Dividend Income Summary: Lanny’s November 2020 Summary

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dividend income, dividend investing

Community, we have one month left to 2020. One more month to invest, add more dividend income and receive dividend income. The COVID-19 pandemic and the coronavirus vaccine completely filled the news headlines, causing the stock market to be the most volatile I have seen seen since March.

In November, we set ANOTHER record for dividend earnings and it shows proof that dividend income is one of the best passive income streams. Time to dive into my November 2020 dividend income results!

Dividend Income

Dividend Income is the fruit from the labor of investing your money in the stock market. Further, Dividend Income is my primary vehicle on the road to Financial Freedom, which you can see through my Dividend Portfolio.

How do I research & screen for dividend stocks prior to making a purchase? I use our Dividend Diplomat Stock Screener and trade on Ally’s investment platform (one of our Financial Freedom Products) – commission free.

Relates: Financial Freedom Products

I also automatically invest and max out, pre-tax, my 401k through work and my Health Savings Account. This allows me to save a TON of money on taxes (aka thousands), which allows me to invest even more. In addition, all dividends I receive are automatically being reinvested back into the company that paid the dividend. This takes the emotion out of timing the market.

Growing your dividend income takes time and consistency. Investing as often, and early, as you can allows compound interest (aka dividends) to work it’s magic. I have gone from making $2.70 in a single month in dividend income to well over $3,500+ in a single month. That dividend income record was set in 2019. The power of compounding and dividend reinvestment is a wonderful component to the portfolio. Each and every month, whether big or small, I continue to report the passive income that dividend investing provides me. Why?

*Not pictured is my wife’s dividend income above*

I want to show YOU that dividend investing makes it possible to achieve financial freedom and/or financial independence. We all start somewhere, but consistently investing, compounding (reinvesting) dividends and keeping it simple, allows you to be in a significantly better position than most. Further, if I can grow this portfolio and income stream, YOU can too.

dividend income – November 2020

Now, on to the numbers… In October, we (my wife and I) received a total of $994.61 of dividend income. Another record month and we were SO close to cross $1,000 in an off-quarter-end month, yet again (agh!). We cannot wait to cross the 4 figure mark in dividend income from all of the stock investments next year, in 2021. The road to financial freedom from dividend investing is becoming clearer. The passive income stream just continues to grow.

Despite the pandemic from COVID-19, dividend income continues to grow, due primarily to additional investment and reinvestment. In the dividend stock purchases article released earlier in the month, my wife and I invested over $4,700+ in dividend stock investments!

Further, though the dividend cuts hurt very bad, I know we did not take the worst of it. Dividend increases have also helped fuel the income growth. Dividend increases are discussed below and that’s one of the best feelings of being a dividend investor.

Here is the breakdown of dividend income for the month of November, between taxable and retirement (far right column, under “Retirement”) accounts:

November dividend income

Now, looking at the results above, one can tell that the investments in AT&T (T) are definitely paying off. $128.90 essentially reinvested into 4 more shares, have to love that. In addition, another top 5 foundation dividend stock – also paid us over $85 combined between my wife and I in our taxable account with Procter & Gamble (PG).

Outside of the triple digit dividend from AT&T (T), there is nothing else that really screams loud. I love the Starbucks (SBUX) dividends, as that income stream continues to sprout – both in the taxable and retirement account. In addition, AbbVie (ABBV) continues to increase their dividend by double digits, so amazing and we are very thankful for those increases.

As you can tell, many stocks come from industries that are necessary – such as Unilever (UL), Procter & Gamble (PG), AbbVie (ABBV), General Mills (GIS) and AT&T (T) to name a few. These are stocks that will cash flow very handsomely during and not during a global pandemic. You have to love dividend income streams that have the safety pads around them!

Related: Top 5 Foundation Dividend Stocks and watch our video: Top 5 Foundation Stocks VIDEO

As for our retirement accounts, we received a total of $375.21 or 38%. The other 62% was from the individual taxable portfolio that can be used for everyday expenses. I need to keep bolstering the taxable account, as that passive income stream can be accessed today/right now. However, I continue and will always maximize the 401k and IRA, as that continues to pay-off in dividends, literally.

DIvidend Income Year over Year Comparison

2019:

2020: November dividend income

Dividend income, year over year is higher by $155.16. This is a 18% growth rate from prior year. This time next year, we will be pushing over $1,200. We can do this, no doubt!

I have to talk about Realty Income (O). A newly minted dividend aristocrat this year and it’s awesome seeing the dividend increases & dividend reinvestment grow the stream of income from them. December will be another dividend increase from them, that’s for sure. It’s being a landlord without being a landlord, as we discussed in our video on this REIT stock, that pays a monthly dividend!

The list continues to grow for the dividend stocks that pay dividends during this month. General Dynamics (GD) continues to pour in their dividend, as I was relentlessly stacking this dividend aristocrat. I still have faith in CVS Pharmacy (CVS) as I believe their dividend increases will sprout back starting in 2021 4th quarter. You heard it here first.

A fun story is General Mills (GIS). They have finally resumed their dividend increases, which was ahead of schedule. This is partly due to better performance during the pandemic and post their recent acquisition. That was very nice news to see as a dividend investor. Just ANOTHER example that dividends are BACK baby!

The plan is to continue to invest where it makes sense and beef up current positions, increase the # of shares I own and set records again in 2021.

Dividend Increases

dividend investing, dividend increases

I received 5 dividend increases in November. There was one HUGE surprise here during November. Our friends – Aflac (AFL) – announced a jaw dropping dividend investor news. They JACKED UP their dividend by 18%?! See the dividend increase chart below:

november dividend increases

I cannot wait for December. Why? There are 8 HUGE dividend increase announcements coming, including AT&T (T) and Realty Income (O). Check the related link below!

In total, dividend increases created a total of $62.74 in additional passive dividend income. I would need to invest $1,800 at a 3.50% dividend yield in order to add that income. Thank you for the increases, as I didn’t have to come up with the capital to create that form of income!

Dividend Income Conclusion & Summary

The name of the game is to apply what you learn through financial education. The next steps are to maximize every dollar for investment opportunities and live life on your own terms. My plan is to demonstrate that dividend income can be a revenue engine. A revenue engine that allows you to take back control of your life. A revenue engine to help you reach financial freedom. Dividend investing, once you learn the right way, becomes easier and starts to immensely make sense!

Excited for the future, no doubt. Further, all of the investing from last year and moves this year, shows that my aim to save 60% of my income, and making every dollar count, has provided the dividend growth.

If you are just starting out on your investment journey and you aren’t sure to start – please see the articles mentioned throughout this post. We are trying to bring you financial education and help you reach your financial goals.

Further, if you are starting out and/or want to know the Top 5 Stocks we always recommend, please see our YouTube video, subscribe to our channel and check us out! We’ll help break down further investing topics not only on this blog, but by showing you through video!