Monday, October 5, 2015

Dividend Update - September 2015


It's the end of one month so it's time for my favorite update: my dividend update.  These updates reflect all dividends that I receive through my investing pursuits.  I hope they can help inspire you to take control of your own finances and invest to build a passive income stream. What you use that stream for is up to you, whether it's to fund early retirement, just provide some FI/FU money, or even to provide for an annual vacation; the key is that it can provide options and open up all sorts of possibilities. You can check my dividend income or progress page to see what dedication to an investment plan can give you.

I honestly don't know how we're already into October.  This year has flown by although I'm not surprised considering everything that had been going on in my life over this past year.  The end of a month, especially the end of a quarter month, is always great for dividend growth investors since many of the US based companies pay their dividends then.  That makes for lumpy dividend payouts on a monthly basis but it all works out in the end.

September was great for my dividends as I set a personal best for the month of September with $848.96 in dividends received in my FI Portfolio.  I also received $4.82 in dividends in my Loyal3 portfolio bringing my total taxable account dividends for the month of September to $853.78.  I don't know if I'd have believed anyone telling me that in September 2011 I would receive $21 in dividends and in just 4 years that number would increase 40 times.  That speaks to the power of time and commitment to the dividend growth investing strategy.  Year to date I've received $4,390.41 in my FI Portfolio and another $$99.16 in my Loyal3 portfolio.  My Roth IRA also brought in $44.24 during September with a year to date total of $200.63.

Dividends in my FI Portfolio increased 2.67% from June's total and a solid 23.11% from September 2014.  Considering how little I've been investing this year, due to capital not lack of opportunities, I'm pleased with the growth.  My Loyal3 dividends increased 7.59% from last quarter and 4,720.00% year over year.  Of course that's a bit exaggerated since I only pulled in $0.10 last year.

My Roth IRA though gives a purer view of dividend growth investing at work since I haven't made any contributions to the portfolio since 2011 and have been reinvesting all dividends into the company that pays them.  The portfolio is very skewed towards financials but in the overall picture of my total investment portfolio this isn't any issue.  My Roth IRA's dividends increased 0.64% from June of this year and 6.1% year over year.  Not spectacular growth but it's still growth and that's from just dividend increases and reinvestment since there's been no additional capital added since 2011.

Dividends received are one thing, but I'm also after dividends that grow organically each year.  Six of my holdings sent dividend increases my way during the month.  Those companies were W. P. Carey (WPC), Care Capital Properties (CCP), Verizon (VZ), Realty Income (O), Microsoft (MSFT), and Phillip Morris (PM).  Combined these companies increased my forward 12-month dividends by $27.84.  That's like I invested an extra $826 during September at my portfolio's current yield of 3.37%.  Except that I didn't.  The best part about that is that I didn't have to do anything to receive these raises except for invest some of my savings into excellent companies.  Thanks to the dividend increases and reinvestment of select dividends, my FI Portfolio's forward 12-month dividends increased to $5,980.38.  My Loyal3 Portfolio's forward 12-month dividends ended September at $58.68 bringing my total taxable forward dividends to $6,039.06.  My Roth IRA's forward 12-month dividends sit at $269.70.

Below is the chart showing the monthly dividend totals of my FI Portfolio only, for each year that I've been investing as well as the monthly average. It's not always an increase as some companies have weird payout schedules and eventually some positions will get dropped, but the long-term trend is what matters. At the end of September my monthly average thus far is $487.82 which is almost a $110 increase from 2014's average of $379.24.  With more contributions/investments and expected dividend increases the gap should widen that much more.


