Tuesday, July 5, 2022

June 2022 Dividend Income

As I'm writing this blog post, the high temperatures here in Central Wisconsin are expected to reach into the mid-70 to high-70 degrees Fahrenheit range over the next few days. As a result of this flawless weather, I will be getting outside as much as possible this Independence Day weekend.

With that aside, I will be discussing the dividend income that my portfolio produced during June 2022.







Analysis:

During the month of June 2022, I received $332.86 in net dividends. Compared to the $302.53 in net dividends that I collected in March 2022, this is a 10% growth rate over the prior quarter.

Against June 2021's net dividends amount of $197.54, this is an astonishing 68.5% year-over-year growth rate.

Diving into more details, I received $242.80 in net dividends from 44 stocks in my Robinhood portfolio. I also collected $75.43 in net dividends from my Capital Income Builder (CAIBX) mutual fund within my retirement account. My net dividends received from my Webull portfolio were $14.15 from six stocks. And last but not least, I collected $0.48 in net dividends from 23 stocks in my M1 Finance account.

The $30.33 quarterly increase in my net dividends received from March 2022 to June 2022 were due to the following activity in my portfolio:

My net dividends collected from Main Street Capital (MAIN) surged $1.16 higher within my Robinhood account (including special dividends), which was the result of my decision to purchase four more shares back in May.

I received an extra $5.40 in net dividends from Simon Property Group (SPG) in my Robinhood portfolio. This was due to my addition of three more shares last month and the recent 3% increase in the quarterly dividend.

My net dividends collected from PepsiCo (PEP) within my Robinhood account increased by $1.37. This was the result of my purchase of a share back in May. 

I received an additional $3.66 in net dividends from Digital Realty Trust (DLR) in my Robinhood portfolio, which was because of my decision to add three shares to my position in May.

My net dividends collected from Union Pacific (UNP) were $0.36 higher within my Robinhood account, which was due to the 10.2% raise in the dividend recently.

I received an extra $0.40 in net dividends from UnitedHealth Group (UNH) in my Robinhood and Webull portfolios. This was the result of the 13.8% boost to its quarterly dividend last month.

My net dividends collected from Shell (SHEL) were $0.18 higher within my Robinhood account, which was because of the 4.2% dividend increase back in March.

I received an additional $4.88 in net dividends from BlackRock (BLK) in my Robinhood portfolio. This was driven by my decision to pick up another share of BLK in April

My net dividends collected from Home Depot (HD) increased by $1.90 within my Robinhood account, which was due to my purchase of another share in April.

I received an extra $0.98 in net dividends from Duke Energy (DUK) in my Robinhood portfolio. This was because of an extra share that I added back in February.

My net dividends collected from Raytheon Technologies (RTX) were $0.28 higher within my Robinhood account, which was the result of the stock's 7.8% dividend hike in April.

I received an additional $0.01 in net dividends from Realty Income (O) in my Robinhood portfolio. This was due to the stock's 0.2% increase in the monthly dividend in March. 

My net dividends collected from KeyCorp (KEY) were boosted by $3.32 within my Robinhood account, which was because of my decision to add 17 shares of the stock to my position in May.

I received an extra $3.83 in net dividends from NextEra Energy (NEE) in my Robinhood portfolio. This was due to my dividend stock purchases in March and April. 

My net dividends collected from International Business Machines (IBM) were $0.04 higher within my Robinhood account. This was the result of the stock's 0.6% dividend increase in April.

I received an additional $0.35 in net dividends from Johnson & Johnson (JNJ) in my Robinhood portfolio, which was because of the stock's 6.6% bump in its quarterly dividend in April.

My net dividends collected from Southern (SO) were $0.10 higher within my Robinhood account. This was due to the stock's 3% dividend raise in its quarterly dividend in April.

I received an extra $1.45 in net dividends from Cummins (CMI) in my Robinhood portfolio, which was the result of my purchase of an extra share in May.

My net dividends collected from American Water Works (AWK) were $0.21 higher within my Robinhood account. This was because of the stock's 8.7% dividend hike that was announced in April.

I received $0.03 less in net dividends in my M1 Finance portfolio, which was due to the timing of Fastenal's (FAST) dividend payment.

My net dividends collected from CAIBX were $0.48 higher. This was due to my extra shares in the mutual fund compared to March.

Concluding Thoughts:

My net dividends continue to steadily grow with each passing quarter. Given my consistent capital deployment of around $3,000 each month, I wouldn't be surprised if my net dividends were close to $500 received in June 2023.

