One Raise At A Time | Finally!

Concept of how dividend growth investing works, health care, real estate
Getting a pay raise while sitting on the couch?  Sign me up!  Thanks Deere for yet another dividend increase!
Something I love about dividend growth investing is that each month I get to hear about companies I own deciding to pay me more money in dividends.  Just for owning a small portion of said companies.  Not going and doing R&D for new products or technology.  Not selling any products.  Not managing any employees or inventory.  Not making sales calls.  All I had to do was have the foresight to invest some of my savings in excellent companies.  That's dividend growth investing at work!  I mean who doesn't like getting a raise for doing nothing?  Dividend growth investing is far from a get rich quick investment strategy, rather you need to remain focused on the long term goal to be successful.

Yesterday the Board of Directors at Deere & Company (DE) finally announced an increase to their dividend after keeping it steady for 16 straight quarters.  The dividend was increased from $0.60 up to $0.69.  That's a huge 15.0% increase.  Deere had previously been a Dividend Contender with 12 consecutive years of dividend increases prior to the freeze.  Shares currently yield 1.78% based on the new annualized payout.

Since I own 60.257 shares of Deere & Company in my FI Portfolio this raise increased my forward 12-month dividends by $21.69.  This is the 1st dividend increase I've received from Deere since initiating a position in mid 2014.  Despite the pause in dividend growth Deere has still outpaced inflation which has come in at 5.8% according to US Inflation Calculator.

A full screen version of this chart can be found here.

Deere's dividend history isn't exactly spotless; however, I also wouldn't consider it tarnished either.  Dividend growth may pause from time to time, somewhat to be expected based on a cyclical business such as Deere, but since 1992 the dividend has never been reduced.  Despite the pause in dividend growth the 10 year dividend growth rate is still looking strong above 9%.

The 1-, 3- and 5-year rolling dividend growth rates since 2013 can be found in the following chart.  

A full screen version of this chart can be found here.

*2018's dividend assumes the new quarterly payout of $0.69 per share is maintained for the rest of the year.

Wrap Up

This raise increased my forward dividends by $21.69 with me doing nothing.  That's right, absolutely nothing to contribute to their operations.  Based on my portfolio's current yield of 2.95% this raise is like I invested an extra $736 in capital.  Except that I didn't!  One of the companies I own just decided to send more cash my way.  

That's how you can eventually reach the crossover point where your dividends received exceed your expenses.  That's DIVIDEND GROWTH INVESTING AT WORK!  The beauty of the dividend growth investing strategy is that you build up your dividends through fresh capital investment as well dividend increases from the companies you own.

Thus far in 2018 I've received 26 dividend increases from 27 of the companies in my FI Portfolio combining to increase my forward 12-month dividends by $240.05.  

My FI Portfolio's forward-12 month dividends increased to $6,222.43.  Including my FolioFirst portfolio's forward dividends of $81.97 brings my total taxable accounts dividends to $6,304.40.  My Roth IRA's forward 12-month dividends are at $338.52.

Do you own Deere & Company?  How patient are you with companies that freeze their dividend payment?

Please share your thoughts below.


  1. Great elaboration and giving us notion towards passive income. Especially these days, salary isn't enough if you want to offer your family the best thing in this world.

  2. learn every day, but especially from the experiences of others. it's cheaper! Free Intraday Tips


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