Tuesday, October 4, 2022

September 2022 Dividend Stock Purchases

As I'm writing this blog post, the high temperature is expected to reach 68 degrees Fahrenheit here in Central Wisconsin today (September 30). After a cold snap, the temperatures are finally looking good over the next few days. Needless to say, I will be getting outside as much as I can during that time.

With that aside, I'll be going over my stock purchases for the month of September 2022.



My retirement account from my former employer with the mutual fund holding Capital Income Builder (CAIBX) paid $75.94 in net dividends to me, which were reinvested. This purchased 1.199 additional shares, which added $2.55 in net annual forward dividends to my portfolio. That is equal to a 3.36% weighted average dividend yield.

I began my taxable dividend stock purchases by adding a share of Albemarle (ALB) at a cost of $277.21. As I explained several weeks back in my September 2022 Dividend Stock Watch List post, ALB is poised to benefit from a massive expansion in the electric vehicle penetration rate over the next decade. This will lead to an explosion of demand for lithium that goes into EV batteries, which is primarily why I am bullish on the stock. This dividend stock transaction lifted my net annual forward dividends by $1.58, which is a 0.57% net yield.

The first non-dividend-paying stock that I increased my position in was Amazon (AMZN), which I purchased a single share of at the price of $116.89. As I noted a couple of weeks ago in my August 2022 Dividend Stock Purchases post, AMZN is the undisputed leader in cloud computing and e-commerce. This is why I plan to continue buying a share of AMZN each month for the foreseeable future.

The other non-dividend-paying stock that I bolstered my stake in was Alphabet (GOOGL), which I bought 1.5 shares of at an average cost of $99.93 per share. Whereas AMZN is the leader of the cloud computing and e-commerce industries, GOOGL is the most dominant in digital advertising. That explains my rationale to buy the stock each month.

The second dividend-paying stock that I purchased was five shares of Bristol-Myers Squibb (BMY) at a cost per share of $70.22. That's because it is one of the most dominant pharmaceutical companies in the world with a stacked drug pipeline. This boosted my net annual forward dividends by $10.80, which is equivalent to a 3.08% weighted average dividend yield.

The third and final dividend-paying stock that I added to was three shares of Philip Morris International (PM) at an average cost of $95.74 a share. This rationale hinges on the fact that PM is the most established tobacco company on the planet and is set up well for the future as more cigarette smokers seek less harmful alternatives. This helped my net annual forward dividends to surge $15.24 higher, which equates to a 5.31% net dividend yield.

Concluding Thoughts:

I put $1,258.25 in capital to work during the month of September. Given the $30.17 in net annual forward dividends that these transactions added to my portfolio, this works out to a 2.40% weighted average dividend yield.

Including the $20.114 in dividend increases that I have received for the month as of this afternoon, my net annual forward dividends spiked from more than $3,125 at the start of the month to a bit more than $3,175 heading into October.

Discussion:

How was your capital deployment during September 2022?

Did you add any new holdings to your portfolio?

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

Tuesday, September 27, 2022

Expected Dividend Increases for October 2022

As I'm writing this blog post, the first day of fall is behind us here in Central Wisconsin. And with the temperature currently at 57 degrees Fahrenheit, there's no denying that fall is in the air.

With that aside, I'll turn my attention to the dividend increases that I have received in September. I will also look ahead to the dividend increases that I'm anticipating for next month. For the sake of conciseness (there were quite a few dividend increases in September), I won't discuss the reasoning behind my dividend increase expectations for October.

Actual Dividend Increases for September 2022

Dividend Increase #1: Realty Income (O)

Realty Income declared a 0.2% increase in its monthly dividend per share to $0.2480, which was precisely what I predicted in the previous blog post of this series.

This announcement led my net annual forward dividends to edge $0.078 higher across my 13 shares of O.

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

Similar to O, W.P. Carey announced a 0.2% increase in its quarterly dividend per share to $1.061. This was also in line with what I outlined as my expectation.

Across my seven shares of WPC, my net annual forward dividends inched upward by $0.056 due to the dividend declaration.

