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Dividend Investing

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Annual Dividend Income Update 2021

by Yoda January 1, 2023

Dividend investing for me is a long-term strategy. I like to buy great companies at good value based on historical metrics, dividend safety & future prospects. Hold them for a long time, re-invest dividends and wait for compounding to do its magic. I am a bit late at this update. 2021 year end was a pretty busy time for me personally and professionally. Here is my dividend income update for the year 2021 & what I did with my portfolio.

Dividend Income Update 2021

I made 3829 USD from my positions in 2020! It came from the following stocks:

This represents a 24% increase in dividends from 2020. Here is a percentage breakdown of dividends from all stocks in my portfolio.

One of my aims last year end was to reduce my reliance on dividend from NATI, MO & T. However, I am still getting over 45% of the total dividends from these 3 companies at end of 2021. I will have to work hard on reducing this in 2022.

If you are interested in these graphs and charts, please check out my post on how to create your own google sheet to track your portfolio across multiple accounts and create such graphs and chart.

My Buys in 2021

2021 was a pretty crazy year. Many stocks were at all time highs. We saw crazy evaluations for companies making no profit whatsoever. I did not initiate any new positions this year. All I did during the year was adding to my existing positions when I saw value.

My Sells in 2021

Nothing. Nada. This is exactly how I like it. No rotations, no sells. Just holding long term.

Performance for the year 2021

Overall I ended the year at 19% gain as compared to 25% in VTI and 26% in S&P 500. This cancels out my outperformance over the last couple of years. I am still pretty happy with the dividend income growth as well as the performance of the portfolio.

Here is a neat timeline of dividends thrown by my DGI portfolio over the last few years which shows compounding of dividend income in action.

Plans for 2022

My first goal is to reduce the percentage of dividends from NATI, MO & T by buying more of other reliable dividend stocks. Another goal of mine is to increase the total dividends by another 25% in 2022. I am also planning on consistently buying more VTI. As I have said before index investing is really my favorite type of investing and it also gives dividends.

Dividends stocks do come with some risk, but with precautions you can avoid the risky one’s and choose the best dividend paying/growing stocks for your portfolio. I prepared a guide where I discuss some key ratios, fundamentals, some important resources to look at while deciding to buy a dividend stock. Also find out how to get free access to Morningstar, Value Line, workaround paywall behind popular news sites like Seeking Alpha etc. Consider signing up for free instant access to the pdf version of the insights into dividend investing.

January 1, 2023 0 comment

Dividend Investing

DGI Portfolio Updates

by Yoda January 10, 2021

I have been tracking my Dividend Growth Investing (DGI) portfolio for 3 years now & publishing since 2. I check up on my portfolio once every quarter. I wanted to present it in a way that is easy to understand and helps look at the benefits of dividend investing over the long term. Presenting a timeline of dividends my DGI portfolio kicks every quarter.

January 1, 2023

Annual Dividend Income Update 2021

3829$ in 2021 dividend income! Performance against S&P 500 & my plans for 2022 in…

January 1, 2023

January 10, 2021

Annual Dividend Income Update 2020

3085$ in 2020 dividend income! Performance against S&P 500 & my plans for 2021 in…

January 10, 2021

October 3, 2020

Quarterly Dividend Update: Q3 2020

753$ in Q3 2020 quarterly dividend income & No Sells! Check out any new stocks…

October 3, 2020

July 5, 2020

Quarterly Dividend Update: Q2 2020

727$ in Q2 2020 quarterly dividend income! Check out stocks I bought or any sells…

July 5, 2020

March 31, 2020

Quarterly Dividend Update: Q1 2020

706$ in Q1 2020 quarterly dividend income. Check out stocks I bought or any sells…

March 31, 2020

January 26, 2020

Annual Dividend Income Update 2019

2103$ for 2019 dividend with 586.06 in Q4 2019. Performance against S&P 500 & my…

January 26, 2020

October 1, 2019

Quarterly Dividend Update: Q3 2019

585$ in Q3 2019 quarterly dividend income. Check out stocks I bought or any sells…

October 1, 2019

Feel free to click on any event on the timeline to read more details about that quarter. I also created a month over month dividends over time graph. It helps me visualize compounding effect of my DGI portfolio. You can see how dividends have increased every month over month, every year like clockwork!

Here is the latest sector breakdown of my DGI portfolio holdings at end of 2020:

Check out how you can create your own dividend tracking google sheet with graphs and charts shown here.

January 10, 2021 0 comment

Dividend Investing

Annual Dividend Income Update 2020

by Yoda January 10, 2021

Dividend investing for me is a long-term strategy. I like to buy great companies at good value based on historical metrics, dividend safety & future prospects. Hold them for a long time, re-invest dividends and wait for compounding to do its magic. 2020 was a crazy year! Market saw a 33% drop in March. Followed by a rally which saw S&P 500 return 18% for the year 2020. We saw so many stocks double or triple in space of 9 months! It is very difficult to keep on your dividends path when you see high growth/speculative stocks triple in 9 months. Here is my dividend income update for the year 2020 & what I did with my portfolio.

Dividend Income Update 2020

I made 3085 USD from my positions in 2020! It came from the following stocks:

This represents a 46% increase in dividends from 2019. Here is a percentage breakdown of dividends from all stocks in my portfolio.

As you can see, 3 stocks (NATI, T & MO) made up about 45% of my dividends in 2020. Even when I did my 2019 dividend income update, these 3 stocks did make about 45-47% of dividends that year. I have had the goal to bring down this percentage, however good value at various times throughout the year forced me to keep buying some of these stocks and so the percentage of their contributions remains the same.

If you are interested in these graphs and charts, please check out my post on how to create your own google sheet to track your portfolio across multiple accounts and create such graphs and chart.

My Buys in 2020

As I mentioned earlier it is very difficult to keep on your path when you see stocks doubling or tripling in a 9 month period. You always want to jump on the bandwagon in such cases but resisting is very hard. Keeping this in mind, I only bought INTC (Intel), MNR (Monmouth Real Estate) & HON (Honeywell) as new positions during the year. All were bought at good valuations as compared to their history. I wish to keep adding to these companies in future & I have no doubt they will help me grow my dividend portfolio.

Apart from the new positions, I kept adding new money to most of my existing positions through out the year except for TGT, QCOM, XOM, PEP, LW & BLK. All stocks did have dividends reinvested into them.

