Dividend Update - May 2016
|Dividend growth investing is a simple, straight-forward strategy for the average Joe investor.|
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.
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.
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.
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.
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 portfolio's monthly dividend history.|
|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||--|
|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|
|Company||Dividend Amount||DRIP Shares|
|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?