Monday, February 3, 2014

Dividend Update - January 2014

Well 2014 is now well under way with January already having come and left us.  The markets started to be much more volatile with earnings season in full swing and the Federal Reserve announcing further tapering.  I still don't know why tapering is such a bad thing unless you believe that the economy and markets will collapse without the infusion of that capital.  Plus, it's not like they've completely stopped the bond buying program, they're still buying over $65 billion, per month.  When the markets are volatile and routinely giving -100 or more point days is when you find out if you're cut out to withstand the worse losses that will come in the future.  It might be today or tomorrow or 10 years from now, but at some point we'll see another 25-50% sell off.  For the month the DJIA gave up 5.3% and the S&P 500 retreated 3.6%.

This was music to my ears, and I know to a lot of my fellow bloggers as well, although it came about month earlier than I would have liked.  I made several purchases throughout the month by adding to existing positions in Chevron, Phillip Morris, and Target.  I'm looking very closely at Coca-Cola and Wal-Mart as well.  Overall I was able to add almost $140 in dividends before any further reinvestment or dividend increases.

I received a total of $149.28 in dividends in my FI portfolio in January which is a 580% increase from January 2013 and a 16% increase over October 2013.  I wish I could keep these percentage gains up this high, but I know those will have to come down barring a huge jump in my income and therefore savings/investing rate.  After one month, I'm 3.32% of the way towards my goal of $4,500 in dividends received during the year.  Throughout 2013 I added several companies that pay their dividends in January, April, July, October which is great because it helps to spread out the dividends.  I don't necessarily care too much about the dates the dividends are paid out as I'm looking for quality companies at undervalued prices, but a better distribution is welcomed.  My Roth IRA paid out $12.39 in January which was just over a 100% improvement from January 2013 and a 55% increase over October 2013.  Going forward the Roth IRA dividends will only increase due to reinvestment and dividend increases as we should be over the MAGI threshold again during 2014.  That's a good problem to have though.

Forward 12-month dividends in my Roth IRA are at $216.09.  My FI Portfolio has a much more robust forward 12-month dividends total of $3,784.08.  This is 75.7% of the way towards my goal of reaching $5,000 in forward dividends by the end of the year.  I'll need to invest over $37,000 at 3.25% in order to reach that mark, excluding the organic dividend growth that is sure to come.

In my December update I added a new chart showing the month by month comparisons of my dividends received.  Here's the updated version after accounting for January.


FI Portfolio - Dividend Income
Company Dividend Amount DRIP Shares
EOG Resources (EOG) $0.76 --
Medtronic (MDT) $25.67 0.433
Phillip Morris (PM) $43.62 0.513
Wal-Mart (WMT) $10.41 0.133
Realty Income (O) $9.96 0.260
General Electric (GE) $11.08 0.423
Baxter (BAX) $19.11 --
American Realty Capital Properties (ARCP) $7.88 0.612
PepsiCo (PEP) $11.35 0.137
Bank of Nova Scotia (BNS)* $9.44 --
January Total $149.28
2014 Total $149.28
*Dividend received of $11.11 however $1.67 (15%) was withheld to pay foreign dividend tax.

Roth IRA - Dividend Income
Company Dividend Amount DRIP Shares
JP Morgan Chase (JPM) $8.03 0.144
Wal-Mart (WMT) $4.36 0.056
January Total $12.39
2014 Total $12.39

I've updated my Dividend Income page to reflect January's changes.

How did your dividends do in January?  

26 comments:

  1. Great start to the year, PIP.
    Congrats on the great progress you've made - thats a big jump from last January's dividend income.

    regards

    ReplyDelete
    Replies
    1. Roadmap,

      Thanks. It wasn't the best month ever but it was a solid dividend total and a huge increase from last year. Now I need the markets to settle down or start rising to keep me on track for the rental property purchase. There's temptation everywhere.

      Thanks for stopping by!

      Delete
  2. Nice month JC! Here's to hoping that we all see a ton of organic dividend growth this year.

    ReplyDelete
    Replies
    1. w2r,

      I expect some solid DG totals this year. I project based off 5% average DG across my holdings but on a historical basis they're closer to 12% which is a great boost.

      Thanks for stopping by!

      Delete
  3. Good month and nice start for the new year, excellent new chart!
    DH

    ReplyDelete
    Replies
    1. DH,

      I really like that new chart as it allows for easy comparison by month on a year over year basis. These markets suck. I love that they are selling off to give us better prices, but sheesh this is ridiculous because there's so many companies I want/need to add to in order to average down my cost basis but I want to save up for the rental property. I'm pretty much at the downpayment total but it's getting harder and harder by the day to keep from investing this money in the markets.

      Thanks for stopping by!

      Delete
  4. great chart. It really shows the progress year by year.

    ReplyDelete
    Replies
    1. FFDividend,

      I really like that chart as well and I'm a sucker for visuals.

