Dividend Update - September 2023 #Dividend
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.
It's been a bit of a hectic couple months with us welcoming our 4th child into this world and adjusting to a house of 6. The beautiful thing about dividend growth investing is that, whether I'm paying close attention or not, as long as I did my homework correctly beforehand the businesses I own will just keep sending dividends to me along the way. So I've been playing catchup since although that's a tradeoff I'm more than happy to make!
As usual the last quarter of the month was especially strong and September definitely didn't disappoint. My FI Portfolio produced $1,592.65 for the month with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $15.09. My Roth IRA added $133.16 and my Rollover IRA generated $602.60. For the month I received $1,607.74 across my taxable accounts and $2,343.50 across all accounts.
Making Money While I Sleep
The power of joining the ownership class is that those companies can work much harder for you than you can. Think about it. By myself I have to devote my own time to a job in order to make money. However, by buying a stake in a high quality business I now get to leverage my own time that I exchanged for money into companies that are working around the clock to make products or provide services for their customers. Those companies are working 24/7/365 which means that I make money even when I sleep.
During September the companies I own paid me $78.12 per day or $13.67 per hour assuming 8 hour work days 5 days a week. YTD that's $48.59 per day and $8.50 per hour.
FI Portfolio
As I mentioned above my FI Portfolio produced $1,592.65 in dividends during September. Oh so close to crossing $1,600 for the first time!
September's results were a solid 10.6% increase compared to September 2022. The YTD results compared to 2022 have 2023 coming in 16.1% higher through August.
Roth IRA
My Roth IRA had a good month during September producing $133.16 in dividends. Compared to September 2022 that's a strong 25.8% increase due in large part to additional investments. The YTD results have 2023 18.7% ahead of 2022 through September.
My Roth IRA had a good month during September producing $133.16 in dividends. Compared to September 2022 that's a strong 25.8% increase due in large part to additional investments. The YTD results have 2023 18.7% ahead of 2022 through September.
Rollover IRA
In March of 2019 I mentioned that I would start reporting on my Rollover IRA. The bulk of those funds are invested in dividend growth companies, although there's a few that aren't, so to give the cleanest picture I will show just the dividend growth investments during my monthly reports. That being said I'm not too worried about any particular month/quarter of dividends since my current plan is to be a bit more active with these funds than I would in my taxable accounts.
My Rollover IRA produced a total of $601.85 in dividends during September which is a disappointing 12.8% decrease compared to September 2022. However, that was due to some companies, United Parcel Services (UPS) changing payout timing as well as the dividend cut from V.F. Corporation (VFC) and a trim of a CBOE Global Markets (CBOE) due to some shares being called away.
The YTD results through September have 2023 just 1.0% ahead compared to the same period in 2022 due to some partial sales and dividend cuts.
Dividend Raises During the Month
September continued to bring several dividend raises with 7 companies, in our FI Portfolio, boosting their payments higher. Combined those 7 companies increased our forward 12-month dividends by $60.82. So far in 2023 I've received 50 total increases which have raised our forward 12-month dividends by $556.32.
Dividend Increase Source
I've started breaking down the monthly dividend increase into its components: purchases, re-investment and dividend raises. This lets me see what is the bigger contributor each month in my pursuit of financial independence. I'm only tracking this for my main FI Portfolio since that is the portfolio that I want to ultimately provide the bulk of our income.
Not much changed in September as we are still prioritizing cash over investments due to the new baby and other potential opportunities. As such purchases have been lagging well behind where we'd like them to be at; however, the results for 2023 have still been pretty solid all things considered.
That being said I'm still quite happy to see that we're averaging a $68.67 per month increase through September despite very little capital being added to the portfolio. Even more so considering we've suffered through two significant dividend cuts that further weighed down the results to the tune of a $20.25 per month drag.
As such purchases have been a non-factor in 2023 adding only $102.74 total to our forward dividends and that's primarily been from cash dividends being used to purchase other holdings.
Luckily dividend growth investing isn't built to rely solely on one source of dividend growth. When one is lacking you can still rely on the other two to help you out.
Dividend increases have carried the weight thus far in 2023 with a $61.81 per month average.
That's what's really cool about finally hitting some scale with your investments and dividends. Dividend reinvestment and organic dividend growth can do the heavy lifting for you and eventually will far surpass what you can do with savings alone.
During September our forward 12-month dividends rose by $89.35 and YTD they've increased by $651.70.
The target of $12k in forward dividends should be met by the end of the year. We're ~$114 shy of the goal and with the expected dividend increases plus modest dividend reinvestment and purchase I think we should push through the level.
Looking Forward
My forward 12-month dividends for my FI Portfolio ended September at $11,886.41 while myLoyal 3 FolioFirst Interactive Brokers forward dividends are at $247.51. That pushes the total taxable account forward 12-month dividends up to $12,133.92. My Roth IRA's forward-12 month dividends are at $1,244.42. My Rollover IRA's forward 12-month dividends are at $4,608.33.
My forward 12-month dividends for my FI Portfolio ended September at $11,886.41 while my
Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $17,986.67 in dividends over the next year.
Monthly Average
The following chart shows 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, as we saw above, and eventually some positions will get dropped, but the long-term trend is what matters.
The rolling 12-month monthly average for my FI Portfolio ended September at $958.81 per month which is $102.79 higher or a 12.0% increase compared to 2022's monthly average of $856.02.
Dividends Received Breakdown
With 3 quarters of the year complete, how are you doing on your expected progress for the year?
Let me know in the comments below!
Wow congrats on baby number 4!!! I remember 3 broke me and a 4th would have shattered me entirely 😂. All joking aside nice end of quarter and a double digit yoy increase in this environment is something to be proud of.
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