Dividends, Dividends, Dividends

Earned Any Dividends Lately?

My Dividend portfolio continues to truck along. There was a great article in the WSJ (Dividend Stocks Become the Heroes) about the re-birth of dividend investing. I guess I tend to follow the masses, whether I realize it our not.

I do wonder a bit whether dividend stocks will take a hit if and when Congress changes the way dividends are taxed. If Obama wins re-election, I doubt he will extend that part of the Bush tax cuts. Still, even at a 20% tax rate they will be attractive. In 2011 I earned about $27,000 (not real number, but a factor of real number) via my dividend portfolio and that should push $50,000 in 2011. It is much easier to be blase about the ups and downs of the stock market when the dividends are being paid, as that (at least to me) is a truer value of a stock that Mr Market's whims.

I should get some funds to invest near the end of February. I may look to add several names to my portfolio, but I am generally pleased with the diversification. I am a bit short in utilities (just two Brazilian ones, SBS and CPL) and I do need more bonds (BHK, JQC, CSQ and OIBAX).

As a dividend investor, I love it when a dividend is increased (AXS is the most recent), but I do worry when I have not heard anything lately. My latest worries are STD and SBS.

STD Dividend

STD paid a dividend January 12th last year, but I have heard "nada" yet. Hmm, looking at their website, they do say something was announced November 22nd (Banco Santander, S.A. : Information on Scrip Dividend Scheme). It looks like stock will go x-dividend January 13th. But I am not sure the amount has been announced. You do have the choice of taking receipt either in cash or in shares. The shares are actually "new" shares, so the dividends are diluting current shareholders. However, there is no tax if you take new shares. It is a mite confusing.

SBS Dividend

SBS paid a dividend in December of last year, around $2.10 a share. Their dividend paying tends to be uneven (per MSN: Dec 2010 (2.10), 3/1/10 (0.124), 11/23/09 (0.89) and 5/29/09 (0.55) and delayed (even though they went x-dividend in December last year, I didn't get my shares until July 7th).

So I can't get too excited yet about SBS not making an announcement. They are certainly making money, generally revenues have been about 5% higher than 2010. Still, I'd be happy to hear a hint.

Results

My rate of return since a year ago is about 7.7% and I am now beating the indices and I am much better off than if I had held my MFI stocks (about $6,000 better off). I have been tempted of late to sell PM (just went x-dividend of 77 cents) as they seem to be getting a bit pricey at $78. I did get some positive news from my smallest company (KSW) which announced they have a decent backlog going (driving a 8% pop) into 2012 (KSW, Inc. Awarded Projects Totaling 21.5 Million Dollars). Here are my holdings:

