I hate to change things so often, but yesterday I received notification that South Jersey Industries (SJI) is no longer offering a discount on dividend reinvestment. With that, SJI has lost all its luster, so I deleted it from my plan. Further, I added HCN to my plan at $150/month. HCN offers a generous 5% discount on optional cash investment and 2% on dividend reinvestment. Compare this to only 1% discount offered by NNN for dividend reinvestment only. Hence, my revised plan is as below:
| Ticker | Rating | DGI | Discount? | Shiller P/E | Yield | Monthly Invest | Sector | Sector Total | Sector Percent |
| NVS | A1 | D | N | 15.88 | 3.59% | $200.00 | Healthcare |
$400.00
|
11.43%
|
| SNY | A2 | D | N | 19.43 | 4.42% | $100.00 | Healthcare | ||
| BDX | B+2 | A | N | 31.47 | 1.59% | $100.00 | Healthcare | ||
| KO | A+1 | A | N | 25.15 | 3.13% | $200.00 | Staples |
$700.00
|
20.00%
|
| WMT | A1 | A | N | 15.90 | 2.82% | $200.00 | Staples | ||
| BUD | A+2 | C | N | 24.61 | 3.28% | $100.00 | Staples | ||
| PEP | A1 | A | N | 25.61 | 2.93% | $100.00 | Staples | ||
| UL | A1 | D | N | 22.36 | 3.31% | $100.00 | Staples | ||
| XOM | B+1 | A | N | 12.06 | 3.36% | $200.00 | Energy | $200.00 | 5.71% |
| BRK.B | A+2 | D | N | 22.52 | 0.00% | $200.00 | Financial |
$650.00
|
18.57%
|
| AFL | B3 | A | N | 13.49 | 2.43% | $200.00 | Financial | ||
| HCN | B2 | B | Y | 48.21 | 4.72% | $150.00 | Financial | ||
| NNN | D | A | Y | 31.25 | 3.65% | $100.00 | Financial | ||
| INTC | A2 | D | N | 17.26 | 3.32% | $100.00 | Tech |
$300.00
|
8.57%
|
| MSFT | A2 | B | N | 22.92 | 2.90% | $100.00 | Tech | ||
| MOCO | D | D | N | 22.36 | 3.08% | $100.00 | Tech | ||
| EMR | A2 | A | N | 16.80 | 3.71% | $200.00 | Industrial |
$500.00
|
14.29%
|
| NSC | A2 | B | N | 16.53 | 2.85% | $150.00 | Industrial | ||
| VMI | D | B | N | 21.29 | 1.14% | $150.00 | Industrial | ||
| EXC | B2 | D | N | 10.66 | 3.72% | $100.00 | Utility |
$200.00
|
5.71%
|
| YORW | D | B | Y | 39.34 | 2.06% | $100.00 | Utility | ||
| VFC | A+2 | A | N | 30.74 | 2.40% | $150.00 | Discretionary |
$450.00
|
12.86%
|
| NKE | A+2 | B | N | 41.45 | 1.21% | $150.00 | Discretionary | ||
| MCD | A2 | A | N | 26.19 | 2.93% | $150.00 | Discretionary | ||
| SON | C2 | A | N | 22.12 | 3.16% | $100.00 | Material | $100.00 | 2.86% |
| Total | 21.67 | 2.81% | $3,500.00 | $3,500.00 | 100.00% | ||||
| Rating | $ | % | DGI | $ | % | ||||
| A | $2,200 | 63% | A | $1,700 | 49% | ||||
| B | $750 | 21% | B | $800 | 23% | ||||
| C | $100 | 3% | C | $100 | 3% | ||||
| D | $450 | 13% | D | $900 | 26% | ||||
| Total | $3,500 | 100% | $3,500 | 100% | |||||
| Rating is based on Morningstar as follows: | |||||||||
| A=Wide Moat; B=Narrow Moat; C=No Moat; D=Not rated by Morningstar | |||||||||
| +=Exemplary; [blank]=Standard; -=Poor stewardship | |||||||||
| 1=Low; 2=Medium; 3=High; 4=Very High uncertainty | |||||||||
| DGI (Dividend Growth investing) as follows: | |||||||||
| A=25+ years of higher dividends; | |||||||||
| B=10-24 years of higher dividends; | |||||||||
| C=5-9 years of higher dividends; | |||||||||
| D= less than 5 years of higher dividends. |
Overall investment level remains at $3,500/month. Rating also improved somewhat, as D-rated SJI is replaced by B-rated HCN. No change is made to DGI since both stocks are dividend contenders (B). This change, however, increased both Shiller P/E and dividend yield. The increase is mild, however. The discount is a much more important consideration.
No comments:
Post a Comment