Tuesday, July 4, 2017

June 2017 Dividends

Hi everyone,

Another month ends, one begins, and it's time for a summary of the previous month's dividend income. This is easy to do, since I had such great results, though they could have been even better.

How you say? Well, keep reading then!

Let's get to the summary:

Taxable Accounts:

Intel (INTC): 6/1/17 - $3.00
WW Grainger (GWW): 6/1/17 - $2.56
Cummins (CMI): 6/1/17 - $8.20
Walmart (WMT): 6/5/17 - $1.53
Emerson (EMR): 6/9/17 - $4.80
Target (TGT): 6/10/17 - $32.40
Compass Minerals (CMP): 6/15/17 - $9.36
VF Corp (VFC): 6/19/17 - $16.80
Qualcomm (QCOM): 6/21/17 - $34.23
Prospect Capital (PSEC): 6/22/17 - $20.52
Flower Foods (FLO): 6/23/17 - $20.06
Vanguard High Yield Dividend ETF (VYM): 6/28/17 - $7.85
Vanguard REIT ETF (VNQ): 6/28/17 - $4.96

Taxable Accounts Total: $166.27


Roth IRA Account:

Vanguard High Yield Dividend ETF (VYM): 6/30/17 - $21.80
Vanguard Growth ETF (VUG): 6/30/17 - $2.74
T. Rowe Price (TROW): 6/30/17 - $8.05

Roth IRA Account Total: $32.59

Overall Dividend Income $198.86     (ALL-TIME HIGH FOR A MONTH!)

Forward 12-month Projected Dividend Income: $1,842.05


My June Buys:

CVS Health (CVS) - 5 shares
WW Grainger (GWW) - 3 shares
HanesBrands (HBI) - 2 shares
Lazard (LAZ) - 1 share
Williams Sonoma (WSM) - 5 shares

I'm still adding to my best positions, which I believe to be undervalued or fairly valued. Lately I have been focusing on companies that I believe have at least a 10% margin of safety when looking at their valuation, in comparison to current price.

Going forward this will get a little more challenging as we continue to save more for the wedding and a house down the line. Also, I've had some unexpected significant expenses come up, and so I've had to dip into the emergency fund. I have decided to switch it up a bit to replenish the emergency fund, so a larger cut of my weekly surplus will go into funding that instead of buying shares. I'll hold myself to one share a week, and then the rest of the surplus will go to the emergency fund.

So, what am I eyeing for July?

I've got my eyes on CVS, GWW, and WSM. I'm thinking about adding more TGT (Target) and possibly adding a new position of KR (Kroger). News is rolling in about the Target improvements, and I do like what I'm hearing. Almost 6% of my portfolio is in Target already, but I may still add some more at current levels as my cost basis is in the 60s. Kroger experienced a significant fall due to disappointing earnings, and the news of Amazon buying Whole Foods. I do believe, however, that the sky is not falling for one of the biggest grocery chains in the country, and am seriously thinking about entering in at the lower stock price. With businesses like these, I like when their products are for everyday use, and when they run out, customers need to replenish their supply. As with other businesses going through trouble I believe to be temporary, I allow them to pay me to wait for the turnaround.

Other Notable News for June 2017:
June was really good on a couple of fronts. For one thing, when not counting my 401(k), my portfolio (taxable and Roth IRA) reached the $50,000 milestone! I know, not much to the OGs in the game, but pretty significant to me, as some many years earlier, I was drowning in over $50K in debt, and uncertain of my next move. It feels good to know that over time, I was able to climb out of that hole, and build up a portfolio of that size, with clear signs of acceleration for that portfolio. Next, when calculating forward projected dividends, I reached the point to where I will average over $150/month, and over $1,800 over the next year. Pretty sweet, if you ask me. Of course, it is not enough to quit my job and live off of, but a clear sign of progress, and I intend to keep it going. In other big news, on the life news front, we took one more step in setting up our life together, as my fiancee and I moved to a new place to consolidate expenses, as well as make preparations for the wedding next year. This will help us to get even more on the same page with planning things out as 2018 gets closer. It will be an adjustment for sure, as both of us had gotten used to living alone for many years (me since 1995!). We're both confident, though that we'll make it work, and come out ahead. This should also help towards future FIRE plans, with the money we'll end up saving.

My thoughts on the month's results:
June, as a quarter-ending month was fabulous, but it could have been even better. I was counting on dividends/distributions from the iShares S&P 500 ETF (IVV) and the iShares Small Cap ETF (IJR) to come in at the end of June, which would have added over $14 to my June total. But alas, they did not come through until July 3rd.

This would have put me over $200 for June, but it is what it is. I'm on track to pass that milestone, hopefully, for September.

Let's take a glimpse at the 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
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:



Another good-looking month if you ask me!

Y/Y:
For June of 2016, I pulled in dividend income of $90.97. The June 2017 income represents a whopping +118.6% increase!

