Monday, April 25, 2016

Recent Buy - Cullen/Frost Bankers (CFR)

I made my usual monthly purchase recently and it's probably a stock that's not on most peoples radar. Cullen/Frost Bankers Inc. (CFR) is a small regional mid cap bank based in Texas. I was actually researching another Texas bank (PB) at the time that I discovered CFR and I decided I liked it a little better. CFR has been beaten up recently as the Texas economy has been under pressure due to low oil prices and the Texas banks have not been immune to this either.

CFR does have some direct exposure to oil as about 15% of their loans are connected to the oil patch. However most of these loans are safe and the company stated that only 9.8% of those loans are likely to produce a loss. It's important to note that CFR has been through this before and survived quite well.

As far as banks go I like the regional banks over the larger banks who are really under so much scrutiny especially now during election time. CFR was also able to weather the financial crisis better than most of it's larger competitors like WFC and BAC which cut their dividends during that time.



CFR Stock Chart



CFR Basic Stats
  • Ticker Symbol: CFR
  • Sector: Financial
  • Yield: 3.4%
  • Dividend Growth Streak: 23 years
  • Annualized Dividend Growth 3yr: 3.5%
  • Payout Ratio: 49%
  • P/E Ratio: 14.1
  • Market cap:$3.7 Billion
  • Website: http://www.frostbank.com

CFR Financial Growth



CFR Dividend Growth

Tuesday, April 5, 2016

March 2016 Dividend Update

It's March dividend update time! My dividend total for March was $289.49 which is a 15% improvement over last year and just slightly higher than last quarter. This total probably would have been higher had I not sold my shares in Chevron after growing concern about their dividend coverage. This could be my last month below the $300 mark and it looks like my quarterly average is comfortably above the $300/month mark as well. April is looking to be a solid month! My dividend income is listed below.

March Purchases
  • Cisco (CSCO) - 37 Shares @ $27.58
March Dividend Increases
  • Compass Minerals (CMP) - From .66 to .695 (+5.3%)
  • Avista (AVA) - From .33 to .343 (+4%)
March Dividend Income
  • Johnson & Johnson (JNJ) - $45.75
  • Unilever (UL) - $18.18
  • Exxon (XOM) - $49.64
  • Compass Minerals (CMP) - $12.51
  • Realty Income (O) - $19.85
  • McDonalds (MCD) - $31.15
  • Avista (AVA) - $19.87
  • Flowers Foods (FLO) - $17.26
  • Pepsi (PEP) - $30.21
  • Travelers (TRV) - $7.32
  • Powershares Muni Bond ETF (PZA) - $5.48
  • Universal Health Trust (UHT) - $32.25
Total Dividends March 2016: - $289.49

Wednesday, March 16, 2016

Recent Purchase - Cisco

I've been looking around for another stock this past week as I knew I'd have the money to make another purchase. I wanted to buy a stock which pays in April so that limited my choices a bit. The first thing I look at are the names that I already own which might look attractive but I had a tough time finding anything that I thought was a screaming buy. Philip Morris (PM) is looking expensive as is Realty Income (O), there's still some value in Walmart (WMT) but the dividend growth has fell off. So I decided to look elsewhere and since I'm a bit light in the tech sector I looked into Cisco (CSCO).

Cisco Systems designs, manufactures, and sells Internet Protocol (IP) based networking products and services related to the communications and information technology industry worldwide. While Cisco remains a leader in networking they continue to look forward to the future to ensure diversity of it's revenue sources. Cloud based computing and the Internet of Things (IoT) are now a major focus and Cisco has been busy making acquisitions to unlock this previously untapped market.

It's a shame I didn't consider CSCO a month ago when it was much cheaper but I think I made up for it with my Flowers Foods (FLO) purchase. Recently the company announced a 24% dividend increase and a $15 billion buyback. Cisco’s new dividend represents 35% of its free cash flow, so there should be plenty of room for future dividend growth. Assuming 10% dividend growth per year, Cisco’s annual payout will reach $1.52 per share by 2020, a 5.5% yield based on the current stock price.

I purchased 37 shares of Cisco @ $27.58 

CSCO Stock Chart



CSCO Basic Statistics
  • Ticker Symbol: CSCO
  • Sector: Technology
  • Yield: 3.8%
  • Dividend Streak: 5 years
  • Annualized Dividend Growth 3yr: 18%
  • Payout Ratio: 42%
  • P/E Ratio: 13.8
  • Market cap:$140 Billion
  • Website: http://www.cisco.com


CSCO Dividend Growth Chart

Saturday, March 5, 2016

February Dividend Update



It's February dividend update time! My dividend total for February was $292.68 which is a 9% improvement over last year. I'm a bit disappointed with this result which was largely due to selling my position in KMI after the dividend cut they announced. I took some of the KMI money and bought some shares of AT&T to make up for a bit of that lost high yield but it wasn't nearly enough. In contrast my last quarters income was $336.79 so I've got some making up to do.

I can't blame it all on KMI though, I also did not receive my Kraft Heinz dividend since it paid in January. All of this added up to a slightly weak quarter but it's nothing I'm too worried about. I'm still forecasting strong quarterly growth overall in the future.

I made three purchases last month including PZA which is a tax free bond ETF and my first exposure to bonds. I also grabbed some more shares of Tompkins financial which I forgot to share.

February Purchases
  • Flowers Foods (FLO) - 56 Shares @ $21.44
  • Tompkins Financial (TMP)- 19 Shares @ $55
  • PowerShares National AMT-Free MuniBd ETF (PZA) - 78 @ $25.80
February Dividend Increases
  • AT&T (T) - From .47 to .48 (+2.1 %)
February Dividend Income
  • AT&T (T) - $108
  • WGL Holdings - (WGL) - $30.53
  • General Mills (GIS) - $34.32
  • Clorox (CLX) - $14.63
  • Realty Income (O) - $19.85
  • Proctor & Gamble (PG) - $22.54
  • Peoples United Financial (PBCT) - $37.35
  • Tompkins Financial (TMP) - $19.80
  • Powershares National MuniBond ETF (PZA) - $5.66
Total Dividends February 2016: - $292.68