Stock Markets Move Higher Despite BP Dividend Cut, Virgin Galactic Stock Offering

Stock Markets Move Higher Despite BP Dividend Cut, Virgin Galactic Stock Offering

Signs of a waning wave of COVID-19 cases seemed to appease investors. Northwest Pipe Company (NASDAQ: NWPX), an industry leader of engineered pipeline systems for water infrastructure, today announced its financial results for the second quarter ended June 30, 2020. The Company will broadcast its second quarter 2020 earnings conference call on Wednesday, August 5, 2020 WASHINGTON — The Senate contest in Texas is turning into a nail-biter, with challenger M.J. Hegar pulling within 6 percentage points of Sen. John Cornyn in… Latest News

Market participants have looked closely at how the coronavirus pandemic has spread across the U.S., with many new states that weren’t initially hotspots having moved into the limelight in recent weeks. However, investors today seemed to look on the bright side, as at least some trends have suggested that those new moves higher might finally be peaking. That sent markets upward after a brief decline near the open. Just after 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES:^DJI) was up 130 points to 26,794. The S&P 500 (SNPINDEX:^SPX) had risen 8 points to 3,302, and the Nasdaq Composite (NASDAQINDEX:^COMP) had gained 12 points to 10,915.

The move higher on Wall Street came even though some companies announced news that wasn’t entirely in line with an upbeat mood. Oil giant BP (NYSE:BP) finally did something that shareholders had feared for some time was inevitable. Meanwhile, Virgin Galactic Holdings (NYSE:SPCE) announced its latest quarterly results, sending the stock sharply lower despite some hopes for the future.

Shares of BP were up 7% Tuesday morning. That’s an unusual reaction after a company gives what many would see as bad news, but investors seemed to like the acknowledgement that the oil giant faces significant challenges ahead.

Oil rig and pumping equipment in a dark field near twilight.

Image source: Getty Images.

The second-quarter numbers from BP were truly ugly. The oil giant reported a massive $16.8 billion loss for the quarter, which included huge asset impairments and write-offs stemming from adverse conditions in the oil patch. Operationally, underlying production eased higher by 1% as BP emphasized major projects, but the unit has delayed its exploration and appraisal activities in low-margin areas due to low oil prices. Weakness in refining hit BP’s downstream segment as well.

BP therefore chose to cut its dividend in half. Shareholders can now expect to get $0.315 per share, down from the $0.63 per share the oil giant paid previously. That still leaves BP’s yield at nearly 6%, but that’s a far cry from the 11.4% yield prior to the announcement.

BP’s move comes after rival ExxonMobil (NYSE:XOM) went a different direction strategically. ExxonMobil chose to sustain its dividend, even though it faces many of the same challenges. For both companies, recovering oil prices are what it’ll take to generate a lasting recovery for the oil stocks.

Virgin Galactic Holdings saw its stock fall by almost 13%. The space tourism company reported its latest quarterly results, and even though there was no reason to expect anything earth-shattering from the company in its pre-launch phase, news of a new stock offering didn’t make current shareholders very happy.

Virgin Galactic’s financials came as no surprise. The company had no revenue during the period, letting just about all of its $63 million operating loss fall down to the bottom line. Cash on hand, however, remained at solid levels, with $360 million representing almost a year and a half of reserves at the quarter’s cash burn rate.

What likely prompted the decline was Virgin Galactic’s decision to sell about 20.5 million shares of stock in hopes of generating roughly $460 million. Proceeds will go toward working capital, administrative costs, and similar general corporate purposes. Secondary stock offerings often lead to at least temporary moves lower for share prices as markets adjust to the greater supply of shares.

Long-term investors should focus on news that Virgin Galactic’s test flight program continues to move forward, with expectations for its first powered spaceflight from the Spaceport America complex in New Mexico coming this fall. Sir Richard Branson expects to ride on a flight in the first quarter of 2021, and that could generate the publicity that could send Virgin Galactic’s stock skyward as well.

