Friday, May 6, 2016

Dividend Update - April 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.

The first month of the quarter is always a bit of a let down when compared to the end of the quarter dividend payouts.  But cash is cash and I won't complain about receiving more no matter the month it comes in.  I received a total of $267.50 in dividends from my FI Portfolio during the month.  I also received $7.26 in dividends from my Loyal3 portfolio bringing my taxable accounts dividend total to $274.76.  My Roth IRA also provided $23.34 in dividends throughout the month.  Across all 3 accounts, excluding the effect of taxes, April's dividends totaled $298.10.

FI Portfolio

Looking at the dividend totals on the surface April's results were a bit uninspiring.  Compared to January 2016 my dividends showed a 0.4% decline and the year ago comparison is even uglier at a 16.5% decline.  Yikes!

Some of the discrepancy is due to the timing of payments such as Coca-Cola paying in April, but not January or Pepsico paying in January but not April and some is due to positions being closed such as W. P. Carey or Baxter International.

On a constant payout basis, i.e. the companies that paid and were owned during the same time period the quarterly comparison eeked out a 2.2% increase.  The adjusted year over year comparison showed a 5.3% increase.  This negates the effect of positions being closed or new positions being initiated, but does not account for any dividend reinvestment.  I'm quite happy with 5.3% organic dividend growth year over year although that is a bit lower than I'm targeting.

Loyal3 Portfolio

My Loyal3 Portfolio showed a disappointing 26.1% decrease compared to January, but a solid 8.2% increase year over year.  Luckily though the decrease was not due to sales or dividend cuts, but rather just due to the timing of payments since Disney (DIS), Pepsico (PEP) and Coca-Cola (KO) paid in one of the periods, but not both.  When accounting for just constant payouts, i.e. the companies that paid during both time periods, the quarterly comparison showed a small 2.6% increase.

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 April's dividends showed a 16.3% decrease compared to January 2016 as well as a 10.2% decrease from the year ago period.

While the decreases are disappointing to see they are easily explained and are due to closing my position in Wal-Mart within my Roth IRA earlier this year.  Excluding the Wal-Mart payouts from the previous reference months moves the results to a much more flattering gain across both periods.  April's dividends showed a 1.0% increase compared to January 2016 and a 9.5% increase year over year when teasing out the Wal-Mart effects.

I've yet to put that capital to work because the markets started their big run before I could find a worth investment.

Dividend Raises During the Month

April was a busy month for dividend increase announcements, of course that's a busy that I like.  A total of 9 of my holdings announced raises to their cash payouts to me the shareholder.  You mean a company I own a piece of, albeit it, wants to pay out more of their profits to me just because I own part of the company?  Sign me up!  That's dividend growth investing at work!

The dividend boosts came from all sectors of the economy: 2 consumer staples giants, real estate, 2 technology companies, a banking giant, an oil supermajor, an industrial powerhouse and a health care giant.  Not bad if I do say so myself.  Combined the dividend increases added $41.92 to my forward 12-month dividends.

Looking Forward

The forward 12-month dividends for my FI Portfolio are at $5,545.75.  Forward dividends in my Loyal3 portfolio ended the month at $63.90 bringing the total taxable account forward dividends to $5,609.64.  My Roth IRA's forward 12-month dividends are up to $255.87 increased 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 $465.27.  That's about a $27 decrease from where my year to date average was at the end of 2015.


Dividends Received Breakdown

FI Portfolio - Dividend Income
Company Dividend Amount
Coca-Cola (KO $57.24
Wal-Mart Stores (WMT) $31.71
Phillip Morris (PM) $63.86
Medtronic (MDT) $35.01
Realty Income (O) $18.25
General Electric (GE) $39.38
Bank of Nova Scotia (BNS) $12.11
EOG Resources (EOG) $1.36
Toronto Dominion Bank (TD) $8.58
April 2016 Total $267.50
2016 YTD Total $1,664.47

Loyal3 Portfolio - Dividend Income
Company Dividend Amount DRIP Shares
Coca-Cola $2.05 --
Nike (NKE) $0.28 --
Dr. Pepper Snapple Group (DPS) $1.41 --
Kraft-Heinz (KHC) $2.07 --
Mondelez International (MDLZ) $1.45 --
April 2016 Total $7.26
2016 YTD Total $23.63

Roth IRA - Dividend Income
Company Dividend Amount DRIP Shares
JP Morgan Chase (JPM) $9.89 0.154
Phillip Morris (PM) $13.45 0.134
April 2016 Total $23.34
2016 YTD Total $91.24

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

Image courtesy of Stuart Miles on FreeDigitalPhotos.net.