I also had the opportunity to keep adding to my VTI position which was a goal of mine at beginning of 2020.

My Sells in 2020

I sold out of GIS & TROW early in the year. They were relatively small positions in my portfolio & I wanted to focus on higher dividend growth rate companies and wanted to focus on lesser positions.

Apart from this, I also sold a bit of NATI, KTB to reduce position sizes whenever they got bigger than what I want them to be.

Dividend Cuts/Suspensions

Pandemic created havoc on people & businesses through most of 2020. It is natural to expect some of the companies to cut their dividends and come under a lot of un-natural stress. It doesn’t mean we cut those companies from our portfolio. I did have Disney Inc. (DIS) & KTB (Kontoor Brands) who cut their dividends in 2020. But I held on to both of them. Bought more of them at various price points. I am happy to report that both have more than doubled from my lowest purchase point during the year. KTB even brought back its dividend albeit at a lower level.

Not only this, but I also started selling covered calls for income on my KTB position which helped me make about 130$ on my position despite them paying dividends for only 2 quarters in 2020.

Performance for the year 2020

I ended the year at 22% as compared 18% from S&P 500 across my roth and traditional brokerage accounts. I did have a few non dividend income paying stocks that also helped me to beat S&P in those accounts. But point is by being consistent, having less rotation, mostly buying and holding & investing in great quality dividend paying companies it is possible to come out ahead and also create a good income stream.
Here is a neat timeline of dividends thrown by my DGI portfolio over the last few years which shows compounding of dividend income in action.

Plans for 2021

Buy more dividend growth stocks in our roth accounts. Currently, I get 45% dividends from 3 stocks in my portfolio. I will try to increase my existing positions in some holdings. I am also planning on consistently buying more VTI. As I have said before index investing is really my favorite type of investing and it also gives dividends. I also plan to start creating such reports only annually instead of a quarterly cadence before. I want to focus more on bringing quality content to this blog. Have more articles on investing philosophy, concepts and less on just stock ideas or my portfolio details. Hoping this becomes more useful to you in the long run.

How was 2020 for your portfolio? Please let me know in the comments.

January 10, 2021 0 comment

Dividend Investing Investing

How to make a dividend tracking spreadsheet

by Yoda December 11, 2020

I am sure you would agree when I say tracking your dividends and portfolio performance is one of the most challenging aspects of dividend investing. Most excel formulas work for few months before having issues with data providers leaving you helpless.

What if we get the data directly from the source? IEX is an exchange that provides an Application Programming Interface(api) to get dividend data for free and reliably.

In this blog post we will make use of a google sheets, latest IEX cloud api and google finance api to create your own dividend tracking sheet.

So head over to google sheets and start a new sheet to follow along.

Just give me your version of dividend tracking spreadsheet

FYI if you do not want to go through the whole process of creating a new sheet from scratch, adding formulas, formatting it etc, you can just go to the last section and download my own google sheet. Then you can use it to do dividend tracking of your own portfolio. For other’s who want to be more adventurous, please follow along.

Stock Data sheet

Let’s first work on the Stock Data sheet, this sheet will have info like stock ticker, current price, current yield, yield on cost, quantity you own, etc. So, on the top row, let’s have these headers on a new google sheet: (I added things like Ticker, Name, Quote, Avg Cost per Share, Cost Basis, Dividend Yield, Dividend income, PE ratio, eps etc.)

Our next step is to get data populated in this sheet. in order to do so, we will make use of google finance function in sheets. Basically syntax for getting anything from google finance function is:

GOOGLEFINANCE(ticker, [attribute], [start_date], [end_date|num_days], [interval])

So, the ticker name is mandatory and after that you can have 1 or more attributes.

Going back to our sheet, you need to populate the column A with ticker of your stock. To populate its name, you can use =GOOGLEFINANCE(A2,”name”) under B2 shown below

Similarly, you can use formulas like given below to get other details about the respective stock:

Function & Syntax	Description
=googlefinance(A2,”price”)	To get the latest price
=googlefinance(A2,”pe”)	To get the Price earnings ratio
=googlefinance(A2,”eps”)	To get the earnings per share
=googlefinance(A2,”high52″)	To get 52 week high price
=googlefinance(A2,”low52″)	To get 52 week low price
=googlefinance(A2,”marketcap”)	To get market cap of the stock

After I fill some of these values for my first row, I get the following:

When it comes to quantity purchased, avg cost basis per share, total cost basis, those depend from person to person and these values can easily be obtained from your brokerage account. After you get those you can very easily fill the following using formulas mentioned here:

Column in Excel Formula

Market Value =C2*D2

Change $ =G2-F2

Change % =(H2/F2)*100

After that, our sheet looks something like this:
Now coming to dividends, I have observed Google’s function is not that great. Its hit or miss. Sometimes it shows dividends sometimes it doesn’t. However, I found another api we can use to get the data related to dividend columns which is more reliable than Google’s api. Its called IEX cloud API. Up until mid June 2019 they used to allow to get the dividend data for free without any registration. But now they require you to register and get an api key.
So, lets try to do that. Head over to the IEX Cloud registration page and create account.
Next choose the START plan which is free. It provides 500K requests to the API every month which is more than enough for a pretty big portfolio. Even if you request to get data from it multiple times a day every day for the whole month.
Verify your account from your email and then login to the iex cloud api account. After verification, log on and from the home page of iex cloud api account, head over to API Tokens section as shown:
Under the API Tokens section you will find your key which you can use in google sheets. Copy the publishable token as shown using the copy button. Now here I have 2 options to get dividend amount into your sheet:

Current Dividend (Easy to setup)

In this method, you will need to copy this code and paste it into the script editor of your google sheet as shown:

Once you do this, you are mostly done. The formula to use this script in a cell to get the dividend amount is:

=if(isblank(A11),,GETDIVIDEND2($A11,”xxxx”))

Again, you will need to replace the xxxx with your personalized api key from the last step. A11 will be the field of the ticker you are trying to get dividend info for. This should get you the current dividend for most US listed stocks. For e.g. for AAPL this will return the current latest dividend. I wrote a function that uses your key to get the dividend from IEX cloud api. Then use that and the dividend frequency to get the annual dividend amount.

