Bert’s January Dividend Income Summary

It is insane that I am already writing my January dividend income summary.  Time flies by.  It seems like just yesterday I was preparing my goals for the year and trying to map out my year.  Now, we are already 1/12 of the way through executing my strategy and aiming for the fences.    With one month in the books, I figured it is appropriate to review my January dividend income figures and compare the results to last year.  So much can happen in 12 months and now, it is time to see the fruits of my labor.  Let’s dive into the the results!

dividend income

January dividend Income Summary

This is an exciting summary for a few reasons.  First, I am very, very happy with the results!  Second, this is the first time I am reporting both my dividend income for the month AND the dividend my wife earned as well.  If you recall, I mentioned how I decided to wait until the end of the year to begin reporting both our portfolios as one (to make earlier comparisons easier) and to allow me to accurately assess my goals progress during the year.    To avoid confusion, I added a “W” next to the tickers for all income earned by my favorite lady.   We detailed our dividend income in the table below.

This month, we received a combined $127.81 in dividend income, a 23.4% increase from last year.  I know what you are all thinking, and no, my increase was not just due to the fact that I included my wife’s dividend income in this monthly summary.   January is typically an off month with minimal activity; however, my portfolio definitely had some noise during the month.   Here were some of the major happenings that resulted in my 23.4% increase.

  • Over the last twelve months, I added two companies that pay a dividend in January.  Well, technically Realty Income pays a dividend every month, so this statement will hold true for every month during 2017 since I did not purchase shares of O until the end of 2016.   Unlike Realty Income though, Cardinal Health is a quarterly dividend payer.   This is now the second dividend I have received from CAH and I would love to continue adding to this position over time.
  • The impact of exchange rates almost resulted in a net decrease of about a dollar, which is pretty fortunate if you ask me.  I was lucky to benefit from exchange rates for Canadian Imperial (CM) and not so lucky with GlaxoSmithKline.
  • The ever elusive Kraft-Heinz Co. (KHC) accelerated their dividend and paid a fifth dividend in December 2016.   So unlike last year, I did not receive a dividend from them during January.  Honestly, I am still trying to figure out which month I can expect to receive their dividend payment in each quarter.  This is the second time since their merger in 2015 that they changed the month they pay their dividend.  Ultimately though, it doesn’t matter because I am still receiving the dividend payment.  That’s all that matters.  It is just throwing off my monthly dividend income results and I’m tired of having to explain this every month!

Investment Activity in January

While I didn’t strike with the same force as Lanny in January, I was able to make a few moves during the month.  First in the spirit of saying screw it and taking a few risks and in the spirit of Lanny’s tax saving strategy from last year, I increased my 401k allocation.  I didn’t go all out…yet.   But I am slowly creeping up the amount I contribute each paycheck and the results are really starting the show.   My contribution per paycheck is now $281 and we get paid twice per month, so I am adding $562 automatically which is really nice.   I added even more income when I purchased 20 shares of Procter & Gamble in the middle of the month.   The results of the PG purchase and my automatic investments added nearly $68 in forward annual dividend income to my portfolio!  Can’t complain about those figures!

Summary

What a motivating way to start 2017.  The results of this game we are all playing continue to push me to keep on investing and keep on striving for financial freedom.   I cannot wait to see what the rest of the year has in store for me, Lanny, and all of us!  I’m looking to try make one purchase a month, at a minimum, to keep fueling this fire and pushing my dividend income higher and higher.  Adding new stocks is obviously the easiest and fastest way to grow your income at a large rate, so it is time to get serious and focus on buying those companies on my watch list and any other company that may suddenly appear on my radar.   The best way to end this, and so many articles, is to remember that EVERY SINGLE DOLLAR COUNTS in our journey.  So let’s keep on going and keep on making progress in 2017!

How did you perform in January? Did you set a new personal record?  What new companies paid you a dividend during the month?  Did the KHC shifting dividend come back to bite you as well?  Did you like the way I presented our combined dividend income?  Or would you prefer I split the figures up?

-Bert

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51 thoughts on “Bert’s January Dividend Income Summary

  1. Good job and good increase. You are correct every cent does count in this that what makes it so fun is watching those dividends come in.
    i love it when you don’t add anything to a stock and you see good increases like PM and such it tells you are doing something right.