Source: www.fool.com

Author: Dan Caplinger


Northwest Pipe Company Announces Second Quarter 2020 Financial Results

Northwest Pipe Company Announces Second Quarter 2020 Financial Results

– Gross profit of $13.0 million increased 57.7% year-over-year

– Net income of $0.61 per diluted share; adjusted net income of $0.45 per diluted share

– Restarted production at the Company’s San Luis Río Colorado facility in June; all facilities are now operating through the COVID-19 pandemic

– Settled insurance claims associated with the fire at the Company’s Saginaw facility in April 2019

– Operating cash flows drove an increase in cash and cash equivalents to $19.2 million

– Solid bidding environment resulted in backlog of $159 million; $246 million including confirmed orders, a 10% increase from the prior quarter

VANCOUVER, Wash., Aug. 4, 2020 /PRNewswire/ — Northwest Pipe Company (NASDAQ: NWPX), an industry leader of engineered pipeline systems for water infrastructure, today announced its financial results for the second quarter ended June 30, 2020. The Company will broadcast its second quarter 2020 earnings conference call on Wednesday, August 5, 2020 at 7:00 a.m. PDT.

Northwest Pipe Company Logo (PRNewsfoto/Northwest Pipe Company)

Second Quarter 2020 Results

Net sales increased 1.1% to $70.0 million in the second quarter of 2020 from $69.2 million in the second quarter of 2019 due to a $12.4 million contribution from the Company’s recently acquired Geneva Pipe Company, Inc. (“Geneva”) operations. Legacy revenue decreased from the second quarter of 2019 due to a 31% decrease in tons produced as a result of the shut-down of the Company’s San Luis Río Colorado (“SLRC”) facility and changes in project timing, which were partially offset by a 20% increase in selling price per ton.

Gross profit increased 57.7% to $13.0 million, or 18.5% of net sales, in the second quarter of 2020 from $8.2 million, or 11.9% of net sales, in the second quarter of 2019 primarily due to improved product pricing in the Company’s steel pressure pipe business and the margin contribution from Geneva. This was partially offset by decreased production volume as well as costs associated with the shut-down of the Company’s SLRC facility. Since lifting restrictions previously imposed, the Mexican authorities have allowed for weekly increases to the Company’s workforce beginning in June. Additionally, as a result of the fire at the Company’s Saginaw facility in April 2019, $1.8 million of business interruption insurance recovery was recorded in the second quarter of 2020, compared to $3.2 million of incremental production costs in the second quarter of 2019.

Net income was $6.0 million, or $0.61 per diluted share, in the second quarter of 2020 compared to $3.0 million, or $0.31 per diluted share, in the second quarter of 2019. After considering non-recurring items, adjusted net income was $4.4 million, or $0.45 per diluted share, in the second quarter of 2020, compared to $5.4 million, or $0.55 per diluted share, in the second quarter of 2019. See the Company’s “Reconciliation of Non-GAAP Financial Measures” in the table below.

Backlog represents the balance of remaining performance obligations under signed contracts for water infrastructure steel pipe projects. Backlog was approximately $159 million as of June 30, 2020 compared to $170 million as of March 31, 2020 and $180 million as of June 30, 2019. The Company also has projects for which it has been notified that it is the successful bidder, but a binding agreement has not been executed (“confirmed orders”). Backlog including confirmed orders was $246 million as of June 30, 2020 compared to $224 million as of March 31, 2020 and $276 million as of June 30, 2019.

Management Commentary

“Our SLRC Mexico facility was ordered to be shut-down by the Mexican authorities in early April due to COVID-19 and was idle for the majority of the second quarter, which had an overall adverse impact on our revenue and gross profit,” said Scott Montross, President and CEO of Northwest Pipe Company. “As of June 1st, we received authorization to resume partial operations at SLRC and are working toward normal production levels. We are pleased to now be operating all of our production facilities through the pandemic. Although second quarter revenue in our legacy business was lower year-over-year due to the shut-down of the SLRC facility and changes in job timing, bidding activity has remained strong, which resulted in an improved backlog and strong precast order book. Due to the complex nature of the impact of COVID-19 on the economy, it is difficult to make forward-looking projections on our revenue and margins though we firmly believe the structure of our business remains solid.”

Balance Sheet Details

Total cash and cash equivalents were $19.2 million as of June 30, 2020, up from $9.7 million as of March 31, 2020 primarily due to changes in working capital which more than offset cash outflows for capital expenditures and debt service.

As of June 30, 2020, the Company had $15.4 million of outstanding term loan borrowings and no borrowings under its revolving line of credit with additional borrowing capacity of $55.1 million.

