Monday, February 1, 2016

Dividend Update - January 2016


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 December's giant haul.  I received a total of $268.67 in dividends from my FI Portfolio during the month.  I also received $9.83 in dividends from my Loyal3 portfolio bringing my taxable accounts dividend total to $278.50.  My Roth IRA also provided $27.90 in dividends throughout the month.  Across all 3 accounts, excluding the effect of taxes, January's dividends totaled $306.40.

FI Portfolio

My FI Portfolio showed a somewhat lackluster 4.8% increase from the previous quarter although considering no fresh capital was invested in companies that pay during the month that's a solid quarter over quarter gain.  I prefer year over year comparisons to the quarterly ones because companies tend to stick to the same payout schedule each year but some companies have odd payout schedules that lead to inaccurate quarterly comparisons.  Year over year a 12.3% increase compared to January 2015.  On a constant payout basis, the same companies that were owned during both time periods, dividends received showed a year over year increase of 5.7%.

The year over year increase was lower than I target for organic dividend growth of my holdings.  However, nearly 6% organic dividend growth is still solid considering two of my holdings did not increase dividends in that time, EOG Resources (EOG) and General Electric (GE), and two holdings had sub-par dividend growth, Phillip Morris (PM) and Wal-Mart Stores (WMT).  Overall I'm happy to be "disappointed" with almost 6% organic dividend growth.

Loyal3 Portfolio

The Loyal3 portion of my portfolio showed an excellent quarter over quarter increase of 100.2%.  Although that was thanks in large part to Disney's (DIS) semi-annual dividend that falls in January and July.  That same semi-annual dividend led to a decline in year over year comparisons because January 2015's dividend from Disney was an annual payment, they swapped to semi-annual during 2015.  Year over year there was an 11.8% decline but on a constant payout basis there was a strong 13.6% increase in dividends received.

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 small I opt to automatically reinvest dividends instead of pooling them with new capital.  From dividend increases and dividend reinvestment the January dividends showed a 21.9% increase compared to October 2015 and a solid 8.7% rise from the year ago period.

Dividend Raises During the Month

A total of 3 of my holdings announced dividend raises during January which is dividend growth investing at work.  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 was a trifecta of increases from my REIT holdings with raises announced by Omega Healthcare Investors (OHI), Realty Income (O) and HCP Inc. (HCP).  Combined the dividend increases added $14.38 to my forward dividends without me doing any extra.

Looking Forward

The forward 12-month dividends for my FI Portfolio are at $5,506.95.  Forward dividends in my Loyal3 portfolio ended the month at $60.99 bringing the total taxable account forward dividends to $5,567.95.  My Roth IRA's forward 12-month dividends are up to $272.64 due to dividend 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 odd payout schedules and eventually some positions will get dropped, but the long-term trend is what matters.  The rolling 3-month average of my FI Portfolio is at $509.41.  That's about a $17 increase from where my year to date average was at the end of 2015.  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
Medtronic (MDT) $35.01
Phillip Morris (PM) $63.86
Wal-Mart (WMT) $31.07
Realty Income $17.51
General Electric (GE) $39.38
PepsiCo (PEP) $43.24
Bank of Nova Scotia (BNS) $10.58
W.P. Carey (WPC) $19.59
Toronto Dominion Bank (TD) $7.07
January 2016 Total $268.67
2016 YTD Total $268.67

Loyal3 Portfolio - Dividend Income
Company Dividend Amount DRIP Shares
Disney $3.49 --
Mondelez International (MDLZ) $1.45 --
Dr. Pepper Snapple Group (DPS) $1.28 --
Kraft-Heinz (KHC) $2.07 --
PepsiCo (PEP) $1.26 --
Nike (NKE) $0.28 --
January 2016 Total $9.83
2016 YTD Total $9.83

Roth IRA - Dividend Income
Company Dividend Amount DRIP Shares
JP Morgan Chase (JPM) $9.82 0.171
Phillip Morris (PM) $13.30 0.152
Wal-Mart (WMT) $4.78 0.078
January 2016 Total $27.90
2016 YTD Total $27.90

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

Image courtesy of Stuart Miles on FreeDigitalPhotos.net.

How did your dividends do in January?  Did you get off to a good start on your goals for 2016?

25 comments:

  1. Nice steady progress, JC. Congrats on the dividend income.

    Keep it up!
    R2R

    ReplyDelete
    Replies
    1. R2R,

      Consistency is key to DGI because it's not a way to get rich quick. 2016 looks to be another holding pattern year for us, at least for the first half, but at least the dividends will grow organically which is a huge bonus.

      Thanks for stopping by!

      Delete
  2. Do you really consider a near 5% increase from the previous quarter to be "lackluster"?
    That's nearly 20% annually and doesn't contain any added funds. Not sure I get it. Must be a child of the Bull Market because by any other measure that's a highly respectable return.

    ReplyDelete
    Replies
    1. Pay off my rentals,

      The 5% quarter over quarter increase is great but it wasn't anything spectacular. Not that I'm turning it down at all but it's nothing that really stands out at remarkable. I didn't invest any capital so it was a fairly organic representation. Year over year the 5.7% organic growth for the month was really good. Especially when factoring in that of the companies that pay during January 2 gave subpar increases and 2 didn't give a raise at all.

      Thanks for stopping by!

