Tag Archives: dividend growth investing

Monthly Investing Recaps: October 2014

At the start of each month I detail all the buy/sell activity here for each of my 3 individual stock portfolios: Loyal3, Roth IRA, and Taxable Brokerage accounts. It’s just one way I am chronicling my journey to financial independence here at Starting From Zero.

In addition to these 3 accounts, I also continued investing in my Thrift Savings Plan (TSP) again this month. Right now I’m contributing 4% of my base pay but may adjust this in the future. The majority of my investing will still be in my taxable and Roth accounts. The TSP is basically a 401k plan for federal employees including the military. It only offers index funds but does have probably the lowest expense ratios around, even lower than Vanguard. Right now I’m putting my contributions in the C Fund which mirrors the S&P 500 and the S Fund which is a small cap index fund. Since these deposits typically take a while to reach my account, I won’t be detailing those transactions here.

Loyal3 Account

Buys

.528 shares of McDonalds (MCD) @ $94.69 per share=$50 invested.

Quick Hits: Although I wasn’t able to buy MCD at its low mid-month, I added some more to this position at a decent valuation.

 

Roth IRA

No activity this month.

Quick Hits: Contribution limit maxed out until next year.

 

Taxable Brokerage

Buys

38 shares of Kinder Morgan (KMI) @ $38.92 per share=$1487.91 invested including commission.

Quick Hits: With KMI set up for projected 10% annual dividend growth over the next few years, I decided to double my position in the energy giant. Although I ended up raising my cost basis here, I still think KMI presents good value here when factoring in the upcoming consolidation of Kinder Morgan Partners (KMP) and Kinder Morgan Management (KMR) under KMI.

 

Full Disclosure: I am long all stocks mentioned. This post is not intended to be a buy or sell recommendation for any stock mentioned and is intended for educational/entertainment purposes only.

How was your October for investing? What do you think of my stock picks this month? Share with a comment below and thank you for reading!

Monthly Investing Recaps: July 2014

At the start of each month I detail all the buy/sell activity here for each of my 3 individual stock portfolios: Loyal3, Roth IRA, and Taxable Brokerage accounts. It’s just one way I am chronicling my journey to financial independence here at Starting From Zero.

In addition to these 3 accounts, I also continued investing in my Thrift Savings Plan (TSP) again this month. Right now I’m contributing 4% of my base pay but may adjust this in the future. The majority of my investing will still be in my taxable and Roth accounts. The TSP is basically a 401k plan for federal employees including the military. It only offers index funds but does have probably the lowest expense ratios around, even lower than Vanguard. Right now I’m putting my contributions in the C Fund which mirrors the S&P 500 and the S Fund which is a small cap index fund. Since these deposits typically take a while to reach my account, I won’t be detailing those transactions here.

Loyal3 Account

No activity this month.

 

Roth IRA

No activity this month as I maxed out my annual contribution limit for the year with last month’s purchase of Deere.

 

Taxable Brokerage

Buys

16 shares of Philip Morris International (PM) @ $82.96 per share.

Sells

None.

Quick Hits: With shares dipping recently after their latest earnings report, it gave me the chance to average down and increase my position in the global tobacco company. I originally initiated a small position (6 shares) last October. With shares trading at 16.1 times trailing 12 month earnings and 14.6 times forward earnings, I think PM presents good value at current levels. For comparison the stock’s 5 year average P/E stands at 15.7. With a 4.6% dividend yield and steady buyback program that has reduced shares outstanding from 2116 million in 2007 to 1591 million in 2014, there are a lot of things to like about this dividend challenger with 6 consecutive years of dividend increases.

Although the company has increased their debt load quite a bit in recent years, taking advantage of low interest rates to finance their large buyback program, I’m not too concerned right now. However this is a situation that I will monitor closely going forward. Even with the increased debt, PM still has a solid interest coverage ratio of 12.36 and carries an A- credit rating by Morningstar.