Dividend Increase #3: STORE Capital

STORE Capital delivered a 6.5% increase in its quarterly dividend per share to $0.41. This was what I was anticipating. But the bitter sweet news is that it will be the company's last dividend before being bought out by GIC and Oak Street, assuming the deal is approved by shareholders.

My net annual forward dividends would be $3.30 higher as a result of this latest dividend hike across my 33 shares, but for the fact that the deal will almost certainly be closed in just a few months.

Dividend Increase #4: Innovative Industrial Properties (IIPR)

Innovative Industrial Properties declared a 2.9% increase in its quarterly dividend per share to $1.80. This was below my expectation of a raise to $1.90. But given the recent issues with one of its largest tenants called Kings Garden, it makes sense for the company to err on the side of caution until that can be resolved.

Across my six shares of IIPR, my net annual forward dividends were boosted by $1.20 due to the payout increase.

Dividend Increase #5: American Tower (AMT)

American Tower announced a 2.8% bump in its quarterly dividend per share to $1.47, which was precisely what I predicted.

My net annual forward dividends increased by $0.72 across my three shares of AMT as a result of the dividend increase.

Dividend Increase #6: VICI Properties (VICI)

VICI Properties declared an 8.3% hike in its quarterly dividend per share to $0.39. This came in better than the $0.38 quarterly dividend per share that I was anticipating.

Across my 33 shares of VICI, my net annual forward dividends were boosted by $3.96 due to the dividend boost.

Dividend Increase #7: Verizon Communications (VZ)

Verizon Communications announced a 2% increase in the quarterly dividend per share to $0.6525. Again, this was what I was expecting.

My net annual forward dividends were lifted $1.00 higher across my 20 shares of VZ as a result of the payout bump.

Dividend Increase #8: Philip Morris International (PM)

Philip Morris International declared a 1.6% increase in the quarterly dividend per share to $1.27. This came in a bit higher than the $1.26 quarterly dividend per share that I was forecasting.

Across my 13 shares (at the time of the announcement), my net annual forward dividends surged upward by $1.08 due to the dividend bump.

Dividend Increase #9: Microsoft (MSFT)

Microsoft announced a 9.7% hike in its quarterly dividend per share to $0.68, which was spot on with my projection.

My net annual forward dividends were lifted $0.72 higher across my three shares of MSFT as a result of the payout boost.

Dividend Increase #10: U.S. Bancorp (USB)

U.S. Bancorp declared a 4.3% increase in its quarterly dividend per share to $0.48. This was just below my estimate of $0.48.

Across my 13 shares of USB, my net annual forward dividends were boosted by $1.04 due to the dividend hike.

Dividend Increase #11: Texas Instruments (TXN)

Texas Instruments announced a 7.8% bump in its quarterly dividend per share to $1.24. This came as a surprise to me since TXN's dividend increases in past years have typically been in October.

My net annual forward dividends were lifted by $2.16 across my six shares of TXN as a result of the new dividend declaration.

Dividend Increase #12: Starbucks (SBUX)

Starbucks declared an 8.2% raise in the quarterly dividend per share to $0.53.

My net annual forward dividends were lifted by $1.60 across my 10 shares of SBUX due to the hike.

Dividend Increase #13: Lockheed Martin (LMT)

Lockheed Martin upped its quarterly dividend per share by 7.1% to $3.00 as I expected.

Across my four shares of LMT, my net annual forward dividends soared $3.20 higher from the dividend increase.

Expected Dividend Increases for October 2022

Expected Dividend Increase #1: American Electric Power (AEP)

The first dividend increase that I'm expecting in October is from American Electric Power. I believe that AEP will declare a 5.1% increase in its quarterly dividend per share to $0.82.

If this increase plays out, my net annual forward dividends would surge $1.76 higher across my 11 shares of AEP.

Expected Dividend Increase #2: Visa (V)

The next payout boost that I am anticipating next month will be from Visa. I wouldn't be surprised if V announced a 14.7% hike in its quarterly dividend per share to $0.43.

Across my five shares of V, this would work out to an extra $1.10 in net annual forward dividends, if my projection is correct.

Expected Dividend Increase #3: Exxon Mobil (XOM)

The third dividend increase that I'm expecting in October is from Exxon Mobil. My forecast is for a 4.5% bump in the quarterly dividend per share to $0.92.

