Bert’s February Dividend Income Summary

Not only have the markets been see-sawing, but so has the weather here in Cleveland.  From snowing one day to 50 degress the next day, it is wild!  Luckily though, spring training has started and baseball season is right around the corner.  Hopefully the Indians get off to a hot start.  Speaking of hot starts, Lanny kicked off our dividend income summary by showing how he and his wife earned almost $900 in dividend income in February and notch a 17% annual growth rate. Now, it is my turn.  Lets jump right in to my February dividend income summary. Dividend Income, dividend stocks, January dividend

Dividend Investing is amazing for so many reasons.  As we continue to build a growing, passive income stream by investing in undervalued dividend growth stocks identified by our dividend stock screener, it is always important to track your progress and make sure you are achieving your goals.  Seeing the progress makes the income feel real.  And it motivates us that much more to reach financial freedom.

See – Our 3 Step Dividend Stock Screener that helps us identify undervalued dividend growth stocks

Further, dividend investing is very tax efficient.  Capital gains are taxed a lower tax rate than your regular wages.  So ask yourself this.  Why wouldn’t you want to build a growing, passive income stream that is taxed more efficiently than “regular” wages.  To me, it makes all the sense in the work.

Read – Dividend Tax Rates Explained

Read – The Power of $50,000 in Dividend Income

Hopefully you can see why we are relentlessly pursuing financial freedom.  For the last five years, we have logged each monthly dividend income total on our “Dividend Income Page.”  You can see first hand the results that each dividend stock purchase, dividend increases, and reinvested dividend have earned.  That is why I am always so excited to type up my monthly dividend income summary.  To review the results and hold myself accountable.

See – Our Dividend Income Summaries each month since 2014

See – The Individual Holdings in Our Dividend Stock Portfolios

Bert’s February Dividend Income Summary

In February, my wife and I received $534.17 in dividend income!  That was a 15.9% growth rate compared to last year!  Here is a detailed listing of the stocks that paid us a dividend in 2020 versus 2019:

February Dividend Income, dividend investing, dividend growth stocks, investing

Here are some thoughts and highlights from the month:

  • Interestingly, I did not receive a dividend from a new company this month.  Every dividend received was from a company that paid me a dividend last year.  What are the odds of that?  Especially with some of the purchases made at the end of last year and beginning of this year!
  • The increase was aided by several large purchases in 2019 where I decided to add to positions.  ABBV, CVS, and WRK all saw large dividend increases due to the fact I focused on building these positions in 2019.
  • Yes, I did receive a smaller dividend from Citizens and Northern this month.  No, it wasn’t due to a dividend cut.  The company paid a $.10 per share special dividend in 2019.
  • It sure is fun to see the dividend increases posted from KMI.  Their dividend cut feels like a distant memory, because management is delivering on their promise to increase their dividend after they cleaned up their balance sheet.
  • Other than that.  This was a “boring” month.  The Power of Dividend Investing sure flexed its muscles.

Bert’s February Portfolio Update

In this section, I like to discuss the impact of stock purchased 401(k) contributions, and dividend increases had on my portfolio and forward dividend income.  Typically, I include a chart showing the impact of each.  However, due to the crazy end of February, that saw the stock market plummet, I am going to forgo listing out each individual dividend stock purchase.  Rather, I’ll save that for a purchase summary article that I will release later in the month.   I don’t want to spoil the surprise.  But I had to have added a record level of dividend income due to stock purchases and dividend increases…stay tuned!

Now, I’ll show the impact that dividend increases had on my portfolio.  Dividend increases are the heartbeat that keeps our passive income stream flowing.  They help us increase our dividend income without lifting a finger.  Man, following dividend increases and tracking the impact (big or small), is so much fun!  In February, I received the following dividend increases:

8 dividend increases.  Just incredible.  8 companies increased their dividend payouts to me.  Now, my wife and I will earn another $72 in dividend income without lifting a finger.  Man oh man it is sweet.   I talked about the dividend increases in greater detail in my month “Expected dividend increases” article (where I summarize the previous month’s dividend increases and predict the next month’s dividend increases).  The largest dividend increase I received was TROW price.  I was expecting a double-digit percent increase; but man did that one knock me off my feet.

Sure, unfortunately, some of the other dividend increases didn’t have a large impact on my forward income.  Going forward, I’m not expecting large dividend increases as the impact that the coronavirus has on the global economy becomes more clear.  It’ll be an interesting story to follow over the next few months, that’s for sure.