 

Full Disclosure: I am long DE and PM. This post is not intended to be a buy or sell recommendation for any stock mentioned and is intended for educational/entertainment purposes only.

How was your July for investing? What do you think of my stock picks this month? Share with a comment below and thank you for reading!

Monthly Investing Recaps: June 2014

At the start of each month I detail all the buy/sell activity here for each of my 3 individual stock portfolios: Loyal3, Roth IRA, and Taxable Brokerage accounts. It’s just one way I am chronicling my journey to financial independence here at Starting From Zero.

In addition to these 3 accounts, I also continued investing in my Thrift Savings Plan (TSP) again this month. Right now I’m contributing 4% of my base pay but may adjust this in the future. The majority of my investing will still be in my taxable and Roth accounts. The TSP is basically a 401k plan for federal employees including the military. It only offers index funds but does have probably the lowest expense ratios around, even lower than Vanguard. Right now I’m putting my contributions in the C Fund which mirrors the S&P 500 and the S Fund which is a small cap index fund. Since these deposits typically take a while to reach my account, I won’t be detailing those transactions here.

After not investing any new funds in May, I pooled all the cash I had and made one final purchase for my Roth IRA for the year and used the excess to make some smaller purchases through Loyal3.

Loyal3 Account

Buys

3.43 shares of Target (TGT) @ $58.31 per share.

3.3624 shares of Dr. Pepper Snapple (DPS) @ $59.48 per share.

Sells

None.

Quick Hits: With Target continuing to trade at an attractive long-term entry point and recently announcing a 20.9% dividend increase, this dividend champion was a no-brainer to add to.

Dr. Pepper is a new position for my portfolio. DPS is a manufacturer and distributor of non-alcoholic beverages that are sold in the United States, Canada, and Mexico. The company’s brands include its flagship Dr. Pepper and Snapple drinks, Sunkist soda, 7UP, A&W, Canada Dry, Crush soda, Hawiian Punch, Mott’s, Schweppes, and my personal favorite as a kid, Yoohoo. Unlike its main competitors, Coca-Cola and Pepsi, both of which are trading at P/E’s of 19+, Dr. Pepper’s P/E comes in at 17.5 with a forward P/E of 15.2, both of which are less than the S&P 500′s current and forward P/E ratios of 18.3 and 17 respectively. Although they have only been growing their dividend for 5 years, the stock does sport dividend growth rates of 10.4% for the past year, and 22.8% average for the last three years while still keeping the payout ratio at 47%.

Roth IRA

Buys

23 shares of Deere (DE) @ $91.80 per share.

Sells

None.

Quick Hits: Deere is another new position for my portfolio and one I’ve been looking to add for a while now. Growing up in a rural town and with plenty of farmers and other users of Deere tractors and equipment in my family, I guess I have a soft spot for the stock. Although earnings are expected to decrease in the coming few years, I like the long-term growth story of this company which is summed up nicely at their investor page. After keeping their dividend static for five quarters, Deere recently announced a 17.6% increase, bringing the quarterly payout up to $0.60 from $0.51. Sweet. :) Even after the recent run-up in price the stock continues to trade at an attractive valuation with a P/E of just 9.9.

Taxable Brokerage

No activity this month.

 

Full Disclosure: I am long TGT, DPS, DE, and KO. This post is not intended to be a buy or sell recommendation for any stock mentioned and is intended for educational/entertainment purposes only.

How was your June for investing? What do you think of my stock picks this month? Share with a comment below and thank you for reading!

Sunday Morning Reading: July 6, 2014

Good morning! I hope all of you had a good week and are enjoying the holiday weekend.

Things have been pretty busy here over the last few weeks as I have spent most of my time looking for apartments downtown as I get closer to moving out of the dorms here on base. Good news is I managed to find one at the end of this week that is both fairly close to work and reasonably priced so that I can hopefully continue to maintain a high savings rate.