Conference Call Details

A conference call and simultaneous webcast to discuss the Company’s second quarter 2020 financial results will be held on Wednesday, August 5, 2020 at 7:00 a.m. PDT. The call will be broadcast live over the Internet hosted on the Investor Relations section of the Company’s website at investor.nwpipe.com and will be archived online upon completion of the conference call. For those unable to listen to the live call, a replay will be available approximately one hour after the event and will remain available until Wednesday, August 19, 2020 by dialing 1–877–344–7529 in the U.S. or 1–412–317–0088 internationally and entering the replay access code: 10146390.

About Northwest Pipe Company

Founded in 1966, Northwest Pipe Company is the largest manufacturer of engineered steel water pipeline systems in North America. The Company produces high-quality engineered steel water pipe, precast and reinforced concrete products through Geneva Pipe and Precast, Permalok® steel casing pipe, bar-wrapped concrete cylinder pipe, as well as custom linings, coatings, joints, and one of the largest offerings of fittings and specialized components in North America. The Company provides solution-based products for a wide range of markets including water transmission and infrastructure, water and wastewater plant piping, structural stormwater and sewer systems, trenchless technology, and pipeline rehabilitation. Strategically positioned to meet growing water and wastewater infrastructure needs, the Company is headquartered in Vancouver, Washington, and has manufacturing facilities across North America.

Forward-Looking Statements

Statements in this press release by Scott Montross are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities Exchange Act of 1934, as amended, that are based on current expectations, estimates, and projections about the Company’s business, management’s beliefs, and assumptions made by management. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or forecasted in such forward-looking statements as a result of a variety of important factors. While it is impossible to identify all such factors, those that could cause actual results to differ materially from those estimated by the Company include changes in demand and market prices for its products, product mix, bidding activity, the timing of customer orders and deliveries, production schedules, the price and availability of raw materials, price and volume of imported product, excess or shortage of production capacity, international trade policy and regulations, changes in tariffs and duties imposed on imports and exports and related impacts on the Company, the Company’s ability to identify and complete internal initiatives and/or acquisitions in order to grow its business, the Company’s ability to effectively integrate Geneva and other acquisitions into its business and operations and achieve significant administrative and operational cost synergies and accretion to financial results, the impacts of recent U.S. tax reform legislation on the Company’s results of operations, the adequacy of the Company’s insurance coverage, operating problems at the Company’s manufacturing operations including fires, explosions, inclement weather, natural disasters, and the impact of pandemics, epidemics, or other public health emergencies, such as the recent outbreak of coronavirus disease 2019 (“COVID–19”), and other risks discussed in the Company’s Annual Report on Form 10–K for the year ended December 31, 2019 and from time to time in its other Securities and Exchange Commission filings and reports. Such forward-looking statements speak only as of the date on which they are made, and the Company does not undertake any obligation to update any forward-looking statement to reflect events or circumstances after the date of this release. If the Company does update or correct one or more forward-looking statements, investors and others should not conclude that it will make additional updates or corrections with respect thereto or with respect to other forward-looking statements.

Non-GAAP Financial Measures

The Company is presenting backlog including confirmed orders, adjusted net income, and adjusted diluted net income per share. These non-GAAP financial measures are provided to better enable investors and others to assess the Company’s results and compare them with its competitors. This should be considered a supplement to, and not a substitute for, or superior to, financial measures calculated in accordance with GAAP.

For more information, visit www.nwpipe.com.

Contact:
Aaron Wilkins
Chief Financial Officer
Northwest Pipe Company
(360) 397-6294 • investors@nwpipe.com

Or Addo Investor Relations
(310) 829-5400

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

(In thousands, except per share amounts)

 Three Months Ended June 30, 

 Six Months Ended June 30, 

2020

2019

2020

2019

 Net sales 

$

69,971

$

69,203

$

138,894

$

131,846

 Cost of sales 

57,013

60,985

116,357

117,057

       Gross profit 

12,958

8,218

22,537

14,789

 Selling, general, and administrative expense 

5,584

4,705

13,529

8,952

       Operating income 

7,374

3,513

9,008

5,837

 Other income 

1,059

25

658

184

 Interest income 

11

3

33

7

 Interest expense 

(262)

(120)

(481)

(251)

