Bert’s March Dividend Income Summary

Lanny said it best in his dividend income summary. The coronavirus has dominated everything lately, as it has taken our world and shaken it upside down.  Everyone is learning to adjust to the new, short-term reality, including individuals and businesses.  For me personally, I have cherished the opportunity to spend every day with my daughter, as I have worked at home exclusively. I’ve truly grown to appreciate seeing all the little things and seeing how much she grows and learns each day. This is a feeling that has just made me hungrier, and hungrier, for financial freedom.  And while all of this madness has been going on, the dividends have continued to quietly roll in. Let’s take a look at my March 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 Dividend Stock Screener

We find the stocks to invest in using the Dividend Diplomats Dividend Stock Screener and other carefully created lists.  Recently, the lists have focused primarily on finding quality, dividend growth stocks (aka Dividend Aristocrats) that are made to weather this current pandemic, unlike some other industries.

See- Our Top 5 Foundation Dividend Stocks 

See – Industries Built for the Coronavirus Pandemic and Dividend Investors

See – Dividend Aristocrats with Low Debt

Over the last 6+ years, our portfolio and dividend income have slowly grown.  We’ve maximized our 401(k) contributions the last several years, invested every extra dollar we could, reinvested our dividends, and realized the benefits of reinvesting our dividends. Slowly, but surely, we are seeing the process work. The dividend engine is starting to hum and the power of compounding will start taking over soon. That my friends, is what it is all about!

See – The Power of Dividend Reinvesting

See – The Power of $50,000 in Dividend Income, Explained

Bert’s March Dividend Income Summary

In March, my wife and I received $2,334.68 in dividend income.  That is a 34% growth rate compared to last March.  The following table provides a detailed listing of each dividend received.

March dividend income summary, stocks, investing

Here are some of the highlights:

  • Mutual funds continued to lead the way for us.  Since this is the third quarter of the month, our dividend income receives a huge boost from these funds. For some funds, the capital gains distributions far outpaced the first quarter last year. Given the selling that occurred, especially as things turned sour in February and March, it wasn’t surprising to see some funds take their gains off of the table.  This should be an interesting trend to follow in June, September, and December.  Will the payouts in those quarters be less, as a result of the March distributions?
  • Many of the purchases I made in January and February (click here for last purchase summary) were made before their ex-dividend date. So I was able to receive the dividend payment this quarter.  That include MMM in my wife’s portfolio and the additional shares of UPS and ADM in my portfolio, just to name a few.
  • My wife received her first dividend from Smuckers (SJM) this quarter.  Smuckers is one of the few companies that is holding up well during the pandemic.  Their products are essential to everyday life and lend themselves to perform well during tough economic times.  I know we have stocked up on a few extra jars of peanut butter in our house.
  • Lastly, I always have to make this comment when reviewing the table, but there were many companies for which I did not purchase any additional shares over the last year.  However, you can see their dividend increase due to the good old fashioned power of dividend reinvesting and dividend increases.

Bert’s March Portfolio Transactions

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  detailing the impact of each.  However, March was crazy.  While I didn’t purchase as much stock as I would have wanted, especially towards the end of the month when the market plummeted, I purchased enough to warrant a separate article to discuss this activity. So there will be more to come!

However, I will state this about my purchases.  Stock purchases and 401(k) contributions added $190.02 in dividend income to my forward dividend income in March.  Which is great, considering the next chart I am about to show all of you.  This next chart typically shows the dividend increases I received this month.  Let’s just say, in MArch, the dividend cuts outweighed the dividend increases by a significant margin.

Yikes.  Thanks to Occidental Petroleum (OXY) and Delta Airlines (DAL), I lost nearly $178 in forward dividend income.  Neither of the cuts were surprising given the collapse in the price of oil and all of the stay at home orders.  It will be a while before either of these companies increases their dividend once again, in my opinion.

I must say though, I am lucky that the impact from dividend cuts was not worse last month.  Many retail companies quickly, and aggressively, slashed their dividends and suspended their forward guidance.  It is only the middle of April and there will be more cuts to come in the future if we cannot start returning to normal soon.  Obviously though, the most important thing is slowing the curve and doing everything we can to stay healthy and safe. I’ll say it time and time again.

