Bert’s September Dividend Income Summary

September was a crazy month and it flew by.  It felt like every day Lanny and I were either receiving a dividend, purchasing a stock, or watching for a dividend increase announcement.  There was just a ton going on.  September was also huge for me since I was able to knock out my first 2015 goal:  Investing $15,000 in “New Capital” in 2015.  With the recent downturn, I have felt as compelled as ever to maintain a low cash balance to purchase some great discounted dividend growth stocks.   Now that the month is over, I can finally breathe and take a step back to assess my monthly dividend income and compare the total to prior periods.  Let’s see the results for September.

dividend income

Dividend Income Summary

Sept. Div

 

This month I received $224.26 in dividends, which represents a 20% dividend increase compared to last September and a 20% decrease from June.  However, the devil is in the detail and there are a lot of moving parts that contributed to the growth rates above.  Let’s take a further look at my dividend income for the month.

First, and quite frankly, the most my favorite item to report.  I received dividends from three new companies this quarter: Emerson Electric, Johnson & Johnson, and Consolidated Edison.  Man it has felt like ages since I purchased Consolidated Edison, one of the stocks we believe is a foundation stock for a dividend investor’s portfolio.  In total, the total dividends from these three companies represented 18% of the total dividends received in September.  Talk about a nice contribution from your team’s newest players!  The best part is that the quarterly dividend I will receive from Emerson is set to increase as I re-upped my position earlier in the month.  I can’t wait till December rolls around.

As I mentioned earlier, there were some extra details to discuss.  No, the details did not revolve around the stocks I purchased this month.  It centers on the pure dollar dividend growth rates that I mention a few paragraphs ago and how the numbers are misleading when I compare the actual dividends received during the period.  Making a few adjustments  will portray a better picture of the core dividend growth of my portfolio.    First, if you recall, last September we received a special dividend from Scotts Miracle-Gro, which we all know is a special one-time event.  Thus, to accurately compare the dividend growth rates, I adjusted the total income to reflect re-occurring dividends (similar to what I did in July when we all received that massive special dividend from Kraft).  After removing the special dividend of $42.25, my year over year dividend growth rate was actually 55%!  Similarly, I own shares in a large-cap growth fund that pays a semi-annual dividend  in June and September.  So for fun, when I remove this dividend, my dividend income actually increased 32% when compared to June.  Now that’s what I am talking about!

After these few items, the rest of the growth was attributed to every dividend investor’s best friend…the DRIP.  Outside of a few stocks, I received a nice bump due to dividends re-invested in the previous quarters.  Are the numbers small right now…sure.  But the impact will be larger and larger as the dividend snowball begins to pick up steam and roll further down the hill. 

Dividend Increases

This was an odd month for dividend increases, as Lanny mentioned during his article.  It seems the recent trend of large dividend increases for many large companies is slowing down, as we have noticed that many large companies have been announcing smaller than usual dividend increases.  Which is unfortunate news for us dividend growth investors.  Oh well, what can you do.    I guess a smaller increase is better than no change or a decrease, right?  Anyway, similar to Lanny, I received a slight bump from Philip Morris (from $1.00/share to $1.02/share quarterly).  Even stranger than the small increases is the fact that McDonalds has still not announced their dividend increase that was scheduled to occur a few months ago…what the heck?   Lanny and I have been watching for this announcement (which may sadly be considered an obsession) and are giving each other practically hourly updates.   STILL NOTHING.  Come on McDonalds…let’s increase that McDividend!

Summary

Wow!  This month is a textbook example of why I love dividend growth investing and I am so passionate about investing every dollar NOW to build a dividend income stream that will carry me to financial freedom.  These results are real and the impact is beginning to be felt and trickle down throughout my portfolio.  I couldn’t be happier with my results this month and hopefully I will have as many new companies paying me a dividend as I did in 2015.   This is what it is all about, so let’s keep pushing, scratching.clawing, and investing every penny we can so we can achieve our end goal as soon as possible.  LET’S GO EVERYONE!

How was your month of September?  Did you see a large increase in dividends this month?  If so, which investments caused the large leap?  Did you realize any smaller than usual dividend increases?  Do you know what the heck is going on with the Golden Arches?

-Bert

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15 thoughts on “Bert’s September Dividend Income Summary

  1. I’ve got to agree with you – it’s a textbook example of why dividend growth investing is so attractive! Keep up the good work, and won’t it be great when you look back in September 2016 and see how much everythig has grown again?!

    Cheers

    • Thanks M! I can’t wait for December 2015, let alone next year. 12 months is a long time and there is a lot of activity that can occur in that time frame. While the numbers may be small, they really begin to add up and together can make some great noise!

      Bert

    • Thanks R2R! It was a heck of a quarter and it was nice to finally receive the impact from all the purchases I made earlier in the year. It just makes me want to keep on buying more and more. Now…I need to get the cash to repeat haha

      Bert

  2. Bert,
    Nice YoY, and don’t beat yourself up over the quarterly change. Fact is you are ahead of the game, way more than most of our peers. Keep chugging right along, the dollars you’ve socked away at this point will seem like giants in the future pushing your FI further.
    – Gremlin

    • Gremlin,

      Thank you very much. I know I shouldn’t beat myself up and I couldn’t be more fortunate to be in the spot I’m in. It is huge that Lanny and I are able to get the snowball rolling at such a young age. Its time to keep on pushing so we can all reach financial freedom as soon as possible!

      Bert

    • Thanks Tawcan. I appreciate it. Months like this are huge motivators for me because I can now see the real progress. It helps push me and drive me to continue saving and working my tail off so I can reach financial freedom as soon as possible. Let’s go!

      Bert

  3. Nice work Bert. Consolidated Edison is one of my favorites, growth is minimal, but it has a great track record and decent yield.

    MCD should have, or I should say typically would announce Mid Sept as I’m sure you are aware … interesting.

    Shoot me an email when you have a second devin@dividendchimp.com, I have an idea you might be interested in.

    • Chimp,

      I love ED and quite frankly, I wish I would have invested more in the company. I’m in the camp of who cares if the growth rate is low…they reward us with a pretty high dividend yield to compensate for that fact. The yield + growth rate is on par with a lot of other companies in our portfolios, so I am not too upset with this fact. Still…I have no clue what is going on with MCD and it is really starting to piss me off here haha

      I’m going to shoot you an email soon. Make sure to check your inbox. Thanks for stopping by!

      Bert

  4. Bert,

    Awesome work! $225 you didn’t have to work for. And you’ve got well over a dozen companies here working for you, sending you a check. I just love it when someone else works for me but sends me the check. That’s the kind of relationship I quite like!

    Keep it up, bud. You’re set up for a strong finish this year. 🙂

    Best regards.

  5. Good job Bert. You’re killing it bud. So young and ahead of the game. The future is bright bud. Keep hustling away and now you know, compound feels awesome. Keep the snowball rolling aight.
    Happy for the results. This path works 110 percent.
    We’re all proof of it.
    Cheers !

  6. Hi Bert

    Great dividend income, we have some companies in common that paid us dividends – great minds think a like.

    Great progress YoY, Keep the snowball rolling.

    Divorcedff – Sharon

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