Let's Get This Party Started | Dividend Update - January 2018
|Dividend Update - January 2018|
January got 2018 started off on solid ground with a steady batch of dividends coming into the accounts. My FI Portfolio produced $275.76 in dividends during January, while my Roth IRA chipped in another $38.83. Combined the two portfolios generated $314.59 for the month which represents a solid 7.7% increase compared to January 2017's combined total of $292.01.
My FI Portfolio had a solid month of January, although admittedly it's a bit of a let down after December's huge haul. Nevertheless the dividends continued to roll in with $274.76 received during January.
Compared to October 2017 that's a solid 8.3% improvement. Compared to January of last year the increase was a more modest 3.3%. The discrepancy between the quarter over quarter and year over year changes was primarily due to the timing of dividend payments.
The culprits were Coca-Cola (KO), Wal-Mart (WMT), PepsiCo (PEP) and Ventas (VTR). Those four companies either have odd payout schedules where it's not the same month of every quarter like clockwork or in the case of Ventas pushed their dividend payment back one month. Also General Electric's (GE) dividend cut late last year didn't help matters.
On a normalized basis, only accounting for dividends paid in both time periods, the comparisons are quite disappointing. The quarter over quarter change showed a 34.4% decline entirely due to General Electric. The year over year change moved to a 2.5% decline once again due to that pesky General Electric. I fully expect these to improve as the year marches forward.
Roth IRA Portfolio
My Roth IRA got started off on the right foot for the new year with $38.82 of dividends coming in. Compared to October 2017 that's a solid 3.4% increase and year over year my dividends increased 54.3%. My Roth IRA gives a cleaner view of dividend growth investing since all dividends are reinvested and I haven't added additional capital there since late 2012.
Dividend Raises During the Month
Talk about an excellent month for pay raises. In January, 8 of the holdings in my FI Portfolio announced dividend increases. 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 8 different pay raises in just one month compared to a big, fat zero from my day job. Combined those 8 companies increased my forward 12-month dividends by nearly $78.13. Even better is that the raises came from wide variety of companies from industrial giants to fast food restaurants to real estate behemoths.
My forward 12-month dividends for my FI Portfolio ended January at $5,937.34. My Roth IRA's forward-12 month dividends ended the month at $336.46. Across both accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $6,273.80 in dividends over the next year.
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, 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 is at $474.11 per month which is just slightly above 2017's monthly average of $473.37. This should continue to increase throughout the year assuming no dividends cuts.
|Monthly Comparison of Dividends Received From FI Portfolio|
|Company||Dividend Amount||DRIP Shares|
|EOG Resources (EOG)||$1.36||--|
|Medtronic plc (MDT)||$42.38||--|
|Phillips Morris (PM)||$66.99||--|
|Wal-Mart Stores (WMT)||$32.34||--|
|Realty Income (O)||$20.29||--|
|General Electric (GE)||$20.54||--|
|Bank of Nova Scotia (BNS)||$13.94||--|
|Toronto Dominion Bank (TD)||$9.54||--|
|January 2018 Total||$275.76|
|2018 YTD Total||$275.76|
|Company||Dividend Amount||DRIP Shares|
|JP Morgan Chase (JPM)||$13.15||0.113|
|McCormick & Company (MKC)||$10.55||0.104|
|January 2018 Total||$38.82|
|2018 YTD Total||$38.82|
I've updated my Dividend Income page to reflect January's changes.
Are you off to a great start to 2018?
Let me know in the comments below!