Back in mid-July when Mattel (MAT) had its second straight quarter of disappointing results, the stock had dropped by $2.57 per share (6.5%). I remained hopeful the company would bounce back, but the price continued to slide and the reports I read didn't have a lot of positive things to say about Mattel's chances. When the price dropped almost another $2.00 over the course of a month, I knew it was time to sell.
In the meantime, I did some research and thought I found the perfect stock to replace MAT. Cedar Fair Entertainment Company (FUN - see what I did there in the post title??) was a company that owned and operated a variety of amusement parks, including Valley Fair in Minnesota. The stock price was a little higher than MAT, but the dividend was $.70 per share. I could easily purchase enough shares to get more than one reinvested share per quarter and increase my annual dividend payments.
I logged onto the former Sharebuilder site (now owned by Capital One) and sold my stake in Mattel. When I tried to execute my trade for FUN, I received a message that Sharebuilder does not allowed trades for Limited Partnerships, which Cedar Fair is. I was forced to go with my second choice, Connecticut Water Service (CTWS). The stock price was about equal to MAT, but the dividend was about a third less. I had more confidence in utilities with the success I've been experiencing with Xcel Energy (XEL) and I liked the tie-in to my childhood home. Since I waited until after the ex-dividend date to sell, I will get the MAT payout along with the CTWS payout in September.
In other news with my portfolio, Waste Management (WM) continues to become more profitable, so much so that the price has outgrown my dividend rate to get a full reinvested share per quarter. In the past, I have sold my stakes in stocks that didn't give me a full share, but I want to take a different approach now. The total value of my Kraft Foods Group (KRFT) stock would allow me to get back into Paychex (PAYX) at a level in line with my growth strategy as well as invest in shares of RR Donnelley (RRD) and increase my stake in Waste Management. This will accomplish three things for me: 1.) Get the full reinvested share with WM every quarter; 2.) increase my annual dividend payments; and 3.) bring to eleven the total number of stocks in my portfolio. I just need to wait until after the ex-dividend date of 10/9/2014 for KRFT before selling and I get its dividend payment.
Here are the results of my current stocks as of 09/05/2014:
First Month of Quarter Payers
B&G Foods (BGS)
Profit/Loss Per Share: +$4.90
Annual Reinvested Shares Pace: 5.75
Kraft (KRFT)
Profit/Loss Per Share: +$2.60
Annual Reinvested Shares Pace: 4.50
Xcel Energy (XEL)
Profit/Loss Per Share: +$6.31
Annual Reinvested Shares Pace: 5.25
- Reached new 52 week high price and profit level
Crown Crafts (CRWS)
Profit/Loss Per Share: -$0.06
Annual Reinvested Share Pace: 7.00
Second Month of Quarter Payers
PetMed Express (PETS)
Profit/Loss Per Share: +$0.89
Annual Reinvested Shares Pace: 18.75
- Reached new profit level
NutriSystem (NTRI)
Profit/Loss Per Share: +$4.05
Annual Reinvested Shares Pace: 10.00
AT&T (T)
Profit/Loss Per Share: -$0.14
Annual Reinvested Shares Pace: 5.00
Third Month of Quarter Payers
Rocky Mountain Chocolate Factory (RMCF)
Profit/Loss Per Share: +$1.34
Annual Reinvested Shares Pace: 4.25
Connecticut Water Service (CTWS)
Profit/Loss Per Share: +$0.23
Annual Reinvested Shares Pace: 4.25
Waste Management (WM)
Profit/Loss Per Share: +$14.01
Annual Reinvested Shares Pace: 3.75
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