FI Portfolio - Dividend Income
Company Dividend Amount DRIP Shares
Wells Fargo (WFC) $20.63 --
ConocoPhillips (COP) $13.31 0.291
Bank of America (BAC) $8.09 --
McDonalds (MCD) $72.17 --
Halliburton (HAL) $25.24 --
Phillips 66 (PSX) $4.64 --
Emerson Electric (EMR) $29.05 --
Walgreens (WBA) $24.86 --
Harris (HRS) $41.25 --
Cummins (CMI) $22.74 --
Target Corporation (TGT) $71.87 --
Aflac (AFL) $28.63 --
BP (BP)* $47.27 1.319
Microsoft (MSFT) $12.76 --
Chevron (CVX)* $59.44 0.773
ExxonMobil (XOM)* $47.60 0.536
Realty Income (O) $17.42 --
IBM (IBM) $39.29 --
Visa (V) $8.18 --
Johnson & Johnson (JNJ) (Full Analysis Here) $56.41 --
Pepsico (PEP) (Full Analysis Here) $43.24 --
Unilever (UL) $9.79 --
3M (MMM) (Full Analysis Here) $18.46 --
United Technologies (UTX) $8.96 --
Ventas (VTR)* $16.26 0.285
T. Rowe Price Group (TROW) $10.40 --
Wal-Mart (WMT) $31.07 --
Becton, Dickinson and Company (BDX) (Full Analysis Here)$4.80--
Ross Stores (ROST) (Full Analysis Here) $6.58--
Union Pacific (UNP) (Full Analysis Here) $13.20 --
Hershey Company (HSY) (Full Analysis Here) $6.41 --
Care Capital Properties (CCP) $2.85 --
CenterPoint Energy (CNP) $26.07 1.470
September 2015 Total $848.96
2015 YTD Total $4,390.41
*Dividends were reinvested into the paying company.

Roth IRA - Dividend Income
Company Dividend Amount DRIP Shares
Bank of America (BAC) $5.07 0.327
Wells Fargo (WFC) $10.31 0.193
Norfolk Southern (NSC) $24.11 0.315
Wal-Mart (WMT) $4.75 0.074
September 2015 Total $44.24
2015 YTD Total $200.63
*All dividends in my Roth IRA have been reinvested back into the paying company.

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

Image courtesy of Stuart Miles on FreeDigitalPhotos.net.

How were your dividends in September?  Are you on track to meet your dividend goals with just one quarter to go?

22 comments:

  1. Nice work JC. I thought you did great last year, but here we are :) Our September was ok. I don't really have a dividend income goal for this year.....given this point in the market cycle. I just want lower prices, so I can put more money to work.

    Have a great week buddy. I know you're looking forward to getting some time off!
    -Bryan

    ReplyDelete
    Replies
    1. Bryan,

      The beauty of DGI is that it just builds on itself month after month, year after year. A perpetual compounding machine. I hear ya on the lower prices. It's been great seeing the markets dip the last couple months but without any free capital it hasn't been as much fun as it could have been. But I should be able to start participating again in a couple weeks so hopefully Mr. Market will move just a little bit lower in the meantime.

      I would love some time off but I'm not counting on much whenever I finish with this current job. With oil dropping they've laid off a bunch of employees which means the lucky ones that are still here get to work a lot more. Although that's a good and bad thing!

      Thanks for stopping by!

      Delete
  2. Almost hitting the $1000 mark! Awesome. We had our best month ever if you do not count December when all the 401K funds pay out large dividends. We eclipsed the $500 mark. The FI community is starting to put up some impressive numbers! Its great to see

    Take care PIP,
    ADD

    ReplyDelete
    Replies
    1. ADD,

      Yeah I hope to cross the $1k mark come March 2016. Yeah I ignore all my MF dividends as well from my 401k and Rollover IRA. Congrats on crossing $500 yourself that's awesome! It's pretty cool being able to see some of the numbers all of you are getting and remembering back to when you were excited about your first dividend received or first dividend update post. And now a lot of us are pulling in some really solid extra income.

      Thanks for stopping by!

      Delete
  3. Nice progress, you're really building a solid income here.

    ReplyDelete
    Replies
    1. DC,

      It's taken a while to get my portfolio to this point but it sure is starting to pay off. I received over $1.5k in dividends over the last quarter which is more than enough to make a full extra purchase each quarter from dividends alone.

      Thanks for stopping by!

