A Step Back For The Month Of September 2018, DGI Down 11% YoY

After posting my progress for the month of August 2018 I decided to follow up quickly. Today I’m writing about my progress in building up a dividend income during the month of September. My dividend income growth YoY for July was +342% and for August +230%. Ready, set, GO!

Income Numbers

The amount of dividend income for month 2018/09 was $122.93. In this month I got several raises as compared to the dividend payment three months ago. The big Bank of America gave me a nice raise of their dividend with 25%. They have a short, but impressive streak of growing their dividends for 3 years. Very rewarding until now! Cummins paid me 5.6% more than last quarter. The companies Norfolk Southern and Union Pacific increased their dividends for the second time in one year! NSC with 11.11% and UNP with 9.6%. So, I’m pleased, very pleased with that. This month excluded the dividend increase of 14.5% by Delta Airlines (paid in August). This all sums up to:

Bank of America (BAC) – $5.85

Cummins (CMI) – $11.40

Emerson Electric (EMR) – $4.85

General Motors (GM) – $26.98

Norfolk Southern (NSC) – $4.80

Realty Income (O) – $3.74

PepsiCo (PEP) – $8.35

Southern Company (SO) – $21.00

Union Pacific (UNP) – $4.80

Exxon Mobil (XOM) – $31.16

Breakdown of Dividend Income YoY

My passive income in the month of June last year was $137.55 so that’s a decrease of 11%. Too bad, but this has everything to do with my selling of COP, IBM, WFC and WMT during  the end of 2017 and buying stocks which pay their dividends in other months. The big YoY growth in the months July and August come from these moves. The progress QoQ was a -3%. The missing payment by Delta Airlines for September was mostly compensated by the dividend increases of the above mentioned companies BAC, CMI, NSC and UNP.

The dividend income for the month of September leads to the next graph:

F155909B-1DEA-4422-918E-0AE1AD2E5DD4.pngLooking Forward

In order to raise my dividend income for this month going forward I searched the usual pay dates of the companies I love to buy and are om my watchlist. As I wrote earlier, I need to diversify in business sectors, companies and dividend growth rates. I found that Blackrock (BLK), General Mills (GIS) and STAG Industrial (STAG) pay their dividends in the month of September. It’s not the most relevant factor in my decision making process as the focus should always be on quality and valuation, but it’s a nice to bonus if a buy candidate pays a dividend in your months which lag a bit behind other months.

Dividend Income FY2018

We have three quarters of 2018 behind us and I already collected $1,264.38 this year whereas my total dividend income in 2017 was $827.81. It’s truly inspiring to see that the total YTD 2018 dividend income already leads to more than a 50% beat as compared to FY dividend income 2017.

I’m very curious how you did this month. Please share your progress and insights.

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10 thoughts on “A Step Back For The Month Of September 2018, DGI Down 11% YoY

  1. Hi Dividend Compounder,

    Good to see that your dividend income is growing so fast this year. You have a nice portfolio. Do you have plans for new purchases in October?

    My dividend income was 28% higher in September than last year.

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  2. Thanks for stopping by and your nice comment. I’ve got my mind set on BLK, ITW and TXN. This month I’ll have about $2,300 fresh capital. So that gives me a nice opportunity to buy some wonderful businesses. How about you?

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    • I bought a few shares of HB Fuller(FUL) this week. The stock price was at the lowest point of the year. I could not resist the temptation 🙂

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  3. Great Forward dividend income. And an even more impressive YOY growth, I just recently purchased O, I am looking forward to begin collecting their monthly dividend. I am also looking to purchase PEP once I have some funds. Keep up the amazing job, and good luck with that new fresh capital coming in. I look forward to stopping on by and viewing your progress.

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  4. Hi DC,
    Nice month, even though it’s lower than previous year. Looking at your graph, it looks like this may be the last month when you receive a decrease compared with last year as December should be in your favor 🙂
    P.S. I am also trying to see if I have any stocks in my watchlist that pay at my laggard months when considering a purchase, even though it’s not the main factor, of course 🙂
    BI

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  5. Great month compounder! I wouldn’t be too concerned with the decrease. It is much better to see the decrease from sales rather than dividend cuts. Keep up the great work DC and keep on marching forward. The growth charts are looking great.

    Bert

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