Showing posts with label MDP. Show all posts
Showing posts with label MDP. Show all posts

Friday, December 2, 2016

Income Investors have done well in 2016

Look at the enormous improvement in the 2015 portfolio in the last few months.

2015 M* Dividend Machine Holdings as of February 19, 2016

2015 M* Dividend Machine Holdings as of December 2, 2016

My picks increased from a negative 8.28% to a positive 11.46%.  SDY improved from a positive .41% to a positive 11.92%  and VIG rose from a positive .59% to a positive 8.03%.

What are we to make of these moves?

The individual stocks selected for inclusion in the 2015 portfolio number 19.   Their individual performance is presented below. 

SDY ,a low cost ETF that I use as a benchmark, holds about 100 stocks.  Clearly, this diversification allowed the fund to weather the difficult first quarter of 2015. 

The problem with 2015 is that we all ended up buying high.  This is always a nerve racking situation. The market does not go up in a straight line and maybe we could have waited and bought at a better price.  Eventually, you have to invest when you have money sometimes you just have to wait for your stocks to break out. 

VIG another low cost ETF that I use as a benchmark made a nice move as well.  Yet, this group of stocks concentrates more on stocks that increase their dividends and therefore, the influence of potential interest rate increases that compete with dividend growth stocks made VIG the poorest performer of the three.

Income investors should take heart in the fact that all three of these portfolios have done very well. 

M* Money Madam

Disclosure Long: CAT, CMI, COP, CVX, EMR, LHO, MDP, MHLD, PAYX, SO

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Sunday, August 14, 2016

Meredith continues to deliver dividends

Meredith Corporation declares $0.495 dividend $MDP
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Friday, October 23, 2015

Another 2015 Dividend Machine - Meredith Publishing MDP

I continue to find a few Dividend Machines for inclusion in the 2015 model portfolio.  My five year project of creating annual model portfolios designed to deliver dividend income north of 3.5% is coming to a close.  I am adding another stock today and that is Meredith Publishing, symbol MDP.

Meredith Publishing Dividend Machine History

2015 will be the fourth year Meredith Publishing qualified as a Dividend Machine.   In 2012, I added the stock at $29.41.   Their dividend at that time was $1.43.   MDP again qualified as a Dividend Machine in 2013.  That year the stock price shot up to $41.09 and the dividend increased to $1.63.  At least between those two years, this stock was a winner.

In 2014 MDP's stock price increased another 10% to $44.53 and the dividend increased to $1.73. Today MDP trades at $44.82.  The dividend is $1.83 for a yield of 4.11%.    While the stock price has been stagnant during the past year, the dividend continues to increase.  Moreover, a yield of over four percent is hard to find in an industry other than energy.

2012 Dividend Machine MDP.
2013 Dividend Machine MDP.
2014 Dividend Machine MDP.

Meredith Publishing Dividend Machine Fundamentals

Meredith may appear to be in a declining industry.  They service journalism and have for 110 years.  Fewer and fewer newspapers and magazines are circulated every year but MDP has adapted using multiple platforms for distribution.

Earnings per share (EPS) during the past four quarters were $3.02.  Dividends paid out during that same time frame were $1.83.   Their  most recent dividend was $.4575 and I would expect their next ex-dividend date to be around the end of November.  

MDP has paid dividends every year for 67 years and has increased the dividend every year for 21 years.   Dividend growth rate has averaged 19.78% over the past five years.  Look at their corporate website and read about their commitment to deliver solid, ever increasing dividends.   Meredith Publishing Investor Website.

D/E (debt to equity) ratio is .8352 which is well within the range we look for.

Meredith Publishing is good fit for investors who want above average yield with growing dividends.  Consider MDP for the income producing portion of your portfolio.


Disclosure:  Long MDP
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