Tuesday, November 24, 2020
Tuesday, November 17, 2020
Tuesday, November 10, 2020
As I'm writing this blog post, I'm about halfway into my 6 day break from work (due to recently taking 4 vacation days) and I couldn't have received any better weather during my vacation. Needless to say, we haven't been fortunate enough to experience warm, sunny days in November in years (it's been 60 to 70 degrees every day this past week).
With that aside, I will be getting into the intent of this post, which is to detail the dividends that I received during the month of October 2020.
During the month of October 2020, I received $75.72 in net dividends.
Against the $73.79 in dividends collected in July 2020, this represents 2.6% quarterly growth.
More impressive, is the fact that this represents 80.7% YoY growth compared to the $41.91 in dividends received in October 2019.
More specifically, I received $62.98 in net dividends from 16 companies within my Robinhood portfolio. Additionally, I received $12.50 from 6 companies within my Webull portfolio. Lastly, I received $0.24 in dividends from 11 companies within my M1 Finance portfolio.
The $1.93 increase in my net dividend income from July 2020 to October 2020 was as a result of the following activity within my taxable portfolios:
My net dividends received from GEO Group (GEO) declined by $2.24 across my Webull and Robinhood accounts due to the stock's recent dividend cut.
Conversely, my net dividends received from W.P. Carey (WPC) increased by $0.01 in my Robinhood account as a result of the stock's recent dividend increase.
My net dividends received from Realty Income (O) also increased by $0.01 within my Robinhood account due to the stock's recent dividend increase.
My net dividends received from STORE Capital (STOR) were boosted by $0.17 due to its recent dividend increase across my Webull and Robinhood accounts.
My net dividends received from Philip Morris International (PM) increased by $0.27 within my Webull and Robinhood accounts as a result of the stock's recent dividend increase.
My net dividends received from Altria Group (MO) were boosted by $0.34 due to the stock's recent dividend increase in my Webull and Robinhood accounts.
My net dividends received from GlaxoSmithKline (GSK) increased by $0.13 as a result of the stock's previous dividend announcement.
Finally, my net dividends increased $3.24 as a result of my reduction in Robinhood margin used.
While my net dividends received changed very little from July 2020 to October 2020, it's encouraging that they managed to increase given that I sustained a significant dividend cut from GEO that was first reflected in this income report.
Fortunately, I will be resuming my previous capital deployment schedule of ~$1,500/month beginning this month, so my dividend income should begin to make significant progress once again.
I am anticipating that my net dividends received in January 2021 will represent at least 10-15% growth over October 2020 as a result of my capital deployment in the weeks ahead.
How was your October in terms of dividend income?
Were any recent dividend cuts that you endured reflected in your October 2020 dividend income as was the case with GEO for me?
Thanks for reading and I look forward to replying to any comments that you leave in the comment section below!
Tuesday, November 3, 2020
Readers will have to forgive me for sounding like a broken record over the past number of months, but we're already in November as I'm writing this blog post!
This year continues to fly by and as a result, I am in crunch time as far as trying to achieve my personal and financial goals for the year.
Without further ado, I'll get into the crux of this post, which is to discuss my capital deployment during the month of October 2020. As a spoiler alert, there was a significant improvement in capital deployment during October 2020 as compared to September 2020.
Beginning with the activity in my retirement account, I deployed $378.00 in capital between my 7% contribution and my employer's 3% contribution.
Net of the $17.00 in sales charges, I set aside $361.00 in capital to build my Capital Income Builder (CAIBX) position, which boosted my share count from 130.445 starting October to 136.677 at the end of the month.
Factoring in $2.14 in annualized dividends/share, this boosted my net annual forward dividends by $13.34.
The additional net annual forward dividends as a result of my capital deployment during the month works out to a 3.70% net yield.
Transitioning to my Robinhood account, I lowered my margin used from $1,619.88 heading into October to just under $1,000 at the end of October.
Since margin used after the first $1,000 accrues 5% annualized interest charges, this $619.88 reduction in my margin as a result of $561.45 in capital contributions and $62.98 in net dividends resulted in a $30.99 increase in my net annual forward dividends.
Overall, October was a great month in terms of capital deployment for me as I deployed $980.88 (my strongest month of capital deployment since I deployed nearly $3,000 in May 2020) during the month in the form of retirement contributions and deleveraging my Robinhood margin to just below $1,000.
This activity within my portfolio added $44.33 in net annual forward dividends to the portfolio, which equates to an average weighted yield of 4.52%.
Unfortunately, my net annual forward dividends fell $32.34 as a result of dividend announcements during October 2020 (i.e. Energy Transfer's distribution cut, as well as dividend increases from AbbVie and Visa), which led to my net annual forward dividends plunging from their all-time high of $1,281.99 set earlier in the month.
However, I was fortunate enough to end October 2020 with my highest end of month net annual forward dividend total of $1,254.52.
Given that I have now paid off virtually all of my personal debt going into November (aside from a few hundred dollars in credit card debt that I still have about 3 months to pay off without incurring interest charges and the $1,000 of interest free Robinhood margin), I anticipate that I will be able to deploy $1,500-$1,600 of capital in November.
