Dividend Diplomats

About the Author Dividend Diplomats

We are the Dividend Diplomats. Two guys in their Mid-20’s in a race to gain more time now before we hit 59.5 years of age for the “normal” retirement age. You can see our goals at the linked page. The Dividend Diplomat journey began in a 1997 Toyota Celica that was struggling over the 200,000 mile mark on our way to Clearfield, PA… One individual had over $1.5K in projected dividend income and the other had more money in his pocket than projected dividends in his portfolio, and let’s just say – most people don’t hold that much cash, if you catch my drift. This is when the journey truly began, a nice 3.5 hour conversation from two CPAs in a beater of a car talking about breaking free from the chains of working as a CPA. We both were fired up, eagerly talking investing strategies and that is when the one Diplomat began his preaching on the Dividend Investing topic and how it takes the nonsense out of the ridiculous world of investing and suddenly made it very clear on the strategy to truly build a cash flowing, incoming thriving portfolio. Here is where we will describe who we are in a short brief as well as a longer story from where we have come from and where we are about to go. Thank you for visiting our site, as we update you on or purchases, stock analysis’, goal status, portfolio updates and, of course – our dividend income monthly breakdowns. Let’s all try to learn and push each other to new lengths to fully reach financial independence, here we go!

Why Now Is The Time to Add Shares in Procter & Gamble Co (PG)

It didn’t take too much arm twisting to convince me to add to my stake in Procter & Gamble Co (NYSE:PG) this week, especially after my colleague Lenny took the first step, backed up his talk, and purchased 10.1 additional shares of the company earlier in the month.  I promptly followed his lead, purchasing more PG shares.

On Tuesday, I purchased 20 shares of PG, adding $53.52 in annual dividend income to my portfolio.  With this purchase, I now own 51.4982 shares of the consumer stock giant that will produce $137.91 in annual dividend income to my portfolio.  This is my first purchase of the 2017 and the first time I have stepped off the sidelines since I initiated a position in Realty Income in November 2016.  Why did I purchase 20 more shares of PG?

Let’s take a closer look:

  • We all know this market has been hot lately and the S&P 500’s P/E Ratio is at a level I personally have never seen before.  With few values out there, one of the industries I have found some value compared to the market is the Consumer Goods market.  PG’s P/E ratio may not be low by any standards, it is below the current market place, which means that it passes Screener #1 of the Dividend Diplomats Stock Screener.
  • I love the fact that PG is a Dividend Aristocrat.  Lanny and I have been talking a lot about how there have been many companies with stagnant dividend growth rate.  PG’s dividend growth rate of late isn’t going to set any records, but I like the fact that the company still continues to increase their dividend.  I’m hoping for a larger increase in April and I cannot wait to see what they have in store for us.
  • I was not happy with the size of my position and I wanted to increase my stake in this stock.  We talk often how this is one of our five foundation dividends stocks for a portfolio.  I’ve been trying to build less larger positions recently versus more small positions recently.  While I’m not quite doubling my position in PG, I will not own over $4,300 in the company and PG will be the third largest individual stock holding in my portfolio.  We call it a foundation stock, so I wanted to make it such in my portfolio.  Two of the other contenders for this purchase were Kimberly Clark Corp (NYSE:KMB) and Unilever plc (ADR) (NYSE:UL).  However, with this mindset, I opted to increase one position by adding to PG versus holding two smaller positions.  I’ll hopefully initiate a position in both companies one day too when I can make one massive purchase.
  • I was able to buy this stock right before the ex-dividend date to ensure that I am going to receive a dividend on this purchase.  So I won’t even have to wait one month to get my first dividend check.  This point played a major role in the timing of my purchase and I may have waited a little longer if it weren’t for the rapidly approaching ex-dividend date.

Overall, I hope this provides some insight into why I decided to purchase PG at this time.  At the end of it all, I just want to continue building positions in amazing companies that continue to grow their dividend income on an annual basis.  I’m going to try not to over-think investing in 2017 as I look to accomplish my goals and take the no-brainer investment decisions while they are right in front of me.  To me, adding to PG this month was that kind of a decision.

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