthly electric bill posts on my Solar label.

If you're interested in why I decided to go solar, you can read my previous posts:
Buying a Home Solar System is a Good Investment
I Bought a Solar System
Solar Panel Installation Approved


Here are the numbers for March:

Previous Bill: $-14.01
My total bill: $-21.00
Currently due: $-35.01 (so $0.00 due)

Projected Solar Savings - $141.31
Actual Solar Savings - $124.87
Projected Contribution % - 116.21%
Actual Contribution % - 120.22%

Here's a visual representation of this information:



While my projected savings has been higher than my actual savings (due to a drop of the amount of credit I'm receiving per kWh produced), my actually contribution to my bill is higher than projected.

This was the first month I've broken over the 100% mark.  This means I produced more energy than I used!  You heard me correctly!!  I actually contributed more energy than I used for an entire month.

With a combination of not wasting as much energy and using more energy efficient lighting (LED's), I have been able to drastically lower my bill so far.  I picked up several LED lights from Amazon.com.

My current bill is sitting at -$35.01.  Yes that's a negative, so the city owes me money.  Basically this credit will keep adding up until it gets used up probably sometime in the summer.



Here's a chart of my actual solar usage versus the projections (based off last year's usage).



I plan to continue tracking these stats for an entire year.  Maybe this will help someone that is considering going green.

Thursday, April 10, 2014

New Purchases - Family Dollar (FDO) - 04/08/14



I'm reporting my automatic purchases for this week:


I Bought:

$200 of DE (John Deere)
$200 of FDO (Family Dollar)
$100 of V (Visa)


I used $500 in new capital and added $9.42/year to my dividend income.  This is an average yield of  1.9%.

Note:

I'm trying to look outside of the energy sector since I'm overweight there.  Both DE and V I already own and want to increase my exposure to since they are underweight.

Family Dollar, however, is a new position for me.  In my latest monthly 10-year YOC CCC screening, FDO came up on my list.  Their stock price has dropped recently on earnings concerns.  This drop coupled with a high dividend growth rate, boosted them onto my screen.

FDO is a Dividend Champion, having raised their dividend for 38 straight years!  Their 10-year, 5-year, 3-year and 1-year CAGR's are 13.6, 16.2, 20.1 and 23.8 respectively.  So obviously they have been accelerating their dividend growth recently.  While I don't expect them to keep a 20% dividend increase each year, I do think they can grow it by a significant amount.  Their most recent dividend raise was declared on 03/03 having increased their dividend from 0.26 to 0.31, a 19.2% increase.  Their starting yield is close to 2% but they have a low payout ratio near 30% which gives them plenty of room to grow.

Having lived in Texas my whole life, I see Family Dollar stores everywhere.  I enjoy investing in companies that I can actually relate to.  I also think their stores are clean and well organized for the most part.

The bottom line is that I think FDO may be under weakness for a while but I believe they can be a great hedge against another recession.  If history is any guide, they came out extremely strong from this last Great Recession.

Dan Mac over at Dividend Growth Stock Investing had a timely analysis of Family Dollar that you can find here.  He didn't have exactly the same conclusion but he makes some great points.

There's also some good Seeking Alpha articles here.

Picture:

Just for some fun and to add some color I will be posting pictures of places I've been to.  It's also motivation to reach FI so I can travel and do what I want to when I want to.

This week I was a little lazy and posted a picture of a Family Dollar store.