Monday, December 5, 2016

Dividend Update - November 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 each quarter is kind of like the middle child for my dividend payments.  You love them for sure, but it's kind of constantly overlooked due to not being the first month of a new quarter or the larger paying third month of each quarter.  Nevertheless, the dividends received in the mid-quarter month spend the same as any other dividends.

During November my FI Portfolio delivered $265.52 in dividend.  I also received $1.36 within my Loyal3 Portfolio bringing my total taxable account dividends up to $266.88.  My Roth IRA is always noticeably absent with the mid-quarter payout and provided $0 in dividends.  Across all 3 accounts, excluding the effect of taxes, I received $266.88 in dividends during November and have received $5,059.60 year to date.

FI Portfolio

On the surface it looks to be pretty disappointing with a 16.8% decline quarter over quarter and an even more depressing 36.6% decline year over year.  Let's take a deeper look at the numbers to see if things are really as bad as they seem.

The quarter over quarter decline can be attributed to two culprits.  The first is Starbucks Corporation (SBUX) that for some reason or another pushed this dividend payment back into December.  The second is HCP, Inc. (HCP) that I received the August payment from; however, I've since closed my position there prior to the Quality Care Properties (QCP) spinoff and thus didn't receive the November payout.  Adjusting for these 2 payments moves the quarter over quarter change to a 1.7% increase.  

The 2 quarter over quarter troublemakers contributed to the year over year decline, although the big issue is related to the Kinder Morgan, Inc. (KMI) debacle from late 2015.  I subsequently closed my position in Kinder Morgan for a variety of reasons stemming from the dividend cut, although it was mainly due to managements' handling of a bad situation.  Long story short I lost trust in management even though I agreed with the dividend cut.  Unfortunately, Kinder Morgan paid over $110 in dividends to me in November 2015, but is noticeably missing for 2016.  Adjusting the dividends from 2015 for the 3 missing payouts shows a solid 6.2% increase year over year.

Loyal3 Portfolio

My Loyal3 Portfolio had very little to report with just one small dividend payment from Apple (AAPL).  Luckily though the reporting here is fairly straightforward since there were no changes from August.  So quarter over quarter there was no change although year over year does need some explaining with a 58.9% decline.

I honestly have no idea what's going on with The Kraft Heinz Company (KHC).  In 2015 KHC made a dividend payment in November; however, this year that same payment is being pushed back to December.  There's no big worries since the payment is still being made, but I hope they settle into a routine with the timing of dividend payments.

Adjusting November 2015's dividend total for the KHC payout shows a year over year change of 9.7%.  That's pure organic dividend growth from Apple raising it's payment so I'm pretty happy with the increase.

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 $224.31 in dividends within my Roth IRA which is a 0.4% increase from 2015's YTD total through November.  Considering that I've closed out my Wal-Mart Stores (WMT) position within my Roth IRA, I'm pretty happy that organic dividend growth and reinvestment has made up that gap.

Dividend Raises During the Month

November was a pretty slow month for dividend raises too with 3 companies announcing increases.  Emerson Electric (EMR) got the month started off with a 1.1% increase.  Next up was Starbucks Corporation (SBUX) with a much more impressive 25.0% increase.  Last, but not least, was Becton, Dickinson & Company (BDX) with a solid 10.6% raise.  Combined these 3 dividend increases raised my forward 12-month dividends by $14.72.

With December already underway I expect an increase to be announced by Venta REIT (VTR) and possibly their spinoff company Care Capital Properties (CCP).  

Thus far in 2016 I've received 48 increases from 39 companies within my FI Portfolio combining to increase my forward 12-month dividends by $275.72.

Looking Forward

My forward 12-month dividends for my FI Portfolio are up to $5,567.56.  Forward dividends in my Loyal3 Portfolio ended the month at $66.36 bringing the total taxable account forward dividends to $5,633.92.  My Roth IRA's forward 12-month dividends remained at $241.75.

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 $460.47 which is about $30 less than 2015's mark of $492.  