  2. Bert:

    23.4% is a dreamy increase! No new dividend paying companies for me but definitely an increase. The way you presented the combined income is fine in my opinion.

    Best,

    • haha dreamy is an awesome way to describe it! Love the fact that you still realized an increase despite no new dividend stocks. Looking forward to reading your summary here and seeing the details. That’s what dividend investing is all about!

      Bert

  3. Bert,
    I feel you on KHC, but I heard this was an attempt to preempt any tax code changes. Otherwise nice increase. Jan. is always a slow start for me, Feb. is when things really start rolling for me.
    -Gremlin

    • I’m sure they had a darn good reason for pushing up their dividend that is way better than humoring my quest for a consistent dividend income stream. The better the tax benefits, the better for us, right? Pumped to see the ball get rolling for you in February!

      Bert

  4. Great work Bert! That’s an awesome YoY increase, which is probably the most important number in your report. I just posted my Jan report as well. Keep it up!

    Passive Income Dude

    • I am freaking thrilled with that BHL! HECK YEAR! If I can maintain this kind of a growth rate, I cannot am sure I will be retiring soon in no time. Let’s hope you and all of us can keep the god times rolling here.

      Bert

  5. Keep up the good work Bert. I wouldn’t worry too much about explaining the reason for the increase. It’s like the old saying in sports about scoring ugly – “They don’t ask how, they just ask how many!”. The fact is you are consistently purchasing shares in quality companies who have demonstrated a penchant for increasing their dividend. Other than death and taxes, that is as close to a sure thing as I can think of!

    • Thanks Dining on Dividends. Love the sports reference. Nobody will ever remember how you won the game as long as there is the scoreboard is flashing WIN at the end of the contest. Hopefully you are right about the certainty, and that’s what I love about what we are doing here. Finding the companies that put us in the best position to produce a growing dividend income stream. Nothing is guaranteed, but you can minimize the downside.

      Enjoy your Sunday! Who do you think is winning tomorrow, Patriots or Falcons? Should be a great game.

      Bert

  6. A great start to 2017 for both of you. My January total will also be off fro a couple reasons. KHC like you not having a standard payment schedule yet and my JCI spin off of ADNT reduced my total shares in JCI so a little less there. As you stated, it doesn’t matter on an annual basis which is what really counts but I think I’ll pull off some year over year growth despite these snafus. As long as the dividends get paid I’ll be happy no matter which month it comes. Thanks for sharing.

    • Thank you so much Divhut! Has ADNT announced their dividend yet? Are they paying this month or are you going to receive an awesome benefit in a different month?? I love spin-offs, so enjoy your first round of payoffs from your new company. Agree with your final sentence for sure. I don’t care what month I get paid in as long as I keep getting those checks haha Looking forward to stopping by and seeing your results for the month.

      Bert

  7. Nice increase. Next year should be even higher. I, too, earned my first dividend from O in January. I’m wanting to add more, but I’m not actually happy that it’s gone up 10% since I first bought it. Doesn’t that sound weird? Unhappy that a stock I own went up.

    • Thank you so much Chris! Congrats on joining the Realty Income dividend club. Isn’t it nice? haha sure it sucks when your stock increases and you receive a few less fractional shares each month. But it isn’t always a bad thing and hopefully it leads to a stronger company and a larger future payout going forward. But a 10% decrease for a year would have been pretty nice and getting more shares. Don’t worry, there is still plenty of time remaining in 2017!

      Bert

  8. You’re gonna love the O position. You’re gonna want even more!! So steady and consistent, like owning a well run cash positive rental property. But with the biggest tenants in the US locked in for decades!

  9. What are your thoughts on Abercrombie (ANF)? It’s nearly a 7% dividend and it’s been beaten up pretty bad. If it can make a comeback in the next few years, that dividend makes it worth the wait in my opinion.

    -Mike

    • Mike,

      I haven’t looked too much into the company, but I am going to hold off of pursuing further until I have more information. Would want to see what shakes out with earnings and if a dividend cut is coming down the pipeline. The yield is nice, don’t get me wrong, but I don’t want to invest if a dividend cut is on its way.