How was your October in terms of capital deployment?
Did you initiate any new positions in dividend stocks during the month?
As always, I appreciate your readership and look forward to reading your comments in the comment section below!
Tuesday, October 27, 2020
As I'm writing this blog post, we're just a couple months away from the year coming to a close. I've indicated it before in past blog posts and I will again: the speed with which this year is passing us by has not and will not cease to amaze me.
Since the only dividend increase that I'm expecting in my whole share portfolio during November is Iron Mountain and the dividend increase that I'm expecting from Hormel Foods (HRL) will be statistically insignificant, this blog post will be more of an update on dividend increases that were received in October from Visa and AbbVie, as well as the distribution cut from Energy Transfer.
Tuesday, October 20, 2020
It was just a few weeks ago that I reached a massive milestone on my dividend growth investing journey, which was the 3 year mark of when I began investing and it was almost exactly 3 years ago that I received my very first dividend ($1.35 courtesy of GPC).
It has been such an amazing journey over the past 3 years, which aside from beginning my investing career, also led to the very birth of this blog, as well as my work on Seeking Alpha.
In this blog post, I'll be discussing my biggest takeaway after 3 years of dividend investing. If you haven't read my previous two posts of this series, be sure to check out my lessons learned after one year as a dividend investor and my lessons learned after two years as a dividend investor.
Yet that is exactly what has transpired since the dividend cuts began to trickle in this spring and into the summer as a result of the unprecedented government response with the goal of curbing the spread of COVID-19.
To date, my portfolio's net annual forward dividends have declined by $73.858 this year as a result of dividend announcements that have been increases, cuts, and suspensions.
When considering that the weighted monthly average of my annual forward dividends is around $1,135 year to date, this works out to a 6.5% decline in my annual forward dividend income as a result of dividend announcements.
While this news would have been deflating to the me of 9 months ago had you left out the details of the extent to which the world has been locked down since early this spring, I find it absolutely amazing that even in the midst of a global pandemic and the resulting aggressive government response to combat the virus, my portfolio's net annual forward dividends declined by merely 6.5%!
Despite all of the twists and turns that this year has taken along the lines of COVID-19 and unexpected expenses on my end that somewhat limited my ability to deploy capital at the rate I intended at the beginning of this year, my net annual forward dividend income of $1,282 at the time of writing this post is an all-time high.
I would argue that out of my numerous takeaways on dividend investing the past few years, this is my most powerful yet. My portfolio experienced its worst year of dividend announcements this year and I encountered a few thousand dollars of unexpected expenses during the year, but my portfolio's net annual forward dividends is the highest it has ever been.
This really goes to show that dividend investing in the form of fresh capital investments (even when capital is somewhat limited), dividend announcements (which in any "normal" year would lead to mid-single digit growth in annual net forward dividends for my portfolio), and reinvestment can overcome even the most challenging years.
I hope that this blog post was a ringing endorsement of the effectiveness of dividend investing in an average person's ability to actively work toward achieving financial independence.
2020 has been one hell of a year to be an investor in terms of volatility, but if there is a single investing strategy that has allowed me to sleep well at night even in the midst of a global pandemic and an election year, it has been dividend investing.
Even in a year of chaos, dividend investing has been one of the few constants in my life, which is why I firmly believe dividend investing is by far the most powerful investing strategy for most regular Joes and Janes.
What's your biggest takeaway from 2020 as a dividend investor?
How has your dividend income fared this year from a dividend announcement standpoint?
As always, I greatly appreciate this audience's readership and welcome any comments that you may have in the comment section below.
Tuesday, October 13, 2020
As I'm taking the time to write this post, it's nearly the middle of October!
We just experienced our first overnight freeze here in Central Wisconsin a few nights ago, which means that fall is in full effect and our first snowfall is likely just a few weeks ago.
With that side note out of the way, I will be delving into the intent of this post, which is to discuss my dividend stock purchases during September.
How was your September in terms of capital deployment?
Were you fortunate enough to not have endured a dividend cut in your portfolio's dividend announcements during September?
I appreciate your readership and look forward to replying to your comments in the comment section below!
Tuesday, October 6, 2020
Summer ended nearly 2 weeks ago and it has become abundantly clear as we just experienced our first overnight freeze here in Central Wisconsin.
In just a few more weeks, we'll likely be experiencing our first snowfall, which will usher in 5 months of unpredictable winter weather!
With that aside, I'll be delving into the intent of this blog post, which is to examine the dividends that I collected during the month of September.
During the month of September, I received $139.46 in net dividends against the $136.28 in dividends that I collected in June 2020, which represents a 2.3% quarterly growth rate.
Even more impressive, is the fact that the $139.46 in net dividends received during the month represents a 99.2% YoY growth rate compared to the $70.00 in dividends collected in September 2019.