Current Portfolio
Stock	Shares	Avg Cost	Current Price	Dividends Received	Pct Change	R3K Change	Diff
AXS	1,133	33.03	32.57	484	-0.1%	-5.5%	5.3%
AZN	424	47.15	46.22	1,092	3.5%	-1.6%	5.1%
BHK	2,894	12.54	13.65	1,089	11.8%	-5.9%	17.7%
CEL	1,497	26.04	16.85	5,112	-22.2%	14.8%	-37.0%
CPL	1,000	22.67	28.39	-	25.2%	9.3%	15.9%
CSCO	1,801	16.74	18.49	196	11.1%	-4.2%	15.3%
CSQ	5,034	8.16	8.43	941	5.7%	9.2%	-3.5%
DD	500	43.78	46.05	-	5.2%	0.4%	4.8%
FCX	500	36.00	38.28	-	6.3%	5.8%	0.6%
HPQ	804	25.79	25.80	96	0.5%	5.8%	-5.3%
INTC	1,271	19.58	24.37	997	28.5%	10.4%	18.1%
JQC	4,483	8.85	8.09	1,598	-4.5%	-3.4%	-1.2%
KMF	1,731	21.63	24.69	607	15.8%	5.6%	10.2%
KSW	13,048	3.76	3.35	4,023	-2.7%	8.3%	-11.0%
LNC	2,415	24.33	19.62	400	-18.7%	3.3%	-22.0%
MNDO	13,678	2.48	1.91	2,400	-15.8%	-1.4%	-14.4%
MSFT	947	26.75	25.99	576	-0.6%	2.8%	-3.4%
PM	436	45.63	78.54	1,614	80.2%	17.6%	62.6%
PRE	505	56.34	64.28	300	15.1%	4.6%	10.5%
PVD	397	63.26	65.43	698	6.2%	5.6%	0.6%
RTN	454	46.81	48.30	216	4.2%	-4.8%	9.0%
SBS	1,035	39.34	55.40	2,390	46.7%	10.2%	36.5%
SLF	2,732	27.26	18.12	1,805	-31.1%	-2.3%	-28.7%
STD	6,090	9.62	7.55	3,460	-15.6%	2.1%	-17.7%
STO	1,000	23.86	25.66	-	7.5%	7.0%	0.6%
UNTD	3,397	5.86	5.65	1,897	5.9%	15.7%	-9.8%
USB	2,099	21.96	27.40	739	26.4%	8.0%	18.4%
VR	1,925	29.44	31.41	1,742	9.8%	-3.5%	13.3%
WBK	490	105.76	104.25	3,636	5.6%	3.4%	2.2%
Total Open				38,108	3.6%	3.4%	0.2%
Closed					12.5%	7.9%	4.6%
Combined					7.8%	5.5%	2.3%
IRR Since 12/31/10					7.7%
Estimated Dividends for Next year
Stock	Shares	Ann Dividend / Share	Yield	Projected Dividend	Sector
AXS	1,133	$ 0.96	2.9%	1,088	Insurance
AZN	424	$ 2.40	5.2%	1,018	Pharma
BHK	2,894	$ 0.80	5.9%	2,327	Bond
CEL	1,497	$ 2.05	12.2%	3,068	Utility
CPL	1,000	$ 1.27	4.5%	1,270	Utility
CSCO	1,801	$ 0.24	1.3%	432	Tech
CSQ	5,034	$ 0.63	7.5%	3,172	Hybrid
DD	500	$ 1.64	3.6%	820	Chemicals
FCX	500	$ 1.00	2.6%	500	Basic Resources
HPQ	804	$ 0.48	1.9%	386	Tech
INTC	1,271	$ 0.84	3.4%	1,067	Tech
JQC	4,483	$ 0.80	9.9%	3,587	Hybrid
KMF	1,731	$ 1.60	6.5%	2,770	Pipelines
KSW	13,048	$ 0.15	4.5%	1,957	Construction
LNC	2,415	$ 0.32	1.6%	773	Insurance
MNDO	13,678	$ 0.20	10.5%	2,736	Tech
MSFT	947	$ 0.80	3.1%	757	Tech
PM	436	$ 3.08	3.9%	1,343	Consumer
PRE	505	$ 2.40	3.7%	1,211	Insurance
PVD	397	$ 3.70	5.7%	1,470	Finance
RTN	454	$ 1.72	3.6%	782	Defense
SBS	1,035	$ 2.39	4.3%	2,473	Utility
SLF	2,732	$ 1.46	8.1%	3,989	Insurance
STD	6,090	$ 0.78	10.3%	4,750	Finance
STO	1,000	$ 0.94	3.7%	940	Basic Resources
UNTD	3,397	$ 0.40	7.1%	1,359	Consumer
USB	2,099	$ 0.50	1.8%	1,050	Finance
VR	1,925	$ 1.00	3.2%	1,925	Insurance
Total			5.1%	49,017
Upcoming Dividends
Stock	Shares	x Date	Div/Share	Est New Shares	Amount
SBS	1,035	12/28/11	$ 1.71	31.0	1,770
AXS	1,133	12/28/11	$ 0.24	8.0	272
USB	2,099	12/29/11	$ 0.13	9.0	262
RTN	454	12/30/11	$ 0.43	4.0	195
CEL	1,497	1/3/12	$ 0.51	45.0	763
CSCO	1,801	1/5/12	$ 0.06	5.0	108
CSQ	5,034	1/8/12	$ 0.05	31.0	264
BHK	2,894	1/12/12	$ 0.07	14.0	194
FCX	500	1/12/12	$ 0.25	3.0	125
STD	6,090	1/15/12	$ 0.17	139.0	1,054
KMF	1,731	1/17/12	$ 0.41	28.0	710