Recent Dividend Announcements


I had 2 announcements come my way last week for stocks in my taxed portfolio. The first was from AGNC - American capital Agency Corp announcing the quarterly dividend will be remaining at $.65/share. The second was by Windstream Holdings. They also maintained their dividend of $.25/share.
AGNC is a real estate investment trust investing primarily in agency mortgage-backed securities. Because it is a REIT it is paying a high yield of 11.77%. It has been maintaining this since the cut in September of 2013. It has only been cutting the dividend so I do not see good things in the future. I bought this in my early days of investing and was only chasing yield at the time. Needless to say it has grown at all for me and the stock price has remained the same. I only have a few shares so I will reevaluate this if the dividend ever gets cut.
Windstream Holdings (WIN) is my largest position in my taxed portfolio. It's current yield (8.9%)is a little bit lower than AGNC but still pretty high (especially since it is not a REIT or MLP). This should have been a warning as well but like AGNC I bought into it when I was not knowledgeable on dividend investing. I have written about Windstream before so read that for more information I have gathered on them. They have been sitting at $.25/share since 2006 and their stock has improved recently. Some of it from there split announcement and some because the utility industry has performed well this year. This one I am watching closes and will be reevaluating during my yearly checkup as my portfolio is to heavily weighted on this guy.
Full Disclosure: Long on AGNC and WIN.
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Comments

  1. Dividend LifeSeptember 29, 2014 at 11:58 PM

    Hi DFG,

    Certainly some nice yields there!
    When you say WIN is over-weighted in your portfolio, what percentage is it at? And do you have a particular target percentage?

    Best wishes,
    -DL

    ReplyDelete
    Replies
    1. Dividend Family GuyOctober 1, 2014 at 12:25 PM

      Sorry for the late reply. Your comments sometimes go to SPAM for some reason. WIN is 38% of my taxed portfolio as of today. I have really defined any target for each sector yet. 38% just seems not well diversified for me. The dividends are nice though.

      Delete
  2. Dividend LifeOctober 3, 2014 at 6:43 AM

    Hi DFG,
    Ha, maybe there's more intelligence to the blogging software than we thought and my replies deserve to go into spam! ;) I'm not able to use my usual wordpress blog ID when I write comments on your blog so I end up writing name/url each time.

    As you add to other positions, you'll gradually reduce the 38%; I guess there's almost no risk of the company going bankrupt or stopping dividends in the shorter term so maybe buying other positions over time is sufficient to re-balance it.

    ReplyDelete
    Replies
    1. Dividend Family GuyOctober 3, 2014 at 12:43 PM

      I agree and that is my current strategy. Feed off of this high income to grow diversity in my portfolio. it wil shrink over time as the companies with a higher dividend growth rate overtake it in 10-15 years.

      Delete

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This webpage is provided for general information only and nothing contained in the material constitutes a recommendation for the purchase or sale of any security. If you have any questions please feel free to contact me at dividendfamilyguy at gmail dot com.