      Delete
  4. Gogogogogogo! Sure does add up, don't it?

    ReplyDelete
    Replies
    1. FV,

      It's pretty awesome seeing how quickly it does add up! Consistency pays!

      Delete
  5. Wow! Thats amazing work, JC. Congrats on teh div income.

    R2R

    ReplyDelete
    Replies
    1. R2R,

      Now I need to get the other two months of the quarter up to this level. The end month of each quarter brings in over 50% of my quarterly dividends. I don't necessarily care about the timing of payments but since I'm still in the accumulation phase it'd be nice to have it more even so I can reinvest the dividends quicker with fresh capital.

      Thanks for stopping by!

      Delete
  6. Hi PIP, awesome month. That dividend income is just great. Keep up the good work!!

    ReplyDelete
    Replies
    1. DD,

      It was a great month as far as I'm concerned and considering that I haven't invested much capital in the 2nd half of the year I'll gladly take a 2.7% increase over June's total.

      Thanks for stopping by!

      Delete
  7. Congrats on the month JC! Just awesome. I like the part about your Roth IRA. Its pretty cool to see that 6% increase YoY just from dividend reinvestment!

    -Adam

    ReplyDelete
    Replies
    1. Adam,

      Yeah my Roth IRA gives a "purer" view of DGI since I haven't been able invest more capital there due to MAGI restrictions, I know good problem to have. That 6% YoY increase from dividend reinvestment and dividend increases alone is pretty cool. Especially since none of the increases were all that special and BAC still needs to get an increase headed my way.

      Thanks for stopping by!

      Delete
  8. Wow, that is an impressive number to say the least. Congrats on that achievement.Look how far you have come in just 4 shorts years. Fresh capital, reinvestment, dividend raises really gets the ball rolling faster than most people think. Nice long list of companies paying you too. Well diversified. Thanks for sharing. Looking forward to a strong Q4 finsh.

    ReplyDelete
    Replies
    1. DivHut,

      Just a few years of staying committed to the process has really paid off. Of course the high savings rate helped out a lot too. It's going to be cool to see what it's like in a few more years.

      Thanks for stopping by!

      Delete
  9. Awesome JC. Keep it up bud. Every month, a new report, it's wonderful. Take care and happy for your income! There will be plenty of opportunities to unload capital so no worries. Just worry about getting things smooth out again and go with the flow.

    ReplyDelete
    Replies
    1. Hustler,

      It's just a bit frustrating now that there's a lot more value and here I am with no capital. But opportunities will come and there's still good value here. I'm just trying to get back in the groove and I'm ready to get back on the FI bandwagon.

      Thanks for stopping by!

      Delete
  10. JC,

    Nice haul there, bud. You're just a step away from four figures. How awesome!

    Like others, I remember when we were all pulling in $200 or so per month. It wasn't that long ago, which just proves why time is of the essence and also how it doesn't take that long to radically change your life with this strategy. Putting in three or four years of really hard work can completely change the next 40 or 50 years.

    It's going to be a lot of fun down the stretch here as everyone finishes 2015 strong. :)

    Best regards!

    ReplyDelete
    Replies
    1. Jason,

      Yeah based on cash flow I don't think December will be realistic to add a comma to my dividends but March has a realistic chance with a 5 month run way. Cash flow should start to free up which means I can finally get back to investing and I'm ready for it.

      It really is amazing how just a couple years ago a lot of us were talking about finally crossing the $100 mark and now look at where we're at. And that's without really gaining the advantage of compounding yet as we're still so early in our journey. The 10 year mark is typically where compounding and dividend growth really start to take hold so the best is yet to come.

      Thanks for stopping by!

      Delete
  11. Nice work JC, very solid dividend income for September. Keep up the good work!

    ReplyDelete
    Replies
    1. Tawcan,

      It was definitely a good month for dividends and I love that I brought in $1.5k in dividends for the quarter. Even better is that those dividends will get put with fresh capital to be reinvested and create even more dividends. Compounding at work!

      Thanks for stopping by!

      Delete