Another month towards financial freedom. Can you taste it? I know I am starting to. However, though sweet the taste this is, it’ll be very “sweet” once the dividend income trumps all expenses in a given month. We are not quite there yet, but in time, this will happen. Proof has been in the pudding, as you’ve seen throughout the years of writing articles, and May is no different.
Dividend Income
I received a total of $2,040.17 of dividend income in June. A record June baby and glad that I nudged over the $2k hurdle! Additionally, my wife earned $675 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 $2,715 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. The dividend reinvestment adds quite a bang to the portfolio, as well. Through these 3 months within the 2nd quarter, my dividends being reinvested have added $122 (April through June) to my forward dividend income.
See – Tax Strategy – Part 3 to Reduce Taxes & Increase Investment.
Here is the breakdown of dividend income for the month of June!
Retirement account income takes the crown here, overall. Look at Vanguard’s VINIX and VGK, two massive checks totaling almost $800. The VINIX is from my old 401(k) plan with my previous employer. VGK is an ETF I have owned for a significant long time and simply does it’s thing.
See – Who & What is Vanguard?
In addition, Aflac (AFL) has been on a tear and it’s wild to see this cross $60. Further, my last beast of Lockheed Martin (LMT) is great to see. Their engine is continuing to power forward and can’t wait to see that cross the 3 digit mark soon.
Here, it shows that I received a total of $1,000.20 (up from $946.08 last year) or 49% of my income from retirement accounts and the other 51% was from my individual taxable account portfolio. This ratio decreased from last year due to the addition of UPS & LYB, as well as additional shares into ADM.
See – Maximizing your Roth for 10 Years… Then Set It & Forget It!
Dividend Income Year over Year Comparison
2018:
2019:
A few differences here, year over year. First, Delta (DAL) paid in a different month (May vs. June), therefore, is not included this year. My retirement account fund vehicles list is quite a bit longer. This is primarily due to doing a trustee-to-trustee transfer to Lively, when I left my older employer (hence the SPDR ETFs). In fact, this helped make up for the lower dividends from VGK and VINIX.
Outside of that, LyondellBasell (LYB) is the large newbie paying me this time around. I have purchased a decent position with them and couldn’t be happier. Further, United Parcel Services (UPS) is also a new name and am looking forward to the dividend payments and increases going forward.
In total, this June was higher by $211.63 or 11.6%. Obviously the growth rate is lower due to the size of the income stream. I will be doing everything I can to maintain that growth rate up! $2,250+ next year should happen, from dividend increases and reinvestment alone.
Dividend Increases
Target (TGT) continued their streak and we all knew it wouldn’t be a large one. I’ll take 3% and the additional $9.33 any day.
Realty Income (O) still makes me laugh. Their dividend increases are so damn consistent, it is not even funny. This one added three quarters going forward.
Kroger (KR) made me fall out of my chair. I recently had them on my watch list and their 14% dividend increase was very appreciated. Their low payout ratio allowed this increase, no doubt.
$15.88 added would require an investment of $453 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 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 $1,040 per month Therefore, my current dividend income would cover almost 2x my average $1,040 monthly expense. This isn’t including my wife’s income she earned, which would only help in the equation. However, majority of that is retirement account income BUT I could still have it covered with taxable dividends alone… WHOA.
If I keep the same growth rate up, could I hit over $2,250 going forward? I want $2,500. Seems like a steep challenge. I’ll strive for that figure, no doubt, and if I don’t reach that, I’ll be close at least! 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.
One half down and one half left for 2019! Dividend reinvesting, dividend increases and the power of time is occurring. I can taste it, one month closer 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!
Whoa, Lanny. $2K for the month… Outstanding! You’ve got your portfolio firing on all cylinders. I continue to be amazed by the growth you are achieving. You’ll have your expenses covered in no time if you keep this up.
Fairly consistent payouts among your stocks, so nice job in diversifying. AFL is a holding of mine as well. It’s as solid as ever.
ED –
Barely crossed it, but crossed nonetheless.
Love AFL, for sure. You are right, I don’t have one individual stock in the taxable account that purely dominates. I think, when I look at my portfolio, I just don’t seem to have those extremely massive/deep positions.
Hope you enjoyed the 4th sir!
-Lanny
Man, you’re crushing is Lanny! Over $2k and a solid 11% increase year over year. We nearly cracked $1,100 for our main portfolio in June but fell just a bit short but there’s an outside chance we’ll be above that from here on out assuming the timing of payouts doesn’t change. I hope to start looking into KR soon because while I want to try and stay away from the grocers because it’s such low margin, but if there’s value there’s value. And that 14% dividend raise definitely makes me think management is fairly confident in the business.
JC –
That is a killer amount of dividend income. I was shocked at my double digit growth, as I just didn’t feel like I was doing much on the quarter calendar end payers.
KR is interesting. Fairly likable metrics and that 14% dividend increase was very nice. I’d like to say that was expected, given their low payout ratio, but even that was on my higher side.
