Bert’s July Dividend Income Summary

Looking back, July was a pretty monumental month for me.  My daughter turned four months old, went to an in home daycare for the first time, Cleveland hosted the MLB All Star Game, and it was my birthday!   We talk about milestones on this website a lot.  Although it wasn’t an investing milestone, my birthday did represent another milestone that I won’t talk about.  But I am learning quickly that time does fly and things can happen with a blink of an eye.   That’s why today, I am going to reflect on the dividend income received last month.  Here is my July dividend income summary!

July Dividend Income Summary

This July, my wife and I received $304.26 in dividend income.  That is a 68% increase compared to last July’s total of $180.67.   I’ll never complain about an increase like that.  Here is a chart detailing the individual dividends received:

July dividend income

This was a short, sweet, but effective dividend month.  The first month of the quarter is the slowest dividend month for many of us. Hence, we only received 11 individual dividend payments.   What were the major drivers of the YOY dividend increase?

  • Four new positions over the last 12 months: LEG, IRM, ITW, and OXY.  Of the four, OXY is the most recent addition to my dividend portfolio.   The three companies pay very nice dividends and and a wallop of forward dividend income to my portfolio.  Heck, after OXY’s price continues to fall and their recent dividend increase, I may even add to my position if the price is right!
  • I added to my CAH position in the last 12 months as well.  The $8 increase was a result of this smaller purchase and the dividend increase announced last year.
  • The PM dividend decreased slightly due to the fact I transferred my brokerage last year and had to liquidate my fractional shares.  I am still waiting to get back to the same level for PM.
  • Last, but definitely not least, the good old power of dividend reinvesting and dividend increases.   Looks at the YOY increases for companies where I did not make any additional purchases (O for example).  Dividend investing is a beautiful thing, isn’t it?
  • P.S.  I wrote about this earlier in the month.  But I am starting to get worried about my SLB dividend.  This may be the last time I enjoy a large dividend yield before the company cuts their dividend.

Portfolio News and Updates

Last month I hinted that there have been some frustrations mounting on my end.  Those frustrations have continued through July as well.  In this section, I like to summarize the additional dividends received from stock purchases, 401k contributions, and dividend increases.   My frustration starts with the first item on the list, so let me dive right in.

The chart below shows additional dividend income from purchases and 401(k) contributions.  Does something odd look missing once again from this this chart?   

If you guess that it looks like I didn’t purchase stock during the month once again, you would be correct!  We only received additional dividend income from my wife’s 401(k) contributions.  For the second consecutive month, I have sat on the sidelines.  The market has made this a little easier.  It seems like there are a lot of companies trading at insane valuations.  But there is definitely value to be had out there.  And I have not taken advantage of it.  This is a trend I must find a way to reverse in the second half of the year.  My journey towards financial freedom is too important to let this stall.

This next chart shows the additional dividend income received from dividend increases.   I actually summarized both of these dividend increases already in my monthly “Expected Dividend Income” increases article.

The dividend increase from NSC was expected and it was very close to my projection.  The true surprised was the small dividend increase from OXY!  After announcing their acquisition of Andarako, which will add a lot of debt to their balance sheet.  I was not expecting OXY to announce an increase.  I don’t really care that it was small.  To me, it sends a great message to investors that the company is not messing around.   I am very excited to see how this acquisition plays out.

In total, I have received $51.55 in additional dividend income from 401(k) contributions and dividend increases.  Not bad, but I’ve definitely had better months.

Summary

So where does this leave me for the month?  That is a great freaking question to ask.  I think it is bittersweet.  I’ll start with the sweet.  I couldn’t be happier that we crossed $300 in dividend income in this “off” month.  It is great to see our dividend income grow compared to the last year.  Especially at a 68% growth rate.  That is great.  But it is bitter because once again, I made no stock purchases.  I’m worried that this is going to trickle down and result in slowing dividend growth rates in the second half of the year.   But that is something I can quickly remedy by taking a more active role in the marketplace as new opportunities present themselves.

Luckily, I should have some extra capital returning to my bank account.  I earned over $1,000 from new bank account sign ups and the holding period is almost up.  Thus, I will be able to return that capital to my savings or investment account and begin the process of growing my dividend income once again!   Let’s look ahead, keep growing, and continue earning income at a great rate.  Lets just make every dollar count!

How was your month of July?  Did you have an insane growth rate?  What stocks did you purchase during the month?  Were you surprised by the OXY dividend increase as well?