      Bert

  10. Good job on the January income. I like it. I also like the way you presented your wife’s holdings.
    January was slow for me too but what is important is that we progress on our journey from one year to the next.
    – DIB

  11. Nice numbers for January. GSK income reductions serves to show just how dramatic Sterling’s depreciation has been post Brexit vote.

    I’m sitting tight for a pullback on Phillip Morris, having been able to top up at an attractive valuation back in November.

    Good luck in 2017

    • Thanks Neal! It is always crazy to me much of an impact currency fluctuations can have on your income stream. Unfortunately PM keeps on climbing; however, I would love to jump on it if the values drops as well. Nice job adding on to your position when the metrics were showing it was a value!

      Bert

  12. Congrats guys. It’s nice to see the growth! I actually just broke the $1,000 mark in annual expected dividend payouts so that’s a big one currently. I’m on the same page as you though with just trying to add more to my portfolio to keep this fire going!

    • Diligent,

      Thank you so much. Pumped as heck about a 23% increase for the month. Congrats on breaking the four digit mark. What a freaking huge accomplishment. How exciting is that. You are really going to see the benefits of this game now. Can’t wait to read your results.

      Take care!

      Bert

  13. It is always motivating to see progress. Great job on increasing your dividend income by >23%! Imagine if you had a job where they rewarded you with a pay rise of over 20% per year. You’d be ecstatic. That’s the great thing about companies raising their dividends as well as adding more capital. Constant pay rises! Interesting about your drop in GSK dividends. I invest across different countries as well and currency movement is just something I’ve come to accept. Sometimes it works for you, sometimes against you but I don’t spend time worrying about it.

    • Thanks Mike! I wish I could find a job that increases my salary by 25% annually. Lets just say my debt would be gone and my dividend income would grow by a lot greater amount that 25% haha I’m learning to accept currency movements as well. Some years you benefit and some years you are hurt by it, and it seems like we are in the latter portion of that cycle.

      Thanks for stopping by and the comment!

      Bert

  14. Great job! Yes January is usually an off month for everyone, but that growth doesn’t lie. I like your buys of CAH and O. They are both on my watch list, but I either didn’t have the capital or the price wasn’t right. I look forward to seeing how your combined portfolio performs this year.

    • Bummer about the timing of the purchases. Remain patient, good things will come. No need to rush an investment and try to force it, right? I’m just trying to find ways to add to ways to make the most of these off months and take this across the finish line! How did you perform this month?

      Bert

  15. I head you on the switching dividend payment dates! Can be quite annoying not knowing when it arrives, especially for a post on dividend updates…. I make guesses too, but sometimes I’m wrong and it is booked in a different month. Such is life, as long as they keep paying I’m fine with it 🙂
    Nice growth!

  16. Wow I almost mist your update, can’t let that happen! Loving your growth for this month, and the fact that you and your wife are now tracking both of your dividend incomes. Looking forward to see how that plays out for the both of you.

    We have set our eyes on buying a REIT (or 2) this year as well, since we switched brokers (finally!) But haven’t read much on any of them for the past year, so we have some catching up to do.

    • What the heck Divnomics??? Kidding, kidding. Glad you were able to check it out and leave a comment as well. Thanks for the comment by the way, it is exciting to see how our combined portfolios are doing! Which REITs are you focused on buying?? Definitely want to make sure you get your research in, but it can’t hurt to get excited about the possible purchase ahead of time??

      Bert

  17. Nice year over year growth! I started investing ~6 months ago so my year over year increase is incalculable! Ha, all kidding aside, I was happy with the month – $31.43 broken up from ETJ (8.37) EXG (4.8) SLVO (13.02) CAH (4.49) and CAFD (.75). I really do love those high yield monthly payers but I have been trying to focus more on the aristocrats!

    Speaking of missing aristocrats – is Lanny making anything anymore? I feel like I haven’t seen a monthly summary from him in 2+ months!

    • Thanks Alex! Your annual dividend growth rates must be through the charts haha That is a very, very solid month. I love Aristocrats as well and have tried to avoid chasing the companies with the less sustainable juciy dividend yields in favor of the less sexy, long term growers.

      haha his summary just came out today and you must have missed his December one! Stop by and check it out. Congrats on your great month!

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