General

This past weekend, using the Sure Analysis Research Database from Sure Dividend, I ranked stocks in preparation for my weekly investment of $250. I noticed that my universe from which I invest, the Empire, now numbered 71, one more than last week. After matching one list of tickers against another, I found a company with a 50-year streak of annual dividend increases, that had made it through my filters but had not yet appeared on Sure Dividend’s official list of Dividend Kings. I contacted Sure Dividend about the inconsistency and their founder and CEO Ben Reynolds, responded promptly. He agreed that this company should be added to the Dividend King list.

I wish this new Dividend King hailed from the Technology or Telecommunications sector, but it is a utility. Nevertheless, it is always a pleasure to see another company make this exclusive list.

All hail Middlesex Water Company!

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Coronation! [MSEX]Read More »

Earnings season is underway in earnest. PPG will be the first in the portfolio to announce tomorrow. Then over the next three weeks, the remaining ten holdings follow suit. I truly don’t expect any material surprises in either direction. However, I do expect some positive price movement as more than a few of the holdings are in oversold territory. The bear market has been indiscriminate in its selloff. But earnings season is a time when strong companies pick up their tits and walk, and the wheat gets separated from the chaff, mixaphorically speaking.

This is just a quick follow up to my last post wherein I provided some insight into what we could expect from today’s CPI report. My rather simple regression-derived estimate for the month over month change was spot on. My estimate for the annual change was high.

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CPI: What HappenedRead More »

Today, the U.S. Bureau of Labor Statistics released its latest report on the Producer Price Index (PPI). In about 9 hours, they will release its latest Consumer Price Index (CPI) report. The PPI report came in slightly worse than expected, and the market responded accordingly with a 0.32% drop. The market is hoping for a good CPI report because that would be an indication that the Fed’s rate increase and monetary tightening policy to address rampant inflation is working. In fact, the market really wants a stellar report. That would be cause for the Fed to reconsider its aggressive policy and avert a deep recession.

I believe the market is going to be disappointed.

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CPI: Here’s What to ExpectRead More »

At 4:10 pm, on October 10, 2022, Legget & Platt Inc [LEG] issued a press release announcing a reduction in their estimate of earnings for 2022 and some business acquisitions. I only noticed this after-market news release because there was an inconsistency between my spreadsheet, that uses the day’s closing price, and a certain exhibit of TD Ameritrade’s website that displays where prices have landed after all post-close trading is complete.

In just 10 minutes, LEG’s share price fell from the day’s close of $34.68 to $31.10, or -10.3%.

We’re in a bear market and an economic recession. The market has lost a quarter of the value it has built up in over a century in just three quarters of a year. But 10% in 10 minutes for a single company? I was intrigued.

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Mr. Market is RashRead More »

Unless my acquisition price is markedly different than the previous trading day’s close, I will not be providing purchase confirmations for market orders going forward. The portfolio and performance pages have been updated. The average cost of MMM has been changed on the performance page. Previously the portfolio had eight shares from one purchase at a price of $124.75 per share. Today, I purchased three more shares at $111.69 per share. My average cost now reads $121.19. The calculation is simple.

Averaging down is a form of dollar cost averaging. Sometimes averaging down gets a bad rap. Royal Dividends will be employing this approach frequently and doing it for the right reasons, in a way that makes sense. Look for a more detailed post on this topic in the near future.

There are eleven stocks in the Royal Dividends portfolio, what I call the Portfolio for the Ages. Let’s look at the portfolio and note some of the characteristics it possesses:

• The dividend yield is at a very significant level of 4.2%, well above that of the S&P 500 at 1.77%.
• There is exposure to every sector.
• Each position is nearly equally weighted.
• The portfolio beta of 0.88 is less than that of the S&P 500.
• Nine of the eleven stocks are Dividend Kings.
• The dollar-weighted average dividend increase streak of the portfolio is 49.98 years.

So, what’s next?

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Going ForwardRead More »

Too many years ago, my friends and I had tickets to see a triple bill of Cheap Trick, REO Speedwagon, and Foghat at the New York State Fair. The real interest for me and another one of my friends was Foghat, a band that could effortlessly combine blues and sleazy rock ‘n’ roll. We got to our seats and then immediately learned that Foghat would not be performing that night. I cannot remember why or whether a reason was even given, but our mood tanked immediately.

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A Consummate PerformerRead More »

I’m going to take advantage of the Labor Day Sale prices that materialized on Friday. Check this space later this weekend to find out which company it will be. I can tell you one thing, there is a 50% chance Tuesday morning’s purchase for the Portfolio for the Ages won’t be a Dividend King!

Today, the portfolio received $7.74 in cash, courtesy of the Black Hills Corporation [BKH]. Like a proud shopkeeper who frames the bill from his first sale, I feel like a post commemorating the event is in order.

There will be at least a couple of posts in the near future, about how to best reinvest dividends and the benefits of receiving dividends during bear markets and economic recessions.

Black Hills just paid its quarterly dividend of $0.595 per share for the fourth time. That means, we can expect their next quarterly dividend to be even more. I’m looking forward to it.