Thank goodness that the new income added covered the income lost from the dividend cuts.  Overall, I added $12.67 to my forward dividend income in March.

Read – PG and JNJ Lead the List of Powerhouse Companies Expected to Increase their Dividend in April

Summary

This truly has been the most unique month and a half of investing that I have experienced…ever. The market fell fast and furiously, and then quickly whipsawed back upwards.  There are days when I am kicking myself for not being more aggressive, but I am still waiting to learn more about the economic conditions and start seeing companies report earnings.  It is coming soon, now that we are several weeks past the quarter end.  Hopefully, more information will be available to make the best investment decisions that we can!

For now, I will continue my strategy of making small purchases of Dividend Aristocrats or other companies with strong balance sheets.  I’ve enjoyed the strategy and it has allowed me to remain flexible while averaging my cost basis downward on some great dividend growth stocks.  And on top of it, I’ll enjoy reinvesting my dividends at these lower stock prices.  It’ll be interesting to see how things shake out and what I’ll be writing at this same time next month!

How did you perform in March?  Did you see strong year over year growth?  What were your major stock purchases for the month?  Have you been investing a lot of capital, or remaining on the sidelines?

Bert

P.S.  We are now officially LIVE on Instagram!  Stop by our page and see some behind the scenes footage of the Diplomats in action!

20 thoughts on “Bert’s March Dividend Income Summary

  1. Wow congrats Bert such a fantastic jump in dividend income. You have so many great companies in your portfolio. Sorry to hear about your dividend cuts once the pandemic is over hopefully they dividends will be reinstated.

    I’ve had five dividend cuts/suspensions so far and I have lost a total of $897.02 in forward income.

    Always enjoy reading your posts! Keep up the great work!

    Matthew

    • Matthew,

      Thank you very much, I appreciate the kind words. The dividend cuts suck, don’t get me wrong. But after seeing your totals, I can’t complain one bit. This has been insane to see how quickly things turned south and how fast companies were will to slash their dividend. It’ll be interesting to see earnings over the next few weeks so we can start putting hard numbers to this pandemic. ‘m hoping OXY follows KMI’s path to improving their balance sheet and ultimately, increasing their dividend in the future.

      Have a nice evening!

      Bert

  2. Bert,
    Nice YoY growth, but tough luck on DAL and OXY. I’ve had one unimportant suspension thus far. It will be nice when all of this is over. Being locked in with 2 kids under 3 really makes the days all run together in a stressful way. Investing wise I think we will see a few more opportunities to pounce. This not over yet by any stretch.
    – Gremlin

    • Gremlin,

      My man. Nice job on avoiding the dividend cuts and the dividend suspension. I agree, this needs to end soon. I have watched my daughter progress and become more active. She is just learning to walk, so she can’t move too far, too quickly (although she is a speed demon when walking with a push toy). I could only imagine what it would be like to have older kids that can move around and need to expend their energy. Hang in there my friend. I agree about the investing opportunities. There will be some bad news released with earnings that hopefully with present new opportunities for us to invest.

      Have a great evening.

      Bert

  3. That YoY growth is amazing.

    A couple dividend cuts in the grand scheme of what’s happening right now isn’t too bad at all.
    It’s gotta be super refreshing/relaxing to see those monthly numbers, especially with what’s going on right now, knowing you’ve got such a solid foundation built up already.

    Cheers

    • Thanks Jordan! A couple isn’t a lot, but man, did they make a dent haha While it is relaxing, it is also motivating me to do more and continue to find ways to invest. LEt’s keep building the wonderful house that is on top of this foundation.

      Bert

  4. Bert,

    Thanks for the update! You’ve got some nice monthly dividend income. I hope to get up to that number eventually. I agree with what other people are saying a couple of dividend cuts isn’t the end of the world. Since you are diversified, it isn’t effecting you that much. And, you know that dividends will be restored/increased eventually. Might make sense to buy some more of DAL since it has been beaten down so much?

