February 2020 Dividends


Greetings everyone,

Thanks for stopping by. As we are ending another month, and heading into a new one, it is time for another monthly recap of the dividend income earned in the past month. As I write this, it is in the first couple days of March 2020, so I am trying to get a jump on this summary before March flies by.

If you've noticed, recent updates have been a bit tardy, so I am trying to get back on schedule.


Some Current Thoughts

Right now the talk everywhere seemingly is centered around the Coronavirus. The virus is spreading, and people are dying, which is a serious matter. However, I'm no expert, but I am hearing that we are seeing the same or higher death rates from influenza. Fear and uncertainty are gripping the world, and as a result all industries are being impacted with the efforts to slow the spread of the virus. Other side effects are being realized as major events are being cancelled, travel is being scaled back, and quarantines are being set up. On the business side, a production slowdown in China is happening, and since most major corporations have at least a portion of their Supply Chain in China, the markets are being negatively affected, and we're seeing sharp declines in stock prices. Amidst all the doom and gloom that we are hearing, it is important to stay the course, and stick to your investment plan, whatever that is. There is a major sell-off happening, but you don't want to panic and abandon ship. Most investors I hear from are proclaimed long term investors, so if that fits you as a reader, then it is good time to put that plan into action, or rather continue that plan.

Also, for those that spend their days basking in being inundated by the entertainment of financial news, and it is having an impact on the state of mind, it might be a good time to take the opportunity to scale back that activity. You can be informed, without being inundated. This being the main story all over, you can't help but be informed.

What is my plan? I am a dividend growth investor, and have set up a system where every week, I determine what amount can be allocated to investments in this area, and I add that amount to my investment account, no matter what is happening. The caveat to this is when I was saving for a house down payment, for a long stretch, any money surplus I had was going into the online savings account, so it would be there when the time came for the down payment. Now that the down payment has been paid and we are in our house, I am able to allocate funds once again to the investment account, and am doing so with gusto, knowing that due to subsequent investments with said funds, my dividend income will be rising as a result. I then determine based on valuation and outlook which dividend companies I want to invest in, and I invest in them (or add to current positions). Rinse repeat every week, regardless of what is happening on the outside.

So at this time when the market is dropping, instead of panic selling or feeling bad about the drop in net worth, I add to my account every week, and see future dividend payments rising. Of course I monitor the companies in my portfolio for warning signs about these dividend payments, but the companies have been chosen because the data points to steadily rising dividends over time. Many of which have had rising dividends through multiple bear markets / recessions. So my advice to other dividend growth investors would be to stick to your plan and focus on rising dividends (not so much the falling stock prices). If anything, take part in the sale!


The Numbers

So with that out of the way, let's take a look at the numbers for February 2020:

February 2020 Dividend Summary
Taxable Accounts
CompanySymbolDateAmount
CVS HealthCVS2/3/2020$17.00
VerizonVZ2/3/2020$2.46
AT&TT2/3/2020$39.52
AppleAAPL2/13/2020$3.08
Abbott LabsABT2/14/2020$6.48
Procter & GamblePG2/18/2020$11.19
LazardLAZ2/28/2020$59.69
William-SonomaWSM2/28/2020$15.84
AmeripriseAMP2/28/2020$2.91
Taxable Accounts Total$158.17
Roth IRA Account
CompanySymbolDateAmount
Toronto Dominion BankTD2/3/20$13.70
Abbott LabsABT2/18/20$9.35
Omega Healthcare InvestorsOHI2/20/20$22.97
Roth IRA Account Total$46.02
Overall Dividend Income Total$204.19
Forward 12-month Projected Dividend Income Total
$3,456.03


For the second month of a quarter (February, May, August, November), this represents my highest payout thus far. A good sign that this is going in the right direction.

What did I buy in February? That is shown below:

February 2020 Transactions
BuysQtySellsQty
AMP2N/AN/A
OZK17
WBA10
CMI1


So I continued with my weekly system of making buys where I see value, and this amounted in shares purchased for Ameriprise (AMP), Bank OZK (OZK), Walgreens-Boots Alliance (WBA), and Cummins (CMI). These companies now make up the following percentage of my portfolio:

AMP - 0.63%, $19.40 of forward annual income
CMI - 3.92%, $152.08 of forward annual income
OZK - 4.68%, $214.24 of forward annual income
WBA - 4.38%, $195.81 of forward annual income

For the individual stocks in my portfolio, I am trying to not go above 5% for any position.


Dividend Payment History

Now let's take a look at dividend payout history

Month2014201520162017201820192020
January$14.38$14.42$70.45$72.34$97.11$237.62
February$49.07$50.38$112.01$190.55$178.07$204.19
March$50.22$52.16$182.28$232.83$231.81
April$10.83$27.91$64.56$78.40$70.34
May$46.52$59.42$132.14$162.41$187.18
June$6.69$47.51$90.97$198.86$259.18$195.35
July0$18.99$51.37$168.64$102.00$80.81
August$33.96$50.11$86.07$156.46$183.50$192.45
September$54.75$55.61$101.70$226.17$192.40$211.61
October$10.94$14.42$72.53$79.06$133.64$78.18
November$48.79$50.11$103.31$158.18$184.42$167.86
December$63.55$49.89$168.03$234.71$255.99$315.70

and its graphical representation...





Quarterly/Annual Increase

Below is a table of the change from the last quarter, and from the last year. Fairly healthy increases, in my opinion. If my job was offering me a 15% salary increase, that would definitely be music to my ears.

%Chg Qtr%Chg Year
Feb 202021.64%14.67%


Conclusion

It appears that I am back on track on the rising dividend income train, and it feels quite good. My intention is to keep it going as vigorously as I can. I'm excited for where it will take me.

Enough about me, how was your February? Let me know in the comments below!


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