My real-life financial independence portfolio's monthly dividend history.
My real-life financial independence 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)  $24.52 --
Air Products & Chemicals (APD) $15.89 --
Realty Income (O)  $18.52 --
General Mills, Inc. (GIS) $31.33 --
Verizon Communications, Inc. (VZ) $24.83 --
YUM! Brands, Inc. (YUM) $21.47 --
Deere & Company (DE) $36.15 --
Omega Healthcare Investors (OHI) $47.01 1.617
November 2016 Total $265.52
2016 YTD Total $4,778.14


Loyal3 Portfolio - Dividend Income
Company Dividend Amount DRIP Shares
Apple $1.36 --
November 2016 Total $1.36 --
2016 YTD Total $57.15 --

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

With just 1 month left in 2016 how do you stand on your dividend goals for the year?

Please share your thoughts below!

Image courtesy of Stuart Miles on FreeDigitalPhotos.net.

14 comments:

  1. That's a nice list of dividend paying stocks. I'm keeping my eye on AT&T (T) in particular to see what happens with the possible TWX merger.

    TheDividendLife.com

    ReplyDelete
    Replies
    1. TDL,

      I like the move T made in theory, but the execution doesn't make a whole lot of sense to me. It's just not the right time and too high of a price that they're paying.

      Thanks for stopping by!

      Delete
  2. Even with the decline it's still a good number. I have a few companies that pay different times and sometimes the late December ones get pushed into Jan but to me as long as I get paid I'm happy.

    ReplyDelete
    Replies
    1. D&H,

      Sadly most of that decline was due to KMI. I saw how much exposure that I had to them and had to keep passing on adding more shares. In hindsight that was a good thing.

      I was a bit surprised to see some dividend payment times changing, but in the long run it doesn't really matter as long as they make the payments.

      Thanks for stopping by!

      Delete
  3. Nice results when you look at the big picture with adjustments

    ReplyDelete
    Replies
    1. AT,

      Overall it was a solid month and I can't complain about getting over $200 without having to do anything for it. Hopefully 2017 will be the end of adjustments being needed.

      Thanks for stopping by!

      Delete
  4. Rock on PIP, still not a bad month by any means. Interesting to see you closed your HCP holding. I probably should have done the same thing, but we'll see what happens. I had a decent NOV, and am excited for DEC. Keep it up brother,

    ReplyDelete
  5. Wow, solid month. The chart is ideal, month on month is higher. Keep it rolling!

    Cheers!

    ReplyDelete
  6. Hi JC,
    It's good to see the underlying numbers improve; there's not much you can do about payment schedule changes other than to look at the bigger picture.

    How did your 2015 YTD numbers compare to 2016 YTD - I couldn't see that in your report and I think it's an interesting comparison.

    JPM paid their dividend earlier this year too which affected my monthly results. Overall I had a small increase that was reduced by some stock sales. But I'm expecting bigger things in December and hope you have a great December too!

    Best wishes,
    -DL

    ReplyDelete
  7. Nice diversified collection of stocks. Despite the dividend cut (the KMI cut hurt me too), still an excellent month overall. December should be great for both of us!

    ReplyDelete
  8. Cuts happen. It's part of the game we are involved with. Seems like many of our fellow dividend bloggers got hammered with KMI and are still feeling those effects. In any case, you still put up some great numbers from a portfolio that increasingly looking much more solid. Thanks for sharing.

    ReplyDelete
  9. Just little bumps in the road! A lot of your "issues" impacted me as well. But the march will continue on. I held HCP through the spin off, but sold my few shares of QCP afterward. I still like their industry and position. Hopefully they can make a comeback. Hopefully December is better!

    ReplyDelete
  10. Solid number despite the decline. Looks like you'll break the $5,000 for this year...that'd be very awesome.

    ReplyDelete
  11. I was burned by HCP as well, but Dec should be a better month all around for dividend income. Still great to get some passive income though! I will be including your monthly income reports in my monthly round up moving forward

    http://www.predictablesnowball.com/2016/12/11/dividend-income-around-world-november-16/
    -Snowball

    ReplyDelete