Bert’s October Dividend Income Summary

Another month down.  Holy smokes, we are only two months away from 2016.  Man oh man does time fly by.  Kind of scary when you think about it.  Now that October has come to an end, it is time to put together my monthly dividend income summary and dissect one of the best feelings out there…receiving a dividend for doing absolutely nothing.  Without further ado, let’s review my October dividend income summary!

dividend income

Dividend Income Summary

DD Bert October Income

This October, I received $105.92 in dividend income from seven companies, representing a 5.05% increase from last quarter when removing the Kraft special dividend and a 9.78% decrease from last year (More to come).  Talk about a boring month!  I did not receive a single dividend form a new company this month when compared to July, which is funny considering all of the purchase activity I had in the third quarter (like Lanny and many others in the community experience).   Essentially this month was a textbook example of the wonderful power of re-invested dividends as many of the dividend increases shown above were a result of new dividends on re-invested shares.  I love it!

The table above shows some interesting activity that contributed to smaller than anticipated dividend increase for the quarter and year.  First, the largest impact is the lack of dividend received from Kraft-Heinz during the month. No, I am not talking about the massive special dividend received from Kraft in July that resulted in over $600 in one-time dividend income for me.  I removed this transaction so I could assess the growth in recurring dividend income during the year.   Typically we receive our quarterly dividend from Kraft on the last day of the month.  However, following the merger that was completed in July, the newly formed Kraft-Heinz company has yet to announce their quarterly dividend.  Will it come in November or December?  Who really knows?  I am assuming the company will use their upcoming earnings release, which is scheduled the first week of November, to set the new company’s dividend schedule and hopefully announce a dividend increase in the process.  Let’s keep our fingers crossed!

The lack of receiving a dividend from Kraft was a major contributor to the smaller than anticipated I results that I experienced.  However, I am looking forward to receiving a nice boost in whatever month the company decides to begin paying again.  A few other items worth noting.  For the quarter to date comparison, the lack of a dividend from Kraft was bolstered by the receipt of Diageo’s semi-annual dividend.  Luckily for me, DEO’s dividend in October was greater than Kraft-Heinz’s so I was still able to experience a bump in income.  Unfortunately, I wasn’t as lucky in my year to date comparison.  The loss of a dividend from Kraft-Heinz and ARCP, which I happily sold in January, was too much to overcome.  Oh well.  It is all relative as the important thing is that my money ARCP capital was spilt into three stronger dividend paying companies: HCP, NWFL, and CZNC!

Dividend Increases

October was a very fun month for me in terms of dividend increases.  First, let’s talk about my favorite of the month.  KMI increased their dividend again from $.49/share to $.51/share.  In total, KMI has increased their dividend 16% during 2015…amazing!   The earnings release that announced the earnings release also painted a bleak short-term picture, causing the stock price to fall and create a great opportunity for dividend investors.  Both Lanny and I used this as an opportunity to lower our cost basis in the investment and buy a few more shares.   For me, this purchase was huge as it allowed me to cross two cool investing milestones!  And for Lanny, well, his purchase was huge because who doesn’t love increasing their position in a company like KMI that pays a great, raising dividend??

But KMI was not the only company to increase their dividend this month.  After the last few months which have resulted in minimal or no dividend increases, October was pretty action packed!  AEP, an Ohio based utility company, quietly increased their dividend $.03/share quarterly, or 5.6%, from $.53/share to $.56/share.  This increase added $2.75 in annual dividend income to my portfolio.   Aflac also announced a dividend increase, increasing their quarterly dividend $.02/share quarterly, or 5.1%, from $.39/share to $.41/share.  This added $2.50 in annual dividend income to my portfolio.   I’ll never complain about a dividend increase and these increases outpaced inflation.  However, they weren’t anything to write home about either, continuing a trend of large companies announcing smaller than typical dividend increases.

Last but not least…the Golden Arches.  It is hard to be upset with the company considering the stock price’s appreciation in October.  However, similar to last month, we are still waiting for that darn dividend increase announcement.  Periodically I will read a few articles about McDonald’s converting to a McREIT, which would definitely explain the lack of news on their dividend.   So I am sure we will have our answer to the dividend mystery once management decides on the structure.  I’m impatient though, so hopefully the announcement from this foundation stock is sooner rather than later.

Summary

Another exciting month of dividend investing is in the books.  Once again, I can’t complain as this money was earned by doing absolutely nothing!  I love dividend investing for that reason and couldn’t be happier that I am now receiving over $2,500 in projected dividend income annually.  Looking ahead, November should be an even more exciting month as we are expected to receive a dividend increase from Emerson Electric, which I had amassed a large position in over the last few months as this stock on my Always Buy list continued to see its stock price fall.   Hopefully everyone had a great month and is enjoying their Halloween weekend

Did you have a great month of October?  What are your thoughts on KMI?  Did you buy more shares or are you letting the dust settle?  How did the dividend announcement impact you?   Do you know what the heck is up with McDonald’s and their dividend announcement?

