Thursday, June 2, 2016

Dividend Update - May 2016

Dividend growth investing is a simple, straight-forward strategy for the average Joe investor.
Dividend growth investing is a simple, straight-forward strategy for the average Joe investor.
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 middle month of the quarter is a decent month for my dividends.  During May my FI Portfolio delivered $315.41 in dividends.  I also received $1.36 within my Loyal3 Portfolio bringing my total taxable accounts' dividends to $316.77.  I also have a small Roth IRA Portfolio; however, none of the holdings pay dividends in May so it was a big fat zero for the month.  Across all three accounts, excluding the effect of taxes, I received $316.77 in dividends in May and have received $2,096.11 year to date.

FI Portfolio

My FI Portfolio showed a 1.4% increase compared to February, but a 15.8% decrease compared to last year.  At first glance the year over year comparison is quite disappointing, although there is a valid explanation for the decline.  The decrease was completely attributable to the dividend cut and my subsequent sale of Kinder Morgan, Inc. (KMI).  Kinder Morgan was my largest dividend payer prior to my closing of the position providing over $400 per year of dividends.  On a constant payout basis, excluding Kinder Morgan's May 2015 dividends, the year over year comparison jumps to a 17.0% increase due to dividend increases over the last year as well as adding 30 shares of Omega Healthcare Investors (OHI) to my portfolio.  Year to date I've received $1,979.88.

Loyal3 Portfolio

My Loyal3 portfolio had a great percentage increase although the dollar amount was a bit underwhelming.  Dividends in May represented a 9.7% increase compared to February due solely from the dividend increase from Apple in April.  Year over year my dividends showed an excellent 17.2% increase due to the aforementioned dividend increase as well as two small additional purchases within my Loyal3 account.  Year to date I've received $24.99 in dividends.

Roth IRA Portfolio

The comparisons are easy to make for my Roth IRA Portfolio since no dividends were received across any of the time periods.  So no increases were realized, but no declines either.  Year to date I've received $91.24 in dividends within my Roth IRA.

Dividend Raises During the Month

May was a slow month for dividend increases for my investments with only two increases across all three accounts.  One within my FI Portfolio and one within my Roth IRA.  Phillips 66 (PSX) announced an excellent 12.5% increase to the dividend which increased my FI Portfolio's forward dividends by $2.32.  J.P. Morgan Chase Bank (JPM) also announced a solid 9.1% dividend increase which added $3.62 to my Roth IRA Portfolio's forward 12-month dividends.

In my FI Portfolio I've received 23 increases from 21 companies increasing my forward 12-month dividends by $111.93.  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!  That's the dividend growth strategy in action.

Looking Forward

My forward 12-month dividends for my FI Portfolio are up to $5,549.40.  Forward dividends in my Loyal3 Portfolio ended the month at $63.74 bringing the total taxable account forward dividends to $5,613.14.  My Roth IRA's forward 12-month dividends increased to $259.49 thanks to the J.P. Morgan Chase dividend increase during May.

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.  The rolling 3-month average is $466.10 which is a slight decline from the $492.19 average for 2015.

My real-life financial independence portfolio's monthly dividend history.
My real-life portfolio's monthly dividend history.
Dividends Received Breakdown

FI Portfolio - Dividend Income
Company Dividend Amount DRIP Shares
Procter & Gamble (PG)  $45.80 --
AT&T (T) (Full Analysis Here) $24.52 --
Air Products & Chemicals (APD) $15.89 --
Realty Income (O) $18.25 --
HCP, Inc. (HCP) $46.66 --
General Mills (GIS) $30.03 --
Verizon (VZ) (Full Analysis Here) $24.30 --
Starbucks (SBUX) $11.24 --
YUM Brands (YUM) $19.37 --
Deere & Company (DE) $36.15 --
Omega Healthcare Investors (OHI) $43.20 1.321
February 2016 Total $315.41
2016 YTD Total $1,979.88

Loyal3 Portfolio - Dividend Income
Company Dividend Amount DRIP Shares
Apple (AAPL) $1.36 --
May 2016 Total $1.36 --
2016 YTD Total $11.07 --

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

Image courtesy of Stuart Miles on FreeDigitalPhotos.net.

Are you on track for your 2016 goals 5 months into the year?  

15 comments:

  1. Nice mix of companies you have there JC! That's a great rolling average, and I'm sure you guys are appreciating the extra income with the little one due so soon. We're thinking of you guys....and look forward to hearing the good news!

    -Bryan

    ReplyDelete
    Replies
    1. Bryan,

      The rolling average is solid although it's taken a dip from it's peak level which is a shame. Although so much has been going on over the past year and there's been lots of changes so I'm not that concerned about it. There's still a very strong base for whenever we do get back to regular investing and in the meantime the companies we own will just continue to pay and increase their dividends. There's a lot to be said about still being able to make progress without having to put any thought into it.

      All the best!

      Delete
  2. Another inspiring post despite the effects of KMI. You are definitely not alone feeling the KMI reduction. At least you remain diversified with many real solid names. I guess it's important to not just diversify our holdings but to also diversify our dividend income and not be too reliant on any one name. I think most of us fall into that trap somewhat. With my June buy(s) I plan to add to my smaller dividend holdings and bring up the passive income they generate a bit more. Keep it growing. Thanks for sharing.

    ReplyDelete
    Replies
    1. DivHut,

      The whole KMI debacle was a great lesson for lots of investors and it really reinforces the need to not be over allocated to any single company and especially so if you're relying on the dividends to fund your lifestyle.

      Thanks for stopping by!

      Delete
  3. Keep up the great work! Love reading your posts. Wishing you well.
    Zaan

    ReplyDelete
    Replies
    1. Zaan,

      I can't wait to get back into regular investing or even just investing my 401k funds once it gets rolled over because things will be a bit more exciting on the investment front then.

      All the best!

      Delete
  4. Are you spending the dividends while you look for work or continuing to reinvest?

    ReplyDelete
    Replies
    1. FV,

      For the most part we're taking the dividends in cash and just adding it to savings. Although we are reinvesting dividends for some of the holdings that offer some better values in this market.

      Thanks for stopping by!

      Delete
  5. Congrats on another great month, JC. Keep up the great work

    R2R

    ReplyDelete
    Replies
    1. R2R,

      It's been slow going recently since we've been relying on dividend growth alone to provide the raises but there's not much to complain about. June will be an excellent month and I'm looking forward to see how it pans out.

      Thanks for stopping by!

      Delete
  6. Hey, what do you think about muni opp companies like MMD for dividends? They're pretty solid in my experience.

    ReplyDelete
    Replies
    1. Unknown,

      I can't speak much about MMD since I don't follow the company. I'll try and give them a look over this coming week.

      Thanks for stopping by!

      Delete
  7. Hi JC. Great month. The KMI cut hurt a lot of us. I've got KMI, NOV, and COP cuts so far. I really miss that extra money. I've held all the stocks so far. Anyway, congrats on a strong month.

    ReplyDelete
    Replies
    1. IH,

      KMI was definitely a pain but in the long run it'll just be a blip that's hardly noticeable. The oil field is definitely going through some big issues with some widely held companies cutting their dividends. I think these cuts are a bit more understandable/excusable due to the nature of the industries they operate in, but that doesn't take away any of the sting.

      All the best!

      Delete
  8. Congrats on the dividends, nice progress. I guess it's just part and part of investing, we won't have 100% success record, not even Buffett has 100%.

    Tristan

    ReplyDelete