Lanny’s April Dividend Income Summary

We know what time it is.  This is one of the best months to be a dividend investor, as we wrap up a quarter-end.  The market finished off an impressive note, closing up 13% for the year, thus far.  The weather is finally warming up, as I believe we reached 60 degrees one day or two in the month.  This was a fantastic month of investing and earning dividends, which truly shows the power of time and consistency pushes you forward.

Dividend Income

I received a total of $594.13 of dividend income in April.  Not too shabby right?  This is, like a broken record, the most ever earned in April.  Additionally, my wife earned $44 this month and I am still debating on how to incorporate that into the analysis, which I don’t mind this problem, right?  Therefore, combined, we earned almost $640 for the month!

Further, the 401(k), Health Savings Account (HSA) and all dividends are automatically invested/reinvested and helps take the emotion out of timing & making a decision.  Also, to find out why I max out my 401(k) and HSA – please refer to the 3rd part of my tax series, as that describes the magnitude of benefits to increase the amount you can invest due to reduction in taxes.

Here is the breakdown of dividend income for the month of April!

As you can see, the taxable income is on the left and the retirement accounts are under the title to the right.  14 companies paid me in the taxable account and 4 in the retirement vehicles.  Philip Morris (PM) and big oil, Total (TOT), fueled most of the dividend income this month, no doubt.  Canadian Imperial (CM) took the crown, at $110 in dividends for the month.  I love those Canadian institutions!

Tupperware (TUP) has not been performing well lately and I am considering, which I rarely/if ever do, selling them.  They are under performing for quite some time and recently cut their dividend.  They were barely a decimal point of my portfolio, but not sure if they even belong anywhere near my dividend stocks.

I have split out between the individual stock amounts and the retirement accounts, as the ” – R” indicates a retirement account dividend (or the furthest column to the right).  This shows the portion of my dividend income is coming from retirement accounts that I cannot touch (pre Roth Conversion Ladder) and those that I can.

Here, it shows that I received a total of $77.88 (up from $48.25 last year) or 13.1% of my income from retirement accounts and the other 86.9% was from my individual taxable account portfolio.  This ratio increased from last year due to Iron Mountain (IRM), a new investment in my HSA and dividend increases/reinvestment.  Lastly, this shows from retirement accounts that I’m all ready for my set it and forget it mentality to keep that income going.  To see my portfolio – one can go to our portfolio summary page.

Dividend Income Year over Year Comparison

2018:

2019:

First, a growth rate of 40% is a great metric and one I will try to continue to 2020!  Philip Morris dividend was almost $10 larger from dividend increases and reinvestment.  Next, Canadian Imperial (CM) grew due to new capital infusions, dividend increases and reinvestment.  I am loving this chart.

Further, a few new names are on the list, with Occidental (OXY) and Armanino Foods (AMNF).  Loving the cash flow that’s for sure.  Lastly, there are two dividend aristocrats in the taxable account with Leggett & Platt (LEG) and Illinois Tool Works (ITW).  Can’t wait to see the April dividend month grow!

Dividend Increases

Bring on the champagne baby!  6 massive dividend increases above, adding over $61 to my forward dividend income.  The big banger, of course, is Kinder Morgan (KMI).  They have stuck to their dividend growth strategy, ever since they bitterly cut their dividend a few years back.  Secondly, Bed, Bath & Beyond came in with an over 6% increase, which is always nice to see, as their stock price has struggled.

Almost last, but not least, we had 3 dividend aristocrats increase their dividend.  Grainger (GWW), Johnson & Johnson (JNJ) and Procter & Gamble (PG) increased their dividend at a steady clip.  Finally, International Business Machines (IBM) increased their dividend 3%, after an average assumption of 3% was derived from a 47 person twitter poll!  I may have to do that more often.

$61.60 added would require an investment of $1,760 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 show that dividend income can be a revenue engine.  A revenue engine that can allow you to take back control of your life.  Dividend investing, once you learn the right way, becomes easier and starts to make quite a bit of sense!

There is a nice adjustment to my most recent monthly expenditures article.  My property taxes increased by 14%.  Therefore, my new average is $1,040 per month  Therefore, my current dividend income would cover 57% of my average $1,040 monthly expense.  This isn’t including my wife’s income she earned, which would only help in the equation!

If I keep the same growth rate up, could I hit over $800 going forward?  Seems like a steep challenge.  I’ll strive for that figure, no doubt, and if I don’t reach that, I’ll be close at least!  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.

Another month in the books.  Dividend reinvesting, dividend increases and the power of time is occurring.  I can taste it, one month closer baby!  Financial Freedom, Financial Independence, insert your freedom phrase here, awaits!  Please share your thoughts, questions and feedback below!  Excited to read how everyone did this month, as well.  Thank you again, good luck and happy investing!

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33 thoughts on “Lanny’s April Dividend Income Summary

  1. Lanny,
    Big dividend increases + strong YoY growth. What’s not to like about that? Some day you’ll look back at how puny these numbers are, yet right now they feel so impressively large. The future sure seems bright!
    – Gremlin

    • Gremlin –

      What’s crazy is publishing the results for 5 years… Man oh man. In 5 years – can this just say $6,000 in a month? haha. GOsh, that would/will be incredible. Keeping the dividend dreams going!