And now on to some of my favorite posts from around the web that I’ve read recently.

Fortunes Are Built By Being Exceptional In One of Three Ways by The Conservative Income Investor. Great post by Tim detailing 3 of the main ways to build long-term wealth through stock investing. With an investment in Visa, a relatively high savings rate (percentage wise), and a long-term horizon before early retirement, my strategy has elements of all 3 but Way #2 is what I hope will ultimately allow me to retire early.

Can everyone achieve financial independence with Dividend Paying Stocks? by Dividend Growth Investor. DGI provides a good overview of how to be successful with dividend growth investing. The first step of spending less than you earn and living within your means is a very important one and shouldn’t be overlooked when considering investing. This ties directly in with Way #2 in Tim’s article above.

Growth Update: June 2014 by My Dividend Growth. Ryan shares his portfolio progress for the month of June. With only half of the year complete he has already almost hit his goal of $17,500 in new funds invested. That’s like maxing out your 401k in 6 months! Awesome stuff.

Long Term Mindset Portfolio-Purchase 008-Mastercard by Long Term Mindset. Brian shares his latest portfolio purchase of Mastercard and provides an analysis of the stock. As a big fan of Visa, I may have to take a look at MA next. Similar to Visa, Mastercard has high margins and plenty of room to grow. Although a low yielder, MA does have the potential to offer very large dividend increases going forward as well as large capital gains.

Ten Spot Friday-3 Reasons For Wal-Mart (WMT) by Dear Dividend. DD gives an overview of why he thinks Wal-Mart is a good investment at current levels and why he will be using Loyal3 to buy some stock. After putting money into Target over the last 6 months through Loyal3 I may take a look at Wal-Mart for a purchase later this summer.

Sporting World Dividend Investing by DivHut. Keith continues his series of dividend growth stocks with a look at companies in the sporting goods industry. As a fan of Peter Lynch’s philosophy of buying what you know, Nike has always intrigued me as a potential dividend growth investment. Although as Keith points out, the stock has run up quite a bit here with a P/E of 26 and forward P/E of 22. On the other end of the valuation spectrum is Dick’s Sporting Goods (DKS) which a P/E of only 16.6. I’m familiar with the company after frequenting their stores a lot while growing up on the east coast so I’ll have to take a look at DKS as well.

Financial Books Everyone Should Read by Julie @ Millennial Cents. Julie shares 6 financial books to put on your reading list for the summer. Great picks for anyone interested in personal finance. To her list I’d add Rich Dad, Poor Dad and The Single Best Investment as two books I really enjoyed and think those starting out with investing and in particular dividend growth investing should read.

Hope you enjoyed these posts from around the blogging world. Have a great week everyone!

Disclosure: I am long Visa (V) and Wal-Mart (WMT).

Monthly Dividend Income: May 2014

My favorite post to write each month. 🙂 This is when I get to share all my dividend income for the previous month. These dividends are what I’ll eventually use to live off of when I become financially independent.

I share these figures along with monthly income/expenses to not only track my progress towards financial independence but also to hopefully show others that it is possible to get started with dividend growth investing with a low income. The hardest part is weathering the first few years of small dividend payments and allow the compounding snowball to get rolling.

Here is May’s dividend income from my 3 stock investment accounts: Roth IRA, Loyal3, and Taxable Brokerage. I automatically reinvest all dividends in my Roth and selectively reinvest dividends, combining them with fresh capital every month or two, in my other accounts.

Roth IRA

AT&T (T): $12.28-reinvested into .344 shares @ $35.67 per share.

Apple (AAPL): $6.75-reinvested into .011 shares @ $592.23 per share.

Realty Income (O): $2.82-reinvested into .065 shares @ $43.01 per share.

Kinder Morgan Inc.: $13.86-reinvested into .415 shares @ $33.36 per share.

Loyal3

No dividends this month.