If this dividend hike occurs, my net annual forward dividends would be lifted $1.76 higher across my 11 shares of XOM.

Expected Dividend Increase #4: Magellan Midstream Partners (MMP)

The next distribution bump that I'm projecting next month will be from Magellan Midstream Partners. I believe MMP will increase its quarterly distribution per unit by 1% to $1.0475.

Across my 16 units of MMP, my net annual forward distributions would edge $0.64 higher, if my forecast is right.

Expected Dividend Increase #5: AbbVie (ABBV)

The fifth dividend increase that I believe will be announced in October is from AbbVie. My projection is for a 6.4% hike in the quarterly dividend per share to $1.50.

My net annual forward dividends would surge $2.52 higher across my seven shares of ABBV, if the company meets my expectations.

Expected Dividend Increase #6: Pinnacle West Capital (PNW)

The next dividend bump that I'm expecting next month will be from Pinnacle West Capital. I believe that PNW will declare a 2.4% increase in the quarterly dividend per share to $0.87.

Across my seven shares of PNW, my net annual forward dividends would edge higher by $0.56, if my prediction pans out.

Expected Dividend Increase #7: Crown Castle International (CCI)

The seventh dividend increase that I'm projecting for October is from Crown Castle International. My forecast is that CCI will deliver an 8.2% increase in its quarterly dividend per share to $1.59.

My net annual forward dividends would be boosted by $1.92 across my four shares of CCI if my estimate is right.

Expected Dividend Increase #8: McDonald's (MCD)

McDonald's didn't announce a dividend increase in October. But I am reiterating my expectation of a 7.2% increase in the quarterly dividend per share to $1.48.

Across my three shares of MCD, my net annual forward dividends would increase by $1.20, if the company meets my forecast.

Concluding Thoughts:

My net annual forward dividends were lifted by $20.114 with my 13 dividend increases. This would be equivalent to investing $574.69 at a 3.5% weighted average dividend yield.

The number of dividend hikes will slow down in October. But if my predictions are proven correct, my net annual forward dividends would be boosted by $11.46 from payout raises.

Discussion:

How has your September been for dividend hikes?

Did you receive any first-time payout increases during the month as I did with IIPR, SBUX, TXN, USB, VICI?

Thank you for your readership. Please feel free to comment below!

Tuesday, September 20, 2022

October 2022 Dividend Stock Watch List

As I'm writing this blog post, today, September 16th, is the day before a somber occasion. Those who know me personally may be aware that my paternal grandfather passed away long before I was born and my maternal grandfather passed away when I was four years old.

My paternal grandmother eventually met a partner who would fill the role as my grandfather from the moment I was born until just recently. Unfortunately, he passed away suddenly on September 11th. And tomorrow is his funeral, with the publication date of this blog set to have been his 74th birthday. I'm so grateful to have had the chance to know him and will deeply miss him.

On that note, I will be going over the dividend stocks that are on my watch list for October since this month is already more than half over.


Image Source: Pexels

Dividend Stock #1: Comcast (CMCSA)

As I indicated in my April 2022 Dividend Stock Watch List post, the telecom and media conglomerate Comcast is a balanced business with growth catalysts. Thanks to growth in its customer count, the company's first-half revenue increased 9.5% year-over-year to $61 billion. This led CMCSA's adjusted diluted EPS to surge 16.3% higher over the year-ago period to $1.86 through the first half of 2022 (info in the previous two sentences sourced from page 1 of 16 of Comcast Q2 2022 earnings press release).

Analysts are forecasting 10.2% annual earnings growth over the next five years. And given that the stock's dividend payout ratio will be less than 30% in 2022, there is plenty of room for the dividend to grow moving forward. This is an especially attractive proposition considering that CMCSA's dividend yield is 3.1%. At the current $35 share price, the cherry on top is that the stock is trading at a forward P/E ratio of 9.6.

Dividend Stock #2: Medifast (MED)

The weight loss and nutrition company Medifast has a short track record of dividend growth. But with dividend growth well into the double-digits annually during that time, it's an impressive one. MED's leadership in its industry is why analysts are anticipating 20% annual earnings growth over the next five years.

