Wow! We are finished with half the year already! The sun is bright, shining and…hotter than heck! In fact, the temperature reads 95 degrees tonight and I am loving it. There were a great deal of positive events in June, that I am excited to write about, but earning dividend income just added to the fun of summer! Sadly, our Cavs were out of the Finals and the NBA free agency has been crazy already. However, this is about dividend income, so let’s get to the numbers!
Dividend Income
I received a total of $1,828.54 of dividend income in June. Another record month for me, to say the least! I cannot even rub the blur out of my eyes, when I see this figure. It helps that the mutual funds paid out higher than normal dividends (due to all of the increases this year), as well as earlier purchases that are starting to bear fruit. Outside of that, everything went smooth, with dividends coming and being reinvested. 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 June!
Just astonishing and I am almost running out of room! Those retirement dividends are kicking into high gear. Vanguard European ETF (VGK) paid a much higher dividend this go around, as the international entities have either increased or brought back dividends, due to improved performance.
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 $946.08 (up from $627.54 last year) or 52% of my income from retirement accounts and the other 48% 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:
Delta (DAL), Dominion (D) and Kroger (KR) were the new names in 2018 versus 2017. Each company or entity on this list paid substantially more than prior year, hands down. I could not be any happier about this! What’s amazing are the unexpected dividend increases starting to make a gigantic impact. Which names am I referring to? Aflac’s (AFL) 15% dividend increase, Intel’s (INTC) 10%, Norfolk’s (NSC) 18%; just to name a few. How great has 2018 been for dividend investors? This represents a 22% dividend income growth, year over year. Last year’s June represented a 36% dividend increase, but I attribute that to the maximization of the 401(k). I am going to keep this up, to ensure I can increase the dividend income by 22% for next year!
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 increases announced this month that are holdings in my portfolio.
Not only is the temperature hot outside, but these dividend income investments are lighting it up on the increase board! Philip Morris (PM) and Caterpillar (CAT) were the surprises this go around. PM increase of 6.54% was insanely larger than prior year and you can see the impact of $25.75 from that increase alone. Further, the 10% increase from CAT wasn’t too shabby either. Then, on June 28th, Kroger (KR) came to finish my month with a 12% dividend increase. 5 companies increasing their dividend in a single month for me is not normal, but I am not complaining, either. In order for me to add $52.96 to my dividend income, I would have to invest $1,513 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 article, this dividend income would cover well over 100% of my average $984 monthly expense, which includes the mortgage, property taxes, insurance and utilities. Given that this is a quarter end, it’s not uncommon to be able to crush through the coverage of these expenses. 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.
Another month down and it was a fun, record-setting June! I am sure there are many more who established new highs for the month and even for your lifetime, to this point. June was a really strong month of dividend income, as the previously announced increases are taking effect, as well as the quarter end dividend income payers & mutual funds. I hope the heat continues (you know I’m monitoring that A/C usage!) throughout the rest of the summer months and that the dividend income keeps flowing. 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!
Are you kidding me Lanny? Almost $2k in one month! Man you are not only crushing it but pulverizing what remains! It’s also great to see how a fiew dividend increaes catapult you forward and add $50+ to your forward income.
Keep it up my friend, can’t wait to see what your stats are at the end of the year. 🙂
Robot –
I wish I was kidding. Numbers don’t lie my man! Those dividend increases – the true fuel to the fire, and I’m cool with letting this burn for a while, you know?
-Lanny
Lanny,
I like the way you split out retirement vs. non-retirement account dividends. I’ve always done the same knowing I don’t want to touch the retirement accounts until the last moment possible. And want to know what passive dividend income I can access right now with no penalty, to reinvest or use for whatever needs I have. Good work.
The money is piling up. Tom
Tom –
Of course, have to do it – love seeing what’s accessible now versus a future point in time. It’s also a good barometer for me, to ensure that I add capital to the “now”, while balancing out the later.
-Lanny
Absolutely killing it. Almost 2k in dividends and no signs of slowing down anytime soon. If all that cash gets reinvested then this time next year is going to be a bloody monster!
Well done mate.
BHL –
Back on the dividend war path here. Obviously quarter end shows great results, I just need to see this each month throughout the year! Freedom is getting closer, with each passing day, week and month.
-Lanny
Lanny,
What a great month! Close to 2K… simply amazing.
Very inspiring, please keep up all the good work and blogging you guys do.
Tall Investing
Thank you so much Tall.
We’ll keep writing, buying stocks, analyzing them, coming out with watch lists and share that perspective on how to get to the freedom land. One step… at a time.
-Lanny
Great progress! I was pretty sad about Bron Bron going to the Lakers!
What makes you choose both index funds and individual stocks for dividend investing vs just individual stocks?
