Dividend Update - November 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.

During November, my FI Portfolio produced $501.07 in dividends with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $6.25.  My Roth IRA added $62.22 and my Rollover IRA generated $270.62.  For the month I received $507.32 across my taxable accounts and $840.16 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 November the companies I own paid me $28.01 per day or $4.90 per hour assuming 8 hour work days 5 days a week.  While YTD those are $41.09 and $7.19, respectively.  With the large December payout on its way we should surpass having an extra minimum wage worker in our household for the year!

FI Portfolio

As I mentioned above my FI Portfolio produced $501.07 in dividends during November which is an excellent 22.6% increase compared to November 2021.  The YTD performance for 2022 is also showing a very strong 25.4% increase versus the same period in 2021.  We're also just shy of $500 ahead of 2021's total dividends and we still have the large December month to come!  

This was also the first time that the middle month of a quarter has surpassed $500 and now puts us on track to receive at least $500 every month in dividends.  DIVIDEND MILESTONE #1

Roth IRA

My Roth IRA continued to grind higher with its dividends.  For November it generated $62.22 in dividends which represents a 13.4% increase versus November 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 25.9% 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 $270.62 in dividends during November which is just a 4.8% increase compared to last year.  I'm pretty surprised to still see an increase considering that includes AT&T's (T) dividend being cut in half from last year.  That's why I diversify!  The YTD total through November is well ahead of 2021's level with a 18.3% increase.

Dividend Raises During the Month

November saw a bit of an increase in dividend increase announcements for my holdings which is always a great thing to hear.  For the month there were 5 raises announced that combined to boost my forward 12-month dividends for my FI Portfolio by $33.46.

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 54 raises that have increased my forward 12-month dividends by a combined $581.56.

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

In November I was able to increase my forward 12-month dividends by >$100 once again which makes 8 consecutive months and 9 out of 11 for the year.  

Purchases took the lead back from dividend increases with a $72 increase.  Increases remained solid at $33.  Reinvestment continues to be the laggard, especially for November, but it did bring about a $5 boost for the month.  Combined the 3 sources of dividend growth increased the forward 12-month dividends for my FI Portfolio by $110.95 from November's activity.

Through November our forward 12-month dividends have increased by a total of $1,498.98 net of the sales and lone dividend cut from AT&T (T).  On average that works out to +$136 per month.

Well we reached the $11,000+ mark for forward 12-month dividends with one month to spare.  It's really exciting to cross over those milestones and the next stop is $12,000+ to hit that $1k monthly average.  What's really cool is that not including any fresh capital added to the account in 2023 and dividend growth and reinvestment should get us pretty dang close to that mark if not well over depending on how dividend growth comes in next year.

Looking Forward

My forward 12-month dividends for my FI Portfolio ended November at $11,108.09 while my Loyal 3 FolioFirst Interactive Brokers forward dividends are at $233.85.  That pushes the total taxable account forward 12-month dividends up to $11,341.94.  My Roth IRA's forward-12 month dividends are at $1,065.03.  My Rollover IRA's forward 12-month dividends are at $4,688.25.  Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $17,095.22 in dividends over the next year.

What's really cool to see is that my forward 12-month dividends increase by $2,879 from where they stood at the end of November last year.  That's an excellent 20.3% increase and I can only hope to be close to that come 2023.

November also brought our FI Portfolio's forward 12-month dividends up over the $11,000 and the $11,100 mark! DIVIDEND MILESTONE #2

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 November at $848.71 per month which is $149.93 higher or a 21.5% 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 November's changes.

Have you reached any dividend milestones this year?  With one month left in 2022 are you ready to crush the rest of the year?

Let me know in the comments below!