Lanny’s August Dividend Income Summary

We are one month closer to financial freedom.  I cannot remember the last time that I desired, so much, to be financially free.  August was a very busy month and a fantastic month for dividends.  So lucky on the activity, growth and increases that occurred, but I know it was the hard work, the power of saving and staying consistent with purchases that is allowing me to be here.  Time to review August’s dividend income summary!

Dividend Income

I received a total of $816.20 of dividend income in August.  A record August baby and getting closer to $1k for an off month, again!  Each month, luckily, I have been able to have a record month throughout 2019, each beating the prior year’s comparable month.  Additionally, my wife earned $170.55 this month.  Since we were married in October, I believe that will be the month that I will incorporate ours together and have a true comparison going forward, from a year-over-year basis.  Therefore, combined, we earned almost $986.75 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.

See – Tax Strategy – Part 3 to Reduce Taxes & Increase Investment.

The dividend increases adds quite a bang to the portfolio, as well.  As you saw from my recent post in July, dividend increases added almost $200 for the year through June!  I will update this again, at the next quarter-end, to show you how critical this can be for YOUR portfolio.

See – The Impact of Dividend Increases through June of 2019

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

Big hitters coming in hot!  AT&T (T) coming in with a nice $110.88 and that easily covers 3 months of internet expense at the household.  Love that it pays for itself now!  Then, National Grid (NGG), which was one of my first stocks from when I started, spruced to over $100 this time around.  I invested into this dividend-utility company consistently over the last year and it sure is paying off.

Further, I am looking forward to Starbucks (SBUX) crossing the $10 mark soon and am eager to see CVS (CVS) jump-start that dividend growth engine again.  I am placing a personal/internal bet that they do this 4th quarter of 2020.  Any bets on if they increase their dividend this year?  In addition, HCP, Inc. (HCP) should get their dividend growth back, too.  Come on now!

Here, it shows that I received a total of $250.81 (up from $243.90 last year) or 31% of my income from retirement accounts and the other 69% was from my individual taxable account portfolio.  This % for retirement accounts decreased by 11% from last year.  Why?  This is due to significant investments into my taxable account, towards dividend income companies, such as, WestRock (WRK), Delta (DAL) and a strong dividend increase from Kinder Morgan (KMI).

See – Maximizing your Roth for 10 Years… Then Set It & Forget It!

Dividend Income Year over Year Comparison

2018:

2019:

Wow, is that an increase of $233.84?  This increase represents a staggering 40% growth rate from prior year.  Holy smokes.  The biggest difference is the National Grid (NGG) dividend, which is post additional purchases (especially since I never made an additional purchases in ~8 years for NGG!).  In addition, Delta (DAL) was drastically bigger, due to additional investments, as well.

Outside of that, and additional investments with CVS (CVS) & WestRock (WRK), dividend increases and reinvestment took the rest of the pie.

In total, this August was higher by $233.84 or 40%.  At this rate, $1,143 for next year?  I would LOVE this.

Dividend Increases

August is starting to become a small gathering of dividend income growers for me!  This feels like receiving 5 raises from work!  How many places will give you that?  Further, the range is 1.89% all the way to 9.09%.

My favorite, honestly, is Medical Properties (MPW), as I wasn’t sure if they were going to be on their dividend increase ways, that we shareholders have been accustomed to.  I try to be conservative with my BHP BIlliton (BBL) dividend growth rate, as the dividend is $1.56 vs. $1.26 (23.8%).  However, I simply used a trailing twelve month growth, in a sense.  I don’t want to assume their dividend is going to remain at these levels, just to cut it back down!

Overall, $47.16 added would require an investment of $1,347 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 allows you to take back control of your life.  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 articleSadly, my property taxes increased by 14%.  Therefore, my new average is $1,040 per month  Therefore, my current dividend income would cover 78% of that amount.  Keep in mind, this isn’t including my wife’s income she earned, which would only help in the equation.  In other words, there is still work to be done here to cover my housing expenses.