Read – Expected Dividend Increases in March 2020

summary

Where do I go from here?  First, I’m excited about the growth.  Crossing $500 again in the second month of the quarter was huge for me.  Hopefully, now, I am firmly past this milestone and am looking forward to the next one ($750 and then $1,000).  I would love to start building up all of my months of dividend income so I can build a steady, smooth dividend income stream.  But that’s a story for a different day and more dividend income.

For now, I’ll continue to focus on building my dividend portfolio one dividend stock, one Dividend Aristocrat at a time.  I’ll continue to screen and find those undervalued stocks.  More importantly, I want to get better about simply acting when the metrics are right.  I was aggressive in February and want to continue to be just as aggressive in March and the rest of 2020.

How did you perform in February?  What was your annual dividend growth rate. Did you purchase stock in February when the market fell?  If not, are you waiting for more information and more down days?

Bert

21 thoughts on “Bert’s February Dividend Income Summary

  1. Bert,
    A good month can be a great month. Both of you are killing it, looking forward to seeing those $1k months for you soon too (in the off months).
    Also, that TROW raise was pretty boss. Wish I had bought more a few years back!
    – Gremlin

    • Thank you Gremlin! I still have a while to go to reach $1,000. But I’m sure as heck trying to get there 🙂

      Yes – TROW absolutely crushed it last month. Looking forward to more future increases from them.

      Bert

  2. Great month Bert! Congrats on crossing the $500 mark in February, way to go. On to the next milestone!
    You received dividends from all 5 companies that paid to me (CVS, T, O, SBUX & PG).
    And I shared a couple of dividend increases this month. Unfortunately, they were one of the smallest from your list (CSCO & MMM).
    Keep up the great work!
    BI

    • Broke Investor

      Thank you very much! That’s the fun part of dividend investing. There is always another milestone to look forward to after you pass one. It is nice to see we are fellow shareholders of so many great companies.

      Bert

  3. Congrats Bert,
    see you guys progress is so inspiring and i see the dividends are slowly snowballing .I am also adding WRK ,added few more share since last dividend payment.

  4. Woah solid report, those are some nice companies paying you right there! A big takeaway is that massive $72 added from div increases alone- that’s consistency paying off.

    Looking forward to that purchase summary article! I know I’ll be buying this month.

    Cheers,
    Divcome

  5. Excellent progress as usual, Bert. ABBV sure made a nice move up your payout list.
    Loving seeing all of those dividend raises. I was able to share 5 of them with you, including your two best percentage increases, TROW and PEP. Gotta love it.
    $500 every month now… no looking back from here!
    Looking forward to seeing where you put your investment $$$ moving forward. It seems there are plenty of stocks trading at values we haven’t seen in a while. It’s almost hard to choose, right?.

    • ED,

      Thank you, that you! TROW has been one of my favorite investments over the last year. Strong balance sheet, excellent growth, what’s not to love? I hope you’re right about not looking back during the second month of the quarter. Now, I just need to get the first month over that threshold and we will be good to go.

      I can’t wait to read everyones purchase summaries too. There are some great names out there. But man, this market is hard to read. We just need more information out there about the virus and the economic impact….Next earnings season should be interesting.

      Bert

      Bert

  6. Congrats on another solid month of dividends, Bert! Crossing the $500 mark is a nice milestone. It’s even better that it’s your 2nd $500 month this quarter. And the YoY growth rate is impressive. Thanks for sharing the numbers and keep it up!

  7. Great month Beet! Over $500 and nearly 16% growth year over year. Of course that extra $72 from dividend growth is fantastic. We ended up with 12 raises fromeo our holdings in February. Way more than I expected. Looking forward to March to see how we end up, but I don’t really want the month to end yet. Time goes way too fast.

    • haha I love it. If I had a nickel for everytime autocorrect spelled something wrong for me, my portfolio would look like Lanny’s. 12 raises is just incredible. I thought 8 was great. A dozen though, that’s a whole new level. And sadly, I agree. Time flies by and I need to spend more time slowing it down and enjoying it. That is the primary reason for financial freedom right there.

      Bert

  8. Hi Bert,
    more than 500 USD in an off month is great, especially since you have added no new companies. Keep up the good work and your progress is really motivating.
    cheers
    Div.Income

  9. Bert,

    Congrats on surpassing the $500+/month milestone for a month that is nowhere near as lucrative as the end of quarter months. I’m confident you and your wife will be passing $650 in dividends next February!

Leave a Reply

Your email address will not be published. Required fields are marked *