    Scott

    • Thank you Scott! Much appreciated. You’ll get there, I promise. Just keep working hard, focusing, and investing every extra dollar that you can. I know the cuts aren’t the end of the world, but that still doesn’t mean I like them. HOpefully the dividends will be restored sooner, rather than later. I’m not buying any new airline stocks right now. DAL is the cream of the crop, but I think the airlines have a long way to go before they recover. Until we know more about the long term impact of this, I’m definitely passing on adding to my position unless prices become that desirable.

      Bert

  5. Wow, another great month and what a YoY growth. It comes to show that quality dividend stock with a low payout ratio and/or good financial structure are the best to hold in a dividend growth investor. With the recent “forced” sell-off I started shifting more and more into these companies. You already have a lot of them in your portfolio. Keep up the good work!

    • Thank you DGJ! This month has caused me to look back and focus on quality, quality, and quality. Glad to see you are getting more into the dividend growth game! What companies have you been eyeing?

      Bert

  6. Bert,
    Congrats to you and your wife on another great month! I’ve been fortunate to have experienced no material dividend cuts to date (only a suspension of BA’s dividend in my M1 Finance account, which accounted for $0.01 of March income).

  7. One again, a nice Year to Year growth there Bert. I basically stuck to buying AT&T.
    This month I think I will make some minor purchases and build up cash again and make a splash when I see how thinks shake out a bit more.

    tqke care
    John

    • Thank you John. AT&T is great right now and it is hard not to grab shares of the company when they are trading below $30 per share. Slowly, but surely, the dividend snowball will continue to grow. Lets get our reserves building and get ready to strike when ready.

      Bert

  8. Woah those are some solid companies you have paying out in March, keep it up! Sorry to hear about OXY and DAL – hopefully they get those divvies back up and running soon. But yeah 34% growth is INSANE, and close to $2500 in a single month 😱

    LETS GO!!

    Cheers,
    Divcome

    • Thank you Divcome! Honestly, I’m not holding my breath for either company, as both the oil and airline sectors are going to be dealing with the ramifications of low oil and this pandemic for a long time. I’ll enjoy collecting what I can from OXY right now, reinvest the dividend, and enjoy their dividend increase in 2-3 years (hopefully).

      LETS GET AFTER IT!

  9. Hi Bert. Nice! Over $2,300 in income. Quite impressive. Those mutual funds delivered some serious cash.
    I was glad to see you had enough forward dividend income generated from purchases and 401(k) contributions to offset those two dividend cuts. Do you have any other companies in your portfolio that you are worried might cut or suspend their dividend? I’m hoping that the worst I will see is a dividend freeze, but the longer companies are shut down the more I suspect I’ll see a cut. Right now, I’d say I’m most worried about CAKE in my Portfolio They are a smaller position for me (especially after their price decline!), so if they do cut, it shouldn’t sting as much.
    Glad you saw some new dividend payers this month. It’s always nice to receive payments from new sources.
    Keep building that income as you can!

    • ED,

      Thank you very much. Yes, those mutual funds delivered way more than I was expecting. I’m guessing they just cashed out their capital gains before the market tumbled. Sadly, the one company I was fearing would cut their dividend did. Schlumberger just announced a 75% decrease in their quarterly dividend. Any oil or retail company should be closely monitored. To be honest, I’m shocked CAKE hasn’t announced a cut yet based on some of the news I was reading about them. What crazy times we are living in right now ED. Hopefully this all ends soon.

      Bert

  10. And the dividends keep flowing into your account. Awesome. Keep on building and inspiring myself and others. Love the diversity in your holdings and the relative income equality from your holdings. I’m still looking at the cash rich companies in April for my buys MSFT AAPL etc. but honestly I wish I had more $’s to spread out these days as many companies still look attractive to me.

    • Thanks Keith. That’s very kind of you to say. We all do an awesome job inspiring and motivating each other to continue pushing our dividend income forward. Companies with strong cash is not a bad way to go during these times. Luckily, I don’t think things are going to be changing anytime soon. So hopefully, you can scrape some extra cash together to take advantage of those deals.

      Bert

Leave a Reply

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