Dividend Income Summary: Bert’s June 2020 Summary

The stock market continues to put on quite the show in 2020. Luckily, our dividend income is putting on a show as well.  The power of dividend investing is real and hopefully our results will motivate you to continue investing in dividend growth stocks. This article contains our June dividend income summary, including the total dividend income and the dividend increases we received this month.

Why I Invest in Dividend stocks

Dividend income is the name of the game. You have probably figured this out by now; however, if you haven’t, the two of us are extremely passionate dividend growth investors.  Our goal is to invest in dividend paying stocks that consistently increase their dividend. We find these stocks using the Dividend Diplomats’ Dividend Stock Screener.  The stock screener uses 3 SIMPLE metrics to identify undervalued investment opportunities.

Dividend investing is simple and it makes sense to me. That is why I pursue this route. You invest in high quality dividend growth stocks that have demonstrated their ability to increase their dividend through good times and bad. In return for your investment, the company pays you a dividend. Overall, it is simple, easy, and most importantly, passive.

Dividend investing in 2020 is more important than ever. Why? The cash in your savings account is earning NOTHING. Interest rates continue to fall. Further, according to Chairmen Powell, we will be in a low interest rate environment for the foreseeable future. We are always looking for new ways to earn interest income. That is why dividend stocks are one of our suggested alternatives to holding cash in a savings account. The dividend stock can help increase the yield earned on your cash.

Related: Cash is Dead – Why Holding Money in a Savings Account is a Fool’s Game

Building a significant stream of dividend income takes hard work, consistency, saving, investing, and most importantly, time. If you save as much of your income as possible and invest the proceeds into income producing assets over a long period of time, you will realize the fruits of your labor with a strong growing income stream. I started my dividend investing journey in 2012. Slowly, but steadily, my income has increased annually. Eight years later, I am enjoying some of my strongest dividend months yet. The best part is…I’m just getting started. We continue to save, invest, rinse, and repeat here in our household. The best is yet to come.

Related: Our Dividend Income – This Page shows EVERY Monthly Dividend Income total we have received since 2014. See the growth for yourself!

Related: The Power of Dividend Reinvesting

Each month, we share our dividend income summaries to highlight our annual dividend growth rate. This is a fun and helpful excercise. It holds us accountable to ensure we are hitting our goals. Further, it helps you, our followers, understand where we are allocating our capital and the stocks we are purchasing.  The comments I receive are great, helpful, and motivating. That’s what it is all about.

Bert’s June 2020 Dividend Income Summary

June was not a record setting month for me. However, we are closing in on a milestone and should hit this milestone in September (barring additional dividend cuts). The milestone is receiving $2,000 of dividend income in a non-December month. In December, mutual funds and ETFs pay out their capital gain distributions. The payments received in the last month of the year will always be higher than the other 12 months. That is why crossing $2,000 in a non-December month will be so exciting for us!

Related: Milestones and Dividend Investing – A Match Made in Heaven

In June 2020, my wife and I received $1,962.02 in dividend income. $37.98 short of the $2,000 mark! This was a 22% increase compared to the dividends received in June 2019. We received over 50 individual payments from companies and fund families. Think about that for a second. 50+ entities paid us a check and we didn’t have to lift a finger to earn the cash. Beautiful. The chart below provides a detailed breakdown of the 50+ dividend payments we received:

June Dividend Income

In each dividend income summary, I provide a few highlights and observations about the dividend income I received.  My notes for my June 2020 dividend income summary are as follows:

  • Let’s start with a positive note. We invested a lot of capital into my wife’s accounts at the end of 2019 and start of 2020. It is very exciting to see her dividend income totals increase each month. In June, she received new dividends from Smuckers, 3M, Pfizer, Discover, and Exxon Mobil compared to last year. Not only is it exciting to see my income grow, it is also exciting to see hers grow as well.
  • Similarly, I received increased dividends compared to last year due to continued purchases throughout the year. One example of this is United Parcel Services (UPS). The dividend I received from UPS doubled compared to last year due to purchases made in 2020. UPS trucks are everywhere during the pandemic with increased online purchases. Further, their return partnership with Amazon is great. When we return a package, I simply drop it off at the nearby UPS store within walking distance of my house and they take care of the packaging, shipping, and handling. I couldn’t be happier that I own this stock and will add more if the price falls again.
  • There were several negative items from the month. First, my dividend income from Dow-Dupont decreased compared to last year.  The company split into three separate companies around this time in 2019. Shareholders received a special cash dividend as a part of the transaction. This was reflected in my June 2019 dividend income summary. We did not receive a similar special dividend this year. Therefore, my dividend income decreased over $70.
  • Second, I felt the impact of a few dividend cuts from earlier in the year. The most devastating was Royal Dutch Shell. I’ll never forget the shock and frustration that we had when it was announced Shell was cutting their dividend. So far, they have been the only major integrated oil company to do so. Exxon Mobil, Chevron, Total, and BP have each maintained their dividend. Time will tell if Shell was ahead of the curve or acted too quickly and unnecessarily cut their dividend.
  • Lastly, my dividend income from mutual funds decreased significantly compared to last year. I have a lot to say about this. Therefore, I will discuss this further in the next section of my article.

