February, coming in hot! Or… still freaking cold. Dividends still come through to keep things exciting for the short month. The stock market has continued to be on a tear, making it hard for additional investment. I know I am preaching to the choir. Let’s see how I did and check out my February 2019 dividend income.
I received a total of $628.48 of dividend income in February. Setting another dividend income record for the month I’m reporting on and typing that out NEVER gets old. Additionally, my wife earned $140.02 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 $800 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, (I have had 2 contributions now, since I have been allowed to contribute to the 401k since 2/8/19) 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 February!
Whenever that AT&T (T) dividend comes in, I laugh. It’s massive and when they are trading around $30-$32 per share, you know that reinvestment is strong! WestRock’s (WRK) dividend is coming in real strong and Caterpillar (CAT) is showing some life. I hope CAT has a dividend increase this year, fingers are crossed. Procter’s (PG) dividend is getting bigger, to say the least. Overall, not too shabby for February.
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 $286.75 (up from $171.67 last year) or 45.7% of my income from retirement accounts and the other 54.3% was from my individual taxable account portfolio. This ratio increased from last year due to the special dividend from Citizens & Northern (CZNC). 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
Now, I will compare the previous year’s linked month to this month. Again, another incredibly high growth rate, as my dividend income was up 62%! My goal is to be well over $800, if I can, in dividend income next year. An extra $200 higher is going to be a massive effort and I’m ready to take on the challenge. Of course we have new names, WestRock (WRK), Starbucks (SBUX) and AbbVie (ABBV). Further, Outside of CVS, every dividend income producing stock increased their dividend. CVS – you better change that in 2020. The remaining increase in the taxable account was due to dividend reinvestment, the final leg of the trifecta (the other two are new capital and 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.
What isn’t listed here that serves cheese, hot dogs and ketchup? Yes, the dividend CUT from Kraft-Heinz (KHC) is not listed here, which REDUCED my forward income by $46. I don’t even want to keep talking about it, so I won’t. It stings, as it completely washes out this growth above. The dividend increases above represent an investment $943.71 at 3.50% to accomplish this feat. Thus far, two stocks have cut their dividend in my portfolio, Kraft and Tupperware (TUP).
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 around $1,040 per month, on the mortgage/property tax/insurance. Therefore, my current dividend income would cover almost 55% of my average $1,040 monthly expense, which includes the mortgage, property taxes, insurance and utilities. Climbing, but not quite there, over halfway (at least). 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.
I have tweeted about this, but gosh damn, give me some warm weather. I need that so bad, maybe warmer weather will make stocks go down, as obviously, cold weather has popped up pricing! In all honesty, I cannot be any more thankful for this journal, community and being able to share this with everyone. I truly hope that you can see the power of this, in hopes of brightening your financial journey. Thank you again, good luck and happy investing!