Lanny’s August Dividend Income Summary

Just when you thought summer was winding down, I am writing this in blistering heat out there – as it has just about touched 90 degrees here in Northeast Ohio.  Last month I said it was raining dividends, well this month – we are scorching dividends baby!  We are now EIGHT months down with FOUR monstrous months left to kick butt.  I have been spending even more time to see where things are looking, financially, and let’s just say it’ll be a grind through the end of the year.  Let’s grab that cup of coffee and see my August results!

Dividend Income

I received a total of $582.36 of dividend income in August.  This, though not as substantial as other months, was the best August I’ve ever had, handsdown.  This makes sense, due to all of the increases, investment and reinvestment that occurs throughout the year.  Outside of that, everything went smooth, with dividends coming and being reinvested.  September cannot come soon enough.  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, (though I have the breaks on the 401k, as I recently posted due to the 6 month waiting period) 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 August!

In total, I had 18 different companies that paid me during the month of August, including retirement accounts.  You’ll see the differences from a year over year perspective below, as this was 42.74% higher than last August!  Kinder Morgan’s (KMI) higher dividend is in play, as well as more Procter Gamble (PG) coming in, not to mention dividend increases from Caterpillar (CAT) and John Deere (DE) came in as well.  On the “R”/retirement account side of things, it’s nice seeing everyone in double digits and can’t wait to see which one breaks the $100 barrier soon.  Anyone have money on Citizens & Northern (CZNC) or HCP Inc. (HCP)?

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 total of $243.90 (up from $181.50 last year) or 42% of my income from retirement accounts and the other 58% 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

2017: 

2018: 

So what happened month over month?  Well, due to switching brokers, I no longer own RMR (see 2017 above), as they purged anything less than 1 share.  That was fine by me, as it was received from a spin-off.  KMI is obviously larger and same with PG, as stated earlier.  Further, we have new names in Starbucks (SBUX), West Rock Co (WRK) and Delta (DAL); as well as Hormel (HRL).  It’s been a crazy, busy year and the dividend growth engine is full-fledged as well.  It’s hard to point to just one thing for the comparison to last year.  It’s a straight combination of dividend growth, dividend reinvestment and additional capital.  The trifecta to fuel the engine!

Dividend Increases

A month wouldn’t be a month without high quality companies increasing their dividend!  See the small chart below for the details on the dividend increase announced this month from my portfolio.

One solid dividend increase occurred in August, according to me.  I know Canadian Imperial (CM) increased theirs, but that is a hard one to track, with the ever-changing currency exchange rate.  In order for me to add $3.28 to my dividend income, I would have to invest $94 at 3.50%!

Dividend Income Conclusion & Summary

The name of the game is to learn and act in the right manner, using what you have learned.  The plan is to maximize every dollar for investment opportunities and live a balanced life.  My hope is my dividend income, shown above, shows the community that one can use dividend income as a revenue engine to take back control of your life.  Dividend investing, once you learn the right way, becomes easier to do and starts to make quite a bit of sense!

As I discussed in my normal monthly expenditures articlethis dividend income would cover 59% of my average $984 monthly expense, which includes the mortgage, property taxes, insurance and utilities.  This would cover the principal and interest on the mortgage and even utilities.  Property taxes, not so much.  In similar fashion –  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.

Are you making every dollar count, everyone?  Anything above that prompts any further questions from you?  The August month was a boom for me, and this is the type of growth that I’d love to continue to see, no doubt!  As always, I am excited to read the comments and thank you, the community, for stopping by; as you are helping me on my journey to financial freedom!

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42 thoughts on “Lanny’s August Dividend Income Summary

  1. Great month as usual! Yes I have CZNC as well. As for CM, their announcement of another .03(c) for October amounts to a total constant currency increase of 4.62% for the year. As you point out the exchange rate is tricky – I’m anticipating the USD strength to completely offset any dividend increases.

    Keep up the good work!

