Meredith Corporation (NYSE:MDP)
paid its dividend on June 14. It is trading at $47, a 5-week high, and is up 41% since I picked it. The company is yielding 3.5%, and it has improved to a score of 21 with a hugely impressive 15% 5-year dividend growth rate and projected 15% earnings growth rate.
Meredith Corporation (NYSE:MDP) is pursuing a Total Shareholder Return strategy, and is committed to increasing shareholder value through share buybacks, generous dividends and strategic business investment. It’s my second favorite company right now.
pays its dividend on June 28, and is trading at $104, up 13%. Lockheed Martin Corporation (NYSE:LMT) is the only defense-industry company that I have selected, and despite an uncertain economic future, I am still confident in it.
The yield is great, the 5-year dividend growth rate is excellent at 22.9%, and the payout ratio is low enough (51%) that the company can suffer some degree of earnings growth decreases without having to cut the dividend.
Lockheed Martin Corporation (NYSE:LMT) has not, however, increased its dividend yet this year, so I will be looking for that in the next six months. From previous dividend-paying history, it looks like the company tends to make its increase for the fourth quarter payment.
Sunoco Logistics Partners L.P. (NYSE:SXL)
is trading at $62, up 9%. It paid its dividend on May 15. Sunoco Logistics Partners L.P. (NYSE:SXL) raised its dividend for the second time this year (has actually done so for 32 consecutive quarters), and is currently yielding 3.7%.
Sunoco Logistics Partners L.P. (NYSE:SXL) has been increasing its operating cash flows at an annual rate of 18% over the past ten years. The partnership has both a dividend growth rate and projected 5-year earnings growth rate in the double-digits, a low PE, and an astonishing 12-month return of nearly 100%.
paid its dividend on June 24, the second increase of the year, and an increase of 17.5% versus the same quarter last year. It is trading at $32, and is actually down 8% from where I purchased it. Williams Companies, Inc. (NYSE:WMB) still has incredibly good double-digit numbers for dividend growth rate and projected earnings growth rate, so I am not considering its replacement at this time.
will pay its dividend on July 15. The company is trading at $30, down 5% from where I bought shares. The dividend yield is 3.8%, but Leggett & Platt, Inc. (NYSE:LEG) is another company that has not raised its dividend yet this year. Based on its previous history, I am looking for an increase within the next quarter.
The last company, Chevron Corporation (NYSE:CVX), is trading at $117, and paid its dividend on June 10. The dividend this quarter was increased by 11%, and Chevron Corporation (NYSE:CVX) is yielding 3.4%. Chevron Corporation (NYSE:CVX) is also down slightly from where I purchased it.
I will be reinvesting the accumulated dividends into more shares of Cracker Barrel Old Country Store, Inc. (NASDAQ:CBRL) this Friday, June 28.
My original goal with this portfolio was to achieve capital gains similar to those achieved by the S&P 500, as well as significantly better dividends.
At this point, with 6 months’ experience, I am succeeding with my portfolio goals, although I realize this is a very short-term result. I plan to update the portfolio’s progress every quarter after dividends are paid.
Karin Hernandez has long positions in all stocks mentioned. The Motley Fool owns shares of Lockheed Martin. Karin is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
The article Second Quarter Update – My Perfect Dividend Portfolio originally appeared on Fool.com is written by Karin Hernandez.
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