Dividend Update - September 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.

During September, my FI Portfolio produced $1,439.65 in dividends with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $12.15.  My Roth IRA added $105.85 and my Rollover IRA generated $690.56.  For the month I received $1,451.80 across my taxable accounts and $2,248.21 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 September the companies I own paid me $74.94 per day or $13.11 per hour assuming 8 hour work days 5 days a week.  While YTD those are $43.31 and $7.58, respectively.  

FI Portfolio

As I mentioned above my FI Portfolio produced $1,439.65 in dividends during September which is a strong 17.0% increase compared to September 2021.  The YTD performance for 2022 is also showing a very strong 24.5% increase versus the same period in 2021.  Even better is that we're $1,500 in dividends received ahead of the same period from last year and we should surpass or come very close to passing 2021's full year total after October comes to a close.

Roth IRA

My Roth IRA generated $105.85 in dividends during September which represents a 14.4% increase versus September 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 26.5% 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 $690.56 in dividends during September which is an incredible 41.4% increase compared to September 2021.  I wish I could say that was all brilliant investing, but a good chunk of that increase was due to one of the companies I own merging with another company resulting in a dividend pay date change.  The YTD total through September shows a very strong 22.9%.

Dividend Raises During the Month

September finally brought about a fair amount of dividend increases.  After the dullness of the June - August period for my FI Portfolio that saw just 10 increases, September alone brought 7.  Combined those 7 raises increased my forward 12-month dividends for my FI Portfolio by $47.52.

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 46 raises that have increased my forward 12-month dividends by a combined $484.55.

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.

The markets have continued their downslide which has opened up a lot more opportunities from a valuation and starting yield standpoint.  There's been a steady diet of sales between March and August; however, that's primarily been trimming back a big over-allocation of shares from my ESPP which I've re-allocated towards the traditional dividend growth holdings in my portfolio.

In September I was able to increase my forward 12-month dividends by >$100 once again which marks 6 consecutive months and 7 out of 9 for the year.  

Purchases once again led the way during the month coming in just shy of $100 and dividend increases adding another $47.  Reinvestment was lackluster adding just $18, but I'll take every bit that I can.  All told we had a net increase of $165.29 to our forward 12-month dividends from September's activity.

Through September our forward 12-month dividends have increased by a total of $1,248.57 net of the sales and lone dividend cut from AT&T (T).  On average that works out to +$138.73 per month.

I fully expect us to reach $11,000+ in forward dividends for our main FI Portfolio by the end of 2022 barring any unforeseen cuts coming.  We need to average just a $64.16 monthly increase, a $192.48 total increase, over the next 3 months to reach that milestone.  

Even better is that dividend increases in 2021 over the final 4 months added nearly $119.  I'm not too confident we'll see the same results from raises for 2022, but if this year is at least half that level that puts us that much closer to the milestone. 

Looking Forward

My forward 12-month dividends for my FI Portfolio ended September at $10,807.52 while my Loyal 3 FolioFirst Interactive Brokers forward dividends are at $233.18.  That pushes the total taxable account forward 12-month dividends up to $11,040.70.  My Roth IRA's forward-12 month dividends are at $1,052.85.  My Rollover IRA's forward 12-month dividends are at $4,618.27.  Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $16,711.82 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 September at $824.08 per month which is $125.30 higher or a 17.9% increase compared to 2021's monthly average of $698.78. 

Dividends Received Breakdown

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

With 1 quarter left in 2022 have you passed or are you set to cross any dividend milestones? 

Let me know in the comments below!