Dividend Update: January 2017

January 2017 is behind us, time to look back and check on the dividends for the month. Given my strategy of DGI – the dividend is what I mostly care about. For each of the companies I invest in, I like to see a steady and growing stream of dividend payouts. So how did I do in January?

Last month 11 companies sent me a dividend payout, adding up to a total of $225.80 for the month.

This is my first month ever of to cross the $200 mark  so off to a great start for the year!

The following table shows the tickers of the companies that made a January 2017 dividend payout. It features the dividend amount I received, the dividend per share and any change in payout as compared to the last payout moment.

TickerDividends ReceivedDividend per ShareDividend per Share Change
CCP$2.28$0.570
DIS$19.50$0.780+9.86%
HASI$16.50$0.330+10.00%
WPC$69.30$0.990+0.51%
EQR$10.08$0.4032
STAG$5.79$0.1158
LHO$31.50$0.450
CAH$11.25$0.449
CSCO$26.00$0.260
CLDT$11.00$0.110
BNS$22.60$0.565+2.12%

 

DIS and HASI came out strong into the new year, both with dividend increases of ~10%. The other stocks that paid me in January had more modest dividend changes or none at all.

Comparing the dividend payout of January 2017 to January 2016 (below) shows an increase from $73 to $226 – YoY growth of 210%.

 

New Buy: Delta Airlines Inc. (DAL)

Earlier this month I bought my first airline…or more accurately, I added shares of an airline to my portfolio for the first time.

On  January 12th I bought 25 shares of Delta Airlines Inc. (DAL) for a total of $1,283.75. In this post I break down my reasons for investing in this company and what this means for my dividend income. 

Delta Air Lines, Inc. provides scheduled air transportation for passengers and cargo in the United States and internationally. The company operates through two segments, Airline and Refinery. Its route network is centered around a system of hubs, international gateways, and airports in Amsterdam, Atlanta, Boston, Detroit, London-Heathrow, Los Angeles, Minneapolis-St. Paul, New York-LaGuardia, New York-JFK, Paris-Charles de Gaulle, Salt Lake City, Seattle, and Tokyo-Narita. The company sells its tickets through various distribution channels, including delta.com and mobile, telephone reservations, traditional brick and mortar, and online travel agencies. It also provides aircraft maintenance, repair, and overhaul services; staffing, and professional security and training services, as well as aviation solutions to third parties; vacation packages to third-party consumers; and aircraft charters, and aircraft management and programs. As of March 14, 2016, the company operated a fleet of approximately 800 aircraft. Delta Air Lines, Inc. was founded in 1924 and is headquartered in Atlanta, Georgia.

The company has been paying dividends since 2013 – so not quite the long track record I like to see. However, the annualized dividend growth rate has been an astonishing 50%. From a dividend growth perspective this makes Delta Airlines attractive, also given the fact that the pay-out ratio is very low at 13.99%. The current yield is relatively modest – 1.36% – but I am not too concerned about that given the high growth percentage.

Delta Airlines’s Earnings per Share (EPS) show an impressive 5 year annualized growth of 41.8%. The current Price/Earnings (PE) ratio is 8.61, well below the 5 year average of 12.08.  

Both the current as well as the 5 year average PE are lower than the industry average, indicating that Delta Airlines is currently undervalued as compared to other airlines.

In their January 28 report S&P Capital IQ marks Delta Airlines as a 5 star strong buy with 12 month target price of USD 65.

Given Delta Airlines’ yearly dividend of $0.81 this buy means an addition of $20.25 to my forward dividend income.

What do you think about buying DAL? Leave a comment/reply to share your thoughts!