Saturday, September 16, 2017

August 2017 Dividends

Hello everyone,

I'm a little tardy on my August update, as things have been kind of crazy to start the month with respect to normal life stuff. I normally write these in the first week of the month, but in the first week of September we were away for a week, visiting friends and family in the DC/Alexandria VA area.

Part of this time though, I was fortunate to be able to attend an awesome sushi gathering with a bunch of awesome PF bloggers based in the DC area. They have much better blogs than this one, and were pretty cool to hang out with. Feel free to check out their blogs below:

Reaching for FI
Feminist Financier
Military Dollar
Zero Day Finance
Hungry Being
Woman Vs. Loans
ZJ Thorne

and also give a Twitter follow to:
@NotMade2Break

When I made mention of sushi, this is the magnitude of what we were dealing with:




All gone in a matter of minutes. Clearly, these were not amateurs...

Also while in the area, we were able to enjoy visiting some of my fiancee's family, participate in my annual 14-team fantasy football live draft, attend a Sting concert, and visit some amazing museums. This has become an annual trip for me, and I hope there are future networking opportunities with the PF crowd there as well.

Actually, since I am based in MA, it would be cool if we had similar events in our area throughout the area. Something to investigate...

Besides this trip, things have been hectic as well, as the wedding venue search is in full swing, and that has taken up a lot of my time. And oh the prices just to hold a 5 hout party...

But enough of my excuses, you're here for the dividend income update for August! At least I'm making that assumption. So let's get to it:

Taxable Accounts

Verizon (VZ): 8/1/17 - $2.31
AT&T (T): 8/2/17 - $13.73
CVS Health (CVS): 8/3/17 - $17.00
Abbott Labs (ABT): 8/15/17 - $9.28
Apple (AAPL): 8/17/17 - $4.41
Amerigas (APU): 8/17/17 - $25.74
Lazard (LAZ): 8/21/17 - $4.51
Prospect Capital (PSEC): 8/24/17 - $20.52
Williams-Sonoma (WSM): 8/25/17 - $23.01

Taxable Accounts Total: $120.51


Roth IRA Account
Toronto - Dominion Bank: 8/2/17 - $10.85
Abbott Labs (ABT): 8/15/17 - $6.75
Omega Health (OHI): 8/17/17 - $18.35

Roth IRA Account Total: $35.95

Overall Dividend Income Total: $156.46

Forward 12-month Projected Dividend Income: $1,780.31


My August Transactions
Bought:
-Lazard (LAZ): 5 shares
-Grainger (GWW): 1 share
-AT&T (T): 39 shares

Sold:
-Prospect Capital (PSEC): 246.221 shares

August was quite a slow month with regards to me adding to the portfolio, as I am devoting more funds to replenishing the emergency fund and saving for the 2018 wedding. The vast majority of my buys for August came from a reallocation of funds from the sale of my entire position of PSEC.

Why did I sell? I usually never sell, but made the decision based on a few factors:


  1. This is one of the few holdovers from my early yield-chasing days. I basically kept solely because of the high yield, which is not a good reason to own/keep a stock. This was one of the companies I was least confident in because I didn't really understand the BDC business model
  2. The dividend was cut. Yes, the dividend was high in relation to the stock price, but the dividend has not grown in years. I was ok holding in this instance, but once it was cut, I cut my stake. I would rather reallocate that money into better investments that grow the dividend over time.
  3. The latest quarter results were not good, and their outlook does not look very promising for the future

So the short term consequence is that I reduced my 12-month forward projected dividend income from $1,935.78 in July to $1.780.31 in August (8% decrease), but I feel like I am better off in the long run, beyond the 12 months with that money invested in companies that are much healthier and providing payments that are growing on a yearly basis.

So let's take a look at my monthly dividend payment history:


Month2014201520162017
January$14.38$14.42$70.45
February$49.07$50.38$112.01
March$50.22$52.16$182.28
April$10.83$27.91$64.56
May$46.52$59.42$132.14
June$6.69$47.51$90.97$198.86
July0$18.99$51.37$168.64
August$33.96$50.11$86.07$156.46
September$54.75$55.61$101.70
October$10.94$14.42$72.53
November$48.79$50.11$103.31
December$63.55$49.89$168.03


...and in graphical form


Y/Y:
Looking back a year ago, I pulled in $86.07 in dividend income for August 2016. So in a year that increased to $156.46, an 81.8% increase. Yeah, I'll take it!

Q/Q:
In the previous quarter, for May 2017, I was paid $132.14 in dividends. This amounts to an 18.4% increase, which is still quite nice.

These increases illustrate in a way a nice benefit of dividend growth investing, in that in a month where I did not add much to the portfolio other than reallocating proceeds from a sale, I still had nice income increases, with existing positions doing the heavy lifting with consistent payouts, and having many of those payouts increasing over the last year. Sign me up every day of the week for that.

