Recent Investment - May 24th
I wanted to let you know that I added to an existing position a few minutes ago. That's the last investment I am doing this month. I have compiled a list of companies, which have managed to grow annualized dividends by 6%/year over the past 1,3,5, and 10 years, which also yielded at least 2.50% as of end of April. I then looked through their earnings profiles, in order to identify a few companies for this month and next months investments. This process involved reviewing trends in earnings per share, in order to determine if dividend growth is on solid fundamental ground. It also involved reviewing the payout ratios, in order to determine if dividends are well covered and evaluate their safety. I decided to add to an existing position today, though I may be adding a new position or two over the next couple of months.
The company I bought is a dividend aristocrat with a 39 year track record of annual dividend increases. It has a ten year annualized dividend growth rate of 7.20%. This was driven by growth in earnings per share as well. The stock seems fairly valued at 19.30 times forward earnings and a dividend yield of 2.55%.
I bought this investment in my retirement account.
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