June was an odd month for many reasons. One will become apparent later in the article. The other reason…it flew by. In the blink of an eye, it’s July. Lanny continues to do amazing things on his financial front and I’m doing my best to follow suit. June had some nice progress. Let’s review my June Dividend Income Summary.
June Dividend Income Summary
This month, my wife and I received $1,606.58 in dividend income. That is a 38.90% increase compared to last year! The third month of the quarter is always fun given our mutual fund payouts. But there were a lot of new dividend growth stocks in my portfolio compared to last here. Here is a chart providing each individual payment received:
Here are some thoughts and tidbits:
- First, the mutual fund payouts referenced earlier. My wife and I started maximizing our 401(k) contributions last year and the results of this strategy are really paying off. Look at the four largest payouts last month, along with the $40.79 payout from VIIIX from my old employer’s 401(k).
- The amazing dividend increases announced in 2018 are very apparent in the table above. We all remember how strong dividend increases were post-tax reform last year. Look at the increased distributions from MCD, ED, PFE, FE, TROW, etc. All of the dividend increase show very solid dividend increases compared to last year. It is just unfortunate that dividend growth has slowed in 2019.
- We received a lot of dividends from new companies compared to last year. Looking back, it is crazy to see how many stocks were purchased over the last 12 months. I’m very fortunate.
- The Dow/Dupont spin-off provided us with a special cash dividend this month. The extra payment is nice. However, figuring out the true dividend post spin-off is still more complicated than it should be.
Bert’s Portfolio News and Updates
I mentioned that this was a weird month. You are about to find out why. In this section, I highlight additional dividend income earned from dividend increases and stock purchases. There is one problem though….I didn’t purchase any stocks in June. It hit me at the end of the month. We all know that finding value has been difficult as the stock market continues to climb. Rather than reach for a company, I decided to just sit the market out. Hopefully I’ll be able to capitalize on some of the companies in my June and July dividend stock watch list.
To add to another layer, we barely added to our 401(k) for a few reasons. First, the new company I work for has an odd investment option in our portfolio. Rather than investing in a low-cost index fund; I can invest in a “seperate account” that mirrors a 401(k). There is not a published dividend rate either. So while I am adding to an account mimicking the S&P 500, I’m not adding to my forward dividend income with each contributions. Still, I’m benefitting from the tax savings of making these pre-tax contributions. My wife’s contributions were down as well due to timing of payments during her maternity leave (that’s a different story for another day).
But at least I received some additional dividends due to dividend increases. We covered all of these dividend increases in my expected dividend increases article published earlier in July. Further, the best increase, was the Bank of America dividend increase received at the end of the month. Post stress-testing this year, the Fed gave the go ahead for bank’s to announce large dividend increases (I wrote about bank dividend increases here). BAC and others did not waste much time releasing their plan. BAC announced a SWEET 20% dividend increase. It only resulted in an additional $1.35 per share for me; but I’m not going to complain about any dividend increase. In total, dividend increases added $12.86 to my forward dividend income.
This was a bittersweet month for me. I received over $1,600 of dividend income and had a really nice dividend growth rate. I am fortunate to be in this position. However, I am a little bummed about the lack of dividend income added during the month. It is strange not buying a stock for a month. And I STILL haven’t purchased one in July, either. I’ve got a lot of work to continue doing and finding time to prioritizing finding investment diamond’s in the rough. But looking ahead. I’m excited for what the rest of the month has in store for us. Now, it is time to push forward and continue grinding.
Did you have a strong month of June? How was your June Dividend income summary? Have you had a month where you haven’t purchased a stock before or not add a lot of dividend income? Do you automate your investin to ensure investment each month?