Here we are folks. The third quarter has come to a close, the weather has fluctuated from very cold, back to very hot in the span of a week. Leaves have fallen off of the tree, but I still see people laying out here in Northeast Ohio. Time is moving fast and we must keep up with adding value and productivity to our lives. September marks a very exciting quarter end for us dividend investors and I’m excited to share the results!
Dividend Income
I received a total of $1,357.92 in dividend income this September. I can’t believe it, another record month for September (almost catching June’s summary). That’s also quite a bit of reinvestment for me and I am very fortunate to be in this position. Honestly, most of this is fully automated, outside of individual brokerage stock purchases. 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.
First, there are four new companies that are paying on a quarter-end basis. Three are new investments that were made this year, such as Kroger (KR), Grainger (GWW) and Delta Airlines (DAL). $34.98 in dividends were delivered by these companies and I’m very grateful for the dollars sent my way. As each quarter turns, reinvestment occurs and the snowball builds. This time next year, knocking on wood, I’ll experience dividend increases and the amounts will for sure be larger. The final company I am referring to here is Kraft (KHC). They have recently shifted their dividend schedule to the quarter-end periods and, therefore, are new to this month.
Similarly, I have split out the taxable and the retirement accounts, as the ” – R” indicates a retirement account dividend (or the furthest column to the right). I separated these two, as I like to know what portion of my dividend income is coming from retirement accounts that I cannot touch until 59.5 (barring any other usage rule I could use). Here, it shows that I received a solid total of $547.21 (up from $348 last year primarily due to new investment, as well as dividend reinvestment & dividend increases) or 40% of my income from retirement accounts and the other 60% 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
2016: 
2017:
The results above show that incredible growth can occur in a 365 day span. First, I will reference BHP Billiton (BBL). The dividend I received last year was a “laughable” $17.93 and without any new investment, I received $57.00 this year. They have bounced back from the downturn in the oil/energy industry and are rewarding their shareholders from the rebound. Further, Pfizer (PFE) paid me a dividend last year of $19.54 and due to the January investment into PFE made this year, this jumped to $29.87. My Vanguard (VINIX) fund has exploded from $192.36 last year, all the way to $374.36 this year, close to doubling (see my above reference to why I max out the 401(k)). Overall, my dividend income received from the stock market investments increased 34.5% from 2016 to 2017.
Dividend Increases
September ends up being a fantastic month for dividend investors. Bert also has pointed out quite a few in his expected September dividends article, to which provided a sneak peak at could have occurred in my portfolio. A whopping five companies increased their dividend this month, up from the three last month and the four from last year. The biggest shock came from McDonalds (MCD). Now, I knew that MCD’s dividend yield was becoming fairly low due to the price surge they have experienced in the last year, but I still was only expected a 4-5% increase. Instead, “I’m lovin’ it” rang through my ears, as the investors received an incredible 7.45% dividend increase. Norwood Financial (NWFL) was very busy this past month, with a 50% stock dividend and an increase to their normal dividend of 3%, which works just fine by me. Lockheed Martin (LMT) stayed consistent with a 10% increase. In order to achieve this much forward income, one would have to invest $1,573 at 3.50%! Thank you very much (companies) for the dividend increases this month!
Dividend Income Conclusion & Summary
This is the month where being a dividend investor is fun. I am so lucky to have experienced such growth in a year’s time. I know that we are all in different positions and I hope (we’ll see, hindsight is always 20/20) that I am maximizing every dollar for investment opportunities and living a balanced life. My hope is that my month of dividend income above shows the community that one can use that revenue engine to take back control of your life.
As I discussed with my updated – normal monthly expenditures at the moment, this dividend income would cover over 100% of my average $984 monthly expense for my house, including utilities. In addition, my auto loan is finally gone and I am soon going to be able to deploy the additional capital into new investments that are opportunistic. 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 me to achieve lofty goals that I set in place for my 2017 year. LET’S GO!!!!
How did your quarter-end wrap up? Did you hit dividend income milestones? Were you able to make any final dividend income stock purchases before the month finished? Would you also say you are on track to hit your goals for the year, with three months left? Any questions that you have for me, relating to what I have posted and shared above? Please leave your questions, comments and feedback below! I am looking forward to reading and responding to them and truly appreciate everyone for stopping by! As always, best of luck and happy investing everyone.
-Lanny