Chris –
Def. sad about my boy Bronny from Akron! The league has changed, that’s for sure.
The 401k has only the option for the funds, as well as the HSA. Additionally, my first investment was PRFDx, wayyy back in the day – so it just does its thing still.
-Lanny
Congrats Lanny! Interesting that you own VGK. Any particular reason you picked that over a general developed market ETF? International ETFs typically pay a lot of dividends in Q2.
Geek –
The VGK dates back SOO long ago, and it was what my 2nd Roth IRA holding was, at the time. Now, it just spins and spits out dividends, I love it. A way to grab exposure to the international markets, as I tend to stay away, now, for companies that are headquartered there, just due to currency conversion fluctuations, ya know?
-Lanny
Congratulations Lanny on the outstanding month! I Cannot wait until I am able to clear this amount in dividend income on a monthly basis! Feel free to check out my June income, although its nowhere as impressive as yours Lanny.
https://driptilrich.com/june-dividend-breakdown
Dr Div –
Thank you very much and you’ll be clearing it in no time. Will def. check yours out! Not about where you’re at – but about where you’re headed!
-Lanny
Thanks for the sounds advise Lanny! Keep up the awesome work
Awesome performance Lanny! Your taxable accounts ($882) was almost enough to pay for your monthly expenses – very impressive! This means that almost 4 months out of the year you only need to find some money in order to eat – Housing and such is already taken care of!
Great month as always, love seeing the snowball grow larger and larger!
ADD
ADD –
Good point on the taxable against the monthly expenses. I agree, the psychology behind making sure you have enough dividend income in the “off” months is always funny – such as February, April, May, etc.. In reality – I could always spread it throughout the year. 4 months is nice, need that to turn 12!!!
-Lanny
Lanny,
Very nice month. Its great to keep punching that number up. Looks like you are starting to see some light in your tunnel!
– Gremlin
Gremlin –
Thank you. The light is there, I just need to continue my hike to the end… so close.
-Lanny
HOLY COW!!! Nearly $2K in dividend income in a single month! It takes me almost 3 months to reach $2K in dividend income. Congrats on your record breaking month! 😀
MDD –
Thank you, thank you! And don’t worry, you’ll be crushing through these figures in no-time, trust me. It just takes patience : )
-Lanny
Lanny,
Nice work – the dividend income compound growth is quite something to witness over time. Congrats on another great month.
PIV
PIV –
Thank you so much, looking back is fun, great way to appreciate what the hard work at saving does for you. Onward to the next steps!
-Lanny
Wow, those fund payments were huge. Congrats!
I suspect you will crack 2k in December when they pay out again.
Best of luck!
Jordan –
You know it. The funds really came through this June, I was surprised but thought it could happen with all of the div increases being announced, as well as a dividend from the international companies sliding in there. LETS GO!!!!
-Lanny
That’s awesome Lanny! I wouldn’t be surprised to see you over $2k before the year is up. And you have to love seeing those dividend increases boosting up your forward dividends by over $50 and that’s just from 1 month! Keep it up!
JC –
Thank you and I am pulling for a September $2K. Come on, let’s keep the training chugging.
-Lanny
Bam!!!!
absolutely huge month Lanny.
Great yr over yr growth as well. Might hit 2k in month before the end of the yr.
keep it up!
cheers
PCI –
LETS GET READY TO COLLECT DIVIDENDDDDDDDS! Haha. I’m pumped by the feedback from the community, ready to keep this momentum going forward.
-Lanny
Jeez Lanny this report is absolutely fantastic! After all these years to pull out such a YoY increase… insane. Getting so close to the $2K too! Keep at it buddy!
DI
Dutch –
The blood, sweat, tears and… dividends have really paid off. LETS GO!!!!!
-Lanny
Amazing stuff man! We got an all time record too, just a bit shy of 1700 but nowhere as high as yours. Keep up the great work!
Tawcan –
HECK YAH. Quarter ends are the record setters, and it did not disappoint. With everyone performing so well – wonder what will happen come year end?
-Lanny
Great update and progress, and it is great seeing those divvy increases that add forward income without lifting a finger! With my retirement accounts included, which are mostly index funds not focused on dividends, I cracked the $1k mark in June and was thrilled.
DivvyD –
Thank you very much! You are right – it’s all about the purpose of why we are investing – the dividend increases and reinvestment. Cracking $1,000 is a HUGE milestone, it’ll make you never to want to go backwards : )
-Lanny
Congrats Lanny,
you almost got to the 2k,But the snowball is now starting to take shape.
1 more month closer to financial freedom.
Desi –
Thank you, thank you. I am closer, we all are closer. Need to keep the energy going!
