My Dividend Portfolio: Q2 2014

Q2 2014 dividends are in!  This update summarizes portfolio progress year to date for 2014.


2014 Dividend Income received

In Q1 2014  I have received approximately $4,311.23 in dividends. This was primarily from my Australian positions ($3,391), with the rest ($919.73) coming from my US portfolio.

Q2 was equally a great quarter, with approximately $4,541 received in total dividend income . I received approximately $3492.28 from my Australian portfolio and 1049.30 from my US portfolio.

So far in 2014, the dividend portfolio has delivered $8,855 in income.

The full breakdown of the dividend income in Q2 2014 is below.

US Portfolio

Coca Cola- 68.63

Mastercard – $18.70

Visa- $25.60

BP – $166.73

McDonalds -$60.75

Chicago Mercantile Exchange – $47

Mercadolibre – $8.13

McKormick- 11.10

Mead Johnson 9.38

Novartis 275

Cisco- 47.50

Female Health Company- 31.50

Colgate- 14.40

Fastenal- 12.50

Lorilard- 55.35

United Guardian 60.00

Resmed- 30.00

Lockheed Martin- 39.90

Health Care Services Group- 25.88

Western Union- 41.25

Australian Portfolio

CBA  $878.40

CSL $85.38

GRR $800

Invocare $409.50

Mondalpheous $456

AMP $546

M2 $287

Woolworths $698

Clover $132

What I was concerned about

Not everything was smooth sailing in Q2 2014. Prices of all stocks, including dividend stock were at very elevated levels in the last quarter. The more this carries on the more nervous I get about some level of material correction. It’s almost been a straight shot up from DOW 13,000, with very little pull back along the way.

Colgate, one of my favorite consumer staples stocks, has run way too hard in my view. I completely exited my position in the business. I think this one is now materially overvalued.

It appears as though my investment in Female Health Company may have been misplaced. I still think there’s some merit to this one. but lumpy sales and a single product have gotten the market spooked. I exited my position during the quarter at a small loss.

Again, this highlights the risk with some early stage dividend companies. You just never know how fortunes may pan out. This could still turn out to be a cracker investment, but latest indications are that that the company is changing strategy and looking to broaden it’s product pipeline In doing so, it’s taken an axe to it’s dividend. I’ll have to do a fuller post mortem at some stage on this one, but these things do happen.

Notable Highlights in the Quarter

Lorilard confirmed a merger with Reynolds. I was attracted to Lorilard for it’s large dividend during late 2012. It rewarded my nicely with a great income stream. The capital growth was even better on this one. It appreciated over 50% during the 18 months I held on. With the announcement of the merger, I took the opportunity to exit the stock. I was growing a little more concerned with the regulatory environment against methanol products, and the merger provided a great opportunity to exit.

Silverchef, one of my Australian holdings which I had highlighted previously as having been severely downgraded by the market for indicating slower than expected growth for 2014 has surprised the market with higher than expected guidance. This caused the stock to rocket back up and it went up almost 20% in price.

It goes to show you that minor variations in growth patterns for growing companies with solid fundamentals aren’t things that one should focus on too much.If the long term trend is sound, short term growth and price fluctuations can make for great opportunities.

In general overall portfolio growth in my dividend portfolio was fairly robust. I remain cautious though, and expect some pullback to happen at some stage during 2014. For the moment I have a neutral stance on the market. I’m happy holding what I have, but I’m not a net buyer at present.

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