      Delete
  3. Keep it up JC. Don't stop and keep the snowball rolling. Thanks for sharing. Enjoy the journey bud. Cheers.

    ReplyDelete
    Replies
    1. Hustler,

      Most definitely. I can't wait to get back to serious investing and growing our dividend stream. For not though I'll be relying on organic dividend growth which should still work out nicely. That's the benefit of dividend growth investing.

      Thanks for stopping by!

      Delete
  4. Hi JC,

    Congrats on another monthly increase! 5% is pretty good considering you didn't have to do anything to get it.

    I think there's a typo near the start of your post where you mention the total income across all three accounts was $557 ... shouldn't that be $306.4?

    Looking forward to February's results,
    Best wishes,
    -DL

    ReplyDelete
    Replies
    1. DL,

      Thanks for catching that. I didn't fact check myself and fat fingered the calcs. So much for automation.

      Unfortunately I'm not looking forward to February since it'll be my first month without KMI since I sold after the dividend cut. That's going to hurt in the short term. Luckily the rest of my holdings are still doing well and churning out higher dividends to help pick up the slack.

      Thanks for stopping by!

      Delete
  5. PIP

    Great January dividend income and great 5% increase, I realy like your DGI approch amd how you keep your snowball rolling toward FI.

    Sharon - Divorcedff

    ReplyDelete
    Replies
    1. Sharon,

      It was a solid month to start off the year and I hope to start improving our dividends through investing once again. Although the organic growth sure is nice and will help to propel the snowball in the meantime.

      Thanks for stopping by!

      Delete
  6. PIP,

    $275 between your FI and Loyal3 accounts is a great way to start the year. Depending on where you live and what you do that can be a days to half a week's worth of work to earn. Congrats, enjoy those up ticks. Keep growing those Roth and Loyal3 accounts, double digit growth is where it is at if you can find it.

    - Gremlin

    ReplyDelete
    Replies
    1. Gremlin,

      It was definitely a solid start to the year. Especially since my FI Portfolio showed almost 6% organic dividend growth. That's almost a week of working minimum wage that I just got. Except I didn't have to do anything to get it. I hope to get back to investing in our Roths later this year. That had been put on hold for a while but we'll be under the income limits for the 2016 tax year so the plan is to get back on those.

      Thanks for stopping by!

      Delete
  7. That's some good stuff JC. Hope you get to $6000+ this year

    ReplyDelete
    Replies
    1. BDI,

      I would love to get there but it's likely not going to happen. The KMI dividend cut was a big step backwards and I don't think we'll be investing too much capital at least in the first half of 2016. I've got a post coming up soon detailing why. But DGI is great because we'll keep getting dividends as well as increases which will help us through the year.

      Thanks for stopping by!

      Delete
  8. Hey JC,

    Nice dividend income, man. Bet that series of REIT dividend increases put a great big grin on your face. Keep it up man.

    DB

    ReplyDelete
    Replies
    1. Dividend Beginner,

      For a slower paying month and considering we didn't really invest any capital I'm quite pleased with how January ended up. The best part about those REIT raises is that O and OHI shouldn't be done yet. I fully expect 3 more increases from each of them which is awesome!

      Thanks for stopping by!

      Delete
  9. Congrats on a good month JC and a great start to the year!

    ReplyDelete
    Replies
    1. Gareth,

      I'm pretty happy with January's results but I'm not really looking forward to February. It'll be the first payout after KMI cut their dividend and I subsequently closed my position. That's $100+ per month of dividends we lost on the February, May, July, November schedule. But the other companies I own are helping to pick up the slack and giving raises!

      Thanks for stopping by!

      Delete
  10. JC,

    Really strong organic dividend growth there considering the lack of raises from GE and EOG. I'd say that's a big move in the right direction knowing that it'll likely only be better next time. If that's a "floor", the future is quite bright. :)

    Looks like you're getting 2016 off to another nice start. Hope all is well, bud!

    Best regards.

    ReplyDelete
    Replies
    1. Jason,

      Even though it's below what I target I'm very happy with the near 6% organic growth. Especially when factoring in the 2 companies that didn't raise and then 2 companies raised small amounts. So it turned out pretty good as far as I'm concerned.

      The companies I own will be doing the heavy lifting of pushing us forward towards FI during 2016 so hopefully dividend growth picks up across the board. I'll be giving the details early next week.

      Thanks for stopping by!

      Delete
  11. JC,

    Killing it over there! Crossing the $300 mark and having a nice spread of who is paying you. Keep it up.

    -Lanny

    ReplyDelete
    Replies
    1. Lanny,

      It's great to see the $300 mark hold steady although February is going to make for some interesting comparisons since KMI cut their dividend and I then closed my position. Although diversification helps to ease the pain a bit.

      Thanks for stopping by!

      Delete
  12. JC, Congrats on a great month with over $300 in dividends from an impressive list of stocks. I hold few stocks myself from this list.
    Keep it going...

    DGJ

    ReplyDelete
    Replies
    1. DGJ,

      I hope to be able to keep building up most of these positions although there are a few that are on the watchlist to monitor more closely. $300 is great considering the lack of investing I did in 2015 and that January is typically a slower month for dividends.

      Thanks for stopping by!

      Delete
  13. Nicely done JC. With the recent market drop this is a great time to add more stocks to our portfolio for more future dividend growth! Keep up the great work.

    ReplyDelete