Marathon Petroleum Corporation (MPC) Dividend Increase Announced on July 27, 2017

Thanks to two dividend increase over the past two summers and thanks to dividend reinvestment, my next payment from Marathon Petroleum Corporation (MPC) will be 30% more than the first one in June 2016.  The most recent increase is 11%.

At the same time as the dividends have risen nicely, the price of MPC has risen even more nicely.

Penske Automotive Group, Inc. (PAG) Dividend Increase Announced on July 26, 2017

Penske Automotive Group, Inc. (PAG) has been in the habit for some time of raising its dividend by a penny every quarter, and the pattern continues with an announcement of a higher dividend in September.  As a result of the 3% increase and reinvestment of the first dividend, my next payment will be 4% higher than the first.

While the dividend has increased in the short time that I have owned PAG, the value of the shares has decreased slightly in the time I have owned it.

2nd Anniversary of the nonPension Portfolio!

On July 23, 2015 I left a job that had a pension benefit.  I had worked there for seven years, but I was not vested in the pension.  I had the option of taking all of my contributions and doing with them as I pleased.  I opted to move the contributions to my IRA and set up the nonPension portfolio.  The primary goal of the portfolio is to generate a perpetual dividend income stream of $560 per month starting in December 2035.  If the primary goal is not achieved, the goal is to generate $560 per month in income through dividends and selective sales to last for the rest of my life.

When I left the job two years ago, my contributions totaled a little over $21,000.  From November 2015 through August 2016, I invested in 43 securities, $500 at a time, once a week.  Since August, I sold four stocks and bought six more, so I have 45 stocks in the portfolio now.  Two of my stocks had spin offs in the time that I have owned them.  One of those spin offs has been sold since, and the other remains in the portfolio over in the corner, generating about 9 cents per month.  It will eventually be sold.

The market was going through a minor correction from late 2015 through early 2016, so many of my stocks were picked up at a bargain.  As a result, my portfolio has outperformed the S&P 500 during the time the nonPension portfolio has been in existence.  The nP portfolio is up 31% over the past two years, compared to the S&P which is up 21%.

In about 18 years, the nP portfolio will have to generate $560 per month in income.  Currently the portfolio generates about $73.   The income stream needs to double every six years or so in order to reach its goal, or if you prefer, it needs to increase by over 11% per year.  This is a big goal to reach for, but my hope is to make changes to the portfolio periodically  to try to keep the portfolio on track.  Changes during 2017 have included selling stocks with gains and low dividend increase rates as well as purchasing stocks with higher dividends or higher dividend increase rates.

What are some of the disappointing events over the past two years?

Viacom Inc. (VIAB) cut its dividend in half in 2016.  In April 2016, VIAB looked like a great deal to me with a dividend yield of 3.9%.  By September the quarterly dividend went from 40 cents to 20 cents.  The stock's contribution to the income stream diminished a lot.  VIAB will be up for sale in the near future if the price rises high enough.   If the dividend starts going up before the price goes up higher enough, it may stay in the portfolio.

Macy's, Inc (M) had a significant fall in price in 2017.  I also bought M in April 2016.  At the time, the price was at a relatively low $41.  Just a year before, the price was as above $60.  Today it has fallen even lower to $23.  Dividend payments have stayed the same since May 2016, which is disappointing, but the dividend rate is well over 6%, so I am riding M out.  I trust that either the company's prospects will turn around, and I will collect the nice dividend in the mean time, or the nP portfolio will survive even if M fails.  I have already lost half of my investment in M on paper.  Losing the other half would likely not be the worst thing to happen to the portfolio between now and 2035.

CSX Corporation (CSX) soared in price after I sold it in 2016.  I bought CSX at $27 and sold at $34, thinking the price had moved to sky-high valuations.  At the time I suppose that I had no idea just how high the sky was.  CSX shares now trade at around $52.  Unfortunately, I do not have a time machine to go back and keep my shares.  CSX is not currently on my buy list, but it will be again one day when and if the price comes down to more reasonable levels.

Caterpillar Inc. (CAT) started raising its dividend again after I sold it in 2017.  For a number of years CAT held its dividend at the same rate.  I thought surely it will start rising again soon.  After holding CAT in the nP portfolio for over a year, the dividend rate was still the same, and I decided to sell.  Just weeks later the dividend rate was increased.   The increase was small, but I think it signals a move back to a pattern of regular increases.  CAT's price is currently too high for me to buy it again right now.