Sometimes a company has just announced the most recent raise and not paid it out. In such cases, IEX returns the trailing 12 month dividend. For some stocks like BUD which pays out twice a year and has payouts where one is larger and next is smaller, this might not work. For these 2 use cases, you can take a look at the next method. Please let me know if you come across any other stocks for which this script fails below in comments. I will try and improve the script code to account for any issues you may notice. This particular formula usage is shown in line 2-4 of my sheet if you download it. Do remember to replace the xxxx with your API Key, since IEX no longer allows users to share the same key to get this data.

Current Dividend using Scraping (Easiest)

So in this method, we will just use the IMPORTHTML function google provides. We will then get the dividend paid out annually from a finance website and populate it in appropriate column as shown. We use the following formula in this approach:

=SUBSTITUTE(index(IMPORTHTML(“http://finviz.com/quote.ashx?t=”&A4,”table”, 8),7,2),”*”,””)

sometimes the formula doesn’t get copied properly. So try to enter this formula manually in your google sheet.

where A4 has the ticker of the stock. I have used this in the row 6 of my google sheet provided. You may use this method whenever the first one fails(like in case of stocks like BUD). This method also gets the latest forward looking dividend yield just like the last one. You can use any of the two methods for any number of rows in your google sheet depending on what works or doesn’t.

With the information about dividend per share, you can easily get information about columns on dividends as follows:

Column Formula

Annual Div Income =D2*J2

Yield on Cost =(K2/F2) format as percent

Annual Yield =(J2/C2) format as percent
In addition to this, I have 2 columns that I added at the end, Actual Shares Purchased & Actual Cost Basis. These are completely optional and will be used to calculate your real returns on original investment. So, if you do DRIP, this will be very helpful. These columns must be filled manually, and you need to go to your brokerage website to find this info. For instance, I have some WFC stock which I bought 3-4 years back and turned DRIP on. Now last year I bought some more WFC stock out of my own pocket so my WFC holdings in my broker account look like this:So, what I know is all my DRIP transactions are anything with fractional shares in quantity column and my whole number quantity transactions are made with actual out of pocket money. Therefore, I just add up the quantity columns for whole numbers to get the Actual Shares Purchased column. I add up the cost basis for those transactions to get my entry for the Actual Cost Basis column. Important thing to remember is you must update these 2 columns any time you increase position in a stock with actual money or sell some of your positions. Those transactions will affect values in these 2 columns. When you buy any new stock, value will be easy to calculate first time. It should be same as D(quantity) and F(Cost basis). So, ideally you shouldn’t be trading much and this update will be very rare.
And now, our first row is completely done:
Now, in order to add new stocks, your work keeps getting smaller and easier. For instance, let’s add some tickers like BLK, DIS, MO, PSX,SO,QCOM, VFC, ZBH etc.
After adding the tickers from your portfolio, all you need to do is drag down from bottom right of the cell of first row in a column. That will basically call the same formula for that column for all your tickers. I have highlighted the columns for which you can do this. After doing it for all these columns here is what we get:
Now enter information in columns D, E, F, P,Q and R in that order. Rest of the columns you can again drag down as show in previous screenshot. So now we are starting to get all of our data in the stockdata sheet.
Now, lets add some totals and calculate returns and format the table to get some colors in:Notice how the return incl. dividends is a tad bit higher mostly because of some highlighted rows where I assumed, I bought some shares after receiving dividends using DRIP. Please also note these are just numbers I made up, they might not be factually correct, but this is just to give an example of how you can use the last 2 columns in the sheet. This is the end to the stockdata sheet for our dividend tracking.

Pie Chart showing your Sector allocation

Now that our stockdata sheet is ready lets do some graphs. Let’s say you want to be aware of which sectors you are allocated into and how much of your total portfolio.

Lets add a new sheet called sectorallocation and add the sectors you want to track as shown:
Now, under the percentage column, in order to get the correct allocation we are going to add this formula for utilities := ((SUMIF(StockData!P2:P12,”Utilities”,StockData!G2:G12))/StockData!G13)*100
What it will do is, see the sectors we assigned in our main stockdata sheet for any of the rows say Utilities, if so add the values in those rows up and divide by the total value to get the percentage allocated to that sector. Similarly, do this for all the other rows. You can copy the formula, but you will need to replace the Utilities with the sector of the row. So, we get this:
Now, lets add a pie chart to the sheet and add your data ranges from A2:A11,B2:B11. After that, we get the following:
At the end you get a pretty nice pie chart showing your allocation in different sectors. This can help you be aware in what sectors you are more exposed and if you decide to buy a new stock, you can see what sector you are very less exposed to and maybe look at a company there.

Monthly dividend tracking sheet

So far, we created our stockdata sheet which shows our yield on cost, annual dividends, return with and without dividends etc. Our sectorallocation sheet shows how much or less are you exposed to various sectors. In addition to these, let’s create a sheet to track our monthly dividends. This sheet will help us to create more data and understand our monthly cash flows from dividends. It can also eventually allow you to plot your dividend gains over few years/months of investing. You can see yourself on your way to living off dividends.

To do this, add a new sheet and enter the columns as shown till December:Now for the first 2 columns, get the data from your StockData sheets and populate them. Once that’s done, now you need to manually fill in what dividends you got every month from different stocks. This process can be a bit time consuming. Although, you should be able to get all the data from your broker. On my broker’s website, I just login and go to the transactions screen. Then filter to only show dividend transactions. This allows me to go through a few months of transactions at a time and fill this sheet quickly. In addition, we can also enter information for 2018 and previous years if possible, in new sheets. However, this depends on if you can get the data from your broker for previous years. Then using that data, we can add some YOY(Year Over Year) percentage increases for your dividend stocks as shown:
Now, this gives you better idea of how fast your dividend is growing every month. You can even play around with some extra rows and add Year end increase in dividends year over year for the full total etc. Now lets create a graph to show dividends received form companies in Q1 2019. Lets add a bar chart to the sheet for 2019 Monthly dividends and use the following data ranges:
Again, you can play around with the data ranges to change this chart from quarterly to annual ranges. That way you can get different type of graphs. Please feel free to check out my real money dividend portfolio which uses this google sheet in practice.

Check out this article on creating your own dividend tracking sheet using IEX and google api's. Makes it look pretty easy! Click to Tweet

Dividends over time sheet

If you have been using this dividend tracker for a couple of years, you will have enough data for a new chart. You can track your dividends month over month and year over year. This allows us to see the dividend compounding effect over long term.

