Well, another month in 2014 is behind us. The 3rd quarter is nearly over…how crazy is that? While I may be a week late in writing this article, I figured it was as good of a time as any to review my August dividend income.
Here is where it gets really fun. I put together a table below to compare the dividends I have received in the second month of each quarter in 2014. Since my portfolio has been growing rapidly this year, comparing the same month in each quarter will provide the best snapshot of my dividend growth. As you can see, my income has more than doubled since May. The increase is an astonishing 183%! I am really starting to see the impact of my portfolio’s capital infusion during the first half of the year. Here is a brief summary of the transactions that occurred between the two quarter’s ex-dividend dates:
- At the end of May I purchased an additional 18 shares of AT&T, adding $33 in annual dividend income.
- The first week of July I purchased an additional 10.78 shares of PG, adding $28 in annual dividend income.
- In April I purchased ~55 shares of KMI, additional $93 in annual dividend income (Don’t laugh at the layout of the link, it was my first ever article!).
- Lastly, at the beginning of June, I purchased 49 shares of HCP, adding $107 in annual dividend income.
As you can see, that is a lot of activity. It feels like it was so long ago that I purchased those stocks. The dividend income from these purchases mentioned above were the main drivers of my increase between Q2 and Q3. While the impact on my portfolio is not as large, I always love taking a look at the impact dividend re-investing has on increasing your cash flow. This can be demonstrated by reviewing the dividends received from ARCP during the three months. I have not purchased any additional shares of the company, so any growth in dividend income is strictly from re-investing dividend. The impact may seem small, but I gained $.29 in extra dividend income without lifting a finger. Get your laughs out now about the small dollar amount, but the impact is much greater when you extrapolate the $.29 over my total portfolio.
Another fact that I am very proud of is that I crossed $100 for the first time in a non-quarter end month. Entering three-figure dividend is easy in March, June, September, and December since the majority of companies pay their dividend in the third month of the quarter. The pickings are a lot more slim for the first and second month of the quarter, so crossing $100 in an “off-month” is very exciting for me. Unless I go on a selling spree, there should not be any turning back. In July I had $92 in dividend income, so I am getting very close to eclipsing $100 in dividend income for each month! Can it already be October so I can see if I will cross that mark?
August was a great month for me. I am finally starting to see my actual dividend income cath up to my projected annual dividend income figure. I can’t wait to write this article for September. The third month of each quarter is always the most exciting for a dividend investor. Hopefully everyone had a great August and will have an even better September!
-Bert