The Coronavirus has dominated everything lately. The news, the stock market, workplaces, families, life events, LIVES, you name it.
Let’s stay positive and think about all of the GOOD things we have and can control. We realize now, more than ever, how little we need to be happy and have a life w can thrive in. We remember those that we truly love. There are many positives we can take from this. I have also been very thankful that dividend income continues to roll in, day in and day out. Let’s take a moment and take a look at the dividend income results for March.
Dividend Income
Dividend Income is the fruit from the labor of investing your money in the stock market. Further, Dividend Income is my primary vehicle on the road to Financial Freedom, which you can see through my Dividend Income and my Dividend Portfolio.
How do I research & screen for dividend stocks prior to making a purchase? I use our Dividend Diplomat Stock Screener and trade on Ally’s investment platform (one of our Financial Freedom Products) – commission free.
See – Dividend Diplomat Stock Screener
See – Financial Freedom Products
I also automatically max out, pre-tax, my 401k through work and my Health Savings Account. This allows me to save a TON of money come tax time (aka thousands), which allows me to invest even more. In addition, all dividends I receive are automatically being reinvested back into the company that paid the dividend. This helps take the emotion out of timing & making a decision.
See – Tax Strategy – Part 3 to Reduce Taxes & Increase Investment.
See – Why I Don’t Time or Predict The Market
Lastly, Dividend Increases add quite a bang to the portfolio, as well. As you saw from my recent post in January, dividend increases added almost $415+ for 2019! I do this to show YOU the power of dividend investing – dividend increases are the trifecta in the dividend equation.
See – The Impact of Dividend Increases through December of 2019
On to the numbers… In March, we (my wife and I) received a total of $4,484.98 of dividend income. March definitely didn’t disappoint. For the readers here, I want you to know that a MAJORITY are in tax-efficient accounts that I will not touch until the earlier of an IRA conversion ladder or when we hit 59.5. Therefore – this isn’t all readily available/accessible, not yet at least!
Consistent investing into the stock market, specifically dividend investing, continues to pay off. The quarter-ends are starting to become massive, due to the IRA and 401K dividend payments (Who and What is Vanguard?).
Here is the breakdown of dividend income for the month of March:
Well, the month almost clocked in at $5,000. So much hard work went into this dividend income, no doubt. However, there are also dividends on this list we won’t see for some time. Names such as Delta (DAL), Nordstrom for my wife (JWN) – trust me she is devastated, suspended their dividend due to the Coronavirus and shutdown we are in. Further, there are many more that are higher risk, in my opinion, during this time, so things can continue to change.
Vanguard’s mutual funds came through – as you can see with VINIX, VIIIX and even VOO – which all track the broader market index. VYM, a high dividend yield ETF, was slightly lower than prior year. All in all, the funds really carried the torch for this quarter-end… outside of two columns filled with individual powerful companies!
I think I see at least 10 dividend aristocrats up there, such as Johnson & Johnson (JNJ), Target (TGT), Archer Daniels Midland (ADM), Pepsi (PEP) and Consolidated Edison (ED). These are strong, reliable companies that have almost stood the test of time! Definitely great stocks to hold during a pandemic.
See – Top 5 Foundation Dividend Stocks
Related to retirement accounts, we received a total of $2,793.28 or 62%. The other 38% was from the individual taxable portfolio that can be used for everyday expenses. Quarter ends always have a higher dividend percentage allocated to retirement accounts for me, as the mutual funds and ETFs built up over the years from employers and investing really continue to compound. I always maximize the 401k and IRA, and that continues to pay-off in dividends, literally.44
See – Maximizing your Roth for 10 Years… Then Set It & Forget It!
Dividend Income Year over Year Comparison
2019:
2020:
Dividend income, year over year is higher by $1,201.46 (including my wife’s dividend income of $1,023.63 last year with mine). This is a 36% growth rate from prior year. Incredible results baby! Love setting record months for March and this month showcased quite a bit. VINIX really paid out a massive one this year and the rest is simply capital infusions and dividend increases.
We shall see what 2021 March brings, with the turbulence and volatility coming up. However, with lower prices/higher yields, the dividend reinvestment has been very powerful.
Dividend Increases
Not a strong month on the dividend increase front for me. However, they were two very solid dividend increases. First, General Dynamics (GD), who is also on my April Dividend Stock Watch List, had a great 7.85% increase, which is above expectations. Then, you had the small/micro cap dividend stock of Armanino Foods (AMNF) increase their dividend 10%, not missing a beat! For the most current version – see Bert’s Expected Dividend Increases in April and see if your stock is on the list.
The favorite here, due to my Italian heritage, has to be AMNF. They announced a 10% increase and the investment continues to bring smiles!
Overall, $10.55 dividend income added would require an investment of $300 at 3.50% yield, in order to produce that result.
See – The Impact of The Dividend Growth Rate!
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 demonstrate that dividend income can be a revenue engine. A revenue engine that allows you to take back control of your life. A revenue engine to help you reach financial freedom. 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 article. Sadly, my property taxes increased by 14% in 2018. Therefore, our average is $1,040 per month Due to that, my current dividend income would cover well over 100%+ of that amount. My taxable dividend income account would have had it covered and I wouldn’t have to consider the retirement-based accounts.
Excited for the future, 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.
We need to keep the positive energy flowing and continue with our strategy, if we can. Remember that when others are fleeing away, it usually means to go in the opposite direction. There are many undervalued dividend companies in the market, and many will persevere through this. Together, we can get through this volatility. Please share your thoughts, questions and feedback below. Excited to read how everyone did this month, as well. Stay safe, healthy and of course – good luck and happy investing!