Still Going Strong: A 58% YoY Growth In Dividends For August

Everything is back to normal over here; the summer vacation is over, our kids are back to school and the usual wet and windy weather has returned. Time has flown by. Meanwhile, the dividends haven’t stopped from rolling in ☺️. August was a month of several big price drops which gave us as long term investors some pretty good opportunities to buy good companies at reasonable prices. Fortunately, I had some cash at hand to take advantage of these price swings. Here’s my score of the month of August.

Income numbers

For this month my total amount of dividend income was $331.12. This is the highest amount of monthly dividend income so far and it’s also my first month above the $300 threshold. Hallelujah! This is so inspiring.

Three companies paid me more than last quarter as a consequence of a raise or larger position. The dividend payment I received from Abbvie (ABBV) has increased from $18.19 in May to a nice $56.71 in August. Realty Income (O) paid me $3.85, just a penny more than in May. Delta Air Lines (DAL) increased its quarterly dividend with 15.00% which resulted in a dividend of $9.26 for this month. Here’s the breakdown:

Apple (AAPL) – $16.94

Abbvie (ABBV) – $56.71

CVS Caremark (CVS) – $17.00

Delta Air Lines (DAL) – $9.26

Realty Income (O) – $3.85

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 $331.12. My dividend income in May 2019 was $291.38 so that’s an increase of 14% QoQ. My passive income for August 2018 was $209.12, so that’s a very welcome 58% YoY growth. 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 August

I added to three positions at lower prices than my average buy price, locking a higher dividend yield than I already had. This leads to a higher yield on cost. I bought 7 stocks of Abbvie (ABBV), 3 stocks of 3M (MMM) and 10 stocks of Altria (MO). The details are as follows:

F9CE049A-441D-4EE0-9384-541EB5BC6F71I now own 60 stocks of Abbvie (ABBV), 29 shares of 3M (MMM) and 97 pieces of Altria (MO). That’s getting serious.

Looking Forward

I earned $1,938.34 in dividend income YTD, which means I surpassed the FY 2018 dividend income of $1,793.09.

Some companies in my portfolio are still trading for low or reasonable valuations. at the moment. In addition to the three bunsiness above, I can think of CVS Caremark (CVS), AT&T (T), Exxon Mobil (XOM) and Wells Fargo (WFC). I’ve also had my eyes on Bank of Montreal (BMO), Johnson & Johnson (JNJ), Simon Property Group (SPG) and the Toronto-Dominion Bank (TD).

Altria (MO) and Philip Morris (PM) confirmed their talks about a potential all-stock “merger of equals.” A combined company could be worth more than $200 billion. I’m curious how this one will play out.

Did you buy a number of companies during the price swings in August? Please let me know.

Thanks for for your time.

Happy investing!

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.