Taxable Brokerage

AT&T (T): $18.86

Realty Income (O): $19.89

May Total: $74.46. A new monthly high! 🙂 Just by a couple bucks, beating March’s numbers. With 5 months down I’ve now received $294.70 for the year. I can probably now safely say I won’t be hitting my goal of $1000 in dividends this year but with projected annual dividends approaching 1k, I should be able to reach that figure for sure next year. Oh, well, as long as I am making progress. 😉

 

Full Disclosure: I am long T, AAPL, O, and KMI. This post is not intended to be a buy or sell recommendation on any stock mentioned and is designed to be used for educational/entertainment purposes only. Only you are responsible for your investing and I always encourage you to conduct your own research prior to investing. Please see mydisclaimer page for more information.

How was your May for dividend income (or portfolio gains for any growth investors)? Do you have any dividend income goals you are trying to reach this year?

What I Like about Dividend Investing

“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in.”-John D. Rockefeller (American Industrialist and Philanthropist, founder of the Standard Oil Company, 1839-1937)

I saw this quote on twitter (follow me @startingfrzero) recently and thought it would make for a great post on dividend growth investing. The greatest thing about dividend growth investing, as opposed to other strategies, is that its results are obvious right from the start.

What do I mean by that? With dividend growth investing, after a relatively short period of time owning these stocks you get to see the results when the dividend checks start coming in (or depositing in your online account nowadays). Once you receive them they can’t be taken away. Contrast that to a growth based, total return strategy where although you may see large gains on paper quickly, they can disappear quickly in a market downturn. In a market downturn those with a total return strategy are more inclined to sell low to limit future losses and preserve capital.

Dividend growth investors on the other hand welcome market downturns so they can pick up more income producing shares in some of the most successful companies in the world. As long as the earnings power behind the companies is not negatively affected by economic downturns, bear markets just give us the opportunity to pick up more shares at bargain prices.

Then you can sit back, stop worrying about things like the Fed’s interest rate policy and which hot stock is going to the best performer over the next year and just enjoy watching those dividends come in.

Updating My Potential Buy List: April 2014

Good morning fellow dividend growth investors and personal finance enthusiasts!

Today I’m reviewing some of the stocks on my potential buy list. I recently got my tax refund back so it’s time to go shopping for stocks. 🙂

I’ve broken the list down into two parts, stocks that I already own and would like to add more to, and stocks that would be new additions to my portfolio.

First off, the stocks I currently own and would consider adding to.

Coca-Cola (KO)-As long as KO trades at less than $40 a share, I plan on continuing to dollar cost average using my commission free Loyal3 account.

General Electric (GE)-With a P/E of 17.3 I think GE is trading at fair value and I’d like to add more to position in the stock. With an increased focus on returning to its industrial roots and reducing the size and spinning off portions of its financial arm the company looks to be returning to its former dividend growth blue chip status.

McDonald’s (MCD)-Although shares have popped a little since my last purchase, I’d like to add more on a pullback as I have just a small position. While MCD doesn’t have as much of a margin of safety in the share price as I’d normally like, with a very long-term investing horizon, I feel comfortable paying up a little for a quality stock as I detailed here.

Philip Morris (PM)-Even though the price has rebounded a bit since my last Buy List post, the international tobacco giant continues to trade well below its 52 week highs and currently yields 4.5% at today’s levels.

Target (TGT)-This stock continues to be punished after a weak roll-out in Canada and the data breach during the last holiday shopping season. Like KO, I plan on continuing to dollar cost average into this stock using Loyal3.

Now for stocks that would be new additions to  my portfolio.

Aflac (AFL)-The insurance dividend champion continues to trade at an attractive valuation with a current P/E of just 9.1. With its strong dividend growth rates AFL should make a great long-term holding and also give me some exposure to the financial sector since I recently sold my shares in Powershares Financial Preferred ETF (PGF).

