When writing last month’s dividend growth portfolio investment update I wrote, “I have been dreading writing this post since I already know I screwed up in December.”  I ignored my self imposed rules, and have still be paying for it.  Nothing I can do except, learn and grow.

My January 2017 Investment Activity

My Undervalued Dividend Growth Stock Purchases

January, like most months, I made my normal $500 purchase.  Since I had a loss in December when it came to my options income, there was no extra.

  • On 1/17/2017 I bought 26 Shares of Old Republic International Corporation (ORI)

According to Google Finance, ORI,

is engaged in business of insurance underwriting and related services. The Company conducts its operations through various regulated insurance company subsidiaries, which are organized into three segments: General Insurance Group, Title Insurance Group and the Republic Financial Indemnity Group (RFIG) Run-off Business. The Company’s General Insurance segment consists of property and liability insurance, and offers coverages to businesses, government and other institutions. The Company’s Title Insurance Group’s business consists of the issuance of policies to real estate purchasers and investors based upon searches of the public records, which contain information concerning interests in real property. The Company’s RFIG run-off business consists of its mortgage guaranty and consumer credit indemnity (CCI) operations.

At the time of purchase:

  • ORI’s PE was 12.7 vs 19.1 industry average
  • ORI’s Margin 10.9 vs 11.3
  • ORI’s Book Value was 1.1 vs 1.2
  • ORI’s Yield was 3.91%
  • ORI’s Payout Ratio was 50.20%
  • Lastly, it had a Market Cap of 5bil

This added to the 35 shares I already owned for a total of 61 shares.

My Investment Income

  • I received $14.70 in dividend income (automatically reinvested)

I have decided to alter how I share my options income a little bit.  Since screwing up royally last month, I have learned how to roll a negative put assigned (and then learned yet another lesson about closing that rolled put) and as such it seems useless at this point to provide monthly snapshots.  Instead I think providing quarterly updates makes much more sense (I will start with Q1 2017 in April for Jan to March).

My Current Holdings & Ratios

CompanyTickerSharesPriceValueCost BasisCurrent Dividend PayoutCurrent Expected Annual IncomeYield on Cost
CATERPILLAR INCCAT22.385$96.31$2,155.90$84.39$3.08$68.953.65%
Community Trust BankcorpCTBI32.132$46.10$1,481.29$39.24$1.28$41.133.26%
Emerson ElectricEMR26.461$63.26$1,673.92$51.55$1.92$50.813.72%
CULLEN FROST BANKERS INCCFR10.141$90.22$914.92$69.01$2.16$21.903.13%
Franklin ResourcesBEN22.226$40.88$908.60$34.56$0.80$17.782.31%
Old RepublicORI61.351$20.77$1,274.26$18.54$0.76$46.634.10%
SONOCO PRODS COSON22.31$52.70$1,175.74$51.33$1.48$33.022.88%
PRICE T ROWE GROUPTROW35.496$69.40$2,463.42$69.58$2.16$76.673.10%
TARGET CORPTGT28.461$65.73$1,870.74$72.57$2.40$68.313.31%
UNITED TECHNOLOGIES CORPUTX20.249$111.05$2,248.65$102.58$2.64$53.462.57%

The value of the account month over month is not all that important to me.  I am really interested in two numbers, the amount of shares and the expected annual income.  Both those numbers should increase month over month, otherwise something is wrong.  I went from 280 to 306 shares this month and an expected income of $501 to $521.  Everything checks out.