       Income before income taxes 

8,182

3,421

9,218

5,777

 Income tax expense 

2,184

447

2,656

638

 Net income 

$

5,998

$

2,974

$

6,562

$

5,139

 Net income per share: 

        Basic 

$

0.61

$

0.31

$

0.67

$

0.53

        Diluted 

$

0.61

$

0.31

$

0.67

$

0.53

 Shares used in per share calculations: 

        Basic 

9,792

9,736

9,771

9,736

        Diluted 

9,808

9,753

9,832

9,745

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In thousands)

June 30, 
2020

December 31,
2019

Assets

Current assets:

Cash and cash equivalents 

$

19,206

$

31,014

Trade and other receivables, net

39,204

38,026

Contract assets

74,902

91,186

Inventories 

35,425

30,654

Prepaid expenses and other 

3,809

4,159

     Total current assets 

172,546

195,039

Property and equipment, net

108,789

99,631

Operating lease right-of-use assets

29,645

7,683

Goodwill

22,985

Intangible assets, net

11,424

1,231

Other assets 

6,323

6,661

     Total assets 

$

351,712

$

310,245

Liabilities and Stockholders’ Equity

Current liabilities:

Current portion of long-term debt

$

3,133

$

Accounts payable 

13,014

15,493

Accrued liabilities 

11,876

12,150

Contract liabilities

4,731

12,281

Current portion of operating lease liabilities

2,340

1,642

     Total current liabilities 

35,094

41,566

Long-term debt

12,032

Operating lease liabilities

26,428

6,247

Deferred income taxes

12,202

4,265

Other long-term liabilities 

10,448

10,009

     Total liabilities 

96,204

62,087

Stockholders’ equity

255,508

248,158

     Total liabilities and stockholders’ equity 

$

351,712

$

310,245

NORTHWEST PIPE COMPANY AND SUBSIDIARIES

RECONCILIATION OF NON-GAAP FINANCIAL MEASURES

(Unaudited)

(In thousands, except per share amounts)

Three Months Ended June 30,

Six Months Ended June 30,

2020

2019

2020

2019

   Net income, as reported

$             5,998

$             2,974

$             6,562

$             5,139

      Adjustments for non-recurring items:

           Acquisition-related transaction costs

67

9

2,584

9

           Saginaw fire incremental production costs (insurance recoveries), net

(1,791)

3,247

(1,399)

3,247

           Saginaw fire gain on property and equipment replacement

(951)

(951)

           Amortization of acquired intangibles

519

865

           Acquisition-related inventory charges

266

           Estimated tax impact of non-recurring items

539

(851)

(341)

(851)

   Adjusted net income

$             4,381

$             5,379

$             7,586

$             7,544

   Diluted net income per share, as reported

$               0.61

$               0.31

$               0.67

$               0.53

   Adjusted diluted net income per share

$               0.45

$               0.55

$               0.77

$               0.77

Cision

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SOURCE Northwest Pipe Company

Source: www.yahoo.com


Democrats plan seven-figure investment in Texas Senate race as Cornyn’s lead slips to 6 points over Hegar

Democrats plan seven-figure investment in Texas Senate race as Cornyn’s lead slips to 6 points over Hegar

Updated at 9:15 a.m. with DSCC announcement, and corrected detail on Biden-Trump poll.

WASHINGTON — The Senate contest in Texas is turning into a nail-biter, with challenger M.J. Hegar pulling within 6 percentage points of Sen. John Cornyn in a poll released Tuesday.

Within hours, the Democrats’ Senate campaign arm announced a seven-figure investment in the race, a move without precedent in decades as the national party left Texas Democrats to fend for themselves during a prolonged era of GOP dominance.

The 44-38 spread found in the Morning Consult survey of likely Texas voters shows a tighter race than any previous poll, a promising sign for the challenger.

Cornyn, a Republican seeking a fourth term, has led by as much as 13 points in surveys dating to February, including a Dallas Morning News/University of Texas at Tyler poll two months ago. He led by 11 points in that poll three weeks ago.

“That is the right trajectory that Hegar needs to be on. Now she just needs to generate the money,” said Jessica Taylor, a Senate handicapper with the Cook Political Report. “I don’t think that Hegar has to be another Beto. She is running in what could very well be a better political environment.”

