Thursday, May 31, 2018

May Review / June Preview, 2018

Tired Gremlin here to talk about May and peer forward into June.  Kids make you tired, that is a straight fact, if you're not tired you should own stock in Starbucks (SBUX) or Dunkin Donuts (DNKN).  Between work, home, hobbies, and everything else that fills the air it was nice to recently have a long weekend.  I've heard it said people cannot catch up on sleep, but that doesn't mean we won't try.

Looking past rainy and busy May, June is a big month.  My favorite sporting event starts- the World Cup.  Its my birthday - a bittersweet reminder that I am not 23 anymore.  The weather has finally gotten nice, minus the rain, so its high time to spend more moments outside.


This month I made one purchase, adding shares of Kimberly-Clark Corp. (KMB) in my IRA account.

Last month I brought in a total of $267.98 in dividends ($57.07 taxable, $62.91 Roth, and $148.00 IRA).  This is an increase from last year ($246.08 total) by 8.9%.

In terms of dividend increases, I realized* 4 raises from the Gap (GPS), Ameriprise Financial (AMP), Kinder Morgan (KMI), and General Dynamics (KMI).  The increases ranged from5% to about 60%.  This includes KMI coming back to life.  I have now realized 27 raises thus far this year.

Next month I will realize five raises from the Pepsico (PEP), Sonoco (SON), Unilever (UL), Johnson and Johnson (JNJ), and Exxon Mobil (XOM).  The increases range from 5% to about 15% (mostly around 5-7%).

* I only count increases when realized, because until that money is delivered any statements or declarations are simply conjecture.


The mortgage continues, so at least part of our 'rent' counts towards our house. Our debts currently outstrip our assets (I choose not to count the house as an asset).  Outside of our house, we still have very low interest auto debt (1.9 and 1.5% for our cars).  Both my car and house are receiving slightly out-sized payments monthly.  We are effectively eliminating debt, while still building and assets.  Even on just one income (for now).

June has 1 wedding on the calendar and the start of the World Cup.  Between the World Cup and my annual net-worth review, I should have more updates than usual.

My next buy will occur after the closure of the Dr Pepper Snapple (DPS ) - Keurig / Green Mountain merger (should be this month).

Next month should produce around $372 in dividends, which is a 24% YOY increase.

My portfolio page is currently up to date.

Hope everyone has a great June.
- Dividend Gremlin
- Long all stock tickers mentioned

Thursday, May 10, 2018

Recent Buy, May 2018

Pollen Gremlin here to chat about a new buy.  Its spring and that means pollen is in the air, so allergy meds are in my system.  Its the biggest downside of nice weather, and the main reason spring ranks as my least favorite season.  In between sneezes its been a busy time here.  I also just completed another short bit of work travel and there is a laundry list of things that need to get done at home.  It will be nice in the future when baby Gremlin finally can help out with some of those - especially the sneeze inducing ones.  In particular his job list will include dusting, as it is the singular chore I despise above all others.  Anyways, what did I buy?

A few days ago, I added a new position by purchasing shares of Kimberly-Clark Corp (KMB) in my IRA account.  I bought 10 shares, with a total cost of $1,039.57 ($103.26 / share, plus commission).  The current yield is 3.83%.  The P/E ratio for KMB sits today at approximately 16.19, trailing.  The yield is slightly above the 5 year average of 3.4%, and P/E is well below its average of the past 5 years (28.35).  KMB has a trailing payout ratio of approximately 58% (it seems be reported between 55 and 65%, with some stating 77% - likely a skew from taxes at the end of 2017).  KMB is a dividend champion, having paid increasing dividends now for 46 years.  Its long term average dividend raise is around 7%, however recent increases tend to be between 4 and 6% - with the most recent being just above 3%.

What does KMB do in their own words:

Kimberly-Clark is a leading manufacturer of personal care (around half of sales) and tissue products (roughly one third of sales). Its portfolio of brands includes Huggies, Pull-Ups, Kotex, Depends, Kleenex, and Cottonelle, among others. The firm also operates K-C Professional, which partners with businesses to provide safety and sanitary products for the workplace. Kimberly-Clark generates slightly north of half its sales in North America and more than 10% in Europe, with the rest primarily concentrated in Asia and Latin America.

KMB is a $36B company, which produces a bunch of consumer staples.  Consumer staple stocks have been beat up of late, they are not new or cool.  There is no fast or flashy money to be made.  That being said, KMB is surely feeling the squeeze other old consumer stocks are - new organic / hypoallergenic (among other things) products, lower price points of generic breads, and less millennial brand recognition.  At least that is the drum that is beaten today about these types of companies - neglecting their general role in those things (lots of store brands are tied to branded items - either in manufacturing or materials) and their general ability to buy up newer / smaller competition.  Companies like KMB are starting to get hard to ignore at these levels.

This purchase will add $40 to my forward 12 month dividend income.

I will update my portfolio page at the end of the month.

What do you think of KMB? 

- Gremlin
- Long KMB