Dividend Update - July 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.

July has come and gone and August is in full swing now.  With the end of yet another month it's time to tally up my dividend income for the previous month.

During July, my FI Portfolio produced $703.80 in dividends with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $25.60.  My Roth IRA added $92.55 and my Rollover IRA generated $193.38.  For the month I received $729.40 across my taxable accounts and $1,015.33 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 $32.75 per day or $5.73 per hour assuming 8 hour work days.  While YTD those are $41.32 and $7.23, respectively.  

FI Portfolio

As I mentioned above my FI Portfolio produced $703.80 in dividends during July which is an excellent 47.0% increase compared to July 2021.  The YTD performance for 2022 is also showing a very strong 26.3% increase versus the same period in 2021.  

This year was also the first time that I breached the $700 level for July.  The big increase compared to last year was due in large part to purchases of AQN, CUBE, MPW, and ITW which pay on this schedule.

Roth IRA

My Roth IRA generated $92.55 in dividends during July which represents a 41.2% increase versus July 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 30.5% increase compared to the same period of 2021.  We're getting pretty close to getting another $100 month for the Roth IRA and I expect we'll reach that level sometime during 2023.

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 $193.38 in dividends during July which is actually a 15.1% decrease compared to July 2021.  Thankfully dividend cuts were to blame; rather, one of my positions that had typically paid during July merged with another company that pays on a different schedule.  For just the companies that paid in July both years 2022 was a 6.9% increase compared to 2021.  The YTD comparison is progressing nicely and sits at 20.2%.

Dividend Raises During the Month

July continued to be the "dog days of summer" in terms of dividend raises with just 4 of my FI Portfolio holdings announcing raises during the month.  Combined those 4 companies increased my FI Portfolio forward dividends by $21.23.

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 36 raises that have increased my forward 12-month dividends by a combined $387.92.

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

On the heels of a strong first half of 2022, July kicked off the second half with another solid increase to my forward 12-month dividends.  During the month my forward 12-month dividends increased by $131.08 with purchases continuing to lead the way.  Raises and reinvestment both contributed in the $20's.  

Despite the sales and one big dividend cut this year I'm still at a net increase of $955.19 to my forward dividends through the first seven months of the year.  On average my forward dividends have increased $136.46 per month.  Not bad at all.  

We now need to average just an $89 monthly increase over the remainder of the year to cross $11k in forward dividends.  

Looking Forward

My forward 12-month dividends for my FI Portfolio ended July at $10,557.77 while my Loyal 3 FolioFirst Interactive Brokers forward dividends are at $184.64.  That pushes the total taxable account forward 12-month dividends up to $10,742.41.  My Roth IRA's forward-12 month dividends are at $1,045.61.  My Rollover IRA's forward 12-month dividends are at $4,515.46.  Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $16,303.48 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 $798.19 per month which is $99.41 higher or a 14.2% 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 July's changes.

With 5 months left in 2022 are you on track to cross any dividend milestones? 

Let me know in the comments below!


  1. Crossing that 4 digit monthly payout! Congrats on that ITW raise that came out the other day


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