Monday, November 9, 2015

Dividend Update - October 2015


It's the end of one month and the beginning of another so it's time for my favorite update: my dividend update.  These dividend 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 pages to see what dedication to an investment plan can give you.

Dividends for the month were solid but a bit of a let down after September's haul.  I received a total of $256.28 in dividends from my FI Portfolio during October.  I also received $4.91 in dividends from my Loyal3 portfolio and $22.89 from my Roth IRA holdings.  I don't breakdown my Loyal3 dividends because frankly most of them are quite small and even the sum of parts only amounts to a couple dollars.  With October's payments I've now received more dividends YTD than I did in all of 2014 in both my FI and Roth IRA portfolios which is a nice milestone to cross.

FI Portfolio

My FI Portfolio actually showed a decline compared the the previous quarter of 4.4% although it was a 10.1% increase year over year.  The quarter over quarter decline was due to the reduced combined dividend from Baxter (BAX) and Baxalta (BXLT) after the company split in two earlier this year.  I've since closed my positions in both Baxter and Baxalta.  You can see why I sold Baxter here but it's a combination of tax planing and a shift in the company.  If we remove the dividends from July and October that were related to Baxter and Baxalta the quarter over quarter comparison eeked out a small 0.6% increase.

Loyal3 Portfolio

My Loyal3 portfolio also showed a quarter over quarter decline amounting to 92.9%.  Ouch!  Although the year over year growth came to 411.5%.  Of course that's off just a $0.96 base so the hurdle wasn't really hard to beat.  The quarter over quarter decline though was caused by the special dividend from the Kraft (KRFT) and Heinz (HNZ) merger as well as Disney's (DIS) semi-annual payment falling in July but not October.  On a normalized basis the quarter over quarter comparison works out to a 3.6% increase all due to the the dividend increase from Mondelez International (MDLZ).

Roth IRA Portfolio

My Roth IRA portfolio gives a purer view of dividend growth investing at work as I have not contributed capital to the portfolio since October 2012.  Since my dividends are too small for it to make sense selectively reinvest them, I simply reinvest all of my dividends into the companies that pay them.  From dividend increases and dividend reinvestment the October dividends showed a 2.1% increase compared to July 2015 and a solid 9.5% rise from the year ago period.

Dividend Raises During the Month

A total of 6 of my holdings announced increases during October which is dividend growth investing at its finest.  You mean a company I own a piece of, albeit tiny, wants to pay out more of their profits to me just because I own part of the company?  Sign me up!  There were increases from Yum Brands (YUM), Omega Healthcare Investors (OHI), Kinder Morgan (KMI), Visa (V), Aflac (AFL), and Starbucks (SBUX).  Combined the dividend increases added $49.07 to my forward dividends without me doing any extra.

Looking Forward

My forward 12-month dividends for my FI Portfolio are up to $6,011.85.  Forward dividends in my Loyal3 portfolio ended the month at $59.55 bringing the total taxable account forward dividends to $6,071.40.  My Roth IRA's forward 12-month dividends are up to $270.60 thanks to dividend increases and reinvestment.

Monthly Average

Below is the chart showing the monthly dividend totals 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.  My monthly average so far in 2015 is $464.67.  That's about a $85 increase from where my year to date average was at the end of 2014.  With more contributions/investments and expected dividend increases the gap should continue to widen.


Dividends Received Breakdown

FI Portfolio - Dividend Income
Company Dividend Amount
EOG Resources (EOG) $1.36
Coca-Cola (KO) (Full Analysis Here) $53.97
Medtronic (MDT) $35.01
Phillip Morris (PM) $63.86
Realty Income (O) $17.47
General Electric (GE) $39.38
Baxter International (BAX) $4.49
Bank of Nova Scotia (BNS) $11.32
W.P. Carey (WPC) $19.10
Toronto Dominion Bank (TD) $7.59
Baxalta (BXLT) $2.73
October 2015 Total $256.28
2015 YTD Total $4,646.68

Roth IRA - Dividend Income
Company Dividend Amount DRIP Shares
JP Morgan Chase (JPM) $9.75 0.152
Phillip Morris (PM) $13.14 0.156
October 2015 Total $22.89
2015 YTD Total $223.52

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

Image courtesy of Stuart Miles on FreeDigitalPhotos.net.

How did your dividends do in October?  Get off to a good start to close out the last quarter of the year?

14 comments:

  1. Congrats on the dividend income, JC. A great set of stocks paying out dividend last month.

    R2R

    ReplyDelete
    Replies
    1. R2R,

      Definitely a solid month and I hope to finally get back to investing regularly this month so I can build up my dividends even more.

      Thanks for stopping by!

      Delete
  2. Replies
    1. FV,

      Progress has been slow this year due to low capital investment but it's still marching forward thanks to dividend increases.

      Thanks for stopping by!

      Delete
  3. One of my favorite posts to read -- because it reinforces the benefits of dividend growth investing and seeing other's progress is inspirational. Like yours, my October dividends were somewhat disappointing after September's intake. But thats just due to the schedule of payments -- more companies pay in the quarter-ending months of March, June, September and December.

    Keep up the great work and continue to inspire!

    Cheers
    FerdiS

    ReplyDelete
    Replies
    1. Ferdi,

      Completely agree I love seeing all of the monthly dividend updates. My dividends are definitely backloaded with each quarter but if you're disciplined enough to save and invest that's just something to deal with.

      Thanks for stopping by!

      Delete
  4. Great job JC. Guys keep it up and push the snowball effect to greater heights. Thank you for sharing my friend. Take care.

    ReplyDelete
    Replies
    1. DH,

      Once we can get back to regular investing we'll really start to build the snowball even more. Plus our quarterly dividends are up over $1,500 now which means we get to add an extra purchase each quarter from dividends alone. That's how dividend growth investing will continue to build wealth over the long term.

      Thanks for stopping by!

      Delete
  5. JC,

    Another month of collecting more money for doing absolutely nothing. The life of a dividend growth investor. It's tough, but someone has to do it. :)

    Cheers!

    ReplyDelete
    Replies
    1. Jason,

      Got to love it! And if anyone doesn't want their dividends I'll gladly take them off their hands.

      Thanks for stopping by!

      Delete
  6. JC,

    Once again very solid dividend income. That snowball is rolling and rolling. The ever increasing monthly average is looking nice.

    ReplyDelete
    Replies
    1. Tawcan,

      The progress has been slow this year due to very little investment, well little compared to our historical rates. But that should start to return to normal. The average is nice although I really need to work on a rolling 3-month chart to give a better picture of where we're at currently. So many ideas and so little time.

      Thanks for stopping by!

      Delete
  7. Quite a few names in common between our portfolios for the month of October. Gotta love those Canadian banks! Your forward dividend income is looking quite healthy as well. The beauty of fresh capital and dividend raises at work! Thanks for the continued inspiration.

    ReplyDelete
    Replies
    1. DivHut,

      The great companies tend to be common among several of the DGI portfolios and for good reason. I'm seriously lacking on capital to take advantage of the opportunities that I'd really like to add to as well as a few new companies for my portfolio. Hopefully the stock markets will head lower with an interest rate hike looming to give us a chance to add more to these great companies.

      Thanks for stopping by!

      Delete