Dividend Update - September 2019
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.
You hear that? That's the sound of the cash register ringing. The end of quarter month is always my best dividend paying month and September was no exception.
My FI Portfolio, taxable account, produced $1,101.80 in dividends for the month while my Folio First portfolio chipped in another $12.19. My Roth IRA added another $92.51 while my Rollover IRA contributed $304.95. That puts my taxable account dividends at $1,113.99 with a total of $1,511.45 across all of my accounts in September.
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 my regular 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 $50.38 per day or $2.10 per hour. For the year those numbers are $26.71 per day and $1.11 per hour.
As I mentioned above my FI Portfolio produced $1,101.80 in dividends for September which is the first time I've crossed the $1,100 mark for that portfolio. That's a solid 2.5% increase compared to June.
Compared to September 2018, which gives a better growth comparison, the increase came in at 6.6%. The YTD total through the end of September showed a 11.2% rise compared to the same period in 2018.
My Roth IRA generated $92.51 in dividends for September. That's a pretty huge 58.7% increase from June. Although much of that increase was due to new purchases that just started paying their dividends to me.
The year over year comparison is equally impressive coming in at 77.2%. The YTD total through September of each year is showing a very healthy 41.4% increase compared to 2018. The large growth numbers were due mainly to new purchases, but all of the companies have increased their dividends throughout the last year and all dividends were reinvested which helped to boost it up as well.
In March I mentioned how I will 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.
Companies fall in and out of favor with market participants throughout the year and I want to attempt to capture some of that change in emotion. If I feel a company is undervalued I'll purchase shares and won't sell until the story changes or the market price hits what I feel is at least 1.3x "fair value". This is just a little experiment that I wanted to try and if I feel it's too much hassle or that I'm constantly taking 2 steps forward and 1 step back then I'll revert back to my bread and butter buy and hold strategy.
My Rollover IRA produced $304.95 in dividends during September which was a 23.6% increase from June. Year over year the increase is a whopping 136.7%.
Dividend Raises During the Month
With September coming to a close the companies in my FI Portfolio performed admirably with 6 raises announced during the month. 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!
Combined the 6 companies in my FI Portfolio boosted my forward 12-month dividends by $43.26. Thus far in 2019 I've received 40 increases from 35 of 54 of the companies within my FI Portfolio combining to increase my forward 12-month dividends by $288.23.
My forward 12-month dividends for my FI Portfolio ended September at $7,484 while my FolioFirst forward dividends are at $100.99. That pushes the total taxable account forward 12-month dividends into a new threshold at $7,584.99. My Roth IRA's forward-12 month dividends increased to $617.86. My Rollover IRA's forward 12-month dividends are at $2,231.08. Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $10,433.93 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 $568.61 per month which is $43.66 or 8.3% above 2018's monthly average of $524.95.
Dividends Received Breakdown
|Dividends Received Breakdown September 2019|
How much did you receive in dividends during September? With Q3 in the books and Q4 now underway are you on track to pass your dividend goals for the year?
Let me know in the comments below!