Dividend Portfolio News & Updates – June 2020

In this section of my dividend income summary, I typically discuss the dividend impact of stock purchases, 401(k) contributions, and dividend increases. However, this month, I am going to exclusively discuss news related to dividend increases and cuts. Similar to Lanny, I will publish a separate article disclosing my purchases for the month.

Related: Dividend Increases Expected in July 2020

Related: Lanny’s June Dividend Stock Purchase Summary

The following table displays the dividend increases received during the month and the additional forward dividend income I will receive from each company. Overall, dividend increases added $11 to our forward dividend income. The dollar amounts may not seem large.  However, just remember, you are on a website that preaches the importance of making every dollar count.

dividend income summary, june dividend increases

We received some very nice dividend increases this month. In total, 3 portfolio holdings increased their dividends: two Dividend Aristocrats (Target and Realty Income) and one supermarket giant (Kroger). Target and Realty Income’s dividend increases met my expecations. The largest, and most surprising, dividend increase belonged to Kroger. I knew Kroger was performing well during the pandemic based on news articles and their industry. However, I was not expecting a double digit dividend increase in this environment.  That was a pleasant surprise and helped my portfolio offset some of the dividend cuts I received earlier in the quarter.

Now, I would like to discuss a topic mentioned earlier in the article. This month, my dividend income was negatively impacted by decreased dividend payments from mutual funds and ETFs. We have received dividend cuts from plenty of companies over the last few months. Retail giants, airlines, oil, and many other companies slashed their dividend as the economic impact of COVID intensified.

Related: The Impact Dividend Cuts Have Had on Lanny’s Dividend Income This Year

Until this month, my relationship with dividend cuts was isolated to individual stocks.  A company I held cut their dividend and my dividend income decreased accordingly.  Pretty simple, clean, and easy to understand after reviewing their press release. However, it didn’t dawn on me until a conversation I had with Lanny early in June that we were heading for some troubled waters with our mutual fund dividend payments.

My mutual fund holdings are low cost index funds with dividend yields between 1.8% – 2%, historically. The dividend payment the funds receive also mimic the dividend payments of companies in the S&P 500. Since the funds mimic the market, the funds have exposure to previously listed industries that were severely impacted by the coronavirus pandemic.  Within these sectors, there were a TON of dividend cuts.

Related: Mutual Funds vs. ETFs: Understanding the Key Differences

Finally, it hit me. Funds with exposure to these sectors will receive less dividends due to their holdings cutting their dividends. Therefore, I, as an investor in the fund, will receive less dividends from the fund. Luckily, I realized this at the beginning of the month and was able to lower my expectations. However, take a look at my dividend income chart above once again. The decreased dividends from VWNAX had a huge impact on my dividend income. While I hold other mutual funds, the decreased payout from other holdings were at least offset by increased contributions to the funds. Imagine the growth I would have experienced if we didn’t receive the dividend cuts. I would be boasting about how we blew past $2,000 dividend income in June.

Dividend Income Summary

Another month in the books. Time continues to fly by. July has already been an eventful month filled with daily investing surprises. I have a lot of thoughts about the Dominion dividend cut announced in July. None of those thoughts are great. So stay tuned for next month to see. Growing as an investor has been one of the most pleasant aspects of this journey. There is so much information to learn. Let’s continue pushing ourselves and making sure that our income continues to move forward.  It is as simple as that. Time to buckle down and buy some more income producing assets.

How did you perform in June? Did you set a personal record? Did you have decreased mutual fund distributions as well? What is your plan of attack for July?


23 thoughts on “Dividend Income Summary: Bert’s June 2020 Summary

  1. Bert, Like you, I also saw a decline in my mutual fund dividends in June (down 28%). But luckily my ramped up investing in dividend-growth stocks (after my discovery of your site this past February) more than offset it and my overall June dividends were up 27.7% over last year.

  2. Bert,

    Is the $1,962.02 earned in dividends all from the taxable account? I received $744 for the month of June from mine, which is my highest personal month up to this point.

    I too got impacted by Shell cutting it’s dividend but believe that long term we will be fine so I am not selling for now. Would you sell any of your dividend cutters to re-capture lost income? For example I sold out of Wendy’s and Disney after the dividend cuts but still came out ahead on dividend income.