General Mills (GIS)-Man, I so wish I had just bought this when I was starting out and it was trading in the low 40’s. I’m still waiting for a slight pull back before initiating a position as the diversified food company continues to trade at a premium to its historic P/E but with a long-term investing horizon I may consider adding it if it dips below $50.

Kinder Morgan Management (KMR)-I recently purchased KMI in my Roth IRA last month. Rather than adding more to this position I was thinking of adding Kinder Morgan Management. KMR provides a similar yield to Kinder Morgan Partners (KMP), the master limited partnership, and issues stock dividends so you don’t have to worry about dealing with a K-1 come tax time. Once you decide to sell your position, you are given a 1099 just like with regular dividend growth stocks. Since it is structured as an LLC C-Corp it can be held in a retirement account so I’m thinking of adding this to my Roth to shield those future capital gains.

Visa (V)-Wait, what? Isn’t Visa a growth stock, I thought you were a dividend growth investor? 😉 With its low yield (currently less than 1%), it’s easy to look at V as only a growth stock and forget that it now has a 7 year history of raising dividends and a very impressive dividend growth rate as well. It currently sports dividend growth rates of: 40.4% for 1 year, 38.3% for 3 year, and 45.9% for its 5 year average. With shares pulling back below $200 a share recently, off from a 52 week high of $235, Visa looks attractively valued at today’s levels for starting a long-term position.

Full Disclosure: I am long KO, GE, KMI, MCD, PM, TGT, and may initiate long positions in AFL, GIS, KMR, and V over the coming weeks. For a full list of all my holding please visit my portfolio page. As always don’t take anything I post here as a buy or sell recommendation and I highly encourage you to do your own research before investing.

What do you think of these stocks? Do you hold any of these in your portfolio or looking to add them? Let me know in the comments! 🙂

Meet a Dividend Growth Stock: Realty Income

Good morning and welcome to another edition of “Meet a Dividend Growth Stock.” In these posts I provide a brief introduction of a dividend growth stock and then provide some links to more research on them if you are interested. I always encourage you to do your own research prior to purchasing any stock for your portfolio.

Today I’m highlighting Realty Income (O), which call themselves  “The Monthly Dividend Paying Company.” And for good reason too. Realty has been paying out monthly dividends ever since the company was founded in 1969. It has been raising dividends for 20 years now, since going public in 1994. Since 1994 O has given shareholders a total annual return of 16.3% with reinvested dividends.

O is organized as a Real Estate Investment Trust (REIT) instead of the usual C-corporation which most major companies are organized as. Being a REIT allows O to not pay federal income taxes as long as it pays out 90% of their taxable income to their shareholders as dividends. This eliminates the normal “double taxation” that investors in C-corps experience who see their firm’s pay taxes on income and then have to pay taxes on the dividends they receive as well. The downside to this is that REIT dividends are not qualified, meaning you will pay taxes on your dividends at your normal income tax rate.

O has a very stable and diversified portfolio of rental properties with over 3800 located across 49 states and Puerto Rico. Their tenants operate primarily in the retail sector but are diversified over 47 industries and among 205 companies. Additionally it is the company’s goal to never let one tenant make up more than 10% of their annual rental revenue which they are currently accomplishing. O’s largest tenant, FedEx makes up 5.2% of revenues. Here are O’s top fifteen tenants based on percentage of annual rental revenue.

O's Top 15 Tenants-Pic File

Realty Income primarily owns free standing buildings in its portfolio of properties, meaning they are not attached to other buildings such as in the case of a mall. Looking at the list above, you can see plenty of examples of these types of buildings. Walgreens is a good example of this, they generally occupy a building alone, as opposed to being part of a larger mall. O also uses the net lease structure when leasing out their properties. This type of lease puts the responsibility of the majority of the property’s operating expenses such as taxes, maintenance, and insurance on the tenant which helps reduce risk to Realty Income.