Decisions cannot be made with knowledge of what future events will be.  We cannot know if our decisions will be good or bad until after they are made. We can only attempt to make the best decisions we can at the time and live with the consequences, good or bad.

Below is a list of the stocks currently in the nonPension portfolio.

Ticker	Shares	Share Price	Value
AAPL	5.094	$150.27	$765.50
ABBV	9.531	$74.63	$711.30
ADM	12.628	$41.26	$521.03
ADNT	1.000	$68.71	$68.71
AMGN	3.100	$180.21	$558.65
AMP	5.140	$136.34	$700.79
BA	4.198	$212.14	$890.56
BBY	16.579	$54.14	$897.59
BG	9.261	$79.63	$737.45
CAH	7.123	$76.29	$543.41
CCL	11.295	$67.00	$756.77
EAT	10.377	$36.22	$375.85
EMN	7.233	$85.65	$619.51
GEO	23.322	$29.99	$699.43
GILD	6.166	$73.76	$454.80
GLW	27.968	$31.85	$890.78
HBI	24.170	$23.55	$569.20
HOG	12.505	$48.26	$603.49
HPQ	37.907	$19.15	$725.92
INTC	14.377	$34.73	$499.30
IP	13.756	$56.64	$779.14
IRM	15.237	$35.00	$533.30
JCI	10.178	$44.19	$449.77
JPM	8.265	$90.89	$751.21
KSS	11.728	$40.46	$474.51
LAMR	7.000	$72.76	$509.32
LM	16.564	$40.26	$666.87
M	12.749	$23.36	$297.82
MPC	16.623	$55.34	$919.92
OHI	16.168	$33.48	$541.30
PAG	11.080	$44.32	$491.07
PFE	15.564	$33.48	$521.09
PRU	6.298	$111.74	$703.74
PSX	6.198	$82.85	$513.50
QCOM	9.417	$53.85	$507.11
R	10.380	$72.48	$752.34
SBUX	8.000	$57.98	$463.84
T	16.141	$36.51	$589.31
TGT	7.268	$54.84	$398.59
UNP	6.219	$104.85	$652.06
VIAB	12.373	$36.04	$445.92
VZ	10.472	$44.23	$463.17
WFC	10.287	$54.17	$557.22
WHR	3.070	$191.22	$587.05
WRK	15.621	$58.70	$916.95
WYN	7.186	$103.06	$740.59
Cash ($)			$115.90
Total Value			$27,932.66
Two Years Ago			$21,346.15
Increase			30.86%
S & P 500			2472.51
Two Years Ago			2051.82
Increase			20.50%

8 Shares of Starbucks, Incorporated (SBUX) Purchased on July 17, 2018

This week's purchase for the nP portfolio is a retro flashback to a stock that I had to sell earlier this year in my taxable account to pay some expenses.  I am now rebuilding a position in Starbucks, Incorporated (SBUX) by purchasing a few shares now.

This purchase perhaps represents the highest P/E stock that I have ever purchased for the nonPension portfolio.  But, the stock's price has moved mostly sideways for the past two years or so; and projected profits keep rising; and dividends keep increasing at a rapid clip; and folks love their caffeine fix every morning.  SBUX might be overvalued currently, but I suspect that the company will continue to march forward for many years to come.

While I don't often frequent Starbucks shops near where I live, I happen to enjoy an amazing cup of their coffee at home almost every morning thanks to the convenient K-cups that I can buy at my local grocery store.  My favorite brew?  Italian Roast.

My monthly income going forward will go up by about 67 cents thanks to this purchase.  Currently the monthly income is high enough and the dividend growth is high enough for me to report that I am only behind my goal less than 1/4 of one percentage point, a significant improvement since the beginning of the year.

Ryder Systems, Inc. (R) Dividend Increase Announced on July 14, 2017

Ryder Systems, Inc. (R) has raised its dividend by 5%, resulting in an upcoming payment that will be 17% higher than the first dividend payment that I received 18 months prior.  On an annualized basis, the payment has increased by 11% per year placing the overall growth rate slightly lower than that which is needed to ensure that the nP portfolio produces enough income in 2035 to reach its goal.