-Lanny
Solid companies you got there Lanny. Congratulations on crossing $2k for June, that must feel great to receive that income passively! Only a matter of time before you hit the next milestone.
Two stocks that I like but have yet to add are AFL and KR, two solid companies and that dividend increase from KR was amazing.
Savage –
Thank you for your comment and compliment.
Definitely take a look at both. Quite a bit of value with KR, in terms of their metrics across the board.
-Lanny
Wowzers thats a lot of cash LOL. You rocking it and it shows. You can definitely see the results and its looking great. that dividend increase from KR was great also. hopefully it can continue that momentum for a few years.
Doug –
Thank you, it all goes towards the consistent investing and letting time do a lot of it!
I did love the KR divvy increase. Pumped to see what that grocer can do!
-Lanny
NICE $2K!!! Congrats Lanny on a record month. That is the definition of Crushing It! Keep up the amazing work! 😀
MDD –
Thank you! HOw crazy would it be to hit $3k? Wonder if I can get there by 12/2020?
-Lanny
BAM!
oh man that is sweet! How do you like dem apples?
over 2k is phenomenial man or 2600 if you include both of you. Got to love that.
You have continued to make your money work for you and the results speak volumes. keep on motivating guys!
keep it up
cheers
PCI –
I was thinking the same question to ask everyone, kidding, kidding.
Love the $2k, but gosh damn I am hungry. I am hungry to double this, and then doubling it again. I AM AMPED!
-Lanny
Awesome report Lanny. Congrats on squeezing out that 2k in dividends for the month. Happy 4th!
DP –
Appreciate the comment, as always! Hope you enjoyed the 4th. All of these comments keep me going further, that’s for sure.
-Lanny
Nice Lanny, you are steam rolling towards freedom. I know you don’t need anyone to tell you this, but keep it up!
Passive Cash –
I do need it, ahaha, I need a kick in the ass to keep going, all the time. I do it myself, but every little bit helps. So thank you.
-Lanny
Wow! Over $2k in dividends. That’s sick! I’ve received a tenth of it 😀
Thanks for being an inspiration for us, who sometimes struggle with the needed persistence.
DivRider –
Hey, I once received a 10th of it. I appreciate your kind words. If I can be of any help and add inspiration – then hell yes. If you have any questions, definitely reach out, at any time.
-Lanny
Congrats on pushing past the $2,000 milestone in June, Lanny! The power of compounding will never cease to amaze me. Keep that snowball rolling down the hill!
Kody –
Thank you, if only I could do this during Jan/Feb/Apr/May/July/Aug/Oct/Nov!
Hey, if the snowball can face the heat we are having, then you know it! All day! Thanks again Kody.
-Lanny
Nice job getting over $2K with or w/o your wife included in the results. We just combined our accounts last month and I’ll be reporting it all as one. Enjoy that AFL run too. It’s been with me since I went the DGI route over 10 years ago. For insurance it’s a solid long haul winner. Keep up the good work. Where did half the year go?????
DH –
Thank you for your comment and I’m still on the fence of showing it combined! I should, for sure, but man, these numbers will be HUGE! How crazy is that run on AFL? I love it, I dig it. I want 10 more years. LETS GET IT DH. Where did the first half go? Setting us up for the SECOND HALF, It’s time.
-Lanny
Wow, nicely done man! Over $2k is really really impressive. Congrats! We broke the $2k milestone in June too. Actually almost broke the $2.1k milestone too. 🙂
Tawcan –
Love that we are in the same company, crazy how similar our results are. I have enjoyed watching you, your blog and family blossom. Life – it’s a crazy thing!
-Lanny
Impressive numbers, Lanny!
Congrats on crossing that $2k mark, the hard work is really paying off. Re-invested dividends alone will make the dividend snowball roll really well.
Keep it up!
BI
BI –
Hard work, does pay off, without a doubt. You almost made me drop a Razor Ramon quote right there.
The best feeling, sometimes, is the DRIP and calculating the impact that comes from. You keep it up as well!
-Lanny
That’s an amazing month Lanny. You have some nice positions built up in some very strong companies. This is definitely a sleep well at night portfolio. You will reach that 2.25k in no time. Keep up the good work. Thanks for sharing!
MD –
I appreciate the comment and I’m trying to get there with the sleep, still awake at night… agh, soon, right?
I can’t wait to keep climbing. Never. Looking. Back.
-Lanny
Lanny,
Congrats on the 2K income. Its very good feeling. I had it last year june,this year due to changes in Retirement account it went down.
Desi
Desi –
Thank you, thank you! Yes, with reduction of contributions, that took a nice little back seat ; )
-Lanny
Hey Lanny,
Great job on the divs. Crossing the $2k barrier is phenomenal and smart to keep passively reinvesting along the way. No need to time the market when you’ve got a cash cow like this portfolio providing ample dry powder.
Take care,
Ryan