Another month down. July is always a fun month because it is my birthday month! This year, I finally entered my final year in my 20s and will be enjoying this victory lap before I enter my 30s. The market was interesting this month and there were several weeks where there weren’t any investment opportunities jumping off the screen at me or Lanny. But then the end of the month struck! But I’ll save the details for the article…..Here is my July dividend income summary!
July dividend income summary
In July, I received $180.67 in dividend income, an increase of 35.57% compared to last year! The following chart provides a detailed breakdown of the individual dividends received. Please note that a “W” represents a dividend received in my wife’s account.
Here are some highlights and notes from July:
- Taking a step back, I’ve made several purchases in the last 12 months where I added to my stake in companies that I already owned. This was a HUGE contributor to the 35% increase. This includes additional purchases for Cardinal Health, CM, and O (which I purchased three times in January/February). Interestingly, based on current valuations, I could add to CAH and CM if I were to choose. So who knows, those figures may increase once again!
- It was really nice to receive my first dividend from Leggett & Platt (LEG) , which I purchased in the second quarter. The new dividend was HUGE and helped offset the decrease from DWDP.
- Speaking of DWDP, I cannot wait to stop discussing this one in these reports soon. DWDP switched the month they paid their dividend. Thus, it appears that I received $0 from the company this month. Instead, the income was just shifted. Sure it sucks this month, but I pick up a nice benefit elsewhere.
July Portfolio News and Dividend Increases
In this section, I’ll review two different ways that my forward dividend income will increase during the month: dividend increases and investment activity. The first table I will review is the dividend increases during the month.
Despite the fact that there were a lot of companies that announced a dividend increase during July, I did not receive too many of them. However, there were some nice, pleases ant surprises in the listing of companies that DID pay a dividend. First, I was not expecting an increase from BP as it has been YEARS since they have announced an increase. The impact was only $4, but hey, that’s $4 more dollars than I was expecting to receive last year. At their current share price, that should add about .1 fractional shares via DRIP.
Second, I also mentioned in my expected dividend increases article that a ton of banks increased their dividend this month. BAC was one of the largest and I was not expecting a 25% increase. My position in BAC is tiny, but it will always hold a special place in my heart since my grandma purchased those shares for me back in the 2000s. It is exciting that my position is almost back in the green for them! Lastly, NSC continues to CRUSH it this year. This was their second dividend increase in 2018 and the company has increased their dividend over 31% this year!
Next, I wanted to take a look at the dividends received from new stock purchases during the month and from our 401(k) and HSA contributions.
First, I was able to sneak in one stock purchase at the end of the month. My position in TSN foods isn’t large and didn’t add a ton of dividend income, but I was very happy to be able to add the company at its current valuation levels, with a yield over 2%, and before the company announced their dividend increase. It just made sense and represented a new industry/company in my portfolio!
Otherwise, it was a relatively quiet month. My wife and I continue to maximize our 401(k) and HSA plans, so we have added a nice chunk of change each month due to our contributions each paycheck. There was one nice surprise. My wife’s employer announced an additional $500 contribution based on performance of the organization. So that is why she received over 11 shares this month.
What’s crazy is that I received over $135 in additional dividend income from new purchase, 401(k) and HSA contributions, and good old fashioned dividend increases! Man do I love dividend investing!
July Dividend Income Summary
This year has been crazy and the market has provided us with some great opportunities and dividend increases. I’m very fortunate to be in a position where I have been able to capitalize and take advantage when I have had the chance. This community continues to motivate me to save every dollar I possibly can, push myself, and grow my portfolio. It is a long journey towards financial freedom and each month, we are all getting a month closer. Now, let’s continue pushing and make August count!
How did you perform this month? What was your growth rate? Did you make any purchases during the month? If so, how much income did it add to your portfolio?