Add a new sheet titled MonthYearSumm. Next we will just copy data from our other sheets like 2020Monthly, 2019 Monthly into the following format:
Again remember, you need to copy the monthly dividends you made over past years in the table above. Once you have filled in the table, you can then create a new chart of type column chart with no stacking.
You can use the customize tab to change look and feel on the chart. Once finished, the new chart looks like this:
As you can see, this chart allows you to look at your progress over time. You can see your dividends increasing month over month, year over year. Really gives perspective into long term compounding effect of dividends if you stay the course.

OK this is great! Now give me this sheet!

I do realize making your own excel from scratch can be daunting even with the above given steps. So, in case you just want a copy of the sample google sheet. Please enter your email below and I will send you the sheet with easy to follow instructions on how you can set it up for your portfolio. Again, I think if you are buying individual stocks for dividends, its utmost important to track and measure your performance. So you know how you perform against the market and can see the effects of compounding in real time. I usually update my personal sheet once a quarter and publish my quarterly results on this blog.

If you liked this article, it will be great help if you can share it with your social circle using any of the share buttons on the post.

Also check out how I get my financial news using a free Barron’s & wsj subscription.

December 11, 2020 18 comments

Dividend Investing

Kontoor Brands: Dividend income stock

by Yoda October 8, 2020

Spin off’s present one of the most interesting opportunity for investing. They might have some irrational selling which will move the stock price downwards. Both Joel Greenblatt from Magic Formula Investing fame and Peter Lynch in One up on Wall Street mention to keep an eye on spin offs for best opportunities to invest. I believe there is something similar going on with Kontoor Brands, a recent spin off from VF Corp.

Allow me to introduce Kontoor Brands (KTB)

Kontoor Brands (KTB) is a newly created spin off from V.F Corporation (VFC). Its business is selling Wrangler, Lee, Rock & Republic jeans as well as operating VF Outlet business. VFC spun off this business in May 2019 to focus on their fast-growing adventure brands business. They wanted to focus more on them and decided to spin the jeans segment off as KTB. So Kontoor Brands started trading on 23rd May for about 40$ a share and then fell to about 26$ a share by June 25th.

Why did Kontoor Brands fall so much?

Irrational selling. Just like most big stocks, VFC had lots of institutional owners of its stock. If you look at Morningstar’s ownership details tab for VFC, you will find a huge amount of Large cap/dividend growth-based funds holding VFC stock.

You can see above most funds are large cap based funds. When KTB was spun off and started trading, its market cap was about 2-2.5 billion dollars. It was not part of SP500, neither was it considered a large cap company, nor had they made any official dividend announcement. On the contrary, KTB was a very boring, small-mid cap, non SP500, high dividend yield company with not a fast growing dividend. These large caps, SP500 focused, or dividend growth funds, would have been forced to sell most/all of their KTB stock. Since the new KTB stock did not follow any rules set by the fund for their holdings. I think this is the prime reason KTB stock took a dive after beginning to trade as an individual company. You can also see huge volumes of buy, sells in the first few days when mostly funds were selling:

The daily volume is far less now, 3 months after the spin off:

Management seems great and very shareholder friendly

KTB management has been touting the dividend policy of the company. Even before the spin off, the management spoke about a very strong dividend policy. Focusing on dividends as a major factor in total shareholder return. They already said in their roadshow, they planned to maintain a 60% target payout ratio. They even mentioned they plan to initiate a 2.24$ per share dividend equaling about 5+% of their 40-42$ trading price when it was spun off. So, when the price kept falling and a dividend was not announced, investors became skeptic of the planned dividend. I believe this contributed to further falling of the price. However investor’s fears were disproved when KTB announced a 2.24$ dividend per share on July 23rd 2019. Yield around 7%+ as of close on Jul 23rd.

I think this really speaks about the quality of management. Management promised something and delivered! The dividend is always at discretion of the management and the board. Management could have reduced the 2.24$ payout they mentioned before the spin off. They could have kept it at 5% of 26-28$. However, they followed through and delivered on the 2.24$ amount as previously mentioned.

Most of the KTB management has come straight from their parent company. The CEO, CFO and VP of supply chain all worked for VF Corp before moving to KTB. I see this as a great sign and shows confidence of the leadership in Kontoor Brands.

Now let’s talk about financials

Revenues for Kontoor Brands have been decreasing over the past 3 years and was one of the reasons VFC wanted to spin off this division. Revenues have decreased from about 2.92 to 2.76 billion dollars since 2016. This was mainly due to challenges in NA over retailer bankruptcies (Sears in 2018), India demonetization and exiting business in Argentina. Management expects them to decrease to 2.5 billion dollars in 2019. But then from 2020 on wards they expect for revenues to start growing at low-mid single digit rate.

For the most recent Q2 2019 quarter, the adjusted EPS was .96$ a share. You can check out there Q2 earnings report right here.

The interesting thing you would notice is that they have the word adjusted mentioned at a lot of places. Adjusted EPS (0.96) is also higher than the GAAP EPS (0.67). But there is not much concern here. We need to remember that this is practically KTB’s first earnings report as an independent company. They are focusing a lot on restructuring currently. As part of Q2 2019, they ended up exiting business in Turkey & Argentina which were poorly performing. Changed business models to distribution from direct in Chile, Russia & Israel. Closing some factories in Mexico that used to produce goods for VFC.

All these steps cost money and KTB is excluding these costs and revenues from adjusted numbers as one time charges. They plan to continue investing in restructuring throughout 2021. This is kind of needed for a newly spun off company since this will eventually help them to cut a lot of costs which will reflect on the bottom-line soon. In fact KTB management expects to start seeing result from the restructuring program in second half of 2019 itself.

Current PE for KTB is 32.20/(.96*4) = 8.41 on an adjusted basis & 32.20/(.67*4) = 12.01 on GAAP basis.

Dividend Safety of Kontoor Brands (KTB)

According to adjusted EPS, payout ratio comes to be about .56/.96 = 58.3% for the quarter. According to GAAP EPS, payout ratio is .56/.67 = 83.5%. That’s a little high but as I mentioned, this reflects extra one time costs company has had to bear for restructuring. As we move forward into 2020 & beyond, cost savings will be realized and one should expect costs of operations to go down lower thereby improving the payout ratios on GAAP basis.

Based on free cash flow, its 53.39-9.3 = 44.09 Million in free cash flow. This results in (56.64*.56)/44.09 = 71% payout ratio on cash flow. Which is not bad at all and again this percentage should improve with the restructuring changes.