-Bert

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22 thoughts on “Bert’s October Dividend Income Summary

  1. Bert:

    Congratulations on over $100 in dividend payouts and the almost 10% increase from last year. All this talk of KMI and their increases has made me envious of those who hold shares of the company. I do not own any shares of KMI, primarily due to investing commission-free with Loyal3 (they are not an available company on their website). However, after looking at the Diplomats review of Robin Hood I may be looking into opening an account with them.

    I like to think MCD is just building the suspense! Look forward to hearing their announcement.

    Best,
    Alex

    • Alex,

      Thank you very much. I am very pleased with the progress I have made this year and it serves as a huge motivator for me going forward. This is just the beginning in all of our dividend growth investing journey’s. What I love is that the journey never ends, you can always invest more and find ways to keep increasing your dividend income!

      I’m shocked that Loyal3 does not offer KMI. I wonder if it has something to do with the old partnership structure of the company. You’ll have to let us know if you open up a RobinHood account and let us know what you think about it. I love the fact that you can buy small stakes in companies commission free!

      MCD may be building suspense, but they are testing my freaking patience haha Have a great Sunday!

      Bert

    • Thank you very much JT. Are you increasing your stake or will that be a new investment? Just a heas up the Ex-dividend date was 10/29, so you will have to wait until February to get your first dividend.

      Thanks for stopping by.

      Bert

  2. Great job Bert!! From now on you’ll be receiving over 2500 annually. Wow, for being a youngin, that’s a hell of an acheivement. Keep it up my friend. You’re on the path to riches. I know it. Keep it up and by 30, and say having 15 k a year then, life will be much easier.
    Thanks for sharing Bert. I wish us the best.
    Cheers buddy.

    • HUSTLER!! Thank you so much for the kind words. It is crazy to think that I am receiving over $2,500 in dividend income annually. It is unreal considering where I was at just a few years ago. That’s why I love this hustle and game, earning dividends while doing absolutely nothing. It doesn’t get any better than that. I would love to hit $15k by 30! It would allow me to pursue my passions and ensure that I wake up every morning in the best spirits and excited for the day ahead!

      As always, thanks for stopping by. We love hearing from you Ty.

      Bert

  3. I wish KHZ would still pay a dividend in the first month of the quarter as KRFT did but from their investor relations it doesn’t look like that will be the case going forward …

    “As a result of the merger, The Kraft Heinz Company has incorporated legacy H.J. Heinz’s Board Meeting timing (next meeting is at the end of October) which is a few weeks later than Legacy Kraft’s. As a result, you can anticipate timing of the Board’s approval of any dividends will also be a few weeks later as a result of the new cadence.”

    I am just hoping they keep the same dividend rate and growth going forward. If not, I may have to sell. Time will tell.

    • Captain,

      Thanks for the insight here. So the days of KHC paying in the first month of the quarter appear long gone. Bummer, especially considering how hard itis to find companies that pay in an off month. I guess the more important item is that they continue their dividend policy and hopefully increase their dividend growth rate. Just out of curiosity, why would you look to sell if the DGR isn’t as high?

      Again, thanks for the information. Have a great Sunday.

      Bert

        • Understandable. I get where you are coming from. I would strongly consider selling as well if management decided to drastically change their dividend structure. I think it is unlikely with Mr. Buffett involved, but you never really know until it is announced.

          Have a great evening!

          Bert

  4. Forget the dividend income… “Holy smokes, we are only two months away from 2016.” That line is what’s really scary. Time sure does fly by way too fast but kudos to all in our dividend community that are doing something about it and not letting the months roll by without taking financial action. A boring month, maybe. But, as you stated, dividend reinvestment and announced increases can help boost any dividend growth portfolio. We have a few names in common for the month. Just keep that hustle going. Thanks for sharing and look forward to reading about your November buys.

    • Thanks! I love this hustle because your portfolio is benefiting in some capacity each month. Even if you don’t purchase or your market value is declining in value, we are still receiving an income boost or a dividend. You are right, we have all gripped this moment and are taking advantage of this opportunity!

      Let’s kill it during the final two months of the year and enter 2016 with a full head of steam!

      Bert

    • ADD,

      Hopefully a weak October means a strong November and December as income is shifting between months. I appreciate your kind words and support ADD. Let’s just buckle down, invest as much as possible, and reach financial freedom ASAP!

      Bert

  5. Bert,

    You’re in a great spot there, bud. You’re collecting a serious chunk of passive income every month, and the odds of that increasing (even without you lifting a finger) for the rest of your life are pretty high. The Bert of a year ago put the Bert of today in this spot, and you’re putting the Bert of 2020 in an even better spot. Keep it up!

    Cheers.

  6. That’s $100 you get use to spend on some blow! Wait I’m kidding!

    Congrats on receiving money for doing absolutely nothing at all. With all the busy travels and crazy work life, isn’t it awesome that your money is working hard for you?

    • hahaha I legitimately laughed out loud when I read the comment. I think I’ll fin a better use for the $100. Maybe re-invest it for a 4% yield and buy $104 of blow next year! Kidding as well. I love having an extra source of income. When I’m sleeping, I’m earning. Why not diversify your revenue stream so you aren’t stuck relying on your employers paycheck? That’s the road I want to travel down.

      Bert

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