Looking at the company’s dividend history, which is the main point of focus for us DGI’ers, Realty has paid out $2.9 billion in dividends over the course of their history and had 75 total increases since 1994. Their dividend growth rates currently stand at 21.2% (1 year), 4.8% (5 year), and 6.0% (10 year). The fact that the company pays out its dividends monthly helps you compound and grow your payouts quicker if you choose to automatically reinvest than if they paid a quarterly dividend.

In conclusion, Realty’s combination of high yield, solid long-term dividend growth history, and stable business model make it a great addition to a dividend growth portfolio. For more information of this dividend contender, please check out the following sites and articles. The firm’s site in particular provides a wealth of information to research the stock with and shows why they are such a shareholder friendly company.

Realty Income Company Website

How Do I Measure Realty Income’s Dividend Paying Ability?-Great explanation along with a copy of their income statement explaining how due to the high depreciation costs associated with owning so many properties, REIT’s such as O have to be analyzed according to Adjusted Funds From Operations as opposed to earnings when calculating their payout ratio.

Morningstar: O

Seeking Alpha: O

Yahoo Finance: O Dividend History

Why The Monthly Dividend Company Is An Enhanced Brand That Deserves A Premium Value by Brad Thomas @ Seeking Alpha. Brad is the resident expert on all things REIT’s over at Seeking Alpha. I highly suggest reading his informative and educational articles if you are interested in this type of investment.

Full Disclosure: I am long O and WMT. Please conduct your own research prior to buying any stock and do not take anything written here as a buy or sell recommendation for any stock listed.

What do you think of Realty Income as a dividend growth investment?

Monthly Investing Recaps: March 2014

At the start of each month I plan on detailing all my buy/sell activity for each of my 3 individual stock portfolios: Loyal3, Roth IRA, and Taxable Brokerage accounts. It’s just one way I am chronicling my journey to financial independence here at Starting From Zero.

In addition to these 3 accounts, I also started investing in my Thrift Savings Plan (TSP) again this month to help put more of my money in tax advantaged accounts. Right now I’m contributing 4% of my base pay but may adjust this in the future. The majority of my investing will still be in my taxable and Roth accounts. The TSP is basically a 401k plan for federal employees including the military. It only offers index funds but does have probably the lowest expense ratios around, even lower than Vanguard. 😉 Right now I’m putting my contributions in the C Fund which mirrors the S&P 500 and the S Fund which is a small cap index fund. Since these deposits typically take a while to reach my account, I won’t be detailing those transactions here but will now be including a total on my portfolio page.

I also received a surprise check from my college late in March with a tuition refund of $721.50 which was from me overpaying my tuition bill for the last 3 semesters before some of my scholarships were deposited. I knew I was getting a refund at some point but had completely forgotten about it. 🙂 I put this money to work immediately, combining it with most of the cash in my Roth to initiate a new position in Kinder Morgan Inc (KMI) which was one of the stocks on my buy list that I highlighted here.

Loyal3 Account

Buys: 03 Mar: 7.6296 shares of Coca-Cola (KO) @ $38.01 per share.

19 Mar: 2.0854 shares of Target (TGT) @ $59.94 per share.

19 Mar: 3.0985 shares of McDonald’s (MCD) @ $96.82 per share.

19 Mar: 1.297 shares of Coca-Cola (KO) @ $38.55 per share.

Quick Hits: Similar to last month as I continue dollar cost averaging into both Coke and Target. Looking to diversify a bit more this month I added McDonald’s, a dividend champion with 38 years of dividend growth. With a P/E of 17, I consider the stock to be fairly valued and will likely continue to add to my position in the coming months.

Roth IRA

Buys: 31 Mar: 33 shares of Kinder Morgan Inc (KMI) @ 32.13 per share.