Interest Coverage ratio = GAAP EBIT / Annual interest payments which comes to about (52.15 *4)/60 million = 3.4 times. I annualized the 52.4 million EBIT to get the annual. On adjusted basis its (74*4)/60 million = 4.93 times.

This ratio just tells us if the company will have any extra money left after paying interest payments. Ideally 5 and over is better. I think on adjusted basis, KTB is almost there. On a GAAP basis they might take a couple of years to get there, but I am confident they will.

I expect all ratios mentioned above to improve with each passing quarter as Kontoor Brands management keeps executing on their restructuring plan. I will keep looking at their financials with each quarter to see if they improve or not.

Risks

Concentration of Revenues

Walmart accounts for about 33% of revenues in USA which is pretty huge considering they generate 73-80% of their total revenues in USA. In fact, 53% of revenues come only from 5 retailers in USA. So maintaining those relationships is very key to Kontoor Brands.

Lack of diversity

At the end of the day they mostly sell jeans. They do sell some shorts and some shirts, but most revenues are generated by the jeans segment.

Too much debt

As part of the spin off, 1 billion dollars in debt was taken out by KTB. That’s pretty huge. This is mostly long-term debt and company is in a very defensible industry selling jeans and related products. So the debt is a big concern with the juicy dividend yield. However only 20% of revenues in Q2 were from outside USA. So there is room for far more growth internationally where management said, they are now focusing. Lee is already number 1 jeans brand in China and KTB plans to introduce Wrangler in China in early 2020. Plus with all the operational efficiencies realizing over next 18-24 months, I can see the company focusing more on cash flow and bringing down the debt. They already paid off 50 million this quarter Q2 2019.

Still a new dividend company

Ideally most dividend investors like to look at multiple years of prior data. Dividend history, sustainability/safety, historical pe ratios etc. before making a decision on dividend stock. However KTB is still a very new company. They just declared their first dividend. So there is not much historical data to look at which might put off some investors.

Conclusion

Peter Lynch and Greenblatt do mention, special situations like spin offs create interesting opportunities to invest. They also mention there is huge imperative not just for the spun off company but also for the parent to see the spun off company succeed. If the spun off company fails it also reduces trust in the management of the parent company since it destroys shareholder value. VFC has always mentioned spin off will unlock lots of value for both companies and would allow KTB to focus more on gaining operational efficiencies and growing in jeans segment. This is just what KTB has been presenting and speaking about since day 1 of spin off.

I think KTB has been way irrationally oversold. The company has already declared dividends as they had been saying. They also have a good plan to achieve efficiencies in operations and cost. This is already showing signs of good management quality. They operate in a very boring but defensive jeans wear segment. They only had 11% drop in revenues during the recession. Management has mentioned multiple times about focusing on dividends being major component in shareholder return. They even reiterated this during the most recent Q2 2019 earnings call. This is just the type of dividend income company investors should like for the long run.

I received a handful of shares of KTB as part of the VFC spin off. After studying the company, I decided to increase my position. I would add more if I see their financials improving in another 2-3 quarters. Here is my proof of purchase which is also updated in my dividend investing portfolio.

UPDATE

Until February of this year, things looked pretty good on Kontoor Brands. It reached a high of 41.87$ and was giving out dividends. However, the COVID pandemic resulted in them cutting the dividend. Most dividend based etf’s were forced to sell their Kontoor Brands holdings. So we saw the effect of forced selling for dividend cuts this time around. Stock went to as low as 14$. So far I have kept buying despite the cut. Management even spoke about possibility of reinstating dividends in Q4 of 2020 if debt and bank covenants improve by then. Listening to calls management does seem to be working towards reinstating dividends. Not sure when it will happen but I like what they have been saying so far. I also learnt about selling covered calls for income. I did this with my Kontoor Brands stock position and I still own the stock.

Disclaimer: The above are just my opinions expressed in the article. I am not your fiduciary or an investment advisor. Do not consider this as investment advice to you. This article is just for informational and entertainment purposes. Also please note that this article was published on Aug 25th. Many numbers would have changed when you are reading it.

References:

Q2 Earnings Release

Investor Relations KTB

Curreen Capital Q2 letter

October 8, 2020 0 comment

Dividend Investing

Quarterly Dividend Update: Q3 2020

by Yoda October 3, 2020

Dividend Investing for me is a long-term strategy. I like to buy great companies at good value based on historical metrics and dividend safety. Hold them for a long time, re-invest dividends and wait for compounding to do its magic. Most countries are trying to open their economies and putting COVID in rearview mirror. However, cases in most places are increasing. A US election is also looming which could cause wild swings in the market. Despite all this, Q3 2020 just saw the market going up and up backed by the ever growing tech stocks. However I haven’t changed my plan at all. I am planning to keep buying stocks and ETF’s. Here is my Q3 2020 quarterly dividend update:

Total: $753 for Q3 2020 (up 28% from Q3 2019 & up 3.5% from Q2 2020)

Here is a graphical view of the same data:

Check out my and download/make your own dividend tracking sheet here and create awesome graphs as above for free.

I recently added a new chart to my dividend tracking sheet. It allows me to see my dividends grow over long term. I have been tracking my dividends for last 3 years. Here is the result so far till Q3 2020.

As you can see, dividends have kept on growing month after month, year after year for almost 3 years now! You can see the dividends compounding very clearly in this graph.

My Buys in Q3 2020

I added to my existing open positions which I thought were at attractive valuation. I also added a new stock to my portfolio.

Added very little to my Abbvie(ABBV) position.
Added to my Cisco Systems Inc. (CSCO) position. You can read more about my complete research on Cisco Systems here.
I added to my position in Kontoor Brands (KTB). They had a better quarter than the last one. Plus the management is planning to give an update on the dividend reinstatement at end of Q3. This is still a long term hold for me. Full research here. I also started selling covered calls for income on side using my KTB position.
Bought some more in Monmouth Real Estate Corp. (MNR). This is a REIT that is focused on industrial properties. They only have investment grade clients like FDX, AMZN, KO, HD, RTX etc. They even collected 98-99% rent during the last 3 months. Bought some at starting yields of 6.9 % and then added a bit more during the quarter.
I also added to my position in Store Capital (STOR). Its a REIT company that rents individual standing real estate properties to a variety of tenants. They collected only 68% of rent in April but it has increase to 86% in last month. They also did not cut dividends during this time which bodes well for them.
Added to my position in Wells Fargo (WFC) in 20 & 30’s.
I added to my position to V F Corp (VFC). They have not yet cut any dividends. Plus historically VFC has been a very acquisitive company and have a very long history of paying dividends.
Also added to my position to VTI. Not as much as I should have, but I will continue doing this.