Whereas the dividend payments are growing at a slightly muted rate, the value of my shares of R have increased substantially over the period that I have held them.;

Ryder recently announced a partnership with electric vehicle and drone package delivery manufacturer Workhorse Group.  Details can be found here.

Omega Healthcare Investors, Inc. (OHI) Dividend Increase Announced on July 13, 2017

Omega Healthcare Investors, Inc. (OHI) has continued its slow, steady pattern of dividend increases with another 2% announced recently.  The regular small increases together with its super-high current dividend yield have set the upcoming payment to be 15% higher than my first dividend payment one year before. This growth rate is well above where it needs to be for OHI to contribute its share of dividend growth to meet the overall nP portfolio goal.

While dividend payments have increased significantly since OHI joined the portfolio, the price per share is barely changed year over year, making the security an interesting choice for potential additional investments in the future.

7 Shares of Lamar Advertising Company (LAMR) Purchased on July 10, 2017

I just bought my fourth REIT in the nonPension portfolio.

With a current dividend yield of far more than 4%, Lamar Advertising Company (LAMR) will provide income of $1.94 per month.  The quarterly payment is currently about 11% higher than it was a year ago.  This purchase will contribute significantly toward the march to $560, assuming that payments continue to increase at the rate they have increased in recent years.

LAMR began paying dividends in 2014, and has paid more in dividends each year since.  The inauguration of dividend payments corresponded with a conversion to a REIT the same year.  Purchasing LAMR for the nonPension portfolio is perhaps a bit risky, given the short dividend history, but it is a strategic risk taken to attempt to push the portfolio closer to its future income goal.

The current average monthly portfolio income now stands at $72.41, and the bonus purchase next week will likely increase to over $73.

What do you think of LAMR as an investment over the next 20 years?  Will it do its share of the work to provide the income I will need at retirement?

Eaton Corp. (ETN) Sold on July 3, 2017

Eaton Corp. (ETN) and I have agreed to an amicable divorce.

When we first got together, ETN had an attractive dividend, a low price, and a bright future ahead of it.  ETN was a great choice for a partner.  Today, ETN is still attractive, though less so.  The dividend is still higher than average and the price, though rather high, seems to reflect expectations of higher profits going forward.

I almost decided to stay together with Eaton Corp.  But my long-term goal made me decide to let it go and take the proceeds of our union and try to plant some seeds to try to grow an even bigger set of partners in the future.

The purchase, holding, and sale of ETN have together resulted in a net increase in cash available of about $216.  The initial investment will be invested in another stock this coming Monday.  The gains will be invested together with some earlier gains to make yet another purchase on the following Monday.

Next week's purchase will be an attempt to raise my quarterly dividends over the ones I received with ETN and/or to increase my annual dividend raises.  The following week, I plan to invest in a lower yielding stock that might raise dividends even more generously in the future.  Some of the stocks I am thinking about purchasing to fit this category are stocks I have owned in the past but do not own now, like DPS, LUV, NKE, SBUX, or V.

Smooches, Eaton Corp!  I am glad that we will remain friends.

The march toward $560 per month continues. ...

Average Monthly Income June 30, 2017, up 1.8% month over month

From 2008 to 2015, I contributed about $21,000 to a pension plan, but I left the job at a time when I was not vested in the plan.  So I set about to turn the contributions into a monthly dividend stream of the amount I would have received at age 65 if I had qualified for it:  $560 per month.  I had slightly over 20 years to do it, and I am currently over one and half years into the project.

My average monthly income going forward is up $1.30 from last month to $72.27, an increase of 1.8% compared to this time last month.  The net increase comes from one sale, one purchase, one dividend increase, and dividend reinvestment in over 40% of my holdings.

I sold Cummins Inc. (CMI) last month, which reduced my monthly income by $1.78.  The sale came with a nice profit, so I had cash to make a new purchase as well as to set some aside to combine with future sales proceeds to purchase yet an other security.

I bought Iron Mountain Inc. (IRM), which increased my monthly income by $2.75.  The current yield on IRM is higher than that of CMI, but the most recent dividend increase at IRM is higher than the one at CMI as well.  So the move will contribute a higher expected dividend growth rate for the portfolio going forward.

