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

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:

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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!

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**Triple Digit Growth Numbers In October; A 388% Increase In DGI YoY!**

The last couple of weeks I read blogs of other members of the DGI community to see how the month of October turned out. In many cases our DGI colleagues keep pushing forward by getting nice dividend increases, buying quality companies and hitting new milestones. The snowball is getting bigger and bigger. Let’s see what results I booked in October.

The Numbers

My dividend income for October was $166.05. In this month I got several raises as compared to the dividend payment three months ago. Realty Invome (O) paid me a penny more for every share than last quarter. This month also included the increased dividend from Altria (MO) – $0.80 for every share I own. Finally, the Bank of Nova Scotia (BNS) paid me CAD 0.85 instead of CAD 0.82 per share. This sums up to:

Bank of Nova Scotia (BNS) – $29.12

Kimco Realty (KIM) – $58.50

Altria (MO) – $31.20

Realty Income (O) – $3.75

Philip Morris (PM) – $6.84

Ventas (VTR) – $36.34

This makes the total amount of dividend income for this month a nice $166.05. My dividend income for the month of July 2018 was $165.45 so that’s an increase of exactly 0% QoQ. ☺️ My passive income for the month of October in 2017 was $34.02 so that’s an increase of 388% YoY. Wow, that’s quite a growth rate! Here is the graph that shows all monthly dividends YTD as compared to last year:

EF90800A-648D-4C83-8652-3519AD4DF9DD.pngLooking Forward

Hopefully the wild swings in stock prices remain for a while; BREXIT, the trade war between USA and China, oil supply/prices and rising interest rates are big macro economic issues. There is nothing better to see the stock prices of high-quality dividend paying companies getting dragged down on days of bad news items for the stock market in general. I’ve got my eyes on BLK, ITW, MO, SWK, TXN and XOM.

Happy investing!

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 ☺️.

July 2018 Dividend Income Up 342% YoY

Well, the month of July is already in the books. And it was a hot month in the Netherlands this year. Man! We had two heat waves in two weeks, unfortunately without Martha Reeves and the Vandellas. ☺️ I can’t wait to write another blog post about the progress of my dividend income. These blog posts are my favourites. As months go by I can clearly see the solid YoY growth and where I’m heading for FY 2018. This is gong to be a very good year in terms of growth and diversification. But, for now the month of July!

Income Numbers 

The total amount of dividend income in the month of July was $165.45. In this month two companies paid me more dividends per share than three months ago. Good old Realty Income increased their dividend with 0.46% and Philip Morris paid me 6.54% more than last quarter. My dividend income for this month was divided by:

Bank of Nova Scotia (BNS) – $28.23

Kimco Realty (KIM) – $58.80

Walt Disney (DIS) – $4.20

Altria (MO) – $27.30

Realty Income (O) – $3.74

Philip Morris (PM) – $6.84

Ventas (VTR) – $36.34

This totals to an amount of $165.45. My dividend income in the month of April was $134.49 so that’s a very welcome increase of 23% QoQ.

My passive income in the month of July last year was $37.45 so that’s a big increase of 342%. Wow! The difference comes from backing up the truck with various REIT stocks which have traded at very low valuations last year. This led to very high dividend yields at that time. REIT stocks have climbed out of the valley lows last weeks. As I wrote two months earlier: if prices continue to increase; I’m good with that. In case of another price decline I may add to my position of Kimco Realty and Ventas. I think these are terrific, well-run companies with well covered yields by FFO. So, according to me, there isn’t really a bad case scenario. During the month of July I also benefited from my nice position in MO which I’ve been building up quite conscientiously the last twelve months. The share price of this beaten down stock and PM still look very attractive although they’re facing some challenges. BNS has been a solid deliverer for me: always a higher than average dividend yield and a nice annual increase. What more could you wish for?

This leads to the next graph:

5157DBC5-EE33-4CBA-B6D7-02BEB26D4150.png

I already collected $932.23 this year whereas my total dividend income in 2017 was $827.71. Hitting it! We’ve only just begun with the second half year of 2018 so I’m very pleased with my progress in terms of percentages and dollars.

Stock Positions

One of my priorities for the coming months is to diversify my dividend growth stock portfolio. Only seven companies paid me a nice dividend and at the same time I’m heavily dependent of a small number of REIT’s. We’ll see which stocks are on sale in the upcoming period. Last month I added to my position in AT&T by buying 24 more stocks at a share price lower than the average price of my stake. Stocks which I would love to buy at a low or at least a reasonable valuation are Cisco (CSCO), Illinois Tool Works (ITW), Kimberly-Clark (KMB), Legget & Platt (LEG), Medtronic (MDT), Stag Industrial (STAG), STORE Capital (STOR) and Toronto-Dominion Bank (TD) for example.

