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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14 thoughts on “March 2015 – Chocolate, Oil, and Cheese

  1. It’s not dissimilar to our March either. March is one of the slowest months for our dividend paying investments, with June being the main month in which we receive dividends.

    It’s always good to receive them though, even if they’re only small. Do you also own Diageo?

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    • I do not own Diageo but the company has a good selection of popular bands. I haven’t looked into alcoholic beverage providers very much. One that I’ve been somewhat interested in is Anheuser-Busch InBev (BUD). I might add these to my portfolio at some point in the future.

      Thanks for stopping by.

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  2. Dear Div,

    Nice work! 3 Great items happened and I didn’t know how large Nestle was until you broke it down for us – thanks for doing that. Also – you had a great increase from last year, I am hoping you cross the $100 mark fairly soon. I also own Kraft and am excited for the next steps for the merger. Congrats and keep at it!

    -Lanny

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    • Thanks for the encouragement. I’m looking forward to the $100 mark but I’m not sure I’ll see it this year. I maxed out my Roth IRA for the year and my available funds for investing are limited for the rest of 2015. I’ll continue making smaller contributions to my taxable Loyal3 account though.

      Thanks for stopping by!

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  3. Hi DD,
    $44 may not seem big right now, but like you said, it is better than nothing and pretty soon, this number will be huge as long as you keep investing regularly. I remember my monthly dividend was just around 40s and 50s a couple of years ago and now it is in 100s and 200s.

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    • I can’t wait to see 100s coming in and maybe someday 1000s per month. I appreciate people coming to my blog and posting encouraging remarks. Seeing that other people have been down this path is motivation for me.

      Thanks!

      Like

  4. That’s a solid month right there, DD 🙂 I like the new investment into XOM and wow, look at those dividends coming in. I was right there with you not long ago and those will grow fast before you even know it. All you have to do is stick with it. Really enjoying your progress so far and wishing you lots of continued success!

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    • Thanks! I’m happy to see some progress when a year ago I was starting off with just a few cents in dividends. I hope my XOM investment is a good one. It seemed like a good deal but I’ll have to diversify in other sectors going forward to balance things out. Thanks for stopping by!

      Like

    • I hope I’ve formed a habit now to keeping putting money into dividend investments. Following other people’s progress and the encouragement I receive on this site really help me stick to my plan.

      Thanks!

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  5. Great job DD! I really like the XOM purchase and I want to add NSRGY to my portfolio at some point. I think the company is just too excellent to not be in my portfolio. The Kraft-Heinz merger was great and I’m loving that special dividend we’ll get. Too bad I own just a handful of shares through my Loyal3 portfolio. I’ll have to reevaluate the new company but I expect to hold that one forever. Especially since WB gave his sign off on the merger.

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  6. Great job growing your dividends and reaching a new milestone. I have looked in Nestle a while back and though I’d love to have it in my portfolio the annual payout was a deal breaker for me. I own one stock, DEO, that pays twice a year everything else quarterly. Happy to share a few names in common for the month of March. Look forward to your next update.

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    • There a some things about the Nestle stock that weren’t appealing to me (annual dividend payouts, ADR, etc) but in the end it is a company that really caught my eye. I’ll keep my eye on DEO and also BUD is another stock that I’ve been interested in. I think BUD pays twice a year.

      Thanks for stopping by!

      Like

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