Dividend Update - January 2022 #Dividend

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.

Somehow January has already flown by and February is now underway.  Luckily January was a very good month for dividends.  For the month my FI Portfolio produced $709.56 in dividends with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $25.06.  My Roth IRA added $74.17 and my Rollover IRA generated $206.34.  For the month I received $734.62 across my taxable accounts and $1,015.13 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 January the companies I own paid me $32.75 per day or $5.73 per hour assuming 8 hour work days.  

FI Portfolio

As I mentioned above my FI Portfolio produced $709.56 in dividends during January which was the first time a non-end of quarter month surpassed $700.  Compared to October 2021 January's dividends were 32.3% higher and compared to January 2021 this years total if 37.2% higher.

Roth IRA

My Roth IRA generated $74.17 in dividends during January which is a modest 2.2% increase versus October 2021 although that was entirely from dividend reinvestment.  Year over year January's dividends are 35.6% higher due to dividend reinvestment, dividend growth, and additional capital invested during 2021.

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 $206.34 in dividends during January which is an 11.1% decrease from October 2021.  Compared to January 2021 the dividends showed a solid 15.4% increase due to additional capital deployment, dividend reinvestment and organic dividend growth.

Dividend Raises During the Month

January was a good start to the year for dividend increases with 3 of the companies in my FI Portfolio announcing raises.  Those 3 raises combined to increase my forward 12-month dividends by $37.46.

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.  Year to date in 2022 I've received 3 raises that increased my forward 12-month dividends by a combined $37.46.

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

Purchases led the way in terms of increasing my forward dividends as should be expected.  All sources of dividend growth combined to increase my forward 12-month dividends by $144.09.  That's a really solid start to the new year.

Looking Forward

My forward 12-month dividends for my FI Portfolio ended January at $9,767.09 while my Loyal 3 FolioFirst Interactive Brokers forward dividends are at $178.68.  That pushes the total taxable account forward 12-month dividends up to $9,945.77.  My Roth IRA's forward-12 month dividends are at $923.99.  My Rollover IRA's forward 12-month dividends are at $4,107.65.  Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $14,977.41 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 January at $714.82 per month which is $16.04 higher or a 2.3% increase compared to 2021's monthly average of $698.78.  
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 January's changes.

Are you off to a good start to 2022 for your dividend goals now that January is in the books?  Did you cross any milestones or on track to cross some soon?

Let me know in the comments below!


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