I’m very curious how you did this month. Please share your progress and insights. I’m sure you had a good month too.

Thanks for reading.

Latest Purchase: AT&T

Last week I wrote a blog post about my candidate stocks for purchase in the month of July. It seemed like a tough call between DAL, GIS, LUV and T. I felt the competition was eventually between the companies LUV and T. Unfortunately for me, LUV published a very strong quarter report, which made the price increase from the low 50’s all up to $57. So I concluded: “Let’s wait on that one to come down again”.

But days after my article the stock price of T dropped just short of 4%. That’s what we like to see if we’re ready to buy a dividend growth stock; a lower price means a higher dividend yield. The reason for the price decline was their announcement of the second quarter report for 2018. AT&T beat their earnings estimates, but missed the revenue expectations, the first one to incorporate results from its new WarnerMedia unit (sixteen days included).

They also reported good news like the better-than-hoped wireless overall business trends and raised their guidance on full-year adjusted EPS, forecasting a $3.50 number versus an expected $3.38. Management also boosted free cash flow expectations to the high end of $21B range (inclusive of deal/integration costs).

Much has been written about AT&T over the last year. Its declining subscriber base due to cord-cutting, the necessity of the TWX merger and the massive debt load have all been covered numerous times by analysts. According to me, there are some good arguments for the bull and bear case.

Read More »

Dividend Income June 2018 “What Happened?”

It’s that time of the month again. ☺️ This is only the second time I’m publishing my monthly dividend income and I have to say I already like these regular posts very much. The DGI community reaches out to eachother to read, learn and motivate. My blog is a success already as it gives me the opportunity to communicate with so many people around the world who are in the same boat. It’s so cool! And it motivates me even more to buy (new) dividend growth stocks to only see the snowball effect getting bigger and bigger with time. Just like we want it. Last month my dividend income grew 869% YoY. Let’s see how I did this month.

Dividend Income & Two Increases

The amount of dividend income for June was $127.26. In this month I got two raises as compared to the dividend payment three months ago. Southern Company gave me a nice raise of their dividend with 3.45%. They have a respectful streak of growing their dividends for 16 years. Exxon Mobil paid me 6.49% more than last quarter which was their 35th time increasing their annual dividend. Wow! I’m very pleased with the increase of this Big Oil company after a lower growth rate during the last couple of years. This month excluded dividend payments by the companies ConocoPhilips, IBM, Wells Fargo and Walmart as I sold these positions at the end of 2017 and at the start of 2018. ConocoPhilips paid me $2.28 back in April, whereas IBM, Wells Fargo and Walmart respectively contributed $19.50, $14.82 and $12.75 to my quarterly dividend income.

In June I bought 27 stocks of Starbucks for a price of $54.00. The stock currently trades for about $48 a share, which equals an all-time high of 3% dividend for this company. In the coming days I’ll probably buy another bunch in order to average up my yield on cost. If management sustains the 20% dividend increases a year for the coming two years, then stepping in at a price of $48 will result in a yield on cost of 4.3% in 2020. Surreal!

Selling IBM, Wells Fargo & Walmart

My positions in IBM and Wells Fargo were partially based on Warren Buffett owning large stakes in these companies. When I first bought IBM in 2015 I thought they would hit back in two or three years after finding a formula for monetizing Watson and their big patent portfolio. I was convinced IBM was a regular turnaround story so I built up a nice position in two years. Reality set in when the Oracle of Omaha sold a part of his IBM position for Berkshire Hathaway. Only then I realized that margins would stay under pressure for a longer period of time because of increased competition by more successful competitors in the cloud computing business like Amazon, Apple, Google and Microsoft. Their most recent dividend increase showed a lower growth rate than the years before. So after that announcement I sold my entire position in IBM.

The story of Wells Fargo is more or less the same; I sold my shares because of a slower dividend growth rate. I built my position during two years. It used to be a terrific company, a bit boring, but a steady deliverer. But the stock tanked when Wells Fargo announced they had discovered millions of fake bank and credit card accounts. This is a company which will do fine sooner or later, but I didn’t feel comfortable owning it any longer. In fact, the other day I read Wells Fargo announced an increase of their quarterly dividend with 10%. So they may be already on their way back.

