Tis’ the Season for Giving – Cash Dividend Bonuses that is…

Tis’ the Season for Giving – Cash Dividend Bonuses that is…

So I’ve left the DDI Portfolio mostly on auto-pilot over the last few months while I’ve tended to a death in the family, but upon my return I’ve been greeted with some good news!

Just last week I received a Special Dividend from Wynn Resorts (ticker: WYNN) good for holiday stack cash dividend increase passive income daily dividend investor$7.50/share! And this week things continued to get better with news that Las Vegas Sands (ticker: LVS) is going to pay a $2.75/share special dividend *and* increase the annual dividend by 40%. WOW.

To top things off, Costco Wholesale (ticker: COST) adds another whopping $7.00 special dividend to the list.

What’s interesting about this special dividend is that even though Costco has approximately $4.6 billion in cash, more than enough to pay out the $3 billion plus dividend, they chose instead to take advantage of the low interest rates available, and have sold bonds to finance the one-time payout. While I would have preferred that they pay a smaller dividend and use the cash on the balance sheet – as a small investor I don’t get a whole lot of say in the matter.

Holiday Bonus

All together these extra payouts are adding up to a nice holiday bonus! You know what, I’ll take it.

holiday shopping more cash gifts wealth creation passive income ddi blogWhile extra dividend payments at the end of the year aren’t all that uncommon, there is a lot of talk about how the pending “Fiscal Cliff” and the possible tax increases that will go with it are encouraging more companies with extra cash on their balance sheets to throw off generous one-time or special dividends.

For those that follow the “Special Dividend” payers, this is the time of year when National Presto (ticker: NPK) has typcially announced their own special dividend, as I wrote about this time last year.

Time For Economic Improvement

With all this extra cash floating around, I’m looking forward to heading into December and the remainder of the holiday season, hopeful that the bonus payouts will continue to be generous. If the President and Congress can reach an agreement on how to manage the pending tax increases before  Christmas, it’s likely we’ll get several gifts in our stock portfolios stockings this year:

  • Increased Dividend Payouts
  • Special Dividends
  • Rising Share Prices

happy holidays daily dividend investor ddi blog income passiveI’ll remain optimistic that the coming months and the new year will bring continued economic improvement for all of us.

Here’s to continued continued success in passive dividend investing!

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30 Days of Increased Dividends and Counting…

massive dividend increase 30 days passive activity30 Days of Increased Dividends and Counting…

With Monday’s dividend announcement by both Game Stop Corp (ticker: GME) and ITC Holdings (ticker: ITC) we’ve now seen 33 straight days of dividend increases! In 2012 alone, we’ve seen well over 500 dividend increases with a number of companies announcing multiple increases.

Improving Economy?

The fact that we continue to see more and more companies increase their dividend payout is a good sign that the economy and the markets in general are continuing to improve.

On a regular basis I continue to read that more and more investors are pulling money out of the stock Continue reading 30 Days of Increased Dividends and Counting… →

2 Paychecks Today – Zero Work

2 Paychecks Today – Zero Work

Ok, so granted, no one is getting rich here, but the passive income continues to build.showered gold coins passive income daily dividend investor blog

The middle and the end of the month are always the times when the dividend payouts are highest, so being the final week of July, I thought I’d check in on the DDI portfolio today to see what’s up.

After logging into my WellsTrade account, I found that today I received two checks, one from Campbell Soups (ticker: CPB) and the other from my monthly Oil & Gas trust Sabine Royalty (ticker: SBR) for a total of $69.10. Nice – I’ll take it!  Since tomorrow is the last day of the month I expect to get a good number of checks then too….we’ll see.

While I haven’t written many updates recently, I have been continuing to add new positions as well as build on existing ones with the cash stream generated by the DDI portfolio. I hope to give a brief update on all the new positions in the next few days.

With all the new additions to the portfolio, I’m now on track to generate over $500 consistently each month in passive payouts. It feels good to finally complete my first goal of producing $500/month in passive income – now it’s on to $600 and beyond!

When a Dividend Increase….

