Spring is in full bloom here in Michigan (Not, It's still 29 and snowy) and it's been a rough start to the month in terms of extra cash for investments and the stock market. I've had a lot of extra expenditures this month in relation to the purchasing a second home and also with a roommate moving out. It has definitely taken a toll on my Independence Fund and I was going through a mini rut because I wasn't able to invest any money into the market as of late.
It has been a rough time for me trying to come up with extra money to invest but I was finally able to get some extra funds together and make a rather sizable purchase before the Ex- Dividend date on a current favorite company I already hold. That company is New Residential Investment Corp or NRZ. I've slowly been building up my position in NRZ and I've been very happy with the current performance and stability even despite the current market down trend we have experienced. The company has down extremely well in previous quarters and with the rise in interest rates I expect this trend to continue and even exceed investor expectations.
The company also is sporting some impressive dividend growth metrics. The current share price is offering a 12.25% dividend yield, 4 year of consecutive raise history, EPS growth of 49%, revenue of 2.15B with a revenue growth of 81% and a payout ratio of 63%! That last statistic has to blow someones mind right? I know it did for me. The company is offering a 12% yield and only has a 63% payout ratio!? It's hard to find gems like this in the market and I definitely will be loading up on it. Oh, and did I mention the company has only been around since 2011?
I added 96 shares of NRZ on Monday at a price of $16.41 which added $192 in annual expected dividend income. With this latest addition my dividend income is at $3023.38 and has broken a huge milestone of crossing the $3k Mark!! This was a rather large investment into a high yield company but I have had this investment for 5 months now and it has been super stable and has provided me with a generous dividend while I wait. I don't think I'll be adding anymore to my position anytime soon despite dividend reinvesting since I'm happy with it being 4.5% of my holding composition.
After this most recent addition I'm going to be making it an effort to really focus on strong Dividend growth funds. I have been doing a lot of portfolio analysis and I feel that a re-balance is in order and I want to make a shift towards some lower yield companies that offer 5 year double digit dividend growth rates. A company that comes to mind for me is MMM. This is an astonishing dividend king that has a 3 year DGR of 11.2%! It really makes me thing about things when I compare T's 5.2% yield but paltry 2% increase or even better, looking at WMT who has a 2% growth rate for the past 3 years.
I'm going to be doing some deep thinking about my current portfolio mix and I'll be sure to share what Moves I make once I determine the best course of action to take.