I sold Walmart after the sales and earnings numbers of the fourth quarter of 2017 showed pressured margins and deceleration in e-commerce sales growth. The company increased their dividend with only 2%. At that period in time, Mr. Market offered better alternatives in terms of dividend yield, growth prospects and valuation.

Now, I didn’t sell these positions with a loss, but I surely missed out big wins with Apple, Boeing and JP Morgan as these were the companies I considered as an alternative back then. So my loss is actually the missed compounding of investment in those businesses. Boeing is already a triple and JP Morgan a double as compared to the price levels at which I decided not to buy these stocks but IBM, WFC and WMT. These flawed investments show how important it is to have a smart buy strategy. The oppprtunity costs can be huge.

Breakdown of Dividend Income YoY

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My passive income in the month of June last year was $110.30 so that’s an increase of more than 15%. I know that isn’t close to the YoY dividend growth of 869% for the month of May. But when building a dividend growth stock portfolio you happen to have months that grow bigger and faster than others. A dividend growth of 15% YoY is still solid considering the shake up of my portfolio. You can see the loss of the above mentioned dividend payments has nearly been compensated by the quarterly dividend of DAL, O, PEP, SO and XOM. In June I benefited nicely from my position in XOM which I’ve been building up quite consistently the last three years. The share prices of DAL, O, SO and XOM still look attractive these days.

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

A5E37973-0B25-405D-8ECD-4AB58C8E886B.png

My dividend income in the month of March was $130.14 so that’s a decrease of 2.2%. I really don’t like a setback, but sometimes you need to step back and re-assess your portfolio. In contrary, I’m more than pleased that all months of 2018 show a steady upward dividend income in comparison with the same months last year. I really hope the QoQ growth number for September 2018 will be higher than my $127.26 for this month.

Dividend Income FY2018

We are halfway 2018 so the total dividend amount for the first six months is a good indication where I’m heading for this year. I already collected $763.35 this year whereas my total dividend income in 2017 was $827.81. It’s truly inspiring to foresee that the total YoY growth number will be amazing for 2018. The snowball is still rolling. That’s for sure.

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

Dividend Income May 2018 Increased 869% YoY

Well, here we are folks. This is the very first publication of my monthly dividend income. From now on I’ll be posting this information on a monthly basis to track my progress in reaching financial independence. Sharing this information publicly will motivate me even more to buy (new) dividend growth stocks and add them to my basket. I’ll be comparing my dividend income with the amount three months ago and the same month last year. Let’s roll!

The total amount of dividend income in the month of May was $153.68. In this month I got two raises for doing absolutely nothing more than in the month of February. Well, except for continuing to buy quality companies which have a nice streak of dividend increases. Apple increased their dividend with 16% and Tanger Factory Outlets paid me 2.2% more than last quarter. Tanger Factory Outlets became an official Dividend Aristocrat this month by paying a higher dividend than last year. That’s always nice for the statistics. Besides, in February I didn’t possess any stocks of Realty Income in contrary to the month of May. The dividend income was divided by:

Apple (AAP) – $16.06

CVS Caremark (CVS) – $2.00

Realty Income (O) – $3.72

Omega Healthcare (OHI) – $66.00

Tanger Factory Outlets (SKT) – $22.40

AT&T (T) – $43.50

This totals to an amount of $153.68. My dividend income in the month of February was $144.88 so that’s a very welcome increase of 6.1%.

My passive income in the month of May last year was $15.86 so that’s an increase of 869%. Say WHUT? Yes, a 869% increase! The difference comes from loading up the truck with various REIT stocks which have traded at very low valuations last year. This lead to very high dividend yields. REIT stocks have climbed out of the valley lows last weeks. If prices continue to increase; I’m good with that. In case of another price decline I may add to my position of Realty Income and Tanger Factory Outlets. So, according to me, there isn’t really a bad case scenario. During the month of May I also benefited from my nice position in AT&T which I’ve been building up quite conscientiously the last twelve months. The share price of this beaten down stock still looks very appealing.

This leads to the next graph:

4CEFB504-3BE7-4119-84A0-F09D8CD2D3EA.png

I already collected $636.10 this year whereas my total dividend income in 2017 was $827.81. We’re still in the first half year of 2018 so this looks very promising. As you can see I’m moving forward, every year, every month, and with every addition to my stock portfolio. That’s a good feeling. And, we’re already off for the month of June.

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