A Pair Of Dividend Increases – Pack n’ Ship
Before getting to today’s dividend increases, I thought I’d give you a brief update on the DDI Portfolio. It’s no secret that the broader markets peaked about the 1st of May and with that, the DDI Portfolio had increased to just over $150k in total value. Painful as it is, I decided to check the value of the account yesterday. The good news was with yesterday’s small bounce, the portfolio had gained back $1200 for the day, but had come off of a low of about $140k after Monday’s declines.Dropping from $150k to $140k for the month of May, brings the short-term loss for my portfolio to almost 7%. That’s an 84% drop on an annual basis – ouch!
So what’s the point?
First off – I think this shows that it’s usually a bad idea to take daily/weekly/monthly returns and extrapolate them into annual returns. Even during the crash of 2008, the average portfolio “only” dropped 50-60% – no where close to the 84% I quoted above.
Second – If you look back at the DDI portfolio earlier this year, it was valued in the $125-$130k range. Even with the drop in May, it’s clear that we’re still on a winning track.
Finally, I’ve said it a thousand times, but as an income portfolio, the DDI portfolio continues to generate $500-$600 per month in income, no matter what the underlying stocks do on a daily basis! That’s money that I’ll reinvest into more and more income producing stocks, that will generate more and more income…
Dividend Increases for Wednesday June 6, 2012
FedEx (ticker: FDX) – provides transportation, e-commerce, and business services in the United States and internationally in four segments: FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services. FDX announced a $.01/share dividend increase in it’s quarterly payout – putting the new yield at a measly 0.7% yield.
Public Storage Preferred S (ticker: PSApS) – operates as a real estate investment trust (REIT), that engages in the acquisition, development, ownership, and operation of self-storage facilities in the United States and Europe. The preferred S shares of PSA now have a quarterly payout of $.3688/share, up just over $.04/share – giving investors a current dividend yield of 5.7%. These preferred shares are currently trading at a premium to their $25 call price – currently trading in the low $26 range. You’ll need to factor this potential capital LOSS in to your investment analysis before adding any shares of this self-storage play.
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That’s your daily round-up for Wednesday, June 6th – thanks for reading!
For my 2012 Year To Date Dividend Increases report please click anywhere on the chart below.
|Public Storage Pr. S||PSApS||5.7%||.3688||.32778||Quarterly|
As always when evaluating investment opportunities it’s important to keep in mind not only the fundamentals of the stock itself, but also how the holding entity (Limited Partnership,Royalty Trust, Master Limited Partnership, Business Development Company, Preferred Stock) may affect the way you report income on your annual tax return as well as the amount or percentage of tax you will be required to pay. Adding shares of any of these special entities to tax deferred / retirement accounts may also present additional issues.
Always remember to review the fundamentals of any company BEFORE you start investing – do not simply buy a stock based on the dividend payout. If you have further questions about any stock mentioned her you should first consult with your CPA or tax planner / adviser before making any investments.