It is time for the most exciting dividend month of the quarter! There is nothing more exciting than seeing the calendar turn and realizing that it is the month that most companies pay their dividend. This is where you really see the fruits of your investing labor and the power of dividend investing flex its muscle. For those of you that are new to our website, each month we create a list of some (not all) companies that are expected to increase their dividend in the coming month. Dividend increases are the name of the game and what we are constantly monitoring on our website; we get pretty darn excited each time a company announces an increase because we know that each successive dividend re-investment results in additional shares, which leads to additional dividend income. The impact may be small on an individual level, but man do these increases add up in the long run. Now it is time to dive into the details and see which companies are expected to announce dividend increases in September.
September… ah September. The leaves are changing and so did my dividend income for the month. It’s a wonderful quarter end, which for me and most investors – typically means a larger than normal month of dividend income to our portfolio. Most of the big blue chip companies pay on the calendar quarter end and I own quite a bit that does so. As the leaves change color and the temperature begins to cool in Ohio, our portfolios heat up with checks coming into our mailbox from all of the wonderful companies that we own. Now… to the numbers!
Another month down in the dividend income books. Monthly I will evaluate and show the results of which companies paid dividends, progress towards the year and comparison to the past. This is a great way to track my dividends to see if I’m on pace for financial freedom. Now onto my September dividend income results!
Boom! Watch out and get out of the way!! Do you see what’s coming? That’s the dividend income stream picking up more speed and size each and every step of the way. Today I want to talk about Dividend Reinvestment or Dividend ReInvesting Plans (DRIP for short).
What is a DRIP? This is when the dividends on your stock that you own pay dividends, become reinvested (at partial/whole shares) and are at no cost (hopefully) to you. I am lucky and all my brokerages give me the option to opt in or opt out of the DRIP plan, with no cost to reinvest to buy more shares. The benefits of the DRIP Plan are as follows: