Recent Buy - Johnson & Johnson (JNJ)

After spending the better part of last night watching the Star Wars trailer over and over I figured I'd better get around to posting about my latest purchase!

This time around I was trying to decide which stock to purchase and it came down to three stocks, IBM, PEP, and JNJ. I think that I would be happy with any of these stocks here and all three are due for dividend increases next quarter. Johnson & Johnson had recently announced it's earnings and over the next couple days the stock sold off just enough to trigger my limit order. In hindsight I wish I would have waited a day to buy since the markets got hammered down nearly 300 points on friday then I could have picked up shares a bit cheaper but ohh well.

I purchased 11 shares of Johnson & Johnson (JNJ) at $99.99

As with my last purchase of PM, JNJ also is facing currency headwinds from a strong dollar. This really showed in the quarterly numbers but I am confident the company will return to growth soon enough.

Johnson & Johnson is a holding company, which is engaged in the research and development, manufacture and sale of products in the health care field within its Consumer, Pharmaceutical and Medical Devices, and Diagnostics business segments.

Johnson & Johnson (JNJ) Stock Chart

Johnson & Johnson (JNJ) Basic Statistics

• Ticker Symbol: JNJ
• PE Ratio: 17.5 (15.5 Forward p/e)
• Sector: Healthcare
• Yield: 2.8%
• Dividend Growth Streak: 52 years 
• 5 Year Dividend Growth Rate: 7.3%
• Payout Ratio: 48 %
• Market cap: $277b
• Beta: .96
• Website: http://www.jnj.com

Johnson & Johnson (JNJ) Dividend Growth Chart

Johnson & Johnson (JNJ) EPS Growth Chart

March Dividend Update

It's time for my March dividend update! My March dividend total was $252.03 which is up 18.3% from the $213.07 that I made last quarter in December.

In comparison, last years March total was $173.79 which means my dividend's for the month have grown 31% YOY! I'm pretty happy about the growth I'm seeing now but over time the growth will be slower as my portfolio grows and my additions will have less impact.

March Purchases

• Philip Morris (PM) - 14 shares @ $79.50
• Piedmont Natural Gas (PNY) - 30 shares @ $36.30

March Dividend Increases

• Lorillard (LO) - From .615 to .66 ( a 7.3% increase )
• Avista (AVA) - From .318 to .33 ( a 3.7% increase )
• Reality Income (O) - From .189 to .19 ( a .52% increase )

March Dividend Income

• Johnson & Johnson (JNJ) - $11.90
• Chevron (CVX) -  $57.78
• Lorillard (LO) - $18.48
• Exxon (XOM) - $17.94
• Unilever (UL) - $18.22
• Realty Income (O) - $18.90
• Avista (AVA) - $19.14
• McDonalds (MCD) - $29.75
• Universal Health Trust (UHT) - $31.75
• Pepsi (PEP) - $28.17

Total Dividends For March 2015: - $252.03

Recent Buy - Philip Morris (PM)

I didn't think I would be making another purchase this month but one stock that's been on my watch list for some time had it's ex-div date this week so I couldn't resist. This time around I chose Philip Morris (PM). PM has been struggling recently battling a strong US dollar and analyst downgrades. I believe that there is a good buying opportunity here with the stock currently yielding over 5%. These are yields the company has not seen since 2010. The strong yield coupled with a 5 year dividend growth rate of 12% makes it hard to resist for any dividend investor.

I purchased 14 shares of Philip Morris (PM) at $79.50

PM is not without it's troubles though. The increasing regulations, lawsuits, and taxes can spell serious trouble for the company going forward. Volume declines continue to be a concern as well as plain packaging legislation.

Philip Morris International, Inc. is a Virginia holding company incorporated in 1987. The Company's subsidiaries and affiliates and their licensees are engaged in the manufacture and sale of cigarettes and other tobacco products in markets outside the United States of America. Its portfolio comprises both international and local brands. Its portfolio of international and local brands is led by Marlboro.

Philip Morris (PM) Stock Chart

Philip Morris (PM) Basic Statistics

• Ticker Symbol: PM
• PE Ratio: 20 (17 forward p/e)
• Sector: Consumer Goods
• Yield: 5%
• Dividend Growth: 7 years 
• 5 Year Dividend Growth Rate: 12.2%
• Payout Ratio: 82 %
• Market cap: $119b
• Beta: 1.03
• Website: http://www.pmi.com

Philip Morris (PM) Dividend Growth Chart

Philip Morris (PM) EPS Growth Chart

Recent Purchase - Piedmont Natural Gas (PNY)

I think that most dividend investors try and seek out the most undervalued dividend stocks to add to their portfolios when the money becomes available. While I think that is a fantastic idea I'm a bit different in that I like to keep my payments balanced over the course of the year. You can see that represented in my dividend payment chart from last months update. I hate the idea of an 'off' or 'slow' month for my dividend income. Judging by most of my fellow dividend bloggers I'd say that I'm in the minority here but that's ok with me. After last months record dividend total as well as my expected total for next month it looks like my weakest months will be for the Jan-April-July-Oct months. So for this purchase I was specifically searching for the right stock that pays in those months.

I had a few stocks on my watch list including CB, CTBI, and PM. Philip Morris in particular is looking attractive and I would love to own this stock eventually. It may even be my next purchase but I feel that I have time to get in on PM since the stock has been under performing for the past 2 years and I don't see it rebounding that quickly. PNY on the other hand has seen it's stock price plummet over $5 since the beginning of February. PM has 2 quarters before the next dividend increase and PNY is due for another increase next payment, I also felt that it is near the low of it's trading range so I pulled the trigger on it.

I purchased another 30 shares of PNY at $36.30 

As you can see from the images below this dividend champion is a pretty boring utility stock and that's one of the reasons I like it so much. I am a bit worried about the payout ratio approaching 70% however.

Piedmont Natural Gas Co is an energy services company. It is engaged in distribution of natural gas to residential, commercial, industrial & power generation customers in portions of North Carolina, South Carolina and Tennessee.

PNY Chart

PNY Basic Statistics

• Ticker Symbol: PNY
• PE Ratio: 19 (18 forward p/e)
• Sector: Utility
• Yield: 3.64%
• Dividend Growth: 36 years
• Payout Ratio: 69 %
• Market cap: $2.8b
• Beta: .53
• Website: http://www.piedmontng.com

PNY Dividend Growth Chart

PNY EPS Growth Chart