The same survey found that President Donald Trump trails narrowly in Texas, with former Vice President Joe Biden leading 47-46. That’s in line with a flurry of polls showing a dead heat.

Later Tuesday morning, the Democratic Senatorial Campaign Committee released a poll it commissioned showing a dead heat in the Senate contest, with Hegar trailing by a single point, 43-42. National Democrats have long ignored Texas contests, conserving resources for more competitive states, especially given how costly it is to run an effective statewide campaign in Texas.

But with Texas in play, the committee plans to spend lavishly on TV ads, field organizing and data support.

“The historic investment in Texas is a first for the DSCC and follows new internal polling data that confirms the race is highly competitive,” the committee said.

Cornyn tweeted that “We are ready. This is a swamp-driven effort to make Texas kowtow to radical D.C. policies that are bad for our state and hard-working Texas families. #comeandtakeit.”

The DSCC worked closely with Cornyn’s Democratic rival in 2002, the year he was elected – former Dallas mayor and future Obama trade ambassador Ron Kirk. So the help from Washington isn’t without precedent, even if the financial aid is.

At this point two years ago, Sen. Ted Cruz’s lead had slipped from 10 points in late June to as little as 4, bouncing back and ebbing several times. Beto O’Rourke never managed to pull ahead but he did come closer than any Democrat since 1994 to winning a statewide race, falling short by just 2.6 points.

Hegar has some advantages that O’Rourke didn’t — notably, a presidential race in which Democrats are working eagerly to help flip Texas, and growing unease over a pandemic that has cost millions their jobs and in Texas alone, infected 459,000 people and cost 7,640 lives.

But her fundraising is nowhere near O’Rourke’s.

At midyear in 2018, both Cruz and O’Rourke had raised about $23 million. O’Rourke eventually raised $80 million to Cruz’s $35 million, setting a record for any Senate candidate in U.S. history.

At the moment there are no signs the Cornyn-Hegar race will reach that stratosphere.

Hegar hasn’t generated O’Rourke-level excitement, and polls continue to show that Cornyn is neither as beloved by the Republican base nor as despised by independents and Democrats as the state’s junior senator.

At midyear in 2020, Cornyn led Hegar $16.6 million to $6.6 million, and he had $14.5 million in the bank. She has less than $1 million.

Hegar, who flew helicopters in Afghanistan for the Air Force, won the Democratic nomination July 14 in a runoff against state Sen. Royce West of Dallas. She raised $1 million in the week that followed but still has a long way to go to catch up.

Spokeswoman Amanda Sherman said the new poll affirms what the campaign is seeing.

“It’s very realistic. The Senate race in Texas is highly competitive. If people haven’t been watching Texas, now is the time,” she said.

She attributes the erosion in Cornyn’s support to his steadfast support for Trump during the pandemic, asserting that he has echoed Trump in downplaying the crisis and alienated ordinary Texans by resisting extended unemployment benefits, which have expired.

“There is immense voter dissatisfaction,” she said. “There is a large swath that Cornyn needs to appeal to and he made a conscious choice that he is going to tie himself to the president.”

As for trying to match O’Rourke’s pace, she argued that with the Biden campaign targeting Texas, and competitive races for U.S. House and the legislature to drive up excitement and turnout, “we don’t need 80 million.”

At the Texas Democratic Party, executive director Manny Garcia agreed. The burden to drive up turnout statewide fell largely on O’Rourke two years ago.

He said the race has tightened because Texans see that “he’s not standing up to Donald Trump” during the pandemic, even as Congress has failed to approve a new relief package.

“There’s certainly momentum there,” he said. “As more folks hear MJ’s message, she is going to skyrocket.”

Texas GOP chairman Allen West didn’t respond to requests to discuss the race.

The Cornyn campaign declined to address the DSCC plan to invest in the race. Earlier, it shrugged off the latest poll. Communications director Travis Considine offered the same statement — verbatim — as when a Quinnipiac University poll two weeks ago showed Cornyn ahead by 9 points:

“Senator Cornyn is prepared to face whatever comes his way, and will fight for Texas as he always has. Senator Cornyn has delivered billions in relief for Texas hospitals, front-line workers, schools and small businesses and that remains his priority. He will continue to fight for the principles that make Texas the economic engine of America, and send national Democrats who have spent millions of dollars supporting MJ a strong message about the future of our state.”

