Dividend Update - July 2021
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.
During July my FI Portfolio produced $478.92 in dividends with my FolioFirst portfolio chipping in another $24.38. My Roth IRA added $65.55 and my Rollover IRA generated $227.82. For the month I received $251.65 across my taxable accounts and $796.67 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 July the companies I own paid me $25.70 per day or $3.21 per hour assuming 8 hour work days every day of the month. Year to date those numbers are $33.11 per day and $4.14 per hour.
FI Portfolio
As I mentioned above my FI Portfolio produced $478.92 in dividends during July. Compared to April that's a 0.9% decrease, but compared to July 2020 that's a 16.0% rise.
The quarterly decline was due primarily to Walmart's oddball payout schedule so I'm not that concerned. I'm very happy with the year over year increase bumping up well into the mid-teens. I've put a good amount of capital to work over the last year although much of it was invested in low yielding companies but it's nice to see the comparisons starting to tick higher.
Year to date my FI Portfolio has produced $4,628.54 in dividends which is a decent 3.5% increase compared to the YTD numbers for 2020. That's primarily due to my closing of some positions during 2020 as well as the handful of dividend cuts that were received last year as well. Moving forward I expect 2021 to start distancing itself from 2020's results.
Roth IRA
My Roth IRA generated $65.55 in dividends during July which is a 4.4% increase versus April and a 25.9% increase compared to July 2020. The gains were due to dividend reinvestment and dividend growth over that period as well as my initiation of a position in RPM International.
My Roth IRA generated $65.55 in dividends during July which is a 4.4% increase versus April and a 25.9% increase compared to July 2020. The gains were due to dividend reinvestment and dividend growth over that period as well as my initiation of a position in RPM International.
Through July the YTD total for my Roth IRA is showing an excellent 12.8% increase compared to 2020. I still have some cash ready to deploy in this account which should help to boost those numbers up even more as the capital gets put to work.
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 $203.41 in dividends during July which is an 12.3% decrease from April due to Wheaton Precious Metals' dividend being paid in June rather than July. Normalizing for that moves the quarterly comparison to a 0.2% increase.
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 $203.41 in dividends during July which is an 12.3% decrease from April due to Wheaton Precious Metals' dividend being paid in June rather than July. Normalizing for that moves the quarterly comparison to a 0.2% increase.
Compared to July 2020 last month's dividends were 21.1% higher due primarily to additional capital being invested and dividends starting to roll in.
The YTD total for 2021 sits at $1,997.47 which is a remarkable 39.2% increase compared to the same period of 2020.
Dividend Raises During the Month
We're in the heart of the dog days of summer. Surprisingly as the weather heats up the dividend increase announcements slow down, at least for the companies that I own. July saw a slight uptick in activity with 3 increases being announced with Bank of America leading the way with their 16% increase although Hershey's 12% raise wasn't too shabby either. Those 3 raises combined to increase my forward 12-month dividends by $26.82. So far in 2021 I've received 31 increases that have increased my forward dividends by $428.37.
Dividend Raises During the Month
We're in the heart of the dog days of summer. Surprisingly as the weather heats up the dividend increase announcements slow down, at least for the companies that I own. July saw a slight uptick in activity with 3 increases being announced with Bank of America leading the way with their 16% increase although Hershey's 12% raise wasn't too shabby either. Those 3 raises combined to increase my forward 12-month dividends by $26.82. So far in 2021 I've received 31 increases that have increased my forward dividends by $428.37.
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.
Jul's total came up just shy of the $100 mark, but all in all it was a good month. Purchases did the bulk of the heavy lifting for the month increasing my dividends by $57 with dividend increases providing approximately half that. All together July saw the forward 12-month dividends for my FI Portfolio rise by $97.45.
Through the end of July dividend raises are still well ahead compared to the other sources of dividend growth. Reinvestment is well behind both increases and purchases and I expect that to continue throughout the year because I take most dividends in cash and reinvest wherever I want. Between the 3 sources of dividend growth my forward 12-month dividends have combined to rise by over $863 through the July.
Looking Forward
My forward 12-month dividends for my FI Portfolio ended July at $8,443.35 while my FolioFirst forward dividends are at $174.87. That pushes the total taxable account forward 12-month dividends up to $8,618.22. My Roth IRA's forward-12 month dividends are at $841.52. My Rollover IRA's forward 12-month dividends are at $3,99.31. Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $13,259.05 in dividends over the next year.
My forward 12-month dividends for my FI Portfolio ended July at $8,443.35 while my FolioFirst forward dividends are at $174.87. That pushes the total taxable account forward 12-month dividends up to $8,618.22. My Roth IRA's forward-12 month dividends are at $841.52. My Rollover IRA's forward 12-month dividends are at $3,99.31. Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $13,259.05 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 July at $644.89 per month which is $12.76 higher or a 2.0% increase compared to 2020's monthly average of $632.13.
Dividends Received Breakdown
Are you on track to meet your dividend goals for the year?
Let me know in the comments below!
Almost $800 for the month, you are coming up on regular 4 digit payout every single month and that is just awesome.
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