I am projecting an increase to 2900$ in forward annual dividends as compared to 2103$ I made in 2019!

My Sells in Q3 2020

NONE! I hope to continue doing this. The less I touch my portfolio, more time it gets for compounding and growing.

Thoughts about Q4 2020

Upcoming quarter will have Q3 earnings from most companies in my portfolio. We also have the US elections coming up at the end of the year. Elections have historically not been the best year for returns. Seeing as we are already positive so far this year, it will be interesting to see how much volatility we have in the last quarter. I know one thing for sure: I will keep buying stocks and ETF’s during this quarter.

Check out my complete dividend portfolio here.

Click this link for my 2019 Annual dividend income update.

October 3, 2020 0 comment

Dividend Investing

Selling covered calls for income for beginners

by Yoda September 27, 2020

Curious about selling covered calls for income ? Not sure what are options, what is a call and where to get started? In this article we will discuss what are options contract, what is a covered call and how to sell covered calls for income. We will also look at risks associated with such a strategy.

What are Options?

An option is a contract between 2 parties. There are 2 types of options contract:

Call Options

Buyer of an option gets the right (not obligation) to buy the stock at a particular price (strike price) by a date(expiry date). On opposite side of the trade, seller of call option has an obligation to sell the stock at strike price by that date.

Let’s say stock XYZ is trading at 50$. Now, call buyer might expect the stock to go to 55$. But, he doesn’t want to pay 100*50(5000$) to own stock and wait to get to 55$. So, they will look for a call option on the stock. Let’s say its for 52 strike price for .50 a contract (each contract is 100 shares), 1 month expiry into future. So, they will end up paying about 100*.50 = 50$ for the option on stock XYZ. Option buyer was able to buy the right to buy these 100 shares of XYZ for 50$ in commission/premium. Commission goes to the seller of the option. 2 things can happen till expiry:

If at any time until expiry, price of XYZ reaches 52$ (strike price), buyer will be thinking his bet is turning true. When it reaches 52.50 (his commission plus strike price) then any price above it is pure profit on the stock. So, buyer can exercise their right to buy XYZ from seller at 52*100= 5200. Sell it all to book their profit. In such situations, contract is In The Money (ITM).
Price stays below 52$. In such cases, buyer still has the right to buy the sellers stock for 52*100=5200$. But, if they can get it for 51.99*100 = 5199, why would they exercise their call option? Thus, the contract option expires worthless and is Out of The Money (OTM).

Put Options

Gives the buyer of the option contract right (but not obligation) to “sell” a stock at a specified price(strike price) within a fixed period of time(expiry date). On the other side of this trade, the put seller takes on the obligation to buy that stock at the strike price. The put seller also gets some commission to take on the obligation for the put option. I won’t go into more details with an example since we only need to learn about call options for covered call.

What is a Covered Call?

Covered call is just a simple call option in which the seller already owns the underlying stock. As the call option seller has the obligation to sell the stock, the seller has two options: either sell the call option first and think about buying the stock later when the buyer of the call exercises their right to buy the stock at strike price(naked call). Or else, they can first buy or have an existing position of a stock and then sell the call option based on that. In this case, they already have covered the part of them being able to sell the stock at strike price if the buyer exercises their right.

Advantages of Covered Calls

Income! You get to keep the premium/commission from each covered call you sell. It also helps you reduce your cost basis. You can sell them every month or 45 days to boost your annual returns.
Exiting a stock position. Lets say, you have 100 shares of stock ABC and its currently trading at 39. You want to exit out at 41.50. You can look for a call around that strike price. This way, you make some commission by selling the call plus also get exactly 41.50*100 $ for your stock. Obviously for this to happen your stock needs to go at that price and call exercised. If that doesn’t happen you can always sell another call and collect the commissions waiting for it to reach that strike price.

Disadvantages of Covered Calls

You cap your profit potential. Speaking of the previous example, if the stock goes to 45 by expiry, you still get 41.50 for your stock and the call buyer will probably buy your stocks and make profit on the difference.
During the period between your selling of covered call and its expiry, you cannot trade away the underlying stock. Since the call buyer has the right to those stocks, they can buy it form you anytime before expiry.
You might end up selling a stock you are long on.

Selling Covered Calls for Income

Now let me walk you through the process of selling covered calls for income on an existing stock position via Schwab.

Make sure you can trade options on your broker’s platform. Different brokers have different ways to approve you. Schwab’s application can be found here. Each broker has levels of access that comes with options. First level is enough at most brokers for selling covered calls for income. Here is an explainer on Schwab’s levels. Depending on your broker, it will take 1-3 business days for them to approve you for selling covered calls for income.
Next, search for the stock for which you are selling covered calls for income. Make sure you have at least 100 shares of that stock within one account. You should also come out positive on your cost basis if your stock gets sold at strike price. We do not want to end up making a loss on overall cost basis. For me, this stock was Kontoor Brands (KTB), find it and hit trade: Depending on if you are enabled for options trading, you will see options under strategy. We want to choose Call here under strategy. So we are saying I want to trade (buy or sell) a call option.
Next, we need to figure out what expiry date options do we want to sell covered calls for. For this we need to look at the options chain for this stock. Most brokers will provide you the chain right there when making the trade. Click the link icon and then go to options chain:This is from a very recent screenshot, so numbers might not be accurate. Stock price was around 23$ at this time. What you see on left of the strike column are details for selling covered calls.
Bid is maximum price any call buyer is willing to pay at that time. Ask is the minimum price a call seller will accept at that time. Volume is the number of options contracts bought or sold any day. OI (open interest) refers to number of open contracts.
Eventually, I was able to find a 30$ strike price call contract with expiry date of 16th October 2020. As you can see below, the bid was about .15 cents and ask was about .45 cents per contract. So I entered a limit price order of about .25 cents for 1 contract. What this means is, if someone enters a contract to buy a call for KTB stock for .25 cents or higher with expiry of 16th October, my contract will get sold. The buyer will then have right to buy my 100 shares of KTB at pre-agreed strike price of 30$ anytime by 16th October. For that right, I get .25*100 = 25 $ commission. This part of selling covered calls for income matters to us, the call sellers.
The action will always be sell to open. It means you are selling a call to open a contract position for the underlying stock.Once, you place the order and it gets filled, then you will see the commission in your account immediately. The contract gets assigned against your existing 100 shares. That’s it!