Are you off to a good start to the second quarter?

17 comments:

  1. Keep it up JC. That's life changing money bud... Cash is cash like you said and it's a blessing. Keep it up and don't stop!
    Have a great weekend and enjoy time with the family. Cheers.

    ReplyDelete
    Replies
    1. Hustler,

      It's always great to see cash rolling into my accounts. No matter how small it sometimes seems. I hope that the weather stays nice this weekend since we have some outdoor plans but we'll see what it throws at us.

      Thanks for stopping by!

      Delete
  2. Nice update, another month in the books.

    ReplyDelete
    Replies
    1. Ben,

      There's still a long ways to go on the FI journey but time keeps marching on no matter where we're at. All the more reason to save and invest to reach the end goal ASAP.

      Thanks for stopping by!

      Delete
  3. Nice update, almost $500/month in passive dividend income is pretty amazing.

    ReplyDelete
    Replies
    1. DGI,

      I hope to get it back up over the $500 mark but thanks to some dividend cuts and some sales over the last year the dividend totals have taken a small step backwards. Luckily the remaining companies that I own continue to grow their dividends and so far this year my forward dividends have increased by over $100 through dividend growth alone. That's the real power of DGI.

      Thanks for stopping by!

      Delete
  4. Nice amount of dividends :) Free money is always good.

    Have a nice weekend

    ReplyDelete
    Replies
    1. FinTech,

      It was a big drop off from March's total but there's really no complaints on my end since we continued to march forward. Of course seeing cold hard cash hit my accounts is always reassuring.

      Thanks for stopping by!

      Delete
  5. Great month. And the bigger payout months are coming up. Keep up the good work.

    ReplyDelete
  6. IH,

    It was kind of the same trend as the last 6 months or so where it's just kind of been holding it's own. But eventually we'll get back to real investing and growing our dividends. There's lots of changes on the horizon so we'll see how things play out.

    Thanks for stopping by!

    ReplyDelete
  7. You can never complain about receiving money each month for doing nothing! Another nice job this month.

    ReplyDelete
  8. Nice update - I wouldn't worry too much about going down y/y or m/m since timing of dividends can change. I think what's important is y/y growth and it looks like you're going to be on track again for that this year after four years of growth. I looked at your chart and it's impressive how much growth there has been from 2011 to 2016. Imagine what it'll look like in 2020!

    ReplyDelete
  9. Hi JC,
    Over $1,500 so far this year is pretty awesome I think - congrats! I had a small drop too year-over-year due to dividend schedule changes; I tend to be more interested in the cumulative year to date figures as it tends to smooth some of that out.
    Cheers,
    -DL

    ReplyDelete
  10. Congratulations, JC -- though the first month every quarter is a bit of a let down, it still is great to get dividend "checks" just for owning shares of a company. Over time, with reinvestment, that adds up and we know the dividend snowball is getting bigger and bigger. Keep up the good work!

    ReplyDelete
  11. Year over year increases are always the goal but as long as something is coming in you have to be happy especially when that something is being earned passively. Raking in $300 for the month is a healthy sum by any measure. Just keep at it and find those sustainable dividends and forget about the high yielding names. Thanks for sharing your results.

    ReplyDelete
  12. Congrats JC, very solid dividend income. Got to love owning Canadian banks. :)

    ReplyDelete
  13. As a mentor, in what manner would you be able to make sure that you are best serving your customer through drilling? By what means would you be able to know whether the customer might be better off through advising or another helpful methodology? Is there a totally high contrast answer to when an instructing customer ought to best be alluded on to an advisor? Key reference for H&R Block

    ReplyDelete