Those brave signers of the Declaration of Independence who pledged their lives, fortunes, and sacred honor were the spark that led to the birth of this country. And the brave men and women who have fought to protect our freedoms are what allowed so many to achieve their version of the American dream over the generations!

I'm very blessed to be living in the United States of America. The progress I have made in building my dividend growth stock portfolio wouldn't have otherwise happened to the extent that it has if I lived in any other country.

Discussion:

How was your month for dividend income?

Did you receive any first-time dividends during the month?

Thanks for reading. I look forward to your comments below!

Tuesday, June 28, 2022

June 2022 Dividend Stock Purchases

As I'm writing this blog post, it's 88 degrees Fahrenheit. The good news is that humidity is somewhat low at 43%, so the heat isn't particularly oppressive. And over the next week, high temperatures here in Central Wisconsin will drop to the upper-60 degrees Fahrenheit to mid-70 degrees Fahrenheit range. In my opinion, those temperature ranges are ideal for outdoor activity. Thus, I will be getting outside as much as I can in the days ahead.

There is less than a week left in the month of June and I won't be making any stock purchases in the last few days of the month. That's why it's time to take a look at the stock purchases that I made during June 2022.




Starting with my retirement account, the $75.43 in net dividends that I received from my Capital Income Builder (CAIBX) mutual fund were reinvested. Since I left my prior job last July to write for The Motley Fool and Seeking Alpha, dividend reinvestment is the only way my share count of CAIBX will grow moving forward.

My CAIBX share balance increased by 1.21 shares to 180.811 heading into July. This helped my net annual forward dividend income to move $2.58 higher, which works out to a 3.42% net dividend yield.

I started off the month by adding 18 shares to my position in Medical Properties Trust (MPW) at an average cost of $17.53 a share. Interested readers can check out this recently published Motley Fool article on why I like the stock, as well as Realty Income (O). This dividend stock purchase added $20.88 to my portfolio's net annual forward dividend income, which is equivalent to a weighted average net yield of 6.62%.

The next dividend stock that I added to in June was 11 shares of STORE Capital (STOR) at an average cost of $27.40 a share. For a more in-depth dive into why I'm bullish on STOR, readers can check out this Motley Fool article on STOR and Digital Realty Trust (DLR) that was published earlier this month. As a result of this dividend stock purchase, my net annual forward dividends surged $16.94 higher. This equates to a 5.62% net dividend yield.

I also added three shares of Simon Property Group (SPG) to my portfolio at an average cost per share of $111.48. This added $20.40 to my net annual forward dividend income, which works out to a weighted average net yield of 6.10%.

The next dividend stock that I purchased in June was 11 shares of Cisco (CSCO) at an average cost of $45.41 a share. This boosted my net annual forward dividends by $16.72, which is equivalent to a 3.35% net dividend yield.

I also added three shares of Medtronic (MDT) at an average cost per share of $89.51. Curious readers can check out this Motley Fool article from earlier in the month to see why I'm optimistic on MDT, as well as CVS Health (CVS). This bumped my net annual forward dividend income up by $8.16, which equates to a weighted average net yield of 3.04%.

The next dividend stock that I purchased was two shares of International Business Machines (IBM) at an average cost of $135.38 a share. This led my net annual forwards to increase by $13.20, which works out to a 4.88% net dividend yield.

I also added two shares of 3M (MMM) to my portfolio at an average cost per share of $136.01. This boosted my net annual forward dividend income by $11.92, which is equivalent to a weighted average net yield of 4.38%.

The only non-dividend stock that I purchased during June was 0.5 shares of Amazon (AMZN) at an average cost of $102.78 a share. Readers can find out why I added to my position in this stock by reading the April 2022 Dividend Stock Purchases blog post of this series. 

I also added six shares of Altria Group (MO) to my portfolio at an average cost per share of $42.16. For more color on why I made this decision, readers can check out this Motley Fool article on the stock. My net annual forward dividends soared $21.60 higher as a result of this purchase, which equates to an 8.53% net dividend yield.

The next dividend stock purchase that I made during June was six shares of GlaxoSmithKline (GSK) at an average cost of $42.49 a share. I laid out my reasoning for this purchase several weeks back in my June 2022 Dividend Stock Watch List blog post. My net annual forward dividend income increased by $12.00 due to this purchase, which works out to a weighted average net yield of 4.71%.