Learn to sell covered calls to make some extra income on the side on your existing stock positions. Click to Tweet

Risks when selling covered calls for income

Most of us dividend investors are long on our stocks. Main aim is to hold stocks, get dividends and let compounding do its magic. Selling covered calls for income makes you technically short on the stock. You are hoping for your stock to stay down in price so it doesn’t get called and you get the dividend on the side.
You are literally betting here. Betting on where the price of the stock will be by expiry date. As we all know this can go either way. So, be ready to part with your stock position if your stock reaches the strike price.
Be aware of dividends and earnings dates. Sometimes, if a stock is paying dividends and the current stock price plus dividends will allow the buyer of your call to make even a few cents (even if the current stock price is lower than strike price). Buyer might call your stock and sell those shares. Similarly, earnings announcement leads to some volatility for most stocks. So, its possible your stock crosses the strike price and gets called by the buyer and you loose those shares and some potential extra profit.
Figuring out what stocks to use for selling covered calls for income and at what price and expiry date requires research in itself. You need to make sure the options for a stock have enough volume, open interest and you make a good commission when selling covered call for it. Usually, options near expiry date and with higher difference in current price and strike price will give very less commissions. So, you need to maintain a balance between commission and strike price and expiry dates. Otherwise, you may end up with a call options trade that doesn’t get filled. This is beyond the scope of this post, but you can check more about it here.

Conclusion

My strategy for all stocks I own is to be long on them. However, selling a covered call allows me to make some extra income. Although, I could be selling my shares at strike price. I could be generating tax events. I could potentially end up selling my stocks at less than cost basis generating loss. So, my plan is to sell covered calls for income at very high strike price. Its possible that I will get very less commissions because strike price is high, but I am interested in making sure my stock doesn’t get assigned/called away by call option buyer. I also want to make sure the strike price will always be greater than the cost basis of the stock. Plus, I want to do this in my IRA account to not create any taxable events. Let me know in comments about your thoughts on this.

Disclaimer: The above are just my opinions expressed in the article. I am not your fiduciary or an investment advisor. Do not consider this as investment advice to you. This article is just for informational and entertainment purposes. Options are a risky product so do your due diligence before buying or selling any options.

September 27, 2020 0 comment

Dividend Investing

Quarterly Dividend Update: Q2 2020

by Yoda July 5, 2020

Dividend Investing for me is a long-term strategy. I like to buy great companies at good value based on historical metrics and dividend safety. Hold them for a long time, re-invest dividends and wait for compounding to do its magic. In contrast with Q1, Q2 2020 has been great for investors. From the bottom in March, the indexes almost rebounded back to their pre-Covid levels. I cannot and won’t even try to figure out what happens next. All I am planning to do is to keep buying stocks and ETF’s. Here is my Q2 2020 quarterly dividend update:

Total: $727 for Q2 2020 (up 40% from Q2 2019 & up 2% from Q1 2020 )

Here is a graphical view of the same data:

Check out my and download/make your own dividend tracking sheet here and create awesome graphs as above for free.

My Buys in Q2 2020

So, the volatile market has offered some great opportunities! Frankly speaking I was not a 100% prepared to think about what to buy. I definitely had some stocks in my watch list, but I had not looked at them in a long time. Plus I got busy with a lot of work and so did not get much time to research any new stocks. So, at first I decided to add to my existing open positions which I thought were at attractive valuation. I also added a new stock to my portfolio.

Added to position in A.O. Smith (AOS) in 30’s and low 40’s. They have had issues with revenue drop off in China since 2019. However, I like the safety of their dividend and their expansion in India. Eventually, they should get back to growth in revenues.
Added to my Cisco Systems Inc. (CSCO) position. You can read more about my complete research on Cisco Systems here.
I added to my position in Kontoor Brands (KTB). This is one of few stocks that is still around its March lows. They ended up having to cut their dividend. Because of this a lot of dividend based funds had to force sell this stock putting pressure on their stock price. This is still a long term hold for me. Full research here.
Started a position in Monmouth Real Estate Corp. (MNR). This is a REIT that is focused on industrial properties. They only have investment grade clients like FDX, AMZN, KO, HD, RTX etc. They even collected 98-99% rent during the last 3 months. Bought some at starting yields of 6.9 % and then added a bit more during the quarter.
I also added to my position in Starbucks (SBUX) in my Roth after selling some of my position form a taxable account.
Added to my position in Wells Fargo (WFC) in 20 & 30’s.
I used to have a small position outside my 401K in VTI before the crisis. However, last 3 months saw stocks go down so fast and come back up very fast. Working a full time job and researching what individual stocks to buy was looking difficult. I was just not finding enough time. So, I added to my existing positions which I had looked at before and opened new positions in MNR and HON only. But, throughout the crisis, I added big to my VTI position. No need to think/research much before adding to it. I am planning to continue adding to it every month. Since it will become a big part in my portfolio with all the buys, I also plan to add it to my statistics for every quarter.

I am projecting an increase to 2900$ in forward annual dividends as compared to 2103$ I made in 2019!

My Sells in Q2 2020

I sold my Starbucks SBUX position in taxable account and bought it in my Roth.
Sold my small CSCO position in taxable account and bought some in my Roth.
I had a small position in Trow Price (TROW). I decided to sell that from my taxable account and will focus more on my Blackrock Inc. (BLK) position.

I did have Kontoor Brands (KTB) and Disney(DIS) cut dividends in Q2 2020 to preserve cash. Both business were challenged by the virus and seems like a relevant action to take. I decided to not cut them in my portfolio as I still think they will bounce back from this over the long term.

Thoughts about Q3 2020

Upcoming quarter will have Q2 earnings from most companies in my portfolio. We will get to know more impact of the virus on companies. In the last week, we have had a steep rise in cases in many US states. Some states have hit a pause on reopening and some brought few restrictions back. It will be interesting to see if states want to close economies again or just carry on and not go back to the lock down people experienced in last 3 months. I know one thing for sure: I will keep buying stocks and ETF’s during this quarter.

Check out my complete dividend portfolio here.

Click this link for my 2019 Annual dividend income update.

