Dividend Update - December 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.

And just like that 2021 has come and gone and 2022 is now underway.  2021 was a great year with several milestones hit along the way and a much enjoyed increase in dividend growth compared to 2020.  

During December my FI Portfolio produced $1,300.64 in dividends with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $11.75.  My Roth IRA added $93.63 and my Rollover IRA generated $549.00.  For the month I received $1,312.39 across my taxable accounts and $1,955.02 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 December the companies I own paid me $63.07 per day or $11.04 per hour assuming 8 hour work days.  Year to date those numbers are $35.92 per day and $6.29 per hour.

FI Portfolio

As I mentioned above my FI Portfolio produced $1,300.64 in dividends during December which was the first time any month has crossed the $1,300 mark, even if by just $0.64.  Compared to September 2021 that's a solid 5.7% increase and an even more spectacular 27.2% increase compared to December 2020.

For the full year of 2021 my FI Portfolio produced $8,385.37 in dividends which represents an adequate 10.5% increase compared to 2020.

Roth IRA

My Roth IRA generated $93.63 in dividends during December which is a modest 1.2% increase versus September although that was entirely from dividend reinvestment.  Compared to December 2020 it was actually a 6.6% decrease due to Norfolk Southern (NSC) changing it's payout schedule.

For the full year 2021 my Roth IRA generated a 20.6% increase in dividends compared to 2020.  Much of that was from additional purchases throughout the year, but reinvestment and increases certainly helped as well.  

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 $549.00 in dividends during December which is a 12.5% increase from September 2021.  Compared to December 2020 the dividends showed an impressive 37.4% increase due to additional capital deployment, dividend reinvestment and organic dividend growth.

The YTD total for 2021 sits at $3,773.06 which is an excellent 36.5% increase compared to the full year of 2020.

Dividend Raises During the Month

December saw a slow down in dividend increase announcements, but overall I can't complain about getting 4 pay raises that I had to do nothing to get.  Those 4 raises combined to increase my forward 12-month dividends by $15.94.

I love dividend increases because it means (1) the company is doing better and (2) I get paid more while doing absolutely nothing.  That's about as good as it gets.  For the full year 2021 I received 58 raises that increased my forward 12-month dividends by a combined $688.69.

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

December was a great month in terms of closing out the year and increasing my forward dividends.  December actually saw the largest monthly boost to my dividends primarily due to new purchases that added over $237 alone.  All 3 sources of dividend growth combined to increase my dividends by a total of $265.54 in December alone.  

As expected purchases led the way during the year with $909.75 in total forward dividends added, that's net of the few sales I made throughout the year as well.  Reinvestment only added $137.35 since I take most of my dividends in cash once my brokerage moved to $0 commissions several years back.  Dividend increases came in a distant second, but well above reinvestment, adding a total of $688.69.

Combined the 3 sources of dividend growth increased my forward 12-month dividends by $1,735.79 throughout 2021.  That's a healthy average increase of $144.65 per month and if I can hit that again in 2022 I'll be more than happy.  I was also able to surpass the $100 mark in 8 out of 12 months.

Looking Forward

My forward 12-month dividends for my FI Portfolio ended December at $9,391.88 while my Loyal 3 FolioFirst Interactive Brokers forward dividends are at $178.80.  That pushes the total taxable account forward 12-month dividends up to $9,570.68.  My Roth IRA's forward-12 month dividends are at $894.77.  My Rollover IRA's forward 12-month dividends are at $4,084.47.  Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $14,549.92 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 December at $698.78 per month which is $66.65 higher or a 10.5% increase compared to 2020's monthly average of $632.13.  So close to that $700 average mark, but we'll be there in 2022 barring a catastrophe.
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 December's changes.

Did you accomplish your investing and dividend goals for the year?  Did you set any records or break any milestones in December?

Let me know in the comments below!


  1. Wow that dark blur bar in December really shows how much you Dec income gapped up over last year and it just towers over all the previous years! And that JNJ payout is so close to paying out triple digits.

  2. Great report JC. Congrats on cross $1300 for the first time. Also, I really like how you break down your report into dollars earned per hour. That's really an interesting take on it.

    I also like how you break down what's your purchase versus reinvestments and raises. Eventually I might start doing that as well.

    Here's hoping that 2022 is a profitable year for you! Happy New Year buddy.


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