March 2015 – Chocolate, Oil, and Cheese

march

One of my favorite parts about passing another month is updating my dividend progress.  March proved to be an exciting month for my portfolio for several reasons.  I added a new stock to my portfolio, one company announced a huge merger, and I hit a new personal best.

The new addition to my Roth in March was Nestle (NSRGY).  Per Wikipedia and other online sources, Nestle is the WORLD’s largest food and beverage company.  I repeat, the WORLD’s largest food and beverage company.  According to a USAToday article from 2014, Nestle’s 2013 revenue was $103.5 billion (USD) and profits were $11.2 billion.  The next closest companies were Unilever Group with $68.5 billion in revenue and Coca-Cola with $8.6 billion in profits.  That is a nice feather in the cap for Nestle and if you’re into Buffett’s moats philosophy, then Nestle fits the bill.  Nestle has a large line of products that are well-known such as Gerber baby food, Purina pet food, and of course their chocolates lineup.  Finding out the story on Nestle’s dividend wasn’t as easy for me as most companies.  Depending on where you look, the current yield is ranging around 2.5% to 3%.  Also, Nestle appears to pay an annual dividend around May for their U.S. ADR shareholders.  Paying only once a year is a slight drawback but not a deal breaker for me when it comes to good companies.

Another purchase I made in March was the addition of more XOM to my portfolio.  I know there is a lot of uncertainty with oil right now but XOM was hitting 52-week lows so I decided to grab some more.  Exxon Mobil is the world’s 5th largest company by revenue so I like their chances of survival through rocky times in the energy sector.  I’m in it for the long haul so if prices drop over the next year or so I’m not going to lose any sleep.  XOM has been increasing dividends for 32 years and the current yield is above 3%.  I read recently that dividends are a priority for Exxon Mobil’s CEO so it will be interesting to see if they keep raising their dividends while oil prices are down.

Probably the most exciting part of March was the announcement that Kraft and Heinz will merge.  KRFT prices shot up and they will issue a special dividend to shareholders when the companies complete the merger.  I’m interested to see how this plays out and look forward to owning stock in the new company.

Finally, the other news I’m excited to report is that I hit another personal best with $44.06 in dividends for March.  Last year in March I had $0.15 in dividends so it was a nice leap.  Here is the breakdown of my March 2015 dividends:

Loyal3

Symbol Dividend
INTC $0.09
UL $0.45
MSFT $0.32
MCD $3.30
K $0.88

Roth IRA

COP $7.30
CVX $10.75
XOM $4.87
K $3.98
MCD $6.06
MORL $0.42
RDS.B $5.64

Total: $44.06

If I want to look at what personal expenses I could potentially cover, $44.06 could take care of my Netflix & Hulu bills and a probably a full tank of gas for my car.  Not much but it is something.

 

Thanks for stopping by!

Dear Dividend

 

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