July 5, 2020 0 comment

Dividend Investing

Quarterly Dividend Update: Q1 2020

by Yoda March 31, 2020

Dividend Investing for me is a long-term strategy. I like to buy great companies at good value based on historical metrics and dividend safety. Hold them for a long time, re-invest dividends and wait for compounding to do its magic. To say Q1 2020 has been volatile is an understatement. Coronavirus has practically brought the world economy to a grinding halt. My heart goes out to all victims of this tragedy and urge every one to practice social distancing. While it has caused a lot of destruction, it also brought down valuations of well managed dividend paying companies to attractive levels. Here is my Q1 2020 quarterly dividend update:

Total: $706.16 for Q1 2020 (up 70% from Q1 2019 & up 20% from Q4 2019 )

Here is a graphical view of the same data:

Check out my and download/make your own dividend tracking sheet here and create awesome graphs as above for free.

My Buys in Q1 2020

Added to my position in Abbvie Inc. (ABBV) in 70’s and then again in 60’s. I like their ability to generate cash flows. Allergan acquisition will go through later this year which will add to their earnings and also help them insulate with the upcoming patent expiration for Humira.
Added to position in A.O. Smith (AOS) in 30’s and low 40’s. They have had issues with revenue drop off in China since 2019. However, I like the safety of their dividend and their expansion in India. Eventually, they should get back to growth in revenues.
Added to my Cisco Systems Inc. (CSCO) position. You can read more about my complete research on Cisco Systems here.
I also added to my position in Disney (DIS). They will definitely have an impact from the shutdown. However, I believe in the long term, Disney will manage to bounce back.
I added to my position in Kontoor Brands (KTB). Full research here.
Bought more Pfizer Inc. (PFE) stock. Upcoming spin off should help them focus more on growth and dividend should also be raised faster with growth.
I also added to my position in Starbucks (SBUX). Crisis will impact revenues for Q1 2020 and Q2 for sure. But, they have been growing their dividend at a very fast rate and should bounce back. They even have a better shot at grabbing market share from local coffee shops around the world, since they will be able to bounce back much faster.
I also bought more Wells Fargo (WFC) in 30’s & 40’s. Asset cap should get removed some time this year and new CEO should help clean the image of the bank and move past their crisis.
REIT’s got hammered during this crisis. This gave me an opportunity to grab Realty Income (O) and Store Capital (STOR) at really cheap prices.
The new stock I added to was Honeywell International (HON). I like their dividend safety & diversity in revenues. They have their hands in aerospace, healthcare, construction technologies, energy etc. A bigger article on this coming up soon.
For full disclosure, I also bought some VTI. It was at 3% yield which might go down a bit in Q2. However I do not include this in any statistics shown in such updates.

I am projecting a increase to 2947$ in forward annual dividends as compared to 2103$ I made in 2019! I had not expected to be growing dividends so fast in 2020.

My Sells in Q1 2020

My big sell this quarter was General Mills (GIS). It was in my taxable account and I wanted to free up some cash to move to my Roth account and buy better dividend stocks in there.
Sold some of my position in National Instruments (NATI) from my taxable account. I just sell some of this position when it becomes too large, to reduce risk of too much of being in 1 stock.

Thoughts about Q2 2020

Upcoming quarter will be very interesting. Most companies will speak about impact of the crisis on their numbers. I am thinking about adding more to positions in PEP and HON for this quarter. Another REIT I am looking at is Monmouth Real Estate Corp. (MNR). Its a REIT that focuses on renting out big industrial properties to investment grade clients. Like, Amazon, Fedex, Coca Cola, IIPR etc. But I am yet to do research on it. I am also going to be looking at dividend cut announcements.So far, many companies have announced them and none of my companies that have cut or suspended their dividends. I am concerned about XOM and STOR, but I have confidence in them bouncing back in long term.

Check out my complete dividend portfolio here.

Click this link for my 2019 Annual dividend income update.

March 31, 2020 2 comments

Dividend Investing

Annual Dividend Income Update 2019

by Yoda January 26, 2020

Dividend investing for me is a long-term strategy. I like to buy great companies at good value based on historical metrics, dividend safety & future prospects. Hold them for a long time, re-invest dividends and wait for compounding to do its magic. In Q4 of 2019 I was able to add to my CSCO & PFE positions. Here is my dividend income for all of 2019:

Total: $2103.36 in dividend income for 2019 (up 37% from 2018 )

Here is a graphical view of the same data:

Check out my and download/make your own dividend tracking sheet here and create awesome graphs as above for free.

Here is how much percentage of the dividend income is coming from each of the 26 stocks in my portfolio:

My Buys in Q4 2019

I added to my Cisco Systems (CSCO) position in Q4 2019 quarter. Cisco had fallen more than 20% from its highs. They reported a stellar fiscal year 2019. However, they gave weak guidance for fiscal 2020. They expected slowness due to trade war and Brexit uncertainty. CSCO seems pretty good by all dividend metrics. Great payout ratio and good cash position. Cisco is midst of transitioning from a purely hardware focused business to subscription recurring revenue business. They are getting into business of selling chips with Silicon One, getting into security and application analytics software. I like the direction and actions company is taking to future proof itself. Here is a detailed analysis on Cisco Systems and their dividend metrics.
I also doubled my position in Pfizer. Pfizer had announcements related to spin off plans this quarter. This has lead the stock to tumble to where I originally bought its stock. I think Pfizer would make sure that the spin off their expired patents drugs plus new Pfizer will give same in dividend income before spin off. However, I am yet to decide if I want to keep or sell the spin off after it goes through.

I would expect my Q1 2020 quarterly dividend income to go up with help of these buys .

My Sells in this quarter

None! I would like to see each quarter as this one in terms of selling.

Check out my complete dividend portfolio here.

This is how the market value is spread across various industries in my portfolio:

Performance for the year 2019

I was able to beat S&P 500 across my roth and traditional brokerage accounts. I did have 3 non dividend income paying stocks that also helped me to beat S&P in those accounts. My wife also started a roth account in 2019. We bought dividend income stocks in that too. Since we started it in middle of the year, I do not have concrete performance data on that. But I will track it in 2020.

Plans for 2020

January 26, 2020 2 comments

Column in Excel	Formula
Market Value	=C2*D2
Change $	=G2-F2
Change %	=(H2/F2)*100

Column	Formula
Annual Div Income	=D2*J2
Yield on Cost	=(K2/F2) format as percent
Annual Yield	=(J2/C2) format as percent