Six months ago in September 2011, several dividend bloggers created a Dividend Growth Index of 24 companies. Eight members each chose three investments.
My three picks were Walmart (WMT), Novartis (NVS), and Energy Transfer Equity (ETE).
In the last 6 months, Walmart is up from around $52 to over $60 and has paid out over $0.75 worth of dividends in the period. Novartis has been flat, although a nice dividend of over 4% has been received, which is paid out annually. Energy Transfer Equity has gone up from under $35 to over $41, while also paying out $1.25 in distributions along the way.
There aren’t many updates on my three picks. Dividend growth investing, at its best, is like watching paint dry. “No news” is good news. That being said, ETE completed its merger with Southern Union, which diversifies their assets and income, is particularly good for their MLP structure, and is one of the reasons why I picked them. So that’s good news.
It should be cautioned that much of the price appreciation in these picks was due to an increase in the general market. Based on metrics like Capitalization/GDP and the Shiller P/E, the market is moderately overvalued compared to its historic average. Caution and prudent valuation methodology is advised for current stock picks.
Here are links to the other members in the Dividend Growth Index, so you can see how their stocks are doing.
Full Disclosure: I am long ETE and NVS. You can see my dividend portfolio here.
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