Wednesday, October 5, 2016

Dividend Update - September 2016

dividend growth investing, financial independence, freedom, dividends
Dividend Update - September 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 end of each quarter is always a great time for dividend growth investors since many companies make payments during that time and my June haul proved to be no different.  I received a total of $874.90 in dividends in my FI Portfolio during September and another $5.59 in my Loyal3 Portfolio.  Both of those portfolios are regular taxable brokerage accounts.  My Roth IRA also provided $43.25 with all dividends being reinvested.  Across my taxable accounts my dividends totaled $880.49.  Adding in my Roth IRA dividends brings September's total to $923.74 which is a personal best.  Year to date my  accounts have generated $4,519.26.

Also, be sure to check out the infographic I made and let me know what you think.

FI Portfolio

My FI Portfolio is the largest in terms of portfolio value as well as dividends received and it led the way with nearly $875 for the month.  Compared to June of this year that's just a 1.9%.  I have to admit that a meager 1.9% increase is a bit surprising considering 7 of my September payers had increased their payouts between the June and September payouts.  Although many of the larger September payers did not announce raises during that period.

The year over year comparison comes to just 3.1%; however, that is skewed a bit due to positions that have been closed over the past year.  Adjusting the 2015 payouts for positions that have since been closed makes the year over year comparison more palatable at 6.4%. 

Loyal3 Portfolio

My Loyal3 Portfolio was essentially flat compared to June with a meager 0.2% increase.  That was despite a solid raise from Hershey of nearly 6% in that time.  Unfortunately most of the increase from Hershey's payout was countered by negative currency exchange from my Unilever dividends so it worked out to essentially a wash. 

However, compared to 2015 September dividends showed a solid 16.0% improvement thanks to solid dividend raises from all 4 payers and additional purchases over the last year.  The year to date total works out to a disappointing 53.8% decline compared to 2015, although once again the special dividend from Kraft prior to the merger with Heinz hurts the comparison.  On an adjusted basis, excluding the special dividend from Kraft in 2015, the year to date comparison shows a much more pleasing 7.3% jump.

Roth IRA Portfolio

The last month of each quarter is always a welcomed return to dividends received within my Roth IRA after the mid quarter lull.  Compared to the second quarter my dividends showed a solid 7.0% increase thanks in large part to the 50% raise from Bank of America earlier this year.  

Unfortunately the year over year comparison isn't quite what I'd like.  Last month showed a 2.2% decline compared to September 2015.  While that's disappointing on the surface it's easily explained by the closing of Wal-Mart position within my Roth IRA earlier this year.  Excluding Wal-Mart's payment from the prior years period bumps the comparison to an excellent 9.5%.  

Likewise the year to date comparison showed a rather disappointing 0.6% decline for 2016 compared to 2015.  However, adjusting for purchases/sales favorably changes the comparison to a solid 6.9% increase.

Dividend Raises During the Month

Five different companies in my FI Portfolio announced dividend increases during September 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!

These raises came from a diverse cross section of the economy including a telecommunications company, a real estate landlord, a tobacco company, a technology company and a fast food giant.  These 5 companies combined to increase my forward dividends by over $29.  Through the end of September I've received 40 increases from 32 companies boosting my forward dividends by over $230.

Based on historical increase announcements, October is likely to see 4 dividend increases during the month.

Looking Forward

My forward 12-month dividends for my FI Portfolio declined to $5,504.94 due to closing my position in HCP, Inc. (HCP).  Forward dividends in my Loyal3 Portfolio ended the month at $65.21 bringing the total taxable account forward dividends to $5,570.15.  My Roth IRA's forward 12-month dividends declined to $240.84 due to trimming my position in Norfolk Southern (NSC) during the month.

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 2016 is $474.622.  That's about a $17 decrease from where my year to date average was at the end of 2015.

dividend growth investing, dividends, financial independence, freedom
Monthly Comparison of Dividends Received From FI Portfolio
Dividends Received Breakdown


FI Portfolio - Dividend Income
Company Dividend Amount DRIP Shares
Wells Fargo (WFC) $20.91 --
Bank of America (BAC) $12.14 --
McDonald's (MCD) $75.57 --
Halliburton (HAL) $25.17 --
Phillips 66 (PSX) $5.22 --
Emerson Electric (EMR) $29.36 --
Walgreens Boots Alliance (WBA) $25.90 --
Harris (HRS) $43.73 --
Cummins (CMI) $23.90 --
Target Corporation (TGT) (Analysis Here) $77.00 --
Aflac (AFL) $30.10 --
BP (BP) $50.87 1.541
Microsoft (MSFT) $14.81 --
Chevron (CVX) $62.37 0.607
Exxon Mobil (XOM) $50.38 0.469
Realty Income (O) (Analysis Here) $18.47 --
IBM (IBM) $42.31 --
Visa (V) $9.54 --
Johnson & Johnson (JNJ) (Analysis Here) $60.17 --
PepsiCo (PEP) (Analysis Here) $46.32 --
Unilever $10.54 --
3M Company (MMM) (Analysis Here) $19.98 --
United Technologies (UTX) $9.24 --
Ventas (VTR) $17.06 --
T. Rowe Price Group (TROW)$11.04 0.168
Becton, Dickinson and Company (BDX) $5.28 --
Ross Stores (ROST) $7.58 --
Hershey (HSY)$6.80--
Care Capital Properties (CCP) $2.85--
Centerpoint Energy (CNP) $28.58 1.264
Wal-Mart Stores (WMT) (Analysis Here) $31.71 --
September 2016 Total $874.90
2016 YTD Total $4,271.62


Loyal3 - Dividend Income
Company Dividend Amount DRIP Shares
V.F. Corporation (VFC) $1.17 --
Hershey $1.28 --
PepsiCo  $1.43 --
Unilever $1.71 --
September 2016 Total $5.59
2016 YTD Total $48.27



Roth IRA - Dividend Income
Company Dividend Amount DRIP Shares
Bank of America $7.70 0.493
Wells Fargo $10.75 0.217
Norfolk Southern $24.80 0.261
September 2016 Total $43.25
2016 YTD Total $199.37

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

How were your dividends in September?  Did you set a personal best?  Are you on track to meet your goals with just 1 quarter left?

Let me know in the comments below!

Image courtesy of Stuart Miles on FreeDigitalPhotos.net.

5 comments:

  1. Nothing to say but awesome job for your September passive income stream. Getting close to $1k in a month is no small amount. Congrats on achieving a new best for you. I see VFC in your list which continues to get beaten down and is looking better and better each day it seems. It's not an official pick for my October buy, but it may be if it continues to get hammered.

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  2. Awesome job and some good payers. Keep it up

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  3. Good month JC. That is more money that gets added into your snowball. That is the beauty of dividend investing.... your portfolio will continue to pay you regardless. Nice article and thanks for sharing

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  4. That is a great September month. And look at the raise you got for your good selection of shares!

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  5. great September month! My goal one day be as close to 1k as you are right now! Thanks for sharing

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