When a Dividend Increase….payments go up and down dividends for life

As I´ve started to track all of the daily dividend increases and built the DDI portfolio, I´ve come across an interesting trend.

That is, when a dividend increase isn´t an increase at all.

The Secret of Royalty Trusts

If you look through the daily updates that I post to the 2012 Daily Dividend Increase spreadsheet, you´ll notice from time to time that I mark some of the ticker symbols with an asterisk (*). The companies that I mark this way are mostly Royalty Trusts – these are trusts that are setup for the purpose of distributing the royalty income generated from the sale of oil, natural gas and other commodities.

Since the price of commodities such as oil and gas fluctuate on a daily basis, this means that the income generated by these trusts varies from month to month as more or less oil/gas is recovered at the then current price for those commodities. As a result, some months the trust pays more, other months less. Because these shares show up in the daily report for stocks with ¨dividend increase announcements¨ I choose to include them in the DDI report – however, you shouldn´t be surprised when any of these trusts reduce their monthly payout.

Good news and bad…

There are many reasons for owning shares of Royalty Trusts – some investors seek them out for their tax consequences, others for their monthly income stream and some jusmonthly money payout daily dividend checks retirementt as a hedge against the price of oil. Just know that before buying shares that your payout amount *WILL* fluctuate from month to month.

There are also other issues that should be considered before buying a Royalty Trust such as the amount of reserves remain in the trust – that is, how much oil or gas is left in the ground before the well runs dry – and the trust value goes to zero. Also, because these trusts don´t report income as dividends it may make completing your annual tax return a bit more complicated. If you understand these implications however, there may be additional benefits to holding these shares besides just the monthly income stream.

Here´s a brief list of a few of the Royalty Trusts that have reported payout increases:

  • Sabine Royalty Trust – ticker: SBR
  • San Juan Basin Royalty Trust – ticker: SJT
  • Cross Timber Royalty Trust – ticker:CRT
  • BP Prudhoe Bay Royalty Trust – ticker: BPT
  • Mesa Royalty Trust – ticker: MTR

Have a question or comment about Royalty Trusts? Leave me a comment below – I always enjoy hearing from my readers!

Here´s to your investing best buys!

 

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Mid-Week Update Dividend Increases – REIT’s, Rockets & Refills

Mid-Week Update Dividend Increases – REIT’s, Rockets & Refills

Here’s a quick Mid-Week update with info on all the dividend increases for June 12-14th. A 10 day streak of dividend increases continues onward todaycasey general store dividend increase with two additional dividend announcements by Casey’s General Stores and Alexandria REIT.

You’ll find all of the dividend increases in the  2012 Year To Date Dividend Increases report  – just click the link to see the Google Docs Spreadsheet with all the details.

Thursday, June 14th

Alexandria REIT (ticker: ARE) is a real estate investment trust (REIT), that engages in the ownership, operation, management, development, acquisition, and redevelopment of properties for the life sciences industry. With a 4% increase in their quarterly dividend, the current yield is now 2.9%.

Casey’s General Stores (ticker: CASY) operates convenience stores under the Casey’s General Store, HandiMart, and Just Diesel names in 11 Midwestern states, primarily Iowa, Missouri, and Illinois. CASY raised it’s dividend by 10% but only has a current yield of 1.24%.

Wednesday, June 13th

Colony Financial (ticker: CLNY) operates as a real estate finance and investment company that focuses primarily on acquiring, originating, and managing commercial mortgage loans, and other commercial real estate-related debt investments. CLNY announced a $.01/share raise in it’s quarterly dividend which now brings it’s yield up to over 8%.

Tuesday, June 12th

Rockwell Automation (ticker: ROK) provides industrial automation power, control, and information solutions, operating primarily in two segments, Architecture and Software, and Control Products and Solutions. Also raised it’s dividend by over 10% and now pays a quarterly dividend yielding just over 2.7%

 

Investment Considerations- Read Before Investing

Continue reading Mid-Week Update Dividend Increases – REIT’s, Rockets & Refills →