Target Corporation (TGT) increased its dividend on June 14.  The 3% increase raised the monthly dividend by about 5 cents.  The increase was less than the one made a year ago, but that could be easily expected based on recent headwinds at Target.

The remaining 28 cents in new additional monthly income came from several stocks which paid dividends which were reinvested: ADM, AMGN, BA, BG, CCL, EAT, GILD, HBI, HOG, INTC, IP, KSS, MPC, PFE, PRU, PSX, QCOM, R, WFC, WHR, WYN.

Thanks to dividend increases, dividend reinvestment, and strategic sales and purchases, the dividend growth rate for this portfolio continues its trend of moving closer to being on tract to meet the primary portfolio goal of $560 in monthly dividend income by December 2035.   The growth rate was behind by more than 2.5% of what it needs to be to being less than 0.5% below where it needs to be.  Good news!

Another stock is waiting to be sold on Monday.  Likely I will have enough cash to make two purchases during the month of July thanks to the leftover cash from previous sales.

Ticker	Shares	Avg Monthly Dividends	One Year Ago	% Change
AAPL	5.094	$1.07	$0.97	10.53%
ABBV	9.531	$2.03	$1.81	12.28%
ADM	12.628	$1.35	$1.26	6.67%
ADNT	1.000	$0.09	$0.00
AMGN	3.100	$1.19	$1.03	15.00%
AMP	5.140	$1.42	$1.29	10.67%
BA	4.198	$1.99	$1.53	30.28%
BBY	16.482	$1.87	$1.54	21.43%
BG	9.261	$1.42	$1.30	9.52%
CAH	7.081	$1.09	$1.06	3.01%
CCL	11.295	$1.51	$1.32	14.29%
EAT	10.377	$1.18	$1.11	6.25%
EMN	7.233	$1.23	$1.11	10.87%
ETN	9.475	$1.90	$1.80	5.26%
GEO	23.322	$3.63	$3.37	7.69%
GILD	6.166	$1.07	$0.97	10.64%
GLW	27.825	$1.44	$1.25	14.81%
HBI	24.170	$1.21	$0.89	36.36%
HOG	12.505	$1.52	$1.46	4.29%
HPQ	37.907	$1.68	$1.57	7.02%
INTC	14.377	$1.31	$1.25	4.81%
IP	13.756	$2.12	$2.02	5.11%
IRM	15.000	$2.75	$2.43	13.40%
JCI	10.119	$0.84	$0.98	-13.79%
JPM	8.265	$1.38	$1.32	4.17%
KSS	11.728	$2.15	$1.95	10.00%
LM	16.447	$1.54	$1.21	27.27%
M	12.548	$1.58	$1.58	0.00%
MPC	16.623	$1.99	$1.77	12.50%
OHI	16.168	$3.40	$3.13	8.62%
PAG	11.080	$1.24	$1.08	14.81%
PFE	15.564	$1.66	$1.56	6.67%
PRU	6.298	$1.57	$1.47	7.14%
PSX	6.198	$1.45	$1.30	11.11%
QCOM	9.417	$1.79	$1.66	7.55%
R	10.380	$1.52	$1.42	7.32%
T	16.141	$2.64	$2.58	2.08%
TGT	7.268	$1.50	$1.45	3.33%
UNP	6.185	$1.25	$1.13	10.00%
VIAB	12.301	$0.82	$1.64	-50.00%
VZ	10.472	$2.02	$1.97	2.21%
WFC	10.287	$1.30	$1.30	0.00%
WHR	3.070	$1.13	$1.02	10.00%
WRK	15.621	$2.08	$1.95	6.67%
WYN	7.186	$1.39	$1.20	16.00%
TOTAL		$72.27	$66.99
Overall annual increase in dividend payments				7.89%
Overall dividend yield -- dividends reinvested				3.25%
Approximate annual growth rate including reinvestment and increases				11.40%
Annual growth rate needed				11.82%
Behind goal rate by				-0.42%
End of June behind by				-0.36%
End of May behind by				-0.64%
End of April behind by				-0.65%
End of March behind by				-1.66%
End of February behind by				-1.71%
End of January behind by				-2.57%