      -Lanny

  2. Solid stuff Lanny. Big dividend increases plus strong YoY growth have been good for you. Covering 57% of your monthly expenses is really awesome. Can’t wait till that number goes over 100%

    • Tawcan –

      Truly appreciate the swing by! The dividend increases are the best part of this. That’s the pinnacle of dividend growth investing. Your income grows by owning undervalued/valuable companies that consistently manager their brand/business well. Funny how they keep chugging along, increasing dividends and earnings.. A lot of opportunities are starting to unfold as well. Good times, always. Thank you again Tawcan.

      -Lanny

  3. Congrats on another strong month of dividend income! It’s really incredible to see the impact that dividend increases has on a portfolio. The raises you received during the month of April are especially impressive, with the context that it would take $1,760 of fresh capital invested at a 3.5% yield to replicate! Keep rolling that dividend snowball down the hill.

    • Kody –

      Yes and yes! I always thank my old self for investing so much early. I do, though, continue to say – I wish I could have done more and done it even earlier. Man!!!

      -Lanny

  4. Killer month Lanny, so many div increases. Appreciate the write up, dissecting from all angles! Give us just starting are journey something to work towards.
    -Brent

    • passive C –

      Thank you very much for the comment. Have to diagnose the tri-fecta – investment, increases, reinvestment all the way! I have been at $0 and inched my way up, that’s for sure.

      -Lanny

  5. Great job, Lanny!
    I also like the dividend boost by KMI. Their management plans to reach $1.25 dividend per share by 2020. That implies we should see another 25% hike next year. Q1 earnings were quite good and overall KMI seems to move in the right direction. I have seen many folks buying KMI recently.
    -SF

  6. Damn Lanny, awesome results this month! That 25% raise from KMI is phenomenal and great YoY growth to boot! Your PM dividend was almost the same as my MO dividend, but our only common holdings are IRM and O. Your future looks bright!

    • DivvyD –

      The impact from KMI is huge, but I’ve seen the tree grow, only to get chopped down : ) haha.

      And nice – PM and MO are very similar, high yielding, taboo facing companies, for sure. One day… these dividends will cover our expenses DivvyD, one day.

      -Lanny

  7. Impressive month, great dividend. Those dividend increases are awesome. It’s amazing how those increases help a portfolio out.

  8. Congrats on a great month Lanny!
    I remember how popular KMI was a few years ago and after their sudden dividend cut some of the DGIs sold their positions. It looks like you made the right move to stay in it and it is paying off!
    You will get all of the monthly expenses covered very shortly if you continue the growth. And I know you will!
    BI

    • BI –

      I held on and the last few years have been fun seeing the company and dividend climb back. However, it just shows that how quickly it can rise, it can fall with one swift announcement. It still will take time to get back to where they were. However, each year, it does get better… time heals everything, right?

      -Lanny

  9. Great month, Lanny. I see several new payers boosting your total, and you posted some terrific YoY growth. You had a nice number of dividend raises as well. Lots to like here.
    One thing that I noticed is that you actually had 5 stocks pay you less this month than in April of last year. I know one was a dividend cut, as you mentioned, and some are companies with slightly varying payouts. Anything else going on other than that? I don’t think you trimmed any positions.

    • Engineering –

      You know it! Secondly…

      Appreciate you noticing that. SOUHY, GSK and DEO have varying/international payouts. I never will say they have increases or cuts, those typically ebb and flow with currency translation (again, typically…). Given they aren’t significantly higher/lower – I usually treat them as a non-event. You know. Thoughts?

      -Lanny

  10. Dang Lanny, you’re really knocking it out of the dividend park. Targeting $800 next year?

    I’ll be posting my results start of next week, I should be able to keep my €50+ streak alive.

    Triple digits don’t seem that far away anymore…

    • Mr. Robot –

      Can’t wait to read yours and see if the streak continues. Going for $800, if not – MORE. Only one way and that’s to give this everything I have. One investment at a time.

      -Lanny

  11. I have to say, yoy growth is good but 6/9 taxable dividend layers reduced their dividends from last year… The state there doesn’t seem as good but the new purchases and the 3/9 increasing are definitely keep you afloat.

    Random question, one of my companies had been paying me twice for the past 2 dividends… Is this something I should be concerned of or not? Ticker is ETN, and they paid .71/share and .568/share to me in both May and March…

    • Alex –

      Thanks, the international dividends are difficult to monitor – specific to currency translation, i.e. GSK, TOT, SOUHY, etc..

      Related to Eaton, some could be return of capital and the other part distribution? Not too sure, do not own them!

      -Lanny

      • Ah, I didn’t think about how foreign dividends would be affected by currency fluctuations, Thanks for the input!

        • Alex –

          No problemo! If it’s not a clear dividend increase or cut – I usually don’t mention it. One of those – does it really increase my forward dividends or is it really the same?

          -Lanny

  12. Not too shabby indeed. Well done for the month with a lot of great names paying us both. Like you I also like those solid Canadian institutions. Those banks produce some solid passive income like clockwork. Keep up the good work.

    • DH –

      Why are they so good?! How can they be that good for THIS long? I guess pricing hasn’t changed too much on the institutions, but do love the two x per year dividend bump. The longevity of them are amazing.

      -Lanny

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