Today’s dividend: Campbell Soup Company

Here we go … week 2 of the boost-the-portfolio-through-daily-dividends-or-purchases plan. It’s a plan I’m pretty excited about, most because it will keep me consistent with my investments and blogging. No matter what the market does – whether it’s up or down – I’m determined to add value to my portfolio one way or another each and every day the market is open for business.

It’s worked so far.

I earned $6.43 in dividend income last week and, on the days I didn’t earn any dividends, I made a few purchases (1 share of Whirlpool and 10 shares of Ford) to boost my forward annual dividend income by $10.40.

Today, I kept the streak alive with a little of both. I earned a dividend and made a couple small purchases just for fun.

Here’s a look at the dividend:

Campbell Soup Company

Campbell Soup (CPB) paid me a $0.35 dividend for the one share I own. I bought that share about a year ago for $59.92. Since then, well, since then the company hasn’t had a whole lot to brag about … and its share price has reflected that. It’s down to just over $47, which means my position is down about 21%.

Campbell failed to hit its earnings estimates three straight quarters and the EPS has slipped (down 3.19% last quarter verses the same quarter from the previous year). Translation: I obviously didn’t pick the best time to get in.

That said, I hardly regret the purchase. I didn’t have to spend a sentence or two writing about what the Campbell Soup Company does because, aside from the fact the word “soup” is in its name, just about every man, woman and child in this country is familiar with the brand. It also pays a nice dividend, which, as every man, woman and child that regularly reads this blog knows, is something I can’t pass up.

The dividend has only been on the rise for two years, but CPB boosted its payment, which currently sits at an annualized rate of $1.40 a share, by 8.9% last year. The company’s paid a dividend since 1902. I know two years isn’t a great track record for growth, but more than 100 years is one heck of a commitment.

Its current yield (2.96%) and payout ratio (48.95%) are looking good, too.

Considering the company is 26% off its 52-week high of $64.23, now might be as good a time as any to pick up a few shares. It’s probably the buying opportunity I should have waited for in the first place, but, you live and learn, right?

OK, now to those small purchases:

Ford

I’ve been buying all kinds of Ford (F) stock lately. I already mentioned the 10 shares I picked up last week – shares I bought to double my position and average down a bit. When I had the 10-share position, my cost-basis was well north of $12/share. I lowered that to under $12 with the 10 shares at $11.66. Well, with today being the ex-dividend date, the tumble in share price you usually see with dividend-paying stocks came right on schedule. When I saw Ford had slumped another 3% this morning, I couldn’t resist another nibble.

I bought five shares at $11.32 each, lowering my cost-basis even more and adding $3 in forward annual dividend income to my steadily-rising total. The five newly-purchased shares won’t earn me the upcoming quarter’s payment or the special dividend, but they’ll earn me plenty of others down the road.

I now have 25 shares of Ford at an average cost of $11.84.

M.D.C. Holdings, Inc.

I bought a share of M.D.C. Holdings (MDC), my second, for $33.79. I grabbed the other one for $28.73 about a year ago.

Anyway, I picked it up as part of this month’s DIY DRIP, which I’ll elaborate on a bit more in my January portfolio update, which I’ll post Wednesday or Thursday. Essentially, I used the dividends I’ve received this month for the purchase.

MDC, which just boosted its quarterly dividend by 20%, pays an annualized divi of $1.20. That equates to a 3.52% yield and 43.06% payout ratio.

Today’s Final Numbers

Today featured a $0.35 dividend ($24.70 so far this month) and two purchases that boosted by forward annual dividend income by a combined $4 (up to $536.84).

March on!

2 Responses to “Today’s dividend: Campbell Soup Company

  • CanadianPassiveIncome
    4 weeks ago

    Interesting… so every day you dont get a dividend your going to be buying a stock? Cool concept. What about trading fees though?
    Cheers
    Rob

    • Hey thanks! It’s been working out real well for me so far. I don’t have to worry about fees, either. The app I use, Robinhood, is commission free!

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