Wednesday, November 25, 2015

Dividend Growth Investing at Work - More Healthy Dividends

Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who doesn't like getting a raise for doing nothing?

On Monday of this week the Board of Directors of Becton, Dickinson & Company (BDX) announced their 44th consecutive annual dividend increase.  The new quarterly rate is $0.66 which is a 10% increase from the prior rate of $0.60.  Since I own 8 shares of Becton, Dickinson & Company this raise will increase my forward 12-month dividends by $1.92.  Since my position is so small the raise isn't that significant but add another decade of 10%+ raises and things will look interesting.  Although I do plan to add more shares of BDX to my portfolio.

Check out my recent analysis on the valuation of Becton, Dickinson & Company on Seeking Alpha.

My forward dividends increased by $1.92 with me doing nothing.  That's right, absolutely nothing to contribute to their operations.  Based on my portfolio's current yield of 3.26% this raise is like I invested an extra $58.81 in capital.  Except that I didn't!  One of the companies I own just decided to send more of the profits my way.  That's how you can eventually reach the crossover point where your dividends received exceed your expenses.  That's DIVIDEND GROWTH INVESTING AT WORK!  That's the beauty of the dividend growth investing strategy because you build up your dividends by fresh capital investment as well dividend increases from the companies you own.

Sadly this should be the end of dividend increases for my holdings for this month.  But a month with raises from 3 of my holdings is still a wonderful month.  My employer sure didn't give me one.  Earlier this month Emerson Electric and McDonald's announced increases as well.  In total my forward dividends increased by $29.74 from dividend increases alone during November.

My FI Portfolio's forward-12 month dividends are up to $6,029.06 and including my Loyal3 portfolio's forward dividends of $60.37 brings my total taxable account forward dividends to $6,089.43.

Are you disappointed with the smaller increase from McDonald's Corporation?  Are your other holdings picking up the dividend growth slack?

Image courtesy of digitalart on


  1. Congrats on the pay raise, JC. Gotta love those regular raises year after year. BDX looks like its well on its way to get to the "50 consecutive years of raises" club

    1. R2R,

      BDX is definitely well on it's way to 50 years which will put them in a rather exclusive club. I just wish the starting yield was a bit higher but this is a wonderful company and has huge tailwinds to propel it forward.

      Thanks for stopping by!