Dividend Update - January 2023 #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.

On the heels of a really strong 2022, I don't think I could have asked for a better start to 2023.  Although it's really hard to comprehend that January has already passed us by.

January was an excellent month for our dividends.  My FI Portfolio produced $964.41 for the month with my Loyal3 FolioFirst Interactive Brokers portfolio chipping in another $37.56.  My Roth IRA added $96.86 and my Rollover IRA generated $167.55.  For the month I received $1,001.97 across my taxable accounts and $1,266.38 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 $40.85 per day or $7.15 per hour assuming 8 hour work days 5 days a week.    

FI Portfolio

As I mentioned above my FI Portfolio produced $964.41 in dividends during January which is an excellent 35.9% increase compared to January 2022.  That does include an $80 special dividend from CME Group; however, even excluding the special dividend it was still an impressive 24.6% year over year increase.

Roth IRA

My Roth IRA continued to get closer to adding a 2nd month out of each quarter that provides at least $100 in dividends.  While we came up short for January and Q1 I expect that to remedy itself by Q2 and no later than Q3 depending on the timing of purchases.

For January the Roth IRA generated $96.86 in dividends which represents a 30.6% increase versus January 2022.  The year over year increase was due to all three legs of the dividend growth stool: dividend growth, dividend reinvestment, and new purchases.    

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 $167.55 in dividends during January which is actually an 18.8% decline from January 2022.  That's largely due to one of my holdings merging with another company and the dividend schedule changing as a result.  The distortions from that should be over with moving forward.  On an adjusted basis January 2023 showed a modest 5.1% increase year over year.

Dividend Raises During the Month

January got off to a slow start for dividend increases, but the last week of the month saw a flurry of raises coming through.  In total there were 6 increases, and unfortunately one cut, during January.  Combined the announced raises, including the cut, boosted my forward 12-month dividends by $52.07.

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

January was a very slow month for purchases as we've been trying to store up cash for other potential opportunities plus our property taxes were due.  As we continue to weigh the other opportunities new purchases will be light, largely funded by cash dividends that aren't automatically reinvested.  

Luckily dividend growth investing isn't built to rely solely on one source of dividend growth.  When one is lacking you can still rely on the other two to help you out and in January they certainly did the heavy lifting.  I'm pretty ecstatic to see us reach nearly $100 in additional forward dividends during January especially considering that we added no savings/capital during the month.

That's what's really cool about finally hitting some scale with your investments and dividends.  Dividend reinvestment and organic dividend growth can do the heavy lifting for you and eventually will far surpass what you can do with savings alone.

Looking Forward

My forward 12-month dividends for my FI Portfolio ended January at $11,326.26 while my Loyal 3 FolioFirst Interactive Brokers forward dividends are at $234.65.  That pushes the total taxable account forward 12-month dividends up to $11,560.91.  My Roth IRA's forward-12 month dividends are at $1,092.27.  My Rollover IRA's forward 12-month dividends are at $4,787.03.  

Across all 4 accounts, assuming no dividend cuts or position size changes, I can expect to receive at least $17,440.21 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 $877.26 per month which is $21.24 higher or a 2.5% increase compared to 2022's monthly average of $856.02.
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.

Did you get off to a strong start for 2023 during January? 

Let me know in the comments below!


  1. Solid year over year increase. I managed single digit year over growth for January. Not that I'm complaining. All good on the dividend front except that VFC cut. Oh well. Not my first, not my last I'm sure.

  2. Great start to 2023, JC! $1K of dividends from the taxable accounts is awesome. Your YoY growth was terrific. If you keep that up all year... oh boy.
    Thanks to the recent dividend raise from PEP, you should be looking at a triple-digit PEP dividend come June. Nice!


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