The final dividend stock purchase that I executed during the month was Kinder Morgan (KMI) at an average cost per share of $16.42. My logic for this decision was also laid out in the June 2022 Dividend Stock Watch List post that I linked to in the paragraph above. My net annual forward dividends grew by $19.98 as a result of this purchase, which is equivalent to a 6.76% net dividend yield.

Concluding Thoughts:

I deployed $3,192.36 in capital during June 2022. My dividend stock purchases for the month added $164.38 in net annual forward dividend income to my portfolio. Along with the $7.014 in increased annual dividend income from dividend increases received during the month, my net annual forward dividends soared from just under $2,790 at the start of the month to a bit more than $2,960 heading into July.

Discussion:

How was your June 2022 for capital deployment?

What stock positions did you add to and did you open any new positions during the month?

As always, thanks for reading and please feel free to comment below!

Tuesday, June 21, 2022

Expected Dividend Increases for July 2022

As I'm writing this blog post on June 17, it's currently in the mid-70 degrees Fahrenheit here in Central Wisconsin. And this is expected to persist over the next few days before temperatures heat up to the mid-80 degrees Fahrenheit. Needless to say, I'll be getting outside as much as possible in the days ahead.

Aside from the weekly report on the weather in my area, I have received all of the dividend increases that I'm expecting for June besides Clorox. That's why I will be recapping the payout raises that I received during the month and looking ahead to the dividend announcements for July.

Actual Dividend Increases for June 2022

Dividend Increase #1: Realty Income (O)

Realty Income declared a 0.2% increase in its monthly dividend per share from $0.2470 to $0.2475. This was in line with the expectation that I outlined in the previous post of this series. O is really as steady as they come and it proves it quarter after quarter with payout bumps. 

My net annual forward dividends inched $0.078 higher across my 13 shares of O due to the dividend announcement.

Dividend Increase #2: W.P. Carey (WPC)

W.P. Carey announced a 0.2% bump in its quarterly dividend per share from $1.057 to $1.059. Similar to O, WPC's new quarterly dividend per share is precisely what I anticipated it would be. 

Across my seven shares of WPC, my net annual forward dividends increased by $0.056 as a result of the dividend increase.

Dividend Increase #3: UnitedHealth Group (UNH)

UnitedHealth Group declared a 13.8% hike in its quarterly dividend per share from $1.45 to $1.65. This again was in line with my prediction.

My net annual forward dividends surged $1.60 higher across my two shares of UNH due to the payout boost.

Dividend Increase #4: FedEx (FDX)

FedEx blew my projection out of the water. FDX announced a massive 53.3% hike in its quarterly dividend per share from $0.75 to $1.15. This was four times the 13.3% raise that I was expecting. Not bad for my first raise received from the stock.

Across my three shares of FDX, my net annual forward dividends soared $4.80 as a result of the dividend increase.

Dividend Increase #5: General Mills (GIS)

General Mills declared a 5.9% increase in its quarterly dividend per share from $0.51 to $0.54. 

My net annual forward dividends inched $0.48 higher across my four shares of GIS due to the payout raise.

Pending Dividend Increase: Clorox (CLX)

Clorox has yet to announce its next dividend payment. But I'm still forecasting a 0.9% increase in the quarterly dividend per share from $1.16 to $1.17. I will update this section of the blog once CLX announces its next dividend.

Expected Dividend Increases for July 2022

Expected Dividend Increase #1: Wells Fargo (WFC)

The first dividend raise that I'm predicting for July is Wells Fargo. I believe that WFC will declare a 20% boost in its quarterly dividend per share to $0.30.

If my prediction is correct, my net annual forward dividends would rise by $1.60 across my eight shares of WFC.

Expected Dividend Increase #2: J.M. Smucker (SJM)

The next dividend increase that I am expecting for next month will be from J.M. Smucker. My projection is that SJM will announce a 5.1% hike in its quarterly payout per share to $1.04. 

If SJM meets my expectations, this would lift my net annual forward dividends by $0.60 across my three shares.

Expected Dividend Increase #3: National Retail Properties (NNN)

The third dividend raise that I'm forecasting for July is from National Retail Properties. I anticipate that NNN will declare a 3.8% increase in its quarterly dividend per share to $0.55.

If my forecast is right, my net annual forward dividends would surge $0.96 higher across my 12 shares of NNN.

Expected Dividend Increase #4: Essential Utilities (WTRG)

The next dividend boost that I am predicting for next month will be from Essential Utilities. I believe that WTRG will announce a 7.2% raise in its quarterly dividend per share to $0.2875.

If my prediction is correct, my net annual forward dividends would rise by $0.772 across my 10 shares of WTRG.