Delving into more detail, I received $64.03 in dividends from 20 companies within my Robinhood portfolio net of the $5.00 in Robinhood Gold fees and $2.75 in Robinhood Gold margin costs. I collected $11.30 in dividends from 6 companies within my Webull portfolio. I also collected $63.66 in dividends from my CAIBX mutual fund holding within my employer-sponsored retirement account. Finally, I received $0.47 in dividends from 24 companies within my M1 Finance portfolio.
The additional $3.18 in net dividend income from June 2020 to September came as a result of the following activity within my portfolios:
The dividends that I received from my position in BP Plc (BP) declined $3.46 as a result of BP's recent dividend cut.
I also received an additional $0.04 in dividends from my position in J.M. Smucker (SJM) due to its recent dividend increase.
I received $3.28 less in dividends from my position in Wells Fargo (WFC) as a result of its recent dividend cut.
I received $6.98 in additional dividends as a result of continued contributions to my CAIBX mutual fund holding within my retirement account.
I benefited from $2.91 less in Robinhood margin costs as a result of my commitment to reducing my Robinhood margin used down to $1,000 (as the first $1,000 of margin used is interest free).
My M1 Finance dividend income fell $0.01, which was as a result of BP's dividend cut.
September marked yet another record month in terms of dividend income, which is really what the harnessing of DGI in the pursuit of financial independence is all about!
Despite the challenges that COVID-19 have posed for me from a dividend standpoint and the fact that dividend announcements this year have resulted in roughly a 7% decline in my annual forward dividends, my annual forward dividends are currently at a record $1,270 at the time that I am writing this post.
This just goes to show how powerful the DGI strategy is when the three aspects of it are utilized (i.e. fresh capital investment, dividend growth, and dividend reinvestment) even in the middle of the most challenging business environment arguably in most of our lives.
I am looking forward to soon once again resuming my ~$1,500/month capital deployment schedule beginning next month, which I am confident will really begin to advance my annual forward dividends in the most meaningful way since I began investing in September 2017.
How was your September in terms of dividend income?
Did your portfolio's dividend cuts show themselves for the first time in September as was the case for mine with BP and WFC?
I'm grateful for your readership and welcome your comments in the comment section below!
Tuesday, September 29, 2020
At the time of my writing this blog post, the third quarter of 2020 is fast approaching its end, which leaves us with only one quarter to work toward crushing our goals for this year. The speed with which this year is passing us by never ceases to amaze me!
With that aside, I'll be discussing the dividend increases that I received during the month of September (spoiler: I was fortunate enough not to endure any dividend cuts during the month of September), and I'll be looking ahead to expected dividend increases for the month of October.
After not having raised its dividend since June 2017 following its $8 billion acquisition of Blue Buffalo, General Mills (GIS) recently reported 9% YoY growth in its revenue and $1.00/share in adjusted earnings versus $0.87/share analyst expectations for its first quarter, which prompted the company to announce a 4.1% increase to its quarterly dividend from $0.49/share to $0.51/share.
I had gotten so used to GIS not raising its dividend, that I had failed to consider that the company would eventually be increasing its dividend, so I was pleasantly surprised by the news last week.
Across my 4 shares of the stock, my annual forward dividends were boosted by $0.32.
Tuesday, September 22, 2020
Tuesday, September 15, 2020
Sunday, September 6, 2020
During the month of August, I collected $91.19 in net dividends against the $86.62 in dividends collected in May 2020, which represents a 5.3% quarterly growth rate.
More striking, is the fact that the $91.19 in net dividends received during the month represents an 86.4% YoY growth rate compared to the $48.93 in dividends collected in August 2019!
Going into more detail, I received $78.96 in dividends from 15 companies within my Robinhood portfolio net of the $5.00 in Robinhood Gold fees and $3.03 in Robinhood Gold margin costs. I also collected $11.93 in dividends from 3 companies within my Webull portfolio. Finally, I collected $0.30 from 14 companies in my M1 Finance portfolio.
The $4.57 increase in my dividends from May 2020 to August 2020 was as a result of the following activity within my portfolios:
I received an additional $0.61 in dividends from my positions in British American Tobacco (BTI) within my Robinhood and Webull portfolios.
As a result of Tanger Factory Outlet Centers (SKT) recent suspension of its dividend, my dividend income from my SKT position was reduced by $3.93.
I also received $0.07 less in dividends from Equitrans Midstream Corporation (ETRN) as a result of the recent merger (including the $0.02 reduction in my M1 Finance portfolio).
My Robinhood Gold/margin costs in August of $8.03 were $7.96 lower than the $15.99 in costs during May 2020.
Despite an effective distribution cut via ETRN and a dividend suspension via SKT taking effect this month, my dividend income in August managed to advance by mid-single digits over May 2020.
This was primarily due to my deleveraging of over $1,900 of Robinhood margin over the past few months.
Given that I believe the worst is finally behind my portfolio and I'm not expecting any further dividend cuts from the companies that are scheduled to pay dividends in the middle month of the quarter, I am expecting a new record in November for a middle month of the quarter.
How was your dividend income during August?
Did your portfolio feel the impact of cuts/suspensions during August?
Thanks for reading and I look forward to your comments in the comment section below!