Tuesday, February 21, 2017

Recent Sell - Tompkins Financial (TMP)

Today was a rare day for me. I sold one of my positions completely. It's been a long time since I've sold one of my stocks and I don't plan on making a habit of this but when circumstances change so dramatically in such a short time I can't help but to evaluate and take action if I fell it is warranted.

This time around an old friend of mine in Tompkins Financial (TMP) was on the chopping block. Tompkins Financial Corporation is a small, diversified financial services company based in Ithaca, New York with banking branches across New York and Pennsylvania.

My decision to sell wasn't because of an accounting scandal or poor management. Quite the contrary and through no fault of their own TMP has simply become grossly overvalued.

 As you can see the stock has made quite a run in the last couple of years, nearly doubling since I purchased it in 2014. I kinda wish it had not made such a run so I could keep buying at a better yield, but now the yield is at 2% and the last dividend raise was a modest 2.3% raise when they typically raise 5% or so. TMP has very steadily growing earnings and even through the financial crisis earnings grew and the stock performed better than any other financial entity I can think of. That being said the valuation has grown far in excess of earnings growth and I am going to wait for the inevitable pullback before buying again.

With the funds from the sale I purchased 81 shares of Verizon (VZ) which offers a better yield and is a far better value at this time.

Sunday, February 5, 2017

12 Undervalued Dividend Growth Stocks

I just wanted to share a nice roundup of attractive dividend growth stocks that Chuck Carnevale compiled over at Seeking Alpha. These are stocks which Chuck feels are technically undervalued currently and he gives his reasons in the video below. I had two of these on my radar for my next purchase.

Here is a quick chart with Chucks metrics.

January 2017 Dividend Update

It's time for my January dividend update! My income for the month was $336.41, this is a bit lower than I was expecting due to the Kraft/Heinz (KHC) dividend payment falling in December. That's still over $300 of free income I didn't have to work for.

This month I made one purchase. I bought 14 shares of Proctor & Gamble (PG) - $1199.96 which should add another $9.38 in dividend income to next months totals!

January Dividend Increases
  • Sysco (SYY) - From .31 to .33 (+6.4%)
January Dividend Income
  • Walmart (WMT) - $43.50
  • New Jersey Resources (NJR) - $90.78
  • Pepsi (PEP) - $32.36
  • Philip Morris (PM) - $14.56
  • Altria (MO) - $57.95
  • GlaxoSmithKline (GSK) - $35.58
  • Realty Income (O) - $3.65
  • Sysco (SYY) - $21.78
  • Cisco (CSCO) - $9.62
  • Annaly Capital (NLY) - $16.80
  • Universal Health Trust (UHT) - $32.75
  • Powershares Muni Bond ETF (PZA) - $9.83
Total Dividends January 2017: - $336.41

In the chart below you can see my dividend growth, you will notice in the past 6 months my income has been reduced slightly, that was due to my sale of Realty Income. I used the proceeds to pay off my mortgage and I have now started to reinvest in Realty Income again (this time in a Roth IRA tax advantaged account ).