Expected Dividend Increase #5: Cummins (CMI)

The fifth dividend raise that I'm forecasting for July is from Cummins. My projection is that CMI will declare a 7.6% hike in its quarterly dividend per share to $1.56. 

If CMI meets my expectations, this would boost my net annual forward dividends by $2.20 across my five shares.

Expected Dividend Increase #6: Hershey (HSY)

The next dividend boost that I am expecting for next month will be from Hershey. I believe that HSY will announce a 9.2% raise in its quarterly dividend per share to $0.984.

If my forecast is right, my net annual forward dividends would surge $0.996 higher across my three shares of HSY.

Expected Dividend Increase #7: Duke Energy (DUK)

The seventh dividend raise that I am predicting for July is from Duke Energy. I expect that DUK will declare a 5.1% increase in its quarterly dividend per share from $0.985 to $1.035.

If my prediction is correct, my net annual forward dividends would be boosted by $1.20 across my six shares of DUK.

Concluding Thoughts:

I received $7.014 in dividend increases in June from five stocks. This would require $200.40 in fresh capital to match at a 3.5% weighted average dividend yield.

Based on the seven raises that I'm expecting in July, my net annual forward dividends would be lifted by $8.328. This would be equivalent to investing $237.94 at a 3.5% average net yield.

Discussion:

How was your June 2022 for dividend announcements?

Are you anticipating any first-time dividend increases as I am with WTRG, CMI, HSY, and DUK?

Thanks for your readership and please feel free to share your thoughts below!

Tuesday, June 14, 2022

July 2022 Dividend Stock Watch List

As I'm writing this blog post, it's raining here in Central Wisconsin. The good news is that this will help keep the fire danger low for the foreseeable future as we head into summer. But the bad news is that it will be more difficult to enjoy the outdoors.

With that aside, it's already mid-June. That makes now a good time to look a few weeks ahead at three stocks that I will buy next month, barring massive surges in their share prices. Let's dig in.

Image Source: Pexels

Dividend Stock #1: VICI Properties (VICI)

As I explained in a Motley Fool article published last month, VICI Properties is the largest gaming real estate investment trust (REIT) in the world. The company owns many of the most iconic gaming properties in the world.

Ownership of these reputable properties has literally paid dividends to VICI's shareholders. This has allowed the stock to average high-single-digit annual dividend increases over the past several years. With a dividend payout ratio just above 70% in 2021, dividend growth should remain strong going forward.

Buying VICI in July is an opportunity to purchase shares ahead of the stock's anticipated payout hike in September. In the meantime, the starting yield on a lot of shares at the current $30 share price is 4.8% (as of June 11, 2022). And at a 2022 price-to-AFFO-per share ratio of 16.5, VICI's shares look sensibly valued at this time as well.

Dividend Stock #2: Merck (MRK)

The next stock that's on my watch list for July is the pharma powerhouse Merck. Interested readers can get my most recent thoughts on the stock in more detail in this Motley Fool article that was published last month.

But the gist of it is these three points:

1) The stock's impressive drug pipeline should lead to above-average growth in the years ahead.

2) The market-beating payout should continue to increase at a healthy rate.

3) The stock is trading at a bargain valuation for its quality.

Dividend Stock #3: Magellan Midstream Partners (MMP)

Astute readers will point out that technically Magellan Midstream Partners is a distribution stock and not a dividend stock. This is due to the fact that MMP is a master limited partnership and not a C-corp, so it pays distributions rather than dividends.

It has been a while since I have looked at MMP, but the fundamentals look intact from what I can tell. This is why I still like the stock from when I last covered it at Motley Fool last December.

The basic reasons why I'm confident that the stock will make its unitholders rich in the years ahead are as follows:

1) MMP's 12,000 miles of refined products and crude oil pipelines would be almost impossible for any competition to replicate. 

2) Global economic growth will require more refined products and crude oil over the next couple of decades, which should lead to slow and steady growth for MMP.

3) MMP pays a market-crushing 7.9% distribution yield, which is well-covered by distributable cash flow.

Concluding Thoughts:

I'm very blessed to have the opportunity each month to add to my positions in the best companies in the world. And July should be another month with capital deployment in the $2,500 to $3,000 range. This should go a long way in my goal of building meaningful passive income in the years ahead to achieve financial independence.

Discussion:

Are any of VICI, MRK, or MMP on your watch list for July 2022?

If not, what stocks are you considering purchasing next month?

I appreciate your readership and welcome your comments below!