      Thanks for stopping by!

      Delete
  5. Nice chart! I agree with FFdividend, it really shows your progress. Keep up the good work!

    ReplyDelete
    Replies
    1. Dividend Dream,

      Thanks. Up and to the right is always good. Well at least when it comes to investments.

      Thanks for stopping by!

      Delete
  6. Great looking month! Keep up the good savings routine and you will reach your goal in no time.

    ReplyDelete
    Replies
    1. DividendVet,

      It was a pretty good month but I'll be happier when March rolls around. It's been pretty steady as far as savings go and expenses don't end up varying that much which I like to see. Eventually we'll get to that crossover point and it'll be sweet.

      Thanks for stopping by!

      Delete
  7. Solid month. I've been using this recent pullback to make some purchases, hopefully I'm not jumping the gun, but it seems like a good opportunity.

    ReplyDelete
    Replies
    1. First Million,

      I've also been taking the opportunity to add to some positions. I've already jumped the gun on some of my purchases but the value is there and I never claimed to be able to time the market. Got to take the value when you can because recently it's been head fakes by the markets with dips then quick rebounds. We'll see if this one is a deeper drop or longer duration. I'd love for them to stay flat here for a month or two.

      Thanks for stopping by!

      Delete
  8. Love seeing your progress! 580% year over year progress, nearly $140 dividends added from purchases this month. Way to start the year off right! Almost picked up CVX myself today but ended up with JNJ instead. CVX, KO and GIS are on top of my watchlist now with WMT not far off.

    ReplyDelete
    Replies
    1. Divi Me Up,

      If only I could continue to repeat that 580% year over year growth. I'd be FI in no time but the growth will have to slow down, at least in percentage terms. JNJ isn't exactly a scrub so I think you'll be happy with that. I have way too many ideas to invest in to lower my cost basis at some good value levels but not enough capital.

      Thanks for stopping by!

      Delete
  9. Started 2014 with $32.87, up 285% YoY from 2013. Looking forward to a good year and look at all the bargains we have!

    ReplyDelete
    Replies
    1. Dan,

      There's definitely a lot more bargains. I wish we could go back to 2011/12 when the markets were crazy. One month +2-3% next month down 2-3%. That gave us lots of opportunities to add to positions. 2013 was definitely an anomaly with very little volatility. $33 is a great start and that growth is awesome. Keep up the good work!

      Thanks for stopping by!

      Delete
  10. Those green bars on the chart really show some solid quarterly progress. Here's to hoping bigger and better things for the purple bars!

    ReplyDelete
    Replies
    1. Done by Forty,

      The purple bars will definitely show a nice jump over the green bars. If I invest no more money this year into the markets then it should end up well over +$100 over 2013's monthly average. This sell off has been wonderful though for value/DG investors.

      Thanks for stopping by!

      Delete
  11. 580% increase from last year! Awesome!!

    Retiring off dividends takes time, you need to be patient. Looks like you're on the right track.

    ReplyDelete
    Replies
    1. Kanwal,

      I loved seeing that increase, although if it was off a larger base than $22 that would have been so much better. I'm doing my best to get there as quick as possible, but it takes time and plenty of capital. Anyone can do it if you remain consistent.

      Thanks for stopping by!

      Delete
  12. Pursuit,

    Really great progress. Over 500% increase YOY is awesome, and you made some really great purchases to keep the momentum going.

    Way to start the year off with a bang! I hope the market continues its downward slide for the next few months so we can continue scooping up some high quality stocks at decent prices!

    Best wishes.

    ReplyDelete
    Replies
    1. DM,

      I've been a lot busier with buying for my portfolio than I expected to start the year but it's been great to add to my portfolio and forward dividend stream. I've added almost $300 in annual dividends between my ESPP purchase, regular purchases, reinvestment and dividend increases. Not bad for it only being early February.

      I hope the markets bounce back a bit from here and then start a downward trend again in say April when I can get some capital built back up. I like the rental property that I posted about today and I'm very seriously considering moving forward on it. I think the numbers look good across pretty much all scenarios and I really like that there's still over 3.5 years left on the lease. In theory that should mean the cash flow numbers should remain pretty solid.

      Thanks for stopping by!

      Delete
  13. Hi PIP,

    congratulations for total 160 USD in dividends in only one month!
    I have made 32 EUR - a much smaller amount than you ;-)

    The comparison of monthly dividends over the years 2011 to 2014 is very interesting!
    I don´t know, but I think, if you use lines and not bars, the chart looks better...

    Best regards and keep going!
    D-S

    ReplyDelete
    Replies
    1. D-S,

      Don't worry about that, I'm much lower than some of our other counterparts.

      I'll try that on the February update. I'll go on and post both of them and see what the readers like. Personally I like the bars better, but if it's easier for others to read/visualize then I guess I'll make the switch.

      Keep up the good work in February!

      Thanks for stopping by!

      Delete