In Conclusion:
Although I wasn't able to add a whole lot of fresh capital to the portfolio in August, my dividend train keeps chugging along with increasing income. Although there are short term needs for my day job income, it's good to know I have a growing safety net underneath and something building on top of that which will help me achieve my quest for time freedom.

Next month, I intend to eclipse a great milestone of $200 income within a month, which I almost hit in June. Pretty exciting.

Thanks for stopping by once again, it feels good to see all the encouraging feedback I get from readers. I look forward to more of it going forward as I push to hit more goals.

Also, please check out the other blogs listed above. Cool people, great content, and great at eating sushi! What more could you want?

That will put a wrap on my August 2017 Dividend Income Update.

How was your August? Let me know in the comments!





Saturday, August 5, 2017

July 2017 Dividends

Hi everyone,

Thanks again for stopping by. To those of you who are calendar-aware you've noticed that we have entered a new month, so that means it's time for a monthly update on dividend income!

So let's get to it!

Taxable Accounts

My Company's ESPP: 7/11/17 - $72.70
Cardinal Health (CAH): 7/15/17 - $10.17
Prospect Capital (PSEC): 7/20/17 - $20.52
Cisco Systems (CSCO): 7/26/17 - $11.02
New Residential Investment Corp (NRZ): 7/28/17 - $19.50

Taxable Accounts Total: $133.91


Roth IRA Account

iShares S&P Small Cap ETF (IJR): 7/3/17 - $2.91
iShares S&P 500 ETF (IVV): 7/3/17 - $12.47
Cardinal Health (CAH): 7/17/17 - $10.71
Walt Disney (DIS): 7/27/17: $8.64

Roth IRA Account Total: $34.73

Overall Dividend Income Total: $168.64

Forward 12-month Projected Dividend Income: $1,935.78


My July Buys:

Compass Minerals (CMP) - 3 shares
CVS Health (CVS) - 16 shares
WW Grainger (GWW) - 5 shares
L Brands (LB) - 4 shares
Target (TGT) - 8 shares
Williams-Sonoma (WSM) - 19 shares

If you've been reading my dividend income summaries for a bit, you'll notice that the above amounts are quite a bit more than my usual. It's not that I added a huge amount to be invested, a big portion of this is just reallocating funds from my company's ESPP (Employee Stock Purchase Plan). That amount that I was holding in that account had grown close to $3,500 and I figured it was time to reallocate (our company yield is on the low side, and they only pay dividends once a year, and there isn't much dividend growth, so I prefer to have that money with DGI stocks that pay once per quarter, have a higher yield, and have yearly increases).

Most of the stocks are existing positions, but I decided to nibble a bit on L Brands (LB), as the yield was attractive and their products are items that are considered more like staples than luxury items (underwear/intimate apparel). They have been struggling recently, so I am just holding and monitoring the situation.

I'm still working on rebuilding up my emergency fund, after taking care of some surprise expenses. Thus, I'm not expecting to do a bunch of adding, until I get the emergency fund built back up to cover multiple months of expenses. Also we are starting to kick in the saving for the 2018 wedding, so progress may be quite a bit slower over the coming months.


My thoughts on my July 2017 results
July, as the first month in the quarter, is typically my worst month in the quarter, but this time, I benefited from the payout of my annual dividend from the ESPP, which pushed my totals well over their normal amount. But hey, not that I'm complaining!

Let's take a look


Month2014201520162017
January$14.38$14.42$70.45
February$49.07$50.38$112.01
March$50.22$52.16$182.28
April$10.83$27.91$64.56
May$46.52$59.42$132.14
June$6.69$47.51$90.97$198.86
July0$18.99$51.37$168.64
August$33.96$50.11$86.07
September$54.75$55.61$101.70
October$10.94$14.42$72.53
November$48.79$50.11$103.31
December$63.55$49.89$168.03

...and in graphical form




Although, it was helped along by my ESPP annual payout, there was still growth otherwise.

Y/Y:
For July 2017, I pulled in a total of $51.37. My July 2017 income resulted in a rather nice increase of +228.3%. "Rather nice" being an obvious understatement!

Even without the ESPP dividend, my year over year increase would have still been +86.8%, still pretty awesome.

Q/Q:
3 months ago, for April 2017, my income was $64.56, so in the last 3 months, my income has increased by +161.2%.

Even without the ESPP, this increase is still +48.6%. Still awesome.

In Conclusion:
So this was the month of my ESPP, clearly. I was able to reap the benefit of the annual dividend payout, but then also reallocate the funds of that ESPP to other DGI stock with more frequent dividend payouts and more frequent dividend raises, with some even having a higher yield. This should allow my portfolio and dividend income to grow at a faster rate. This will help me reach my financial independence goal sooner.

With the first month of the quarter being my typical lowest income month for the quarter, July was pretty good, but this means it only gets better from here for August and September! I fully expect to exceed the $200 for September, which I just missed in June.

But first things first, let's take it a month at a time, on to August!

How was your July? Let me know in the comments below!