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Coronation! [TDS]

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 »

Dividend King of the Week [PPG][5]

This week, five of the portfolio holdings ranked in the Top 10: BKH, MMM, NFG, PPG, and TDS.

TickerAccount Value
BKH1,874.88
MMM2,098.75
NFG1,920.00
PPG1,844.83
TDS4,843.80

TDS dropped 24% in a single day on disappointing quarterly earnings. I plan to write a bit more on TDS later this weekend. Thankfully, Royal Dividends is heavily invested in TDS and suffered a massive blow to performance. Now, for the first time in quite a while, I can happily state the portfolio is completely within weight tolerances.

The smallest position above is PPG and it last traded at $141.91. Therefore, in order to invest a minimum of $250 in PPG, I would purchase two shares on Tuesday [the market is closed on President’s Day]. However, there is $309.30 in accumulated dividends and option premium. I will use most of that to acquire another couple of shares for a total of four. Below, is the purchase history and average cost calculation. See the post on 2024-01-27 for an updated look at PPG’s historical performance.

Rolling a Covered Call [TDS][4]

TDS is announcing earnings tomorrow morning. Not only do I anticipate that they will announce their 50th consecutive year of dividend increases, and thus become a Dividend King, but there is also the possibility of even bigger news regarding US Cellular [USM]. It is visible in the size of the option premiums. I would like to have a bit more breathing room with this position. As a result, I have chosen to roll up and out. The details are below.

In the same, two-legged, GTC option order:

Buy to Close: (3) May 17, 2024 $22.50 Call Options [Symbol: TDS240517C22.5]

Sell to Open: (3) August 16, 2024 $25.00 Call Options [Symbol: TDS240816C25]

Limit Order Price:  Credit of $0.25 per share

I was lucky enough to get a $0.25 credit from my order affecting 300 covered shares. After commissions, this resulted in a $71.92 credit and exceeds the last quarterly dividend of $63.83 on all 345 shares. That’s a nice roll credit for a 3-month extension in the expiry date and the possibility of receiving an additional $750 in capital gains should TDS climb further on any good news.

Dividend King of the Week [NFG][5]

This week, four of the portfolio holdings ranked in the Top 10: BKH, MMM, NFG, and PPG.

TickerAccount Value
BKH1,858.32
MMM2,136.70
NFG1,621.12
PPG1,814.54

As of this writing, the portfolio no longer has a sector imbalance; there is only a slight overexposure to QCOM and TDS. Had either of those tickers made this week’s Top 10, they would not have been eligible for additional investment.

Of the current holdings that made the Top 10, the lowest amount belongs to NFG. It last traded at $47.68. Therefore, in order to invest a minimum of $250 in NFG, I need to purchase 6 shares on Monday.  Below, is the purchase history and average cost calculation.

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Dividend King of the Week [NFG][5]Read More »

Dividend King of the Week [PPG][4]

This week, five of the portfolio holdings ranked in the Top 10: BKH, MMM, NFG, PII, and PPG.

TickerAccount Value
BKH1,842.48
MMM2,182.01
NFG1,591.20
PII1,718.36
PPG1,540.99

There is currently an overexposure to the following positions: QCOM and TDS. Had either of these made this week’s Top 10, they would not be eligible for additional investment. The smallest position above is PPG and it last traded at $140.09. Therefore, in order to invest a minimum of $250 in PPG, I need to purchase 2 shares on Monday. Below, is the purchase history and average cost calculation. See the post on 2024-01-27 for an updated look at PPG’s historical performance.

Dividend King of the Week [PPG][3]

This week, five of the portfolio holdings ranked in the Top 10: BKH, MMM, NFG, PII, and PPG.

TickerAccount Value
BKH1,828.80
MMM2,207.77
NFG1,619.08
PII1,736.03
PPG1,287.36

There is currently an overexposure to the following positions: FMCB, QCOM, and TDS. Had any of these made this week’s Top 10, they would not be eligible for additional investment. The smallest position above is PPG and it last traded at $143.04. Therefore, in order to invest a minimum of $250 in PPG, I need to purchase 2 shares on Monday. Below, is the purchase history and average cost calculation.

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Dividend King of the Week [PPG][3]Read More »

Coronation! [ED]

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 »

Dividend King of the Week [BKH][5]

This week, five of the portfolio holdings ranked in the Top 10: BKH, FMCB, MMM, NFG, and PII.

TickerAccount Value
BKH1,557.13
FMCB2,925.00
MMM2,478.48
NFG1,625.20
PII1,777.83

There is currently an overexposure to QCOM and TDS. These tickers are not eligible for additional investment at this time. However, these tickers did not make it into the Top 10 and so we proceed unfettered. The smallest position above is BKH and it last traded at $50.23. Therefore, in order to invest a minimum of $250 in BKH, I need to purchase 5 shares on Monday, January 22, 2024. Below, is the purchase history and average cost calculation.

Dividend King of the Week [NFG][4]

This week, three of the portfolio holdings ranked in the Top 10: MMM, NFG, and PII.

TickerAccount Value
MMM2,486.76
NFG1,461.02
PII1,675.04

As of this writing, the portfolio no longer has a sector imbalance; there is only a slight overexposure to TDS. Had it made this week’s Top 10, it would not have been eligible for additional investment.

Of the current holdings that made the Top 10, the lowest amount belongs to NFG. It last traded at $50.38. Therefore, in order to invest a minimum of $250 in NFG, I need to purchase 5 shares on Tuesday (the market is closed on Monday).  For those interested in how NFG has been performing, the 2023-12-16 trade post provides some additional historical information and analysis specific to NFG. Below, is the purchase history and average cost calculation.

Walgreens (Re)Boots Alliance

2024-01-06

On January 3, 2024, Walgreens Boots Alliance Inc. [WBA] announced that its next quarterly dividend will be $0.25. That should amount to $1.00 per share for calendar year 2024, a generous yield of 4%. Unfortunately, that $1.00 per share will be a 48% drop from the dividends paid in 2023 and the end of a 48-year dividend increase streak.

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Walgreens (Re)Boots AllianceRead More »

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