Wednesday, January 4, 2012

Dividend Growth Portfolio - Q4 2011 Update

Back in September 2011, I was invited to participate in the Dividend Growth Portfolio project. This project combines the best stock picks from several bloggers that focus exclusively on dividend stocks. The complete portfolio could be seen from this page.

Each blogger selected three stocks that they viewed as attractively priced. I selected McDonal's (MCD), Chevron (CVX) and Enterprise Product Partners (EPD). You could read more about the reasoning behind these selections in this article.

McDonald’s Corporation (MCD), together with its subsidiaries, operates as a foodservice retailer worldwide. It franchises and operates McDonald’s restaurants worldwide. This dividend aristocrat has raised distributions for 35 years in a row. In 2011, McDonald's increased quarterly dividends by 14.70% to 70 cents/share. Over the past decade, the company has managed to boost distributions by 26.50% per year. In 2010, McDonald's earned $4.58/share. Analysts expect earnings to reach $5.73/share by 2012. The stock currently is attractively valued and yields 2.80%. (analysis)

Enterprise Products Partners L.P. (EPD) provides midstream energy services to producers and consumers of natural gas, NGLs, crude oil, refined products, and petrochemicals in North America. The master limited partnership has raised distributions for 14 years in a row. In 2011, Enterprise Products Partners increased quarterly distributions by 5.10% to 61.30 cents/unit. Over the past decade, the company has managed to boost distributions by 8.30% per year. This MLPs has a sustainable distribution and yields 5.40%. (analysis)

Chevron Corporation (CVX), through its subsidiaries, engages in petroleum, chemicals, mining, power generation, and energy operations worldwide. It operates in two segments, Upstream and Downstream. This dividend achiever has raised distributions for 24 years in a row. In 2011, Chevron increased quarterly dividends by 12.50% to 81cents/share. Over the past decade, the company has managed to boost distributions by 8.10% per year. In 2010, Chevron earned $9.48/share. Analysts expect earnings to reach $13.04/share by 2012. The stock currently is attractively valued and yields 3.10%. (analysis)

The rest of the selections can be seen from the table below. Prices were depressed in late September, which is why this portfolio is making money right now.

You could read the reasoning behind the other stock selections from the articles below:

Dividend Mantra: Introducing The Dividend Growth Index

The Dividend Guy Blog: Dividend Growth Index


Full Disclosure: Long MCD, CVX, EPD

Relevant Articles:

1 comment:

  1. Thanks for your great website. I just came across it as am new to dividend investing. I'm a gold bug and am fully committed to the precious metals sector. What are your opinions on companies like Newmont Mining starting to offer attractive dividends? Would you delve into that realm? Also, do you have a list of companies that stood strong and raised div's during the great depression? This would be an interesting analysis given the chance that the economy could sink into an inflationary great depression (as a worst case yet plausible scenario). Thank you.

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