Bert

Facebooktwitterredditpinterestlinkedinmail

26 thoughts on “Bert’s July Dividend Income Summary

  1. Congrats one crossing $300 and the 68% YOY growth! The market has been quite high until these past 2 days, I had to wait on the sidelines quite a bit as well before making new purchases. Glad you had a good “off” month too! 🙂 And Happy (Belated) Birthday! 😀

    • Thanks MDD! It was amazing having my first birthday as a father. So freaking lucky. I luckily ended my dry spell this week in the market. DId you end up buying? It sounds like it based on your comment.

      Bert

  2. A 68% YOY growth sounds definitely more than sweet to me:) Congrats, Bert!
    You have created a real cash flow machine, even though there were no new purchases recently.
    Looking forward to seeing what you are going to buy with that cash.
    -SF

  3. Hey no need to sweat the non purchases but you should have grabbed LYB on that nice dip LOL. While it is nice to make a puchase every month you might get something on an unexpected drop that will add some dividends. Great job on the dividend and the YOY keep it up.

    • LOL no kidding on the LYB. Lanny has been all over that stock recently and I can’t blame him. I may need to add as well haha It is more frustrating than anything to have not made a purchase. But like you said, its okay. In the long run, I won’t remember this period.

      Bert

  4. nice Bert!

    That is a massive yr over yr growth rate. Gotta love that!

    Love the new additions. Dont sit on the sidelines too long. Bench warmers are cool but players are cooler!

    Ill be looking at adding jnj 3m or disney this month

    Anyways keep it up Bert!
    cheers

    • Thank you PCI! I love the motivation right there to get buying. Don’t worry, the players will be playing soon enough. 3M was my target and I definitely executed. Did you end up buying?

      Bert

  5. First of all, Happy Birthday Bert!
    Very nice increase in dividend income compared to last year, well done!
    I am sharing dividends from ITW and O with you this month. I was looking very closely to LEG but would like their price to decrease to $35, with current levels I am sitting on the sidelines.
    It looks like the market is finally presenting us with some opportunities during the last week after all the growth in the first part of summer. There are quite a few names on my radar – EMN, ADM, CAT. And now you introduced OXY, I will need to look into them as well 🙂
    Keep it up!
    BI

    • Thank you BI for the very kind words. At $35, LEG would be great and I may even have to consider them at this price. ADM is the one that I initially loved at these prices, but may wait and see on. If China stops purchasing US farm goods, who knows how that will impact the company’s bottom line. I think there are better plays for the trade wars IMO. CAT is great though and I would love to add to my position.

      Bert

  6. Great month Bert. It appears that we only have O and CAH in common this month but you have a lot of other great companies too. I recently had looked into IRM but was a bit unsure of the future right now so I am waiting for a little more certainty before I pull the trigger on that one. Overall great month for you Bert. Thanks for sharing!

    • Druss,

      Thank you very much! The funny thing is that dividend investing is not that complicated. Find great companies that are undervalued that have a strong history of paying/increasing their dividend.

      Easy as pie, right?

      Bert

  7. A busy July for sure. Don’t blink… time flies. Before you know you’ll have a 1 year old, then toddler, then… I still can’t believe how fast “baby” DivHut is growing. No longer a baby or a toddler, that’s for sure. Solid double digit year over year gain. No worries about not investing as long as you have that reinvestment turned on. I like the LEG pick up too. It’s on my Aug. watch list.

    • Man Keith. Our girl is growing so quickly. IT seems like just yesterday I was reading BAby Divhut articles for the first time too. Sometimes, all I want to do is put everything down and take it all in. Being a parent is probably the best thing that has happened to me. I’ll be watching LEG as the price falls and some of the other names on your watch list.

      Bert

  8. Boom! Look at that YoY growth. Impressive, Bert.
    Three new dividend payers this month is fantastic work. They easily overcame the three slightly reduced payouts you had from GSK, PM & SLB.
    Hopefully no dividend cut from SLB is on the horizon. Unfortunately, price declines often accompany dividend cuts so don’t hesitate to take action if you see the handwriting on the wall.
    Happy belated birthday! Did you hit the big 3-0? If so, congrats on the milestone and for your outstanding financial position at such an early age. The future looks bright for you and your family.

  9. Bert,

    Congrats on $300+ in dividend income for an off month. The 68% YOY growth rate is always an added bonus when you’re starting from a solid dividend base!

  10. Bert, can’t be to bummed with 68%. You’re doing something right. Not sure if we’re starting a long tumble down the recession hill, but I think bargains are here and maybe even more so on the horizon.
    See ya around!

Leave a Reply

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