-Lanny
Wow Lanny. Congratulations! Almost 2k in one month. I have no doubt that will be 2k+ by the end of the year. I’m on track to make about $700 over the course of this year, but this gives me a goal to shoot for! I came out with $44.43 in June, fueled mainly by Intel and Ford. March this year was actually my high month, due to ford paying out their yearly boost in March, but June is my close second. I can say though, that I had a solid 115.05% over last June. That made me smile! Congratulations again, and keep pushing!
-Jake
Jake –
115% growth since last year – that’s something to pat the back for! Guess what – you’ll continue to set new records and love that Ford special dividend! I don’t own them, but have always watched them.
-Lanny
Love watching peoples dividend train pull into the station. I am thinking about adding Kroger to my portfolio too.
OF –
Nice! I had a few friends that just went to Kroger the other day, I said ‘Thank you’, to them. Not sure if they knew what I meant by that, haha! All abooooooard!
-Lanny
OMG, solid numbers all around Lanny. Almost $2000 in dividends and having your best month ever. It seems like your taxable account will soon be accounting for a larger percentage of your dividends than your retirement account, but both are working very hard to produce great income for you. Plus, you got to love the organic growth from the companies you own, and getting increases from 5 companies in a single month is just icing on the cake. Yea man, solid numbers all around.
DP –
Thank you so much DP. Man, talk about a journey. I remember getting my first dividend and now on quarter ends, it would be weird if I didn’t always crack 4 digits. You know? Let’s get after it, stay on the saddle and keep things MOVING.
-Lanny
Good job. That is a huuuuge amount. Then to add another 50 dollars via dividend increases. Good job keep it up
Doug –
Thank you and I know – the dividend increases, surprisingly, make me more happy than anything else. Love seeing how much is being added by valuable companies!!
-Lanny
Hi Lanny,
Fantastic job there, it’s great to see you getting nearly $2,000 in dividends! That’s amazing. You know in a few years from now you could be getting over $10,000 in June at this rate!
Mr DDU
DDU –
Thank you, thank you. I actually received $2k in December of 2017 and was damn near close to doing it again. DDU, I plan on cracking $2k consistently on the quarter ends, if I can, come September. Then, it’s GO time baby!!!! And $10K?! Maybe in a few years, you could be right…
-Lanny
That’s a HUGE increase – congrats on the growth and it’ll be awesome to see you break 2k next June(or maybe even in September!).
Time –
Thank you very much. I’ll be breaking it in September, that’s a goal and it’s now been written on this comment hahaha! I have no choice but to succeed, right?!
-Lanny
Straight killing it; congrats! International funds seem to do well and pay a nice dividend. I recently reallocated into more international in my 401k. On a different note, what is the atmosphere in your neck of the woods re: the Lebron move?
SMM –
I hope I can keep this one up! It has been tough on the Lebron front. I was there, “witnessing” the poster being torn down off our building. I think it hasn’t hit us yet, but I think come October, we will really feel it. I truly think it was more than basketball, for his decision. Sucks to see him go… again. I’m a die hard, regardless, and am excited to watch the young bunch and I hope we keep Kevin Love.
-Lanny
Great work! The contributions are really compounding nicely. Any reason you chose a European index fund instead of a total international fund?
Man, 2k in onr month. That’s just insane. Talk about setting the stage for everyone. Keep going my friend.
Especially like the impact of PM’s dividend increase. Such a high quality company providing superb shareholder return
Take care, stockles
You just keep killing it, Lanny. Take out those two $400+ payments from your retirement accounts and you still broke $1K! You make it look easy despite all the hard work I know you put into it. Congrats on another outstanding month.
Lanny had a good month yes indeed. He’s gonna hit 2k in December…guaranteed!
Just a little rhyme a put together off the top of the dome!! =P Congrats man! Huge month!!
Money –
Thank you very much, invest more, earn more : ) Love your rhyme, by the way. Let’s get it!!!
-Lanny
Hi Lenny, hi Bert,
@Lenny: congrats to 3rd place in total monthly income of Income Heroes for June. Only Mr. Tako (with his mega portfolio) and DivGro (with his options income turbo) managed to make more bucks last month. With 0.51% monthly yield on your portfolio you also rank 4th on yield.
@Bert: your monthly portfolio yield was 0.53% which makes you sitting on 3rd rank just before Lenny on yield 🙂
@both: keep on your good work and hopefully till next month!
Torsten
TT –
Thank you very, very much for the mention, and dangit Mr. Tako!! And yes, DG’s options kill it. Also… wow, nice look on Bert’s yield for the quarter. I may have to peg him down or peg mine up somehow, haha!!
-Lanny
Hi Lenny, hi Bert,
keep calm. I did not want to trigger a dividend war. Ha, ha!
Will try to think about posting the next update here again.
See you!