Okay, when does time slow down? Never. However, we have to do everything we can, to make sure we get the most out of each minute! This marks 8 months of the calendar year down, with 4 months left. The dividend income figures relating to my 2017 goals haven’t been hit yet, but I am doing what I can to reach the next ledge. For the purpose of this post, another month down means another month of dividend income has been received and reinvested. This August was a very solid one, at that, and I am excited to dive into the details with the community.
Dividend income
This month I received a total of $407.99. Ah, yes, I crossed four hundred dollars at least! This will go down as the best August month I have ever had. Remember, as a dividend investor, milestones are always reached throughout your journey. You’ll see a fair share of companies that paid out a dividend below, but the true source of this dividend income is staying committed and consistent with investing into the vehicle of the stock market. What a long journey it’s been, and I said before, it’s also time to take back control with dividend income investing.
The sore thumb in this picture is the massive dividend income I receive from AT&T (T) at almost $80. Since I reinvest dividends, this actually ends up acquiring over 2 shares, at the most recent share prices. Nothing better than adding forward income automatically, with no fees, emotions and being able to pick up partial shares, as well. Also, you’ll find quite the punch from Citizens & Northern (CZNC), which is an efficient community bank in Pennsylvania. Crossing $400 is a very solid mark in my eyes, as I traditionally have been posting into the $300’s, such as last month and the comparable month of May (i.e. month before a quarter end).
Similarly, 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). I separate these two, as I like to know what portion of my dividend income is coming from those retirement accounts that I cannot touch until 59.5 (barring any other usage rule I could use). Here, it shows that I received a solid total of $181.50 (up from $152 last year due to dividend reinvestment & dividend increases) or 44.9% of my income from retirement accounts and the other 55.1% was from my individual taxable account portfolio. Additionally, 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
2016:
2017:
Hmm… the comparison is quite interesting. Thought I am up $47.40 on an annual basis or 13%, not all was great here. First, HCP had a spin-off of QCP, which has not produced great results and National Grid’s (NGG) dividend, due to currency effects, has been a moving target. The main drivers here have been additional investments in CZNC and CVS Pharmacy (CVS). Those companies have helped off-set these other items mentioned, to which, results could have been even better.
To improve this month going forward, I believe Bert has CVS on his August dividend stock watch list, and that’s always on the radar, due to being a smaller position in the portfolio. Dividend increases and reinvestment will/should produce better results as well, but nothing like fresh capital to jolt some energy here.
Dividend increases
One of the best parts of the article. I was able to record three companies that increased their dividend in the month of August. First, Kraft (KHC) did not stray too far away from what they usually do and a solid 4% increase here. Scott’s Miracle Gro (SMG), also stayed consistent with a 6% increased. Canadian Imperial (CM) came through with another increase this year, their 2nd so far announced in calendar year 2017. All in all, very straight forward and they stayed in their lanes. Kraft really has been showing their consistency lately with the % that they grow their dividend. In total, $12.18 was added to my forward income and this would take an investment of $348 at 3.5%, in order to produce those same results. I’ll take it!
Dividend income conclusion & Summary
Overall, dividend income was strong and a few dividend increases were received. As a dividend income investor, there really aren’t many more things you can ask for. What I am seeing here is that I need to continue to invest into high quality companies when I find them undervalued and the “numbers” will follow suit. If CVS somehow declines a few percentage points, they would definitely be catching my eye, no doubt. However, a 13%+ increase year over year is nothing to scoff at, and I am extremely happy and fortunate for the positives here!
As I discussed with my updated – normal monthly expenditures at the moment, this $407.99 would cover ~42% of my average $984 monthly expense for my house, including utilities. Looking to boost my dividend income, as my auto loan is over and unlocking this new cash flow source should be very beneficial and timely. In similar fashion – all of the investing from last year and moves this year, show being frugal to save 60% of my income, that every dollar counts, has helped me in achieving lofty goals that I set in place for my 2017 year. LET’S GO!!!!
How was your month of August? On target to finish the year strong? Experience some of the shake up that I had mentioned above? Anything that you feel you could be doing differently, in order to progress in your journey to financial independence? I would love to hear what everyone has to say, or if there are questions I can answer, please comment below! Thank you everyone for stopping by, good luck and happy investing!
-Lanny