    • Stock Rider,

      Thank you for the comment! Congrats on your personal best. That is freaking awesome. Can’t wait until you break that record once again in September, then DEcember, then March, and then once again in June 2021! To answer your question, no. The dividends are split between taxable and retirement accounts. I’m also not planning on selling my cuts right now. Historically, I have just let it ride to see what happens. That may not be the best answer. What stocks did you buy after selling Wendy’s and Disney?


      • Thank you Bert, if all goes well, I should be hitting my first 1K month this year, will be buying super aggressive for the remainder of the year. Already projecting close to 9K of new cash injection for the month of July.

        Looking at my history, looks like when I sold out of Wendy’s I immediately purchased shares of WM, SO, PG, and O.

        After the Disney sale I made purchases in PPG, INTC, and MCD. I had more in new dividends that I spread the rest of the sale money of Disney in the remainder of the month.

        • Wow StockRider. Just wow. That’s a TON of capital going into the market in July. I lobe how you spread the cash from Wendys and Disney into strong dividend paying companies. Excellent stuff right there.


  3. Hi Bert,
    I ended up with $1156.59 in June. I exclude my mutual funds to keep it simple, but did see my fund rise about 15% last month.
    My July plan of attack was to make sure my money was working for me. I got out of 4 companies that halted their dividends and reinvested on more solid ground. I sold out of DAL because I do not see them pulling through an extended pandemic without bankruptcy and wiping out all of my investment. I also got out of BBBY the day before it dropped by 20%. I think they are toast. I’m keeping EAT and CBRL though.
    Took that money, plus some cash I had and got chunks of ABBV, TSN, PG, HRL, KR, with more to come.
    One thing this pandemic has succeeded in doing was sharpening my focus on the Aristocrats that have a low payout ratio.
    take care,

    • John,

      Excellent month! I wonder what the total would be if you did include your mutual funds. The airline sector is such a mixed bag right now. I don’t know how anyone could invest in them with so much uncertainty. How long will revenues be depressed? That is an interesting thought on BBBY. They always had a squeeky clean balance sheet. It’ll be interesting to see their financials this quarter to determine if they took out additional debt. The list of companies you purchased instead are fantastic and represent strong dividend growth stocks. That’s what it is all about! Keep focusing on those high quality dividend stocks.


      • The 401K paid $103.14 last month in dividends. My company just changed providers (amnw) and the data is actually easier to see now.
        I was a fan of BBBY until this pandemic. Closing 200 stores and having to compete with amazon is not a good sign. Then you go to the shopping areas where I live and see that they are next door to a Target. Target is full and BBBY is completely empty – that’s not a good sign. I go to them for nice knives and a shower curtain. The rest is sitting next door with an easier checkout situation. I was excited about the turnaround earlier this year, but timing was awful with Covid.
        At least that money is on more solid footing now in the other companies.

        • You should definitely include the 401(k) dividends. Those are yours and your cash is earning the passive income. Include it!

          Understandable where you are coming from. In my opinion, the key breakaway will be when people stop using Bed Bath and Beyond and Buy Buy Baby for wedding and baby showers, respectively. For our daughter, we registered and Target, Buy Buy Baby, and Amazon. However, the split of products on each registry was 60%/20%/20%. Many friends still register with BBBY stores, unlike us. However, if people transition fully to Target or others, it will be a terrible sign.


  4. Good job on nearly $2K in dividends! I’m bracing for the WFC and D cuts coming, but other then that, I had a record month. The storm will eventually end, it is just a matter of weathering it. Anyway, Congrats on a great month Bert! 🙂

    • Thanks MDD! I appreciate it. You’re right. The storm will end one day. However, what will the casualties be and what part of the storm are we currently in? Hopefully on the edges and not in the eye!


  5. Nice to see the thorough update. It’s too bad about the lower dividends from your mutual funds. But I’m sure it’s only a temporary setback. Companies should raise dividends again as the economy gets back on its feet and profits continue to grow in 2021 and beyond. I’m currently saving and building up my cash reserves for July. You never know when a good investment opportunity might come. 🙂

    • Thanks Liquid. I agree, the setback will be short term. However, we should pick up some strong momentum when things coming roaring back eventually. Agree, build the cash and invest when the metrics are right. You can’t time the market. That perfect moment may never arrive. However, there will still be great opportunities that present themselves.


  6. Bert,
    Congrats to you and your wife on collecting nearly $2k in dividends during June. June was a record month for me in terms of dividend income.

  7. I did some selling this month myself, D being one of my stocks I let go among some spin offs that don’t pay a divi. You still managed to put up some solid numbers despite the many cuts we have seen across the board. 2020 has proven to be the year of cuts but we can mitigate the losses with fresh capital being added as well as enjoying the occasional dividend raises too. Keep up the good work.

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