Accordingly, if I keep the same growth rate up, could I hit over $1,100 going forward?  If I do, that should clear my monthly expense, on average, for the house.  I’ll strive for that figure, 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.

Wow… only 1/3 of the year is left and what a year it has been. I can taste it, one month closer to the goal 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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26 thoughts on “Lanny’s August Dividend Income Summary

  1. Congrats on the 40% YOY growth! It’s always nice to see your dividend income cover expenses like internet. It will be quite liberating once it covers your housing expenses. Keep hustling and I have no doubt you’ll reach that point by next August.

    • Kody –

      Thank you very much. I cannot wait until off months are fully covering my monthly expenses. Hard part but what needs to happen, is to keep those expenses in check, you know? Each company only wants one direction and that is up for their bills/cost to you. We have to fight for our $$, always.

      -Lanny

  2. Congrats. Soon there won’t be such a thing as an off month with totals like this. Look forward to seeing your combined totals going forward. Nice SBUX dividend. Mine is still small and I’d love to boost that position in my portfolio but not at current levels. Keep on inspiring.

  3. Congrats Lanny! Over $800 for an “off” month and huge year over year growth. Sticking with the plan and investing your savings is really paying off. Of course I’m much more partial to the dividend increases since those take absolutely zero additional effort/thinking. We had a pretty solid August and things are hopefully going to start moving in the right direction for us again with either cash being built up for any potential market mayhem or small purchases made each month. Either way I’m excited for how the rest of the year is going to play out.

    • JC –

      Thank you. Took time, saving and investing – you already know.

      Wish I had a few more or a long list like J. Fieber on his dividend increases! Therefore, I agree – the dividend increases are what it’s all about. That’s poetry in motion, literally.

      We have 4 months. Time to put in work.

      -Lanny

    • D –

      Thank you. I really like NGG, as it’s providing a resource everyone uses and happens to be one of my first investments that I started to add more to over the last year or so.

      Appreciate the comment and let us know what questions you may have!

      -Lanny

  4. Woah, woah woah! Save some of the glory for us Lanny!
    You are absolutely killing it my man! Well done to you. What a massive month and what an improvement on last year. Keep up those increases and this time next year will be $1000+ easily!

    • BHL –

      Glory is all yours!!! Can’t wait to see 4 digits in these months, almost will bring tears to my eyes or it just may. I remember making barely a $100 in dividend income and now the portfolio is pumping almost $1k on average, each and every month. This plan has worked and I am driven by it!! Progress.

      -Lanny

  5. Love the optimism – I always get in a good mood reading your updates!

    I’m a big fan of SBUX. I just added some more too. They usually announce around Sept 12-14th. Hoping for another 20% increase – we will see!

  6. Hold on, $816 in dividends for the month AND 40% growth… amazing! Keep up the inspiration. And agree, Q4 2020 sounds about right for CVS to start up the divvy growth again, sooner the better.

    -Divcome

  7. Hey Lanny,

    Amazing August totals. I think I need to take a closer look at SBUX, at the very least. I remember checking them out before they were paying a dividend… and they’ve made huge progress over time.
    I like the idea of a dividend growth portfolio being a revenue engine. It seems to take on a bit of a life of its own after the groundwork gets laid.

    Take care,
    Ryan

  8. Congrats on a super month Lanny! Those amounts from T & NGG alone are amazing!
    Keep doing what you’re doing as it clearly works.
    Best of luck and don’t give up, you can feel the financial independence around the corner 🙂
    BI

  9. Lanny, congratulations on the great performance. The huge YoY growth and names on your list guarantee that it will be even better next year.
    Good luck with the rest of the year.

  10. Amazing results with 40% growth on your size portfolio is sheer determination. A true inspiration for the small fish like me who just started out in recent years.

    I should have bought SBUX in the last dip. Maybe next time!

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