General

The Royal Dividends portfolio, what I refer to as the Portfolio for the Ages, is my creation. I have made every transaction as posted here since the inception of the website. I own the portfolio exactly as it appears on the Portfolio page right now.

But it is not all that I own.

I own some fixed income, some exposure to precious metals, and plenty of other dividend stocks. In fact, one can think of the Portfolio for the Ages as the most promising microcosm of this larger collection of stocks. It is a simple, refined, comprehensive, value-based selection of dividend stocks from an Empire of dividend stocks, themselves a dividendery-based distillation from a vast, less impressive universe of equities.

Royal Dividends has zero exposure to the Magnificent Seven and crypto currencies, but that is no longer true for my broader collection of investments.

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The Man Who Killed NvidiaRead More »

The time has come for policy to adjust. The direction of travel is clear, and the timing and pace of rate cuts will depend on incoming data, the evolving outlook, and the balance of risks.

– Chair of the Board of Governors of the Federal Reserve System Jerome Powell, speaking at the Jackson Hole Economic Symposium on Friday, August 23, 2024

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Like a Hot Knife Through ButterRead More »

On 2022-01-04, the equally weighted S&P 500 Index [SPXEW] closed at an all-time high of $6,664.65. It took 918 days, over 2.5 years, to get above that mark. It closed at $6,697.32 on 2024-07-10. The market had finally decided that there is some merit to owning the other 493 companies after all. The market liked how it felt and SPXEW rose again on July 11th and then again on July 12th. The weekend saw a failed assassination attempt on former President Trump and the market seemed to like that, too. SPXEW gapped up on the 15th and followed still higher on the 16th. The index traded slightly down today and closed at $6,932.70. Thus, it took 918 days to move 0.5% and a week to move up another 3.0%.

But that’s SPXEW; I care about Royal Dividends. And guess what? The Portfolio for the Ages turns two years old today. Let’s take a closer look.

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Performance Update [3]Read More »

Remarkably, three Dividend Kings have chosen to cut their dividends this month. And these weren’t just any Kings, but Kings in the Portfolio for the Ages. LEG cut their quarterly dividend 89%, from $0.46 to $0.05. MMM cut their dividend 54% from $1.51 to $0.70. Then on Tuesday, the newly crowned – and to my knowledge, the first ever Dividend King from the Communication Services sector – announced a major sale of assets they own and control, to T-Mobile [TMUS]. This was news we’ve been waiting for since August 2023.

Unfortunately, this highly anticipated press release also announced a 79% reduction to its dividend. Folks, Telephone and Data Systems, Inc. has abdicated the throne!

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Abdication [TDS]Read More »

Royal Dividends started its first position on 2022-07-18. The Portfolio for the Ages finally turned positive on 2023-01-11, showing a return of 0.9%. Since then, the broader market has moved up and the portfolio right along with it.

But today the portfolio’s total return reached a new all-time high. Let’s take a closer look.

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Performance Update [2]Read More »

Two days ago, I was preoccupied with Leggett & Platt’s decision to reduce its dividend 89%, from $0.46 per quarter to a nominal $0.05 per quarter, thereby ending its 52-year streak of annual increases and its reign as a Dividend King. I was distraught and angry. Perhaps more than usual. Then circa 1:00am last night, perusing my own personal echo chamber of news headlines, I learned that ANOTHER Dividend King had announced plans to cut and run. The 2024Q2 dividend won’t be declared until May. It will be subject to board approval, but I’m calling it now.¹

Put a Post-it note on the fridge for all to see: 3M Company will be abdicating the throne!

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Abdication [MMM]Read More »

Just after 5pm EST yesterday, Leggett & Platt [LEG] announced a 2024Q2 dividend of $0.05. That is a $0.41 decrease in the quarterly dividend and the end of a 52-year streak. Is it possible for LEG to change course later this year? No. I am gutted.

Ladies and gentlemen, Leggett & Platt has abdicated the throne!

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Abdication [LEG]Read More »

The S&P 500 Index [SPX] has gone up 16 of the last 18 weeks, an increase of 24.77% over that time. Apparently, the last time the Index finished an 18-week stretch featuring 16 ‘up’ weeks was March 19, 1971, an increase of 21.16%.

SPX is closing at record highs routinely these days.

But is your account value at an all-time high? I know mine isn’t.

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MediocrityRead More »

On September 24, 2022, I wrote: TDS started in 1969 as the collection of ten rural phone companies in Wisconsin. In 5 years, they grew to 39 companies with operations in 17 states. That same year, they started paying a dividend and they have increased it annually until today. In mid-February of 2024, I expect they’ll announce a dividend increase that will be their 50th. At that point, just two annual increases from now, they’ll officially be called a Dividend King.

Here’s the problem. The Communication Services sector in general, and more specifically, the wireless telecommunication services industry, are highly competitive arenas. There is no guarantee that TDS gets to increase #50. After all, no other company from this sector ever has. Worse, TDS isn’t exactly thriving. But I think they’ll get there. More than that, I think they’re worthy of investment and right now seems like a great time.

I was right on all accounts.

All hail current Royal Dividends member, Telephone and Data Systems Inc!

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Coronation! [TDS]Read More »

It’s March 26, 1823, and a group of New York City investors decide that candles just aren’t cutting it at night. They start the New York Gas Light Company and set out to light up some streets in Lower Manhattan. Within a year the company is listed on the New York Stock Exchange. Nearly 60 years pass and a company that has already gone through several changes expands into the delivery of two more sources of energy: steam and electric.

Now, if you think glossing over 60 years is lazy, please read on. Fast forward another 140 years and you can still find this company doing business. Today, it is the result of acquisitions, dissolutions, and mergers of 170+ individual companies operating in the electric, gas, and steam industries. You might say it has consolidated into what we know today.

On January 18, 2024, this now consolidated utility announced the 50th consecutive annual increase to their quarterly dividend. I was not present for this landmark decision, but I’ll bet there was electricity in the air and a certain energy in the room. Folks, another Dividend King has joined the Royal Dividends Empire.

All hail Consolidated Edison Inc!

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Coronation! [ED]Read More »