With the dividend payout ratio expected to come in under 60% in 2022, dividend growth should be pretty close to earnings growth for the foreseeable future. That's intriguing for a stock with a 5.5% dividend yield. And MED is trading at a forward P/E ratio of 11.1 at the current $119 share price. That's quite cheap for its long term growth potential.

Dividend Stock #3: STAG Industrial (STAG)

The third and final stock on my watch list for October is STAG Industrial. For the sake of brevity, I will refer interested readers to my recent Motley Fool article on STAG and Innovative Industrial Properties. Basically, STAG offers investors a 4.7% dividend yield that's also well-covered. And the company's e-commerce-oriented portfolio is poised to do well as the future unfolds. At the current $31 share price, STAG is trading at a TTM P/AFFO ratio of less than 15. This is arguably a solid value for a wonderful company.

Concluding Thoughts:

Another month, another three quality dividend stocks on my watch list in October. I very much look forward to adding to my positions in these stocks in the coming weeks. With the capital allocation that I'm planning for next month, my net annual forward dividends should be boosted by nearly $70 as a result of such purchases.

Discussion:

Are CMCSA, MED, and/or STAG on your watch list for next month?

If not, what stocks are on your radar for October?

I appreciate your readership and welcome your comments below.

Tuesday, September 13, 2022

August 2022 Dividend Stock Purchases

As I'm writing this blog post, it's mid-September. This unofficially means that summer is basically over here in Central Wisconsin, even though fall is still officially nearly two weeks away. This is reflected by the fact that the high temperature for today will be just 64 degrees Fahrenheit. And the next couple of days will be in the high-50 degrees Fahrenheit range.

With that aside, it's now time to dig into my dividend (and non-dividend) stock purchases for the month of August 2022.



I started off the month by adding six shares to my position in National Retail Properties (NNN) at an average cost of $47.34 a share. Readers interested in my rationale for this decision can refer to my August 2022 Dividend Stock Watch List post from a couple of months ago. This purchase boosted my net annual forward dividends by $13.20, which is equivalent to a 4.65% dividend yield.

My first non-dividend stock purchase during August was increasing my stake in Alphabet (GOOGL) by a share at a cost of $114.70. As I noted in my July 2022 Dividend Stock Purchases post, GOOGL dominates the digital advertising industry with the highest market share. And it isn't unreasonable to think that it will be an all-time great dividend growth stock in due time.

The other non-dividend stock addition for the month was Amazon (AMZN), which I added a share of at a cost of $140.01. Much like GOOGL is the unrivaled leader of the digital advertising industry, AMZN is the leader of cloud computing and e-commerce. This is why I will continue to add to my positions in the two stocks.

I also purchased two more shares of Visa (V) in August at an average cost per share of $213.57. The stock was also on my watch list for the month because of its leadership in the payments industry and the continued transition away from cash. This transaction added $3.00 to my net annual forward dividends, which works out to a 0.70% weighted average net yield.

Another dividend stock purchase that I executed for the month was two shares of Texas Instruments (TXN) at an average cost of $177.65 a share. I was compelled to add to my stake in the stock due to its industry leadership and the promising outlook of the semiconductor industry. The $9.20 in net annual forward dividends that resulted from this purchase equates to a 2.59% net dividend yield.

The final dividend (distribution) stock purchase that I completed in August was 26 units of Energy Transfer (ET) at an average cost per unit of $11.80. The $23.92 boost to net annual forward distributions from this purchase is equivalent to a 7.80% weighted average net yield.

Concluding Thoughts:

I deployed $1,627.90 in capital during the month of August. Given the $49.32 in net annual forward dividends that were added from these purchases, my weighted average net dividend yield was 3.03% for the month.

Along with the $9.284 in dividend increases that I received in the month, this propelled my net annual forward dividend income higher from just under $3,070 at the start of the month to just over $3,125 heading into September. For the rest of this year and possibly into early next year, I anticipate that my capital deployment will closely resemble that of August 2022 as I shift my priorities to regaining my health above all else.

Discussion:

How did your dividend stock purchases fare in August 2022?

Did you add any new holdings to your portfolio during the month?

Thanks for reading. Please feel free to comment below!