  2. $180 gain is fantastic yoy!! This seems to have really been a turning point type of year for you. The growth rates have really picked up. The great thing is there have been huge payout increases from companies so a lot of the growth is organic!

    I’ll get my post out this weekend or early next week. Not to spoil anything I’ll just say this, it was a fantastic August!!
    Keep up the great work
    ADD

    • ADD –

      I bet it was, you always seem to kill it! I’ll also say – the growth rates have been straight up incredible. Some companies are doing two increases this year, it’s just one of those years. Obviously, this helps offset some of the lower growth rate years that we have had in the past. Thanks again ADD!

      -Lanny

    • Jordan –

      Thanks for the stop-by. Same, it usually is a slow-month. I tell you what, though, all of a sudden with time – reinvestment and growth comes into play – it really just does wonders. If only I would have started earlier.

      -Lanny

  3. Hi Lanny,
    Great month and congrats on almost 43% growth rate. I reached a similar growth rate (let’s not pay attention to the fact that in nominal terms the growth was ~$6 for me 😀 ).
    BI

  4. It’s not the total as much as it being the best August you ever had. All that means is that it’s full steam ahead and your passive income is continually growing. Nice seeing that huge T payment now that I finally dipped my toe in that stock last month. I don’t expect it to be a large part of my portfolio but an important part nonetheless. Keep it up. 2018 is flying by and with four months left we have two big payments coming in Sept. and Dec. Should be a good finish.

    • DH –

      I agree. It doesn’t have to a huge part (T), but that yield allows it to easily add a bang to the portfolio. I know, two massive months left. I would love to see more dividend increases in the last stretch, as well. I have my list and am hoping to check mark each one!!

      -Lanny

  5. Boom! Awesome results Lanny, and love seeing that ~43% YoY growth to propel you to your best August ever. Getting that trifecta to work for you is the secret sauce, and you are perfecting the recipe. I share 5 holdings with you (one that was just added today).

    The fact that your divvy will cover 59% of your monthly expenses is amazing. It will be great seeing that number continue to climb as well. Keep feeding the machine!

  6. 18 companies and nearly $600 in dividends. You’re crushing it! It looks like we share 3 holdings from this month. I can’t wait to see what the community as a whole achieved in August. Keep doing what you guys are doing. It’s incredibly inspiring.

  7. I’ve also had my best August or actually month ever! Broke my PR and crossed the €43!

    But back to your results, dang $500+ is just awesome. We share T, PG and O this month.

  8. Good job. Always good when you can have you best August ever. Looks like the retirement accounts are great and will help you out a lot. When you retire.
    Additions and dividend growth really kicking in. Keep it up.

    • Doug –

      Gosh damn, do I want to retire, haha. Need to keep investing more! Let’s hope we have strong dividend increases from companies in the 4 final months. Have you heard of any, yet, that companies have announced this month?

      -Lanny

  9. Great summary as always Lanny. Love the enthusiasm! It is very motivating. I’m trying to teach my oldest son about dividend investing, and your posts are Exhibit A in that conversation.

    We share CAT, CVS, T, and PG this month. Looking forward to a huge September for all of us!

    • FIREman –

      That has to be so cool to teach your son what you love/are passionate about. Is he digging what it’s all about? Honored as heck to be part of those convos! I’ve been in the game for a long time now, but remember my first dollar made from a dividend, and man, cannot say that “I wish I started earlier” – often enough.

      CVS has climbed back, recently, which is interesting to see. And we do share some solid names, big div payers, that’s for sure.

      -Lanny

  10. Congrats on the record month, Lanny! Don’t you love it when it all goes smoothly, nothing out of the ordinary going on, and BAM!, nearly $600 in dividends lands in your account?
    Good to see all those new dividend payers this month… those recent investments are starting to pay off.

    • EngDiv –

      Bodda bing and Bodda BOOM. I do love it when it happens. I am beyond stoked to get these figures higher and get that much closer to FI. I just need my dividend income to outpace my expenses, keep my expenses in check and chug forward.

      Let’s get it!!!

      -Lanny

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