Morning Consult surveyed about 2,600 likely voters in Texas from July 24 to Aug. 2 with a margin of error of +/- 2%.

Source: www.dallasnews.com

Author: By Todd J. Gillman4:00 AM on Aug 4, 2020 CDT — Updated at 9:58 AM on Aug 4, 2020 CDT


Lanny's July 2020 Summary – Wealthiest Investor News

Lanny’s July 2020 Summary – Wealthiest Investor News

July dividend stock purchases were steady throughout the month. After May was slow, June picked up steam and July really brought back consistency to fueling the dividend income portfolio. For the second month in a row we were able to add triple-digit dividend income, increasing our passive income source this past month.

Investing consistently in Dividend Income Stocks allows you to create and build another income source. Dividend Income is our primary vehicle on the road to Financial Freedom, which you can see through my Dividend Portfolio, which continues to build and build. Further, I have written about every stock purchase and month of dividend income since we started this site, plenty of dividend history for you, the reader!

How do I make dividend stock purchases and screen for dividend stocks? I usually put the stocks through our Dividend Diplomat Stock Screener and trade on Ally Bank’s investment platform (one of our Financial Freedom Products).

Purchasing dividend stocks takes capital or money. How do I build the capital to make these stock purchases? I save anywhere from 60-85% of my take-home pay and strongly believe Financial Freedom does not happen by hitting a home run on an investment. Nothing matters more than your savings rate on your journey to Financial Freedom, plain and simple. Therefore, I work my butt off to make sure expenses remain in-check and that my savings rate is meeting our investment and financial independence goals! Then, you rinse and repeat.

My dividend stock portfolio was burnt by dividend cuts and lost over $800+ in forward dividend income. Therefore, I was ready to get back to basics and acquire more shares in the best quality dividend stocks out there.

I continued June’s momentum and made significant stock purchases in July. Though the month finished off on a positive mark, I was still able to put capital to work and add to my forward income stream of dividends. Time to see the dividend stock purchases below.

[embedded content]

As discussed in the video above, and you’ll see in my stock purchase activity below, I invested quite a bit into a Vanguard Exchange Traded Fund (ETF). In fact, I performed exactly what I stated in our video. I made a weekly purchase of 3 shares into Vanguard’s High Dividend Yield (NYSEARCA:VYM) ETF.

What is Vanguard? They are a registered investment advisor with $6 trillion plus assets under their management. Many companies use Vanguard for their company-sponsored 401(k) plans and many use them for their retirement and/or investment accounts.

Why do so many individuals and businesses love Vanguard? First, they usually have the lowest or near the lowest expense ratios for individuals to choose from. In addition, John Bogle, the legendary founder of Vanguard Group, created the first index fund. The index fund is a tool that millions of people use and love every day.

Vanguard High Dividend Yield has 428 different stocks and 4 of their top 10 holdings are dividend aristocrats, such as Johnson & Johnson (NYSE:JNJ), Procter & Gamble (NYSE:PG), AT&T (NYSE:T) and Exxon Mobil (NYSE:XOM).

This will be different than other dividend stock purchase summary posts and how I break down each investment. I usually like to use the Dividend Diplomat Stock Screener and I will do my best to use on the VYM ETF.

  • Price to Earnings: Based on Market Watch estimate of a 21.59 price to earnings ratio, they have on record an earnings per share of $3.76. The current P/E Ratio of 21.59 is slightly below the S&P 500.
  • Payout Ratio: Remember above, there is an earnings per share of $3.76 and expectations, using the trailing 12 months, of $2.745 in dividends per year. Performing the simple dividend payout ratio calculation of $2.745/$3.76 equates to 73%. Slightly on the higher side.
  • Dividend Growth Rate: Dividend growth rates of over 7%+ over the last 9 of 10 years, with consistent dividend increases, is excellent. There is no wonder why this is considered a high dividend yield fund.
  • *Bonus* Dividend Yield: Given the trailing-12-month dividend is $2.745 and the average share price that I acquired them of $80.505, the dividend yield averaged 3.40%. This is significantly higher than the S&P 500 index and is a dividend yield higher than my overall dividend stock portfolio.
  • In total, my dividend stock purchases of VYM totaled $966.06, acquiring 12 total shares. This added $32.94 in forward dividend income. I will continue this going forward, 3 shares per week. This will allow me to stay invested and have time in the stock market, versus timing the stock market.