Tuesday, September 6, 2022

August 2022 Dividend Income

As I'm writing this blog post, it's the Saturday of Labor Day weekend. The temperatures will be in the low- to high-70 degrees Fahrenheit range over the next few days here in Central Wisconsin. That's why I will be getting outside as much as I can this weekend.

With that aside, I will turn my attention to my dividend income for the month of August since it is a few days in the books.




Analysis:

During August 2022, I received $209.05 in net dividends. This equates to a 13.7% quarterly growth rate compared to the $183.89 in net dividends collected in May 2022.

And my net dividends were 60.9% higher year-over-year against the $129.94 that I received in August 2021.

Digging more into my income, I collected $194.98 in net dividends from 29 companies in my Robinhood portfolio. Three companies within my Webull account chipped in another $13.70 in net dividends. And 16 companies in my M1 Finance portfolio contributed the remaining $0.37 in net dividends during the month.

The net dividends that I received from May 2022 to August 2022 surged $25.16 higher, which was the result of the following activity within my accounts:

I collected an extra $0.78 in net dividends from Williams-Sonoma (WSM) in my Robinhood portfolio, which was due to my addition of a share in April.

My net dividends received from British American Tobacco (BTI) dipped $0.52 within my Robinhood and Webull accounts. This was the result of unfavorable foreign currency translation with the dollar strengthening against the Pound sterling in recent months.

I collected an additional $1.80 in distributions from Energy Transfer (ET) in my Robinhood and Webull portfolios. This was due to the recent 15% hike in its quarterly distribution to $0.23 per unit.

My net dividends received from Main Street Capital (MAIN) edged $0.86 higher within my Robinhood account, which was the result of my purchase of four more shares back in May.

I collected an extra $0.01 in net dividends from Realty Income (O) in my Robinhood portfolio. This was due to the recent 0.2% increase in its monthly dividend per share.

My net dividends received from ONEOK (OKE) were boosted by $4.68 within my Robinhood account, which was the result of my purchase of five more shares in July.

I collected an additional $4.99 in net dividends from Kinder Morgan (KMI) in my Robinhood portfolio. This was due to my purchase of another 18 shares in June.

My net dividends received from National Retail Properties (NNN) inched $0.24 higher within my Robinhood account, which was the result of its 3.8% dividend raise in July.

I collected first-time net dividends of $3.36 from A.O. Smith (AOS) in my Robinhood portfolio. This was due to my purchase of 12 shares in April.

My net dividends received from Clorox (CLX) were $0.04 higher within my Robinhood account, which was the result of its 1.7% payout increase in July. 

I collected an extra $5.19 in net distributions from Magellan Midstream Partners (MMP) in my Robinhood portfolio. This was due to my purchase of five more units in July.

My net distributions received from Enterprise Products Partners (EPD) increased by $0.36 within my Robinhood and Webull accounts, which was the result of a 2.2% increase in its distribution per unit announced in July.

I collected an additional $1.25 in net dividends from Lowe's (LOW) in my Robinhood portfolio. This was due to its 31.3% hike in its quarterly dividend in May.

My net dividends received from General Mills (GIS) were $0.12 higher within my Robinhood account, which was the result of a 5.9% raise in the quarterly dividend per share declared in July.

I collected an extra $2.00 in net dividends from JPMorgan Chase (JPM) in my Robinhood portfolio. This was due to my purchase of two more shares in May.

Concluding Thoughts:

August 2022 was the first middle month of the quarter in which I surpassed $200 in net dividend income. My monthly capital deployment will likely be reduced for the next several months to $1,000 to $1,500. That's because I am again working through and trying to figure out some health issues that have bugged me the last several years. I haven't been able to exercise quite like I used to at the peak of my physical condition and haven't been able to enjoy my life as much.

For all of my content regarding financial independence, this is a good reminder that many things like health, faith, family, and country are each of high importance as well. Financial success certainly isn't the end all be all. Admittedly, I have lost sight of this fact from time to time.

If you're a Christian as I am or of another religion, I humbly ask for your prayers that I receive some answers from my upper endoscopy scheduled on Thursday, September 8. Otherwise, please keep me in your thoughts. I'm grateful for all of the support that I have received from readers over the years. And by the grace of God, I am hopeful that I will emerge on the other side of this storm as a better person.

