Another month in and another month down. The coronavirus pandemic has now lasted 7+ weeks here in Ohio and let’s just say – I want this to end, bad. However, the dividend checks continue to roll in, though on a much bumpier road. Let’s take a moment and take a look at the dividend income results for April.
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 Income and 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.
I also automatically max out, pre-tax, my 401k through work and my Health Savings Account. This allows me to save a TON of money come tax time (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 helps take the emotion out of timing & making a decision.
On to the numbers… In April, we (my wife and I) received a total of $825.91 of dividend income. April was solid. Despite dividend cuts, which I will discuss further, the results came in within expectations. We didn’t crack the 4 digits, but slow and steady will win the race.
Here is the breakdown of dividend income for the month of April:
First, I’ll start with the sad news, in order to end on a higher note. Bed Bath & Beyond (BBBY) suspended their dividend. Further, Occidental Petroleum (OXY) cut their dividend significantly. Therefore, those dividends you see from them, you will not see or will not see them at those amounts next quarter. Damn you virus.
Secondly, there are stronger positions being built here. Cisco (CSCO) is coming in with a stronger dividend, my wife’s Oracle (ORCL) is starting to send dividend payments in, as well.
Thirdly, I am curious on what’s to come. The 2nd quarter results will be the real story, as we are now 30+ days into the quarter, versus ~2 weeks at the end of the 1st quarter. Therefore, results undoubtedly should be weaker in the 2nd. Get your capital ready, folks.
See – Top 5 Foundation Dividend Stocks
Related to retirement accounts, we received a total of $144.45 or 17.5%. The other 82.5% was from the individual taxable portfolio that can be used for everyday expenses. I like that the taxable amount is higher, which means more is accessible, right now, if I wanted/needed. Lastly, I always maximize the 401k and IRA, and that continues to pay-off in dividends, literally.
Dividend Income Year over Year Comparison
Dividend income, year over year is higher by $187.81 (including my wife’s dividend income of $43.97 last year with mine). This is a 29% growth rate from prior year. Love setting new records, each and every month as a dividend investor.
The big tickets here are the additions of ViacomCBS (VIAC), Eastman Chemical (EMN) and the additional bang from Bank of Nova Scotia (BNS). That represents over $100 added from last year to this year.
We shall see what April 2021 brings, with how the markets have been shaking up. Loving the new dividend reinvestment lately, at much lower prices, that’s for sure.
Solid month of dividend increases, that was easily out-shined by the coronavirus and the dividends cuts or suspensions that went along with it. 3 dividend aristocrats increased their dividend, including the newly minted IBM. For the most current version – see Bert’s Expected Dividend Increases in May and see if your stock is on the list.
Honestly, my favorite here is Procter Gamble (PG). This was a very strong dividend increase, as the prior year’s have really presented lower dividend growth years for the company. Cheers PG!
Overall, $32.34 dividend income added would require an investment of $924 at 3.50% yield, in order to produce that result.
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 a balanced life. 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!
There is a nice adjustment to my most recent monthly expenditures article. Sadly, my property taxes increased by 14% in 2018. Therefore, our average is $1,040 per month Due to that, my current dividend income would cover 79% of that amount. I need to close the gap, the time is now!
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 allowed promising results already this year.
We need to keep the positive energy flowing and continue with our strategy, if we can. Remember that when others are fleeing away, it usually means to go in the opposite direction. There are many undervalued dividend companies in the market, and many will persevere through this. Together, we can get through this volatility. Please share your thoughts, questions and feedback below. Excited to read how everyone did this month, as well. Stay safe, healthy and of course – good luck and happy investing!