The third quarter is in the books, folks. Time flies when you’re having fun. And while having fun, the compounding effect of investing and reinvesting our increasing dividends is getting bigger and bigger. That’s the real beauty of the dividend investing strategy. It will take care of itself, if and only if we select high-quality businesses. But how do we know whether a company is a high-quality business or not? Well, in 90% of the cases a 50-year streak of paying increasing dividends is a pretty good indicator to start with. It’s as simple as that. Let’s see how September worked out for me.
Income Numbers
The amount of dividend income for month 2019/09 was $153.28. In this month I got raises in dividend income from Bank of America (BAC), Cummins (CMI), Norfolk Southern (NSC), Realty Income (O), Stanley Black & Decker (SWK) and Union Pacific (UNP). That’s quite a list, don’t you think? I also got my first payment by Wells Fargo (WFC).
BAC paid me 30% more than three months ago. Wow! The payment by CMI was 15% higher in comparison with June this year. NSC gave me an extra 9.30% this month. O rewarded me with the traditional, but still very welcome small hike of 0.2%, whereas SWK increased their dividend with 4.5%. This month also included the second dividend raise by UNP, a nice 10.1% increase. A very good month, imho.
Breakdown of Dividend Income
My dividend income of $192.92 for this month was generated by:
Bank of America (BAC) – $7.02
BlackRock (BLK) – $13.20
Cummins (CMI) – $13.11
Emerson Electric (EMR) – $4.90
3M (MMM) – $37.44
Norfolk Southern (NSC) – $5.64
Realty Income (O) – $3.85
PepsiCo (PEP) – $8.60
Southern Company (SO) – $21.70
Stanley Black & Decker (SWK) – $8.28
Union Pacific (UNP) – $5.82
Wells Fargo (WFC) – $13.77
Exxon Mobil (XOM) – $49.59
Progress
My passive income for the month of June 2019 was $192.92. That means an increase of 26% QoQ; that’s pretty significant for my lowest month of every quarter. This month is now really getting somewhere. The progress YoY is even more meaningful; my dividend income for September last year was $122.98. So that’s an awesome increase of 57% YoY. ME LIKE! Let’s look at the graph YTD:
Buys In September
During this month I bought 9 shares of Johnson & Johnson (JNJ) for a price of $128.22. You can read more about this purchase in my previous article. It still trades at an attractive valuation with a P/E of 15 and a dividend yield of 2.90%.
Dividend Income YTD 2019
Including this month I collected a nice $2,131.25 YTD. My total dividend income in 2018 was $1,793.09. It looks like I’m going to close the year with a FY dividend income just shy of $3,000. Too bad I won’t cross that mark. I really like passing those psychological meaningful round numbers. But that would still imply an increase in FY dividend income of 65% YoY. I could live with that. 😎
Thanks for stopping by and feel free to comment.
Happy investing!
Dividend Compounder 
57% growth is awesome – congrats on the great month! Really like the JNJ purchase, was SO close to adding them last month.
-Divcome
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Div Compounder –
You got this. The growth is awesome, the consistent investments is unreal and can’t wait for you to cross many major milestones to come.
-Lanny
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DC, we share a comparable income and five dividend paying stocks (BAC, BLK, MMM, PEP, UNP) in September. I like your suggestion of identifying high-quality investments by simply looking at the dividend record. A company that was able to raise its dividend for several decades went through a lot of crisis and problems. And yet the dividend was growing every year. You can’t do that if you don’t have a rock solid, crisis-proof business model. So it’s for sure a good indication.
Finger crossed for that $3,000 mark. Maybe you still can reach it.
Good luck!
-SF
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