Discussion:

How did your dividend income fare in August 2022?

Did you receive any dividend payments for the first time as I did with AOS?

I appreciate your readership and look forward to your comments below!

Tuesday, August 30, 2022

Expected Dividend Increases for September 2022

As I'm writing this blog post on Friday, the high temperature is expected to reach 77 degrees Fahrenheit later today. And the next few days are going to remain around this temperature here in Central Wisconsin. That's why I plan on getting outside for at least a few hours this weekend.

With just a few days left in the month of August, now is a great time to look at the dividend raises received for the month and to look ahead to September. Since I am expecting a baker's dozen for dividend increases next month, I will cut to the chase and not elaborate on the assumptions behind my expectations for each raise.

Actual Dividend Increases for August 2022

Dividend Increase #1: Essential Utilities (WTRG)

Essential Utilities announced a 7% increase in its quarterly dividend per share to $0.2870. This was just slightly below my expectation of a 7.2% raise in the quarterly payout per share to $0.2875. Overall, I'm very happy with WTRG as a holding in the 13 months that it has been in my portfolio.

Across my 10 shares of WTRG, my net annual forward dividends edged $0.752 higher due to the dividend hike.

Dividend Increase #2: BP plc (BP)

BP plc declared a 10.1% boost in its quarterly dividend per share to $0.3606. This was far higher than the 3.8% increase to $0.3350 per share that I was anticipating. But the company has been immensely profitable the last few quarters, so it can certainly afford such a raise.

My net annual forward dividends surged $1.452 higher across my 11 shares of BP as a result of the payout hike.

Dividend Increase #3: Simon Property Group (SPG)

Simon Property Group announced a 2.9% increase in its quarterly dividend per share to $1.75, which was a raise that I wasn't expecting. That makes the slight bump that much sweeter as SPG works to restore its dividend to pre-COVID levels.

Across my nine shares of SPG, my net annual forward dividends ripped $1.80 higher due to the dividend increase.

Dividend Increase #4: Main Street Capital (MAIN)

Another bonus raise came from Main Street Capital, which inched its monthly dividend per share up 2.3% to $0.22. I have been very pleased with my position in MAIN over the last two and a half years.

My net annual forward dividends edged $1.44 higher across my 24 shares of MAIN as a result of the dividend raise.

Dividend Increase #5: Altria Group (MO)

Altria Group declared a 4.4% increase in its quarterly dividend per share to $0.94, which was precisely as I expected. MO was one of the very first dividend stocks that I purchased for my portfolio. And while the share price has been stagnant compared to my cost basis, the dividend growth has remained strong.

Across my 24 shares of MO, my net annual forward dividends soared $3.84 higher due to the payout boost.

Expected Dividend Increases for September 2022

Expected Dividend Increase #1: Realty Income (O)

The first dividend raise that I'm expecting in September will come from Realty Income. I believe O will announce a 0.2% increase in its monthly dividend per share to $0.248. 

If my prediction is correct, my net annual forward dividends would inch $0.078 higher across my 13 shares of O.

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

The next dividend increase that I'm anticipating next month will be from W.P. Carey. I'm projecting that WPC will declare a 0.2% increase in its quarterly dividend per share to $1.061.

Across my seven shares of WPC, my net annual forward dividends would increase by $0.056 if my estimation is right.

Expected Dividend Increase #3: STORE Capital (STOR)

The third dividend boost that I'm predicting in September will come from STORE Capital. It's my expectation that STOR will announce a 6.5% increase in its quarterly dividend per share to $0.41.

If this pans out, my net annual forward dividends would surge $3.30 higher across my 33 shares of STOR.

Expected Dividend Increase #4: Innovative Industrial Properties (IIPR)

The next dividend hike that I'm expecting for next month will be from Innovative Industrial Properties. I believe that IIPR will declare an 11.4% raise in its quarterly dividend per share to $1.95.

Across my six shares of IIPR, this would boost my net annual forward dividends by $4.80 if my prediction works out.

Expected Dividend Increase #5: American Tower (AMT)

The fifth dividend raise that I'm anticