Come What May… A 90% Increase & A Record High 🥂

The month of May. Well, it wasn’t exactly the month of Theresa May. To say the least… But May was certainly a good month for me. Last month I wrote that a monthly dividend income higher than $200 seemed to be the new normal. In fact, I hope to touch the amount of $300 any time soon. That would be a huge milestone for me; just steamrolling forward 💪

Income numbers

For this month my total amount of dividend income was $291.38. As I wrote a record high and the fourth month in 2019 above the $200 threshold. Crossing the $300 barrier is well within reach, hopefully in August. I already notice the snowball effect taking place; every month I have more money to invest, because of the increasing number of stocks and higher dividend amounts per share.

Three companies paid me more than last quarter as a consequence of a raise. Apple (AAPL) increased its quarterly dividend from $0.73/share to $0.77/share, representing a 5.5% annual dividend increase. May included the first payment of $0.77/share. Good ol’ Realty Income (O) paid me $3.84, just a penny more than in February. Tanger Factory Outlets (SKT) paid me $0.355/share, which comes down to a 1.4% increase from prior dividend of $0.35. Delta Airlines (DAL) switched their month of pay date so that’s a bit of a cheat. They paid me $8.05 for this quarter.

The only business paying me more than a quarter ago because of a bigger position was CVS Caremark (CVS) which paid $17.00 (instead of $6.00). Here’s the breakdown:

Apple (AAPL) – $16.94

Abbvie (ABBV) – $18.19

CVS Caremark (CVS) – $17.00

Delta Airlines (DAL) – $8.05

Realty Income (O) – $3.84

Omega Healthcare (OHI) – $66.00

Starbucks (SBUX) – $16.92

Tanger Factory Outlets (SKT) – $51.83

AT&T (T) – $85.68

Texas Instruments (TXN) – $6.93

This makes the total amount of dividend income for this month a nice $291.38. My dividend income in February 2019 was $270.71 so that’s a small increase of 8% QoQ. My passive income for May 2018 was $153.68 so that’s an increase of 90% YoY. This means another high double-digit growth number, I love it! Here is the graph that shows all monthly dividends YTD as compared to last year:

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Transactions during May

I bought 22 stocks of 3M (MMM) in only two weeks. I like this company very much; they have a streak of 61 years increasing their dividends. Including this transaction I now own 26 stocks for an average price of $172.44. My first stocks were bought at a price slightly above $192. I added to my small position in four different chunks:

9F141247-4E21-4C3A-8D08-892667F1DFA4Looking Forward

This is my fourth month with a dividend income above $200. And I’m already on my way to realize the target of getting my first dividend income of $300+ in 2019.

My stake in the tobacco industry has come under pressure again after Nielsen tracking data indicated that cigarette industry volume fell 11.2% in the 4-week period ending on May 18 to mark a deceleration from the -9.5% 12-week pace, according to Wells Fargo. Not a good sign, but I’m sure MO and PM will prosper eventually. MO looks very attractive again at these price levels.

I earned $1,178.93 in dividend income YTD. That’s a big number, imho. I collected this income number three months earlier than in 2018.

Please let me know which stocks you bought. Did you buy 3M (MMM)? Was May a good month in terms of dividend income numbers?

Thanks for reading.

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March 2019 – A Growing Dividend Income, Again 👊

This post is already about the last month of the first quarter of 2019. January and February are in the books, both with a dividend income above the $200 and double-digit growth numbers. Each month the numbers are getting bigger and bigger. This is great and it really feels like I’m getting closer and closer to my goal of financial independence. Let’s find out if the last month of this quarter was also a month of a record high number!

Income Numbers

The amount of dividend income for month 2019/03 was $141.68. In this month I got three raises in dividend income from BlackRock (BLK), Norfolk Southern (NSC) and Union Pacific (UNP) as compared to the dividend payment three months ago. This was the second raise in one year for all three companies. What a fantastic businesses!

BlackRock (BLK) continued its streak of rising dividend payouts and rewarded its investors with a 5.4% quarterly dividend hike. The low payout ratio of 35% indicates that the current dividend is well-covered by the company’s earnings. BlackRock’s current dividend payout ratio is also lower than the company’s 40% average ratio over the past five years. Very nice! Norfolk Southern (NSC) announced in January that its board of directors approved an 8% increase in its quarterly dividend, from 80 to 86 cents per share. Their payout ratio sits around a low 34%. Union Pacific increased their dividend from $0.80 to $0.88 a share, a nice 10% increase. This comes down to a very conservative payout ratio of 40%. Union Pacific (UNP) recorded their ninth consecutive year of dividend increases.

This month also included a higher dividend payment by BlackRrock (BLK) and Exxon Mobil (XOM), because of my bigger stake in these companies. I really like to increase my positions in these companies. My dividend income for the month of March was generated by:

Bank of America (BAC) – $5.85

BlackRock (BLK) – $13.20

Cummins (CMI) – $11.40

Emerson Electric (EMR) – $4.90

Norfolk Southern (NSC) – $5.16

Realty Income (O) – $3.83

PepsiCo – $8.35

Southern Company (SO) – $21.00

Stanley Black & Decker (SWK) – $7.92

Union Pacific (UNP) – $5.28

Exxon Mobil (XOM) – $46.74

Breakdown of Dividend Income YoY

My passive income in the month of March last year was $130.14 so that’s an increase of 9% YoY. That’s on the low side for me. Especially after the YoY growth numbers of January and February. The progress QoQ was a bit lower, just 7%. The dividend income for March 2019 leads to the next graph:

57E64B3C-C1DE-41C1-9A2C-5A47ADF9351D.jpeg

Buys In March

During this month I added 10 stocks to my position in CVS Caremark (CVS) for a price of  $55.39. This additional buy brought down my average buy price. It’s now slightly above $61 and the yield on cost from this position has gone up to 3.27%.

I also initiated a position in JP Morgan Chase (JPM). This one has been on my radar since 2016. It was trading in the $55 – 60 range back then, but I wanted it get down to the low $50’s. Well, now I finally bought 6 stocks for $103.81. ☺️ I stepped in at a dividend yield of 2.80%. When it gets below the $100, I’m on it. I want this to be a meaningful position.

Dividend Income YTD 2019

Including the month of March I collected a nice $629.02 YTD. My total dividend income in 2018 was $1,793.09. It sure looks like I’m going to crush this number. What a feeling 👍

December 2018 – Again a month of growth, 12% YoY

I’m late with writing about my progress in dividend income. It’s already April 2019 and the last month I wrote about was November 2018. That seems like ages ago. My private life has been more turbulent so far than during 2018. But I do love writing about this stuff, so I’m eager to keep blogging. Anyway, today I’m writing about my progress in building up a dividend income during the month of December. It’s always nice to close a year of hard work and investing to see where we stand on our path to financial independence and early retirement. So, let’s hit it!

Income Numbers

The amount of dividend income for month 2018/12 was $131.95. In this month I got one small raise in dividend income from Realty Income (O) as compared to the dividend payment three months ago. “Slowly but surely” seems to sum this up pretty well. This was the only raise I got. So, to be honest, that’s a bit disappointing. But this month included my first dividend income by the companies Blackrock (BLK) and Stanley Black & Decker (SWK). I initiated a small position during the last months of 2018 and would love to build a bigger position. Hopefully, Mr. Market will freak out again because of growing market uncertainties like Brexit, trade wars between the USA, EU and China and signs of a coming recession. So my dividend income for the month of December was generated by:

Bank of America (BAC) – $5.85

Blackrock (BLK) – $9.39

Cummins (CMI) – $11.40

Emerson Electric (EMR) – $4.90

General Motors (GM) – $26.98

Norfolk Southern (NSC) – $4.80

Realty Income (O) – $3.75

Southern Company (SO) – $21.00

Stanley Black & Decker (SWK) – $7.92

Union Pacific (UNP) – $4.80

Exxon Mobil (XOM) – $31.16

Breakdown of Dividend Income YoY

My passive income in the month of December last year was $125.21 so that’s an increase of 5%. That’s on the low side for me, but this month has been lagging behind for a while now. The progress QoQ was a bit higher, just 7%.

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

Transactions in December

I decided to sell my full position in General Motors (GM), because the dividend hadn’t been raised for a couple of years. I believe it’s still a good value play. But when stock prices declined so rapidly in December I decided to buy other stocks with this money. Here’s what I bought:

Looking Forward

In order to raise my dividend income for this month going forward I selected the companies Boeing (BA), Home Depot (HD), Johnson & Johnson (JNJ), Lockheed Martin (LMT), 3M (MMM) and Visa (V). They’re all on my watchlist “2019” and my watchlist “buys during the next recession”. Some of these candidates would also give me exposure to new industries and increase my weighted dividend growth rate. Lovely.

Dividend Income FY2018

With the month of December I collected a nice $1,793.09 during 2018. My total dividend income in 2017 was $827.81. That’s an increase of just less than 119%. Wow! Rock solid! This is very encouraging. And we’re already on our way for 2019. The increase in terms of percentages will decline with time, but the increae in dollar amounts will get larger and larger. Just as Sam Cooke sang in 1964, “Ain’t that good news?” 👍

$$$ 136% Increase YoY In Passive Income For 2017/11 $$$

Finally, I have some time to write a blog post. Time does fly! This blog post, as the title suggests, is about my progress in dividend income for the month of November. The year 2018 has almost come to an end. Next year is going to be as excited and turbulent as 2018. At least, I hope so… Because with turbulence comes oportunities for our DGI community. But first, the numbers for the month of November.

Income numbers

The total amount of dividend income in the month of November was $230.73. This is my second monthly dividend income above the $200 threshold after the month of August. I like to see my income passing all kind of psychological numbers like $100, $200, $250, etc. It’s very encouraging, because these numbers look past the horizon when you just start with dividend growth investing. Only one company paid me more than last quarter as as consequence of a raise: good ol’ Realty Income with an increase of $0.01 ☺️. My dividend income for this month was divided by payments of 9 well-known and great companies:

Apple (AAPL) – $16.06

Abbvie (ABBV) – $9.60

CVS Caremark (CVS) – $2.00

Delta Airlines (DAL) – $8.05

Realty Income (O) – $3.75

Omega Healthcare (OHI) – $66.00

Starbucks (SBUX) – $16.92

Tanger Factory Outlets (SKT) – $38.85

AT&T (T) – $69.50

This makes the total amount of dividend income for this month a nice $230.73. My dividend income for the month of August 2018 was $209.12 so that’s an increase of 10% QoQ. Always nice to see a double-digit growth number here, although I’m more interested in the YoY growth.

YoY Growth

My passive income for November 2017 was $97.84 so that’s an increase of 136% YoY. This means a triple-digit growth number, I love it! Abbvie paid me my first dividend of $9.60 and my income from AT&T increased from $57.50 to $69.50 YoY. I’m very excited to have Abbvie and Starbucks in my basket. They’ll average up my dividend growth numbers. The dividends of OHI, SKT and T are the big ones this month. Here is the graph that shows all monthly dividends YTD as compared to last year:

66290F0B-4458-4B3E-97D2-2E4A277DD240

Buys In November

During November I added to my positions in Altria (MO) and AT&T (T). I bought 16 stocks of Altria at a price of $53.58 on November 28th and 29 stocks of AT&T as cheap as $30.28 on November 16th. Happily, these buys also lowered the average price of both positions. I always like that as it will increase my total return as I plan to never sell these positions.

In summary, November was a good month with solid growth numbers YoY and additions to my positions at very attractive prices. I’ll post my progress for the month of December this weekend.

Happy investing!

Putting Money Where My Mouth Is: Buying ABBV, BLK, ITW & SWK

The last two weeks were memorable for my DGI portfolio. I’m heavily invested in REIT’s and depend quite a bit on their dividends (I know I should write distributions instead 😊). The total dividend I receive from five REIT’s make about 38% of my total dividend income.

Some readers asked me why I didn’t allocate more money on high-growth, low-yield stocks. A good question, indeed. But after failing to obtain solid investment returns by investing in Magic Formula stocks and microcap stocks it felt good to invest my money in some low-growth, high-yield stocks. Finally, I saw money coming my way. I continued doing this and sometimes built a position in stocks with other characteristics like CVS, DAL, PEP and SBUX. But these were more exceptions to the rule.

New positions

As I wrote, the last two weeks were a breakthrough for my DGI portfolio. At least, it felt that way. I initiated positions in Blackrock (BLK), Illinois Tool Works (ITW), Stanley Black and Decker (SWK) and added to my position in Abbvie (ABBV). These stocks have been in my league of buy candidates for a longer period of time, but they tend to trade against multiples which I considered too high. But as they say, quality comes with a price. So when trading prices came down substantially and I had some ammunition left, I decided to buy some shares of these wonderful companies.

Fundamentals

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I guess the weighted average yield on cost of my DGI portfolio sits around 5%. As you can see, the yield on cost of all these stocks is way lower. But, the dividend growth rate over three years is extremely high. Right now, I think the dividend growth rate of my DGI portfolio is also around 5%. This is caused by my relatively large positions (in comparison to my other positions) in businesses which pay a high-yield, low-growth dividend. Besides the five REIT’s that I hold, these companies are Philip Morris (PM), Souhern Company (SO), AT&T (T) and Exxon Mobil (XOM). Luckily, the dividends of my four new positions are extremely safe. So there’s enough room for high dividend growth numbers out of their earnings per share and even more if earnings continue to rise. By buying these stocks my DGI portfolio got a nice quality boost.

I do believe that there’s no harm in missing out better opportunities at the moment like AT&T (6.7% yield) and Kimco Realty (7.1% yield) which I already own. It was attempting to add more shares to my existing positions, but I have to overcome my bias for having a fat yield at the moment and missing the buy opportunities which will do well for me over a longer period of time. As the Rolling Stones sing “Time is on my Side” if I invest with at least a 20 year horizon. I feel very excited with these new positions! 🤩

What did you buy with the current market dip? Please let me know. Thanks for your time.

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 $122.98. 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) – $4.90

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:

38B51B31-8868-4681-95D2-4DDFBE448558

Looking 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 $1,264.43 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.

Wow! A 230% YoY Growth In Dividend Income For August 2018

Sorry folks, I’m late. Unusually late. I’m sorry for that. Summer holiday, my part time post-master education for becoming an IT Auditor, the first weeks of the new school year for our daughters got me away from writing a blog post. That means I have some serious blogging to do. Today I’ll start with sharing my progress in generating a nice and steadily growing dividend income for the month of August. During July I realized a substantial 342% dividend growth YoY. That was an incredible move upwards. Let’s start right away to see what numbers are in the books for month 2018/08!

Income numbers

My total amount of dividend income in the month of August was $209.12. This is my first monthly dividend income above the $200 threshold. Wow, another inspiring record for me! In this month a couple of companies paid me more (for doing nothing ☺️) than the last time: Delta Airlines paid me 14.8% more and good old Realty Income decided to pay me 0.45% more in comparison with last month. My dividend income for this month was divided by payments of 8 well-known and great companies:

Apple (AAPL) – $16.06

CVS Caremark (CVS) – $2.00

Delta Airlines (DAL) – $8.05

Realty Income (O) – $3.74

Omega Healthcare (OHI) – $66.00

Starbucks (SBUX) – $16.92

Tanger Factory Outlets (SKT) – $38.85

AT&T (T) – $57.50

This makes the total amount of dividend income for this month a nice $209.12. My dividend income for the month of April 2018 was $153.68 so that’s a serious 36% increase QoQ. I don’t pay too much attention to this number as I think the YoY growth rate shows the development over a longer term and is more relevant in this regard.

My passive income for the month of August in 2017 was $63.44 so that’s an increase of 230% YoY. Holy smoke, this is some serious business! Delta Airlines paid their dividend in August, a month earlier as compared to their quarterly payments in March and June. Also, Starbucks paid me my first dividend. I’m very excited to see their first and fast rising contribution and I’m sure many will follow. The dividends of OHI, SKT and T are the big ones this month. Right now, I really depend on these names and yields. I’ll have to diversify with other names, business sectors, dividend yields and growth rates in order to keep growing in terms of dollar amounts and relative growth numbers. Keep pushing forward! Here is the graph that shows all monthly dividends YTD as compared to last year:

873755CF-C905-4463-B89E-7D467369164DLooking Forward

Some very interesting companies got a lot cheaper recently and especially last week. BLK, ITW, STAG, TXN, VTR are on my watchlist. Big names with attractive yields and growth rates looking back 3, 5 or 10 years. Some members of the DGI community already hit the buy button recently and added (more of) these stocks to their dividend growth portfolio. Hopefully I’m also able to benefit from these price declines by collecting a few bucks here and there and reprioritizing some expenses. We’ll see.

I’ll be posting my progress for the month of September the coming week. Stay tuned ☺️.