Quick Hits: I combined some fresh capital this month with the cash I had just sitting idle in my Roth and finally pulled the trigger on KMI with the energy giant trading at an attractive valuation relative to its 52 week trading range. At current prices the stock boosts a dividend yield of 5.10% and is expected to be able to grow that dividend by 8% annually. Like all of my Roth holdings, the dividends received will be automatically reinvested. I plan on doing a full blog post on KMI here soon.

Taxable Brokerage: No buy or sell activity this month.

Overall a pretty solid month of investing. Combined all of my purchases this month added $78.62 to my projected annual dividend income. With the purchase of KMI, this puts me slightly overweight in the energy sector and will most likely be my last energy pick-up for a while. (Unless of course, another bargain presents itself next month. 😉 ) With a relatively small portfolio, I’m comfortable being overweight in certain sectors or stocks (like Realty Income) at the moment knowing future additions will help balance it out in the coming years. Once I get closer to financial independence, portfolio allocation is going to become more important. Until then, I plan on continuing to add whatever stocks are trading at fair value (or below) and meet my guidelines.

 

Full Disclosure: I am long KO, MCD, TGT, and KMI. This post is not intended to be a buy or sell recommendation on any stock mentioned and is designed for educational/entertainment purposes only. Only you are responsible for your investing and I always encourage you to conduct your own research prior to investing. Please see my disclaimer page.

How was your March for investing? What do you think of the additions to my portfolio? Share with a comment below and thank you for reading.

Meet a Dividend Growth Stock: Coca-Cola

Hello and welcome to the first edition of a new series here on the blog called “Meet a Dividend Growth Stock.” In it I’ll be providing a brief introduction to both some of the more popular dividend growth stock names and some you may not hear about that often. While not meant to be a complete research and analysis, I hope to provide a starting point for you to do more research on your own. Think of it like speed dating for stocks. 😉 If you like the sounds of it, check out some of the links at the end to do further research. If not, no worries, hopefully you’ll find something over the course of this series.

To start off I’m highlighting Coca-Cola (KO), one of the best dividend growth stocks out there. KO has been raising dividends for 52 years now and has dividend growth rates of 8.9% (1 year), 8.1% (5 year), and 9.8% (10 year). The stock usually announces their dividend increases in February of each year and did so again last month, raising the quarterly dividend to $0.305 from $0.28 for an increase of 8.9%.

The global beverage giant was founded in 1886 and has a current market cap of $171 billion. Coca-Cola produces a wide variety of non-alcoholic beverages and has sixteen $1 billion dollar brands in its portfolio: Coca-Cola, Diet Coke, Sprite, Fanta, Minute Maid, Minute Maid Pulpy, Powerade, Dasani, Aquarius, Glaceau Vitaminwater, Georgia, Simply, Del Valle, Ayataka, and I Lohas.

Current headwinds facing the company include fear that the trend to healthier eating habits in this country and the potential for “soda taxes” could hurt Coca-Cola. I personally believe these fears are overblown, mostly due to how diversified the company is through all of their non-soda brands and how much of their sales they do globally which helps mitigate the risk.

With the stock trading at a current P/E of 20 I consider KO to be fairly valued and have been buying shares lately through my Loyal3 account. With its 52 year dividend growth history, steady 8-9% dividend increases, and its diverse brand portfolio of 500 brands, Coca-Cola makes for a great core holding in any dividend growth portfolio.

Here some resources and articles to help you research Coca-Cola further:

Morningstar: KO

Reuters: KO

Seeking Alpha: KO

Yahoo Finance: KO Dividend History

Welcome to Fair Valuation, Coca-Cola by Timothy M. David McAleenan Jr. @ Seeking Alpha. Older post, but with KO again trading around the same price, can be applied today.

 

What do you think of Coca-Cola? Do you own it in your dividend growth portfolio and do you consider it a core holding?

Full Disclosure: I am long KO. Do not take this post as a recommendation to buy or sell any stock listed. Always do your own research before you decide to invest. Please see my disclaimer page for more information. Good luck! 🙂