Dividend Update - August 2021


dividend growth investing | financial independence | freedom | dividends

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 August my FI Portfolio produced $379.58 in dividends with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $5.67.  My Roth IRA added $53.60 and my Rollover IRA generated $248.28.  For the month I received $385.25 across my taxable accounts and $687.13 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 August the companies I own paid me $22.17 per day or $2.77 per hour assuming 8 hour work days every day of the month.  Year to date those numbers are $31.72 per day and $3.96 per hour.




FI Portfolio

As I mentioned above my FI Portfolio produced $379.58 in dividends during August.  Compared to May that's a 2.6% increase and compared to August 2020 that's a 15.4% rise.  

Year to date my FI Portfolio has produced $4,909.44 in dividends which is a decent 4.3% 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 $53.60 in dividends during August which is a 19.3% increase versus May and a 290.1% increase compared to August 2020.  The gains were due to dividend reinvestment and dividend growth over that period, but mostly due to Norfolk Southern changing their pay date into this cycle as opposed to the end of quarter month.

Through August the YTD total for my Roth IRA is showing an excellent 2.4% increase compared to 2020.  Just about all of my cash is deployed for this account so further gains will be coming via organic dividend growth and dividend reinvestment until 2022 when I have a better idea on our tax situation and can transfer funds.

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 $248.28 in dividends during August which is an 10.4% increase from May.  Compared to August 2020 this years dividends showed a 20.3% increase due to additional capital deployment, dividend reinvestment and organic dividend growth.

The YTD total for 2021 sits at $2,245.75 which is an excellent 36.8% 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.  August brought about just 3 increase announcements for my FI Portfolio one that was expected and two that were welcomed surprises.  Altria was the only expected one which delivered a 4.7% raise as expected, but both Deere's 2nd increase of the year and BP's raise were just delightful.  Those 3 raises combined to increase my forward 12-month dividends by $67.63.  So far in 2021 I've received 34 increases that have increased my forward dividends by $496.00.

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.
Dividend | Purchase | Stocks | Dividend Growth | Reinvestment

August was nearly my second $200+ month thanks to the number of purchases made throughout the month.  Purchases by far led the way adding $124 to my forward dividends.  The three raises announced last month added a nice $67 as well.  All together August saw forward 12-month dividends for my FI Portfolio increase by $198.19.

Year to date purchases and dividend increases are the far and away leaders to forward dividend increases with both knocking on the door to $500.  Reinvestment is well behind the other two although that's partially by design as I've been taking most of my dividends in cash since commissions dropped to zero a few years back.  The 3 sources of dividend growth have combined to increase my forward dividends by $1,061.32 which is awesome to see considering there's still 4 months left to go for the year.

Looking Forward

My forward 12-month dividends for my FI Portfolio ended August at $8,609.24 while my FolioFirst forward dividends are at $178.63.  That pushes the total taxable account forward 12-month dividends up to $8,787.87.  My Roth IRA's forward-12 month dividends are at $863.13.  My Rollover IRA's forward 12-month dividends are at $3,877.94.  Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $13,528.94 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 August at $649.11 per month which is $16.97 higher or a 2.7% increase compared to 2020's monthly average of $632.13.  
dividend growth investing | dividends | financial independence | freedom

Dividends Received Breakdown
Dividends | Financial Independence | Dividend Growth Investing

I've updated my Dividend Income page to reflect August's changes.

Are you on track to meet your dividend goals for the year?  

Let me know in the comments below!



Comments

  1. "I can expect to receive at least $13,528.94 in dividends over the next year."

    That is so awesome to be secure in the knowledge that next year you will be making an average $1K+/month. With a little over 3 months to go for this year I think $14K in forward dividend is definitely achievable.

    ReplyDelete

Post a Comment