Dividend Update - June 2022 #Dividend
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 the first half of 2022 has come and gone. It still feels like January was just a couple weeks ago, but somehow 6 months have gone by. Of course that's the big reason that so many of us are aiming for financial independence...to reclaim our time.
During June, my FI Portfolio produced $1,396.69 in dividends with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $12.26. My Roth IRA added $102.09 and my Rollover IRA generated $663.86. For the month I received $1,408.95 across my taxable accounts and $2,174.90 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 June the companies I own paid me $72.50 per day or $12.69 per hour assuming 8 hour work days. While YTD those are $43.02 and $7.53, respectively.
FI Portfolio
As I mentioned above my FI Portfolio produced $1,396.69 in dividends during June which is an excellent 17.0% increase compared to June 2021. The YTD performance for 2022 is also showing a very strong 23.9% increase versus the same period in 2021. I kept looking around for the extra $4 in dividends for the month in this account, but unfortunately couldn't find them anywhere.
Roth IRA
My Roth IRA generated $102.09 in dividends during June which represents a 21.1% increase versus June 2021. The year over year increase was due to all three legs of the dividend growth stool: dividend growth, dividend reinvestment, and new purchases. The YTD comparison shows an equally impressive 28.6% increase compared to the same period of 2021.
My Roth IRA generated $102.09 in dividends during June which represents a 21.1% increase versus June 2021. The year over year increase was due to all three legs of the dividend growth stool: dividend growth, dividend reinvestment, and new purchases. The YTD comparison shows an equally impressive 28.6% increase compared to the same period of 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 a total of $663.86 in dividends during June which is a solid 42.5% increase versus June 2021. Although, a good chunk of that was due to some M&A activity that pushed a dividend payout into this cycle. When looking at just the companies that normally pay in June 2022 was still an excellent 25.5% increase compared to 2021. The YTD comparison is progressing nicely and sits at 24.7%.
Dividend Raises During the Month
June was a slow month for dividend increases with just 3 of my FI Portfolio holdings boosting their dividend during the month. However, one in particular was huge. Target announced a monster 20.0% increase that increased my forward dividends by over $80 itself. Combined those three companies in my FI Portfolio combined to raise my forward 12-month dividends by $90.87.
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 32 raises that have increased my forward 12-month dividends by a combined $366.69.
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.
June was another fantastic month with nearly a $200 net increase to my forward dividends. Purchases led the way again although Target's aforementioned dividend increase was the heavy lifted for increases. Dividend reinvestment lagged far behind because I take most dividends in cash and reinvest with new investments each month.
Despite the sales and one big dividend cut I'm still at a net increase of $824.11 to my forward dividends through the first half of the year. On average my forward dividends have increased $137.35 per month. Not bad at all.
If we can maintain a $96 monthly increase for the second half of the year we'll cross over $11k in forward dividends.
Looking Forward
My forward 12-month dividends for my FI Portfolio ended June at $10,422.62 while myLoyal 3 FolioFirst Interactive Brokers forward dividends are at $184.83. That pushes the total taxable account forward 12-month dividends up to $10,607.45. My Roth IRA's forward-12 month dividends are at $1,039.98. My Rollover IRA's forward 12-month dividends are at $4,513.24. Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $16,160.67 in dividends over the next year.
My forward 12-month dividends for my FI Portfolio ended June at $10,422.62 while my
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 June at $779.45 per month which is $80.67 higher or a 11.5% increase compared to 2021's monthly average of $698.78.
Dividends Received Breakdown
Did you pass any dividend milestones in the first half of 2022?
Let me know in the comments below!
YoY growth was amazing for all your accounts, JC. Also, Q2 was terrific for additional forward dividend income, too... adding over $169 each month. You've got things rolling.
ReplyDeleteAnother stellar TGT dividend raise for you as well. Those are the best.
I didn't realize VFC was such a large holding for you. I've been disappointed with VFC performance over the past couple of years, and their dividend growth, too, but something makes me think they'll come back strong. I've contemplated adding shares down here, but haven't pulled the trigger.
I like the size of your MSFT holding. I'd like to add shrares but they always look expensive. I'll just have to commit to adding a share here and there.
ED,
DeleteJune and the first half of the year has been fantastic. With the purchases last year and so far this year we should cross $10k in dividends received for this year which is really exciting. Even better is that I fully expect to cross $11k in forward dividends by the end of 2022 as well. It really feels like the snowball/compounding is starting to take hold now.