February has flown by! The 28 days came and left before I knew it. With work hitting its peak, I was scraping to find time to track my portfolio and dividend income. But don’t worry, there is always time to monitor your portfolio and keep a close eye on your progress. With another month behind us, it is time to see take a look at my dividend income summary for the month.
Dividend Income Summary
The theme of last month was progress. As I compare each month from 2015 to the same month in 2014, I am finally starting to see the impact of all the purchases I have made over the last two years. In January, my dividend income was 201% greater in 2015 compared to 2014! While I know that will be tough to replicate, especially as I progress deeper into 2015, it is always nice to take a look back and see just how far you have come. In February, I received $105.44 in dividend income, which is a 79% increase from February of 2014! The table below breaks down my dividend income summary in greater detail.
Over the last year, I have increased positions in some powerhouse dividend companies that pay a dividend in February. I have re-upped a position in PG, initiated a hefty position for my portfolio in HCP, and caught a dividend growth investor favorite KMI at a great time before they announced their consolidation and dividend growth plans. While these investments are old news for my portfolio, as I have been receiving dividends from each of these companies for over half of a year, they were not present in my portfolio at this time last year. Luckily, they will not be going anywhere anytime soon and will be staples in my portfolio for a long, long time.
While I saw an increase year over year, I saw a pullback compared to the same month in the fourth quarter. As has been the same story over the last couple of months, this was due to my sale of ARCP in January, which was not only my largest dividend contributor but was a monthly contributor as well. But don’t worry, I have re-mobilized those funds recently and will begin receiving the benefit from my three recent investments with the proceeds in the second quarter. You know what I love about my purchases of HCP, CZNC, and NWFL, besides for the fact that I believe I invested in three great dividend paying stocks? All three companies pay dividends in the second month of the quarter. As we all know, the majority of stocks pay out in the last month of the quarter; so it always great when I have the opportunity to invest in companies in an “off” month. Look out February, May, August, and November, you are about to get a jolt in dividend income! Looking ahead, it appears that I am on pace to now receive more dividends in the second month of the quarter compared to the third. Wow! It’ll be a close call, and it will most likely come down to the unpredictable dividend announcements at each quarter end.
Even though I know it doesn’t matter too much in the grand scheme of things, as a dividend is a dividend regardless of when you receive it, I am really starting to like how I am receiving a consistent flow of dividend incomes throughout the year as opposed to receiving minimal dividends the first two months of a quarter and a lump of dividends in the final month. Why is this an advantage? Because if I ever decide to turn off my DRIP and use my dividend proceeds to cover living expenses, having a constant stream of dividends would assist in expense planning. After all, you can’t pay most bills quarterly and need funds monthly to cover your expenses. Plus, it makes following your portfolio that much more fun if you know you are receiving a lot of dividends each month!
Conclusion
Progress, Progress, Progress. As I continue to compare monthly dividends from 2014 and 2015, I am really starting to see the growth in my passive income stream. That’s the goal and I have known this progress has been taking place since I monitor my forward annual dividend income daily. However, seeing progress in your actual dividend income receive really puts this all into perspective. While I have taken a step back since November 2014, I have taken a leap forward from February 2015. And at the end of the day, that’s what really matters. Just keep the snowball rolling forward!
How were your months? How much has your dividend income grown in a year? Are you on pace to exceed your dividend goals after the first two months?
-Bert