Today’s Dividend: $0.35 from Discover Financial Services (DFS)

After what seemed like an eternity – six whole days – I finally received another dividend. Today’s was my 10th of the month, bringing my December haul to $6.17 and my 2017 mark to $323.72.

You can find a post about the other nine payments, all of which came on the first day of the month, here.

Considering this is my first year receiving dividends, I’m thrilled with the $300-plus I’ve managed to pull in so far. Some of the payments were bigger than the one I received today and some were smaller. They were all small in the grander scheme of things – I don’t have anything even close to a massive position yet – but they were consistent.

That’s the key.

In case you’re wondering, my top holding is Cisco (CSCO). I own 16 shares worth a combined $598.40.

Anyway, here’s a closer look at today’s dividend …

Today’s Dividend

Discover Financial Services (DFS): Discover Financial Services passed along a $0.35 dividend for the one share I own.

It’s been a slow climb to $73.45, which is where the stock was when the market closed for the day. I bought my share for $68.66 back in February, so I’m up a modest $4.79 (6.98%).

The dividend growth, though … that’s a different story.

Discover’s last two payments, including today’s, were for $0.35/share. The one before that was for $0.30/share. That’s a more than 16% raise, people. DFS, which has been nice enough to raise its dividend for six consecutive years, boosted its payout by an average of 29.24% a year over the course of the last five. That number has shrunk a bit recently, but, with a payout ratio of just 22%, the company could easily announce another big raise here in the near future.

Its $1.40 annualized dividend currently represents a yield of around 2%.

Growth stories gets all the headlines, but stocks like DFS are doing just fine in the background. With earnings per share (EPS) of $5.80 and a PE ratio of 12.67, it looks like a good value, too. Don’t sleep on DFS.

March on!

 

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