Another dividend increase announcement, this time from by Johnson & Johnson (NYSE: JNJ), the well-known health company.
The increase is from $0.49 to $0.54 per quarter, a 10% boost. This comes as the markets are nervous about the pharmaceutical sector due to the recently-annouced U.S. health care reform. To me, such nervousness is the time when the company is on sale. I own JNJ in my DRiP portfolio, and I am gradually buying more shares using the share purchase plan.
Monday, April 26, 2010
Thursday, April 22, 2010
Ensco Announces Major Dividend Increase
On April 21, Ensco plc (NYSE: ESV) announced a major increase in its quarterly dividend, from $0.025 to $0.35 -- the new dividend is 14 times what it used to be!
The company is an offshore driller, with a fleet of ultra-deepwater semisubmersible and premium jackup drilling rigs and well-trained employees. It keeps its fleet recent by selling older rigs and purchasing newer equipment, which helps it command good prices for its services.
Management is good and has kept the company from becoming debt-ladden, a trap that many other drillers fell into. This has positioned Ensco well to survive the drop of oil prices (and the corresponding drop in offshore drilling). It recently announced solid 1st quarter earnings of $1.11 per share (diluted). That means that even with the increased dividend, the payout ratio remains quite manageable at 31%. And it leaves the company with plenty of money to expand its operations. Its strong financial position also means that it is always ready to take advantage of opportunities
When I purchased this company last September, I cited its small debt load and strong cash flow as strong points (to help it survive the recession), its valuable expertise, the fact that the drilling industry was currently depressed and bound to come back eventually.
I also mentioned that the dividend was minuscule -- which is no longer true with a yield of 2.9% -- a fair value between $55 and $63 and an investment timeline of 5 years. I would sell only if the share price was to rise significantly (more than 10%) above the fair value without good reasons.
I hold a small position (50 shares) in my RRSP.
The company is an offshore driller, with a fleet of ultra-deepwater semisubmersible and premium jackup drilling rigs and well-trained employees. It keeps its fleet recent by selling older rigs and purchasing newer equipment, which helps it command good prices for its services.
Management is good and has kept the company from becoming debt-ladden, a trap that many other drillers fell into. This has positioned Ensco well to survive the drop of oil prices (and the corresponding drop in offshore drilling). It recently announced solid 1st quarter earnings of $1.11 per share (diluted). That means that even with the increased dividend, the payout ratio remains quite manageable at 31%. And it leaves the company with plenty of money to expand its operations. Its strong financial position also means that it is always ready to take advantage of opportunities
When I purchased this company last September, I cited its small debt load and strong cash flow as strong points (to help it survive the recession), its valuable expertise, the fact that the drilling industry was currently depressed and bound to come back eventually.
I also mentioned that the dividend was minuscule -- which is no longer true with a yield of 2.9% -- a fair value between $55 and $63 and an investment timeline of 5 years. I would sell only if the share price was to rise significantly (more than 10%) above the fair value without good reasons.
I hold a small position (50 shares) in my RRSP.
Wednesday, April 21, 2010
Procter & Gamble's Dividend Increase
Another dividend increase for me as Procter & Gamble (NYSE: PG), maker of countless household products, announced a 9.5% increase to its quarterly dividend (from $0.44 to $0.4818).
A quarterly dividend of $0.4818 per share? Who decided on such a weird number?
Nonetheless, that is good news for me, as I own a small stake in the company within my RRSP. Ok, ok. Since I have only 50 shares, that will only mean a small increase of $2.09 per quarter. But you know the tales, by now -- any small increase is cumulative and means a lot over the long term. Cheers!
A quarterly dividend of $0.4818 per share? Who decided on such a weird number?
Nonetheless, that is good news for me, as I own a small stake in the company within my RRSP. Ok, ok. Since I have only 50 shares, that will only mean a small increase of $2.09 per quarter. But you know the tales, by now -- any small increase is cumulative and means a lot over the long term. Cheers!
Monday, April 5, 2010
Net Worth Update
As of April 1st, my net worth was $115 128 (up 3.3% from $111 420). If I exclude house-related assets and liabilities, my net worth was $77 165 (up 4.7% from $73 707). Most of the gain was from the stock markets, which is always nice. However, my liquidities were still tight this month as I slowly get back into my normal mode. My taxes are done and sent, and I should get back some money soon on that front. Enough to restock my emergency fund back to normal, so that quite good.
Assets ($178 923, up 2.3% from $174 853)
Assets ($178 923, up 2.3% from $174 853)
- Bank Accounts $2 889 (up 19% from $2 428)
- Emergency Funds $1 257 (slightly up from $1 256)
- RRSP Accounts $53 732 (up 4% from $51 654)
- Non-Registered Investments $24 141 (up 6.7% from $22 627)
- Home $96 330 (stable)
Liabilities ($63 794, up 0.6% from $63 433)
- Credit Cards $5 104 (up 13% from $4 518)
- Mortgage $58 367 (down 0.4% from $58 618)
- Line of Credit $0 (stable)
Ratios
- Debt / assets: 0.356 (down from 0.363)
- House value / total assets: 0.538 (down from 0.551)
Credit card load was still a little higher this month, as there was some Spring spendings done (including a new BBQ). Nothing that worries me, the amount outstanding on my credit cards should go down substantially by the end of April. I am also transferring some shares from my DRiP portfolio to my TFSA this month. This won't be visible on my net worth, since those are both under my "non-registered accounts" heading. The transfer is for about $6 000, and will shelter about $260 of income from the tax-man. I plan on doing another transfer later in the year to fill up my TFSA room, again from my DRiP portfolio.
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