    Now that most of us here in the U.S. have the ability to trade, my stock purchases can be smaller than usual. The brokerages really have paved the way to make it “easier” or at least, less costly, for investors. Thank you Robinhood, Charles Schwab (NYSE:SCHW), E*TRADE (NASDAQ:ETFC), you name it! I easily have saved hundreds of dollars this year alone in trading fees.

    Given that, I don’t want to dive into so much detail on smaller purchases. Therefore, the remaining dividend stock purchases will be reflected in a screenshot below. The screen is directly from the brokerage that I use – Ally Investing.

    Here are the screenshots from my July Dividend Stock purchases!

    Taxable Account:

    Roth IRA: No purchases in the Roth IRA for July.

    One new position was in fact added to my dividend portfolio. Eaton (NYSE:ETN) was acquired at $86.68. Sadly, I only acquired 3 shares. Let’s just say, the stock is up over 7% since that stock purchase and, at times, up over 10%. They currently yield over 3% and I’ll look to acquire more when/if the price comes back down to near $90.

    In addition, due to the global pandemic, it’s definitely easier to buy dividend aristocrats, especially those stocks that are set to do very well during this time period. In the video, showcased below, we talk about insurance and banking industries to persevere through COVID-19. Given the dividend stock purchases of Aflac (NYSE:AFL) and People’s United (NASDAQ:PBCT), I picked up stocks to buy in the post-pandemic world!

    In total, I deployed a total amount of $2,446.15 and added $92.90 to our forward dividend income, equating to an average dividend yield of 3.80%.

    My wife has accounts where we also make dividend stock purchases. Though we are married, we are still running two separate, individual, taxable accounts. All is good, especially because we use the same platform, but just haven’t wanted to deal with the administrative tasks of combining. In actuality, I don’t think it’s even possible to combine the retirement-based accounts.

    Over the last few months, we definitely started to add more capital to my wife’s dividend investing account. The dividend income added from Dividend Aristocrats, including one of our TOP 5 Foundation Dividend Stocks for YOUR Portfolio, is in the mix.

    Taxable Account:

    Roth IRA:

    We purchased 1 share of Johnson & Johnson, good old reliable! Yes, they are one of our Top 5 Foundation Dividend Stocks, no doubt about it.

    Further, We picked up 5 shares of Coca-Cola (NYSE:KO). Adding a Dividend King to her portfolio was very exciting, another iconic, dividend-heavy company.

    Lastly, we added a few shares to Walgreens (NASDAQ:WBA), another dividend aristocrat that showed signs of undervaluation, not to mention the 2.2% dividend increase we received. My wife’s portfolio is typically full of safe and sound dividend investments and since we’ve been together, her portfolio has been blossoming into an extremely significant part of our family’s finances.

    In total, $1,362.01 was put into investments, producing $46.37 in Dividend Income going forward. This is an average dividend yield of 3.40%.

    July did not disappoint and we kept the investment momentum from June. We plan on keeping the strategy of investing into Vanguard, each week, 3 shares at a minimum. Combined, my wife and I invested $3,808.16 for June and added $139.27 to our forward dividend income total (3.66% yield overall)!

    I will maintain my main message. Stick to the strategy that works for you, but review if there is anything that may impact your strategy going forward. You are in control and the emotion button is hard to turn off. Persevere and stay consistent, if you are able to. Time to lock in and stay ready for further opportunities. This was one step closer to financial freedom and I hope to continue making strides. Lastly, my dividend portfolio has been updated to reflect all dividend stock purchases above (outside of my wife’s).

    I am continually looking at my August Dividend Stock Watch List and always keeping an eye on the stocks on Bert’s expected dividend increases that he will release later this month. It is all about the road to financial freedom and I cannot wait to have that crossover point. That crossover point where the passive income, from dividends, overcomes the total expenses in a given month.

    I know I’ve said it many times, but each and every month, we do make inches towards the financial freedom goal. We will get there and we are very excited you have joined us on the journey.

    Thank you for stopping by, good luck and happy investing out there!

    – Lanny

    Original post

    Editor’s Note: The summary bullets for this article were chosen by Seeking Alpha editors.

    Source: wealthiestinvestornews.com

    Author: Posted By: Editor


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