A year ago, I was just hitting my stride with this DGI strategy, a few months in. Now, it is really keeping the momentum going. I love that many of the dividend increases are coming through in addition to the additional shares I am purchasing which are paying more in dividends also. That, on top of any capital appreciation is pretty sweet.

Q/Q:
So, 3 months ago, for March 2017, my dividend income was $182.28. Looking at my June 2017 totals, clearly the increase is a bit more modest, but still is something I'll take. This represents a +9.1% increase, which, I'll say it again, if my job gave me a 9% raise every quarter, I'd take it!

I'd be doing jumping jacks in the parking lot, and kicking up my heels as I went to my car. I'm pretty excited about it, and happy to keep it going.


In Conclusion:

As mentioned, this is an all-time high for a month for me, and is highly motivating to find new ways to save, earn more, and contribute more to the portfolio to keep this dividend machine going. I have been targeting adding about $1,000 every month in fresh capital, but I look forward to the day when dividend income matches that number. I'm almost 20% of the way there. When I do reach that level, I'll be "cooking with gas" as we say here in New England.

Next month will be lower, as the first month in the quarter is always my lowest for dividend income, as more of the companies are in the other 2 months in the quarter. However, I look forward to receiving the income and reporting it for you, when July comes to a close. In the meantime, I'm buoyed by the amazing feeling of these June results!

Oh, and before I leave the building, special shouts out to Money With Meow and Dividend Hawk. MwM had a nice link to this blog in their latest dividend summary post, and Dividend Hawk is always first to tweet out a link to my posts (many times before I even get to share my own link!).
Please check out their blogs, and any others that I'll share. I love to share other dividend summaries as much as I can on Twitter.

How was your June 2017 for dividend income? Let me know in the comments.








Wednesday, May 31, 2017

May 2017 Dividends

Hello folks,

As the month of May is coming to a close, it's as good a time as any to wrap up the month with a dividend income summary. So let's get to it.

Taxable Accounts
AT&T (T)  - $13.73
Verizon (VZ) - $2.31
CVS Health (CVS) - $5.50
Abbott Labs (ABT) - $9.28
Apple (AAPL) - $4.41
Amerigas (APU) - $25.74
Prospect Capital (PSEC) - $20.35
Lazard Ltd (LAZ) - $2.87
Williams-Sonoma (WSM) - $13.65

Taxable Accounts Total: $97.84


Roth IRA Account
Toronto-Dominion (TD) - $9.83
Abbott Labs (ABT) - $6.75
Omega Healthcare Investors (OHI) - $17.72

Roth IRA Account Total: $34.30

Overall Dividend Income for May 2017: $132.14

Forward 12-month Projected Dividend Income: $1,785.96

My May Buys:
Compass Minerals (CMP) - 2 shares
CVS Health (CVS) - 1 share
HanesBrands Inc. (HBI) - 2 shares
Lazard Ltd (LAZ) - 3 shares
Vanguard Growth ETF (VUG) - 4 shares
W.W. Grainger (GWW) - 4 shares

We still have not started the joint account, so I'm continuing to add buys as long as I can, to put any surplus money to work.

I decided to once again take advantage of any pullbacks, and any stocks with attractive valuations. I did decide to add to my position in the growth ETF, which resides in my Roth IRA, as I wanted to have exposure to more growth stocks, but still receive some type of dividend/distribution payment.

Looking forward to June, I have my eyes on adding more GWW, CVS, and QCOM.

I also have my eyes on Abbvie (ABBV), Travellers Insurance (TRV), and General Motors (GM), as far as potential new positions. I look forward to researching these companies more.


My Thoughts on the Month

It is nice to summarize one of the higher paying months, after getting through the lean month of April. My additions to my CVS and WSM positions helped to increase my dividend income over the results from the previous quarter. It is also nice to see more and more of my positions paying me dividends in the double figures, meaning that I am making very good progress on growing my dividend income.

Let's take a look at the hard numbers for 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
July0$18.99$51.37
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 then represented graphically



So let's summarize. After a first look at this month, and comparing with history, I very much like the results!

Y/Y:
A year ago, my May 2016 dividend income tallied up to $59.42. I was a couple months into my new DGI strategy at the time. A year later, it has grown nicely to $132.14.

That is an impressive increase of  +122.4%. No matter how you slice it, that is pretty awesome!

Q/Q:
3 months ago, my dividend income for February 2017 was $112.01. A quarter later this has gone up to $132.14 for May 2017. This resulted in a nice Q/Q increase of +18%.

Pretty cool for just a few months!

So, why the great results?

Over the past few months I have been adding to my positions, many of which were stocks that paid dividends in May (ie, WSM, CVS, LAZ). Of course this has added up over the previous months, and culminated in a nice May report.


In Conclusion:
May was a very encouraging month, evidently from looking at the healthy increases over the last quarter and the last year. June should be even bigger, as I am expecting another all-time high month for dividends paid, maybe even surpassing the $200 mark. We shall see...

How was your May 2017?

Hopefully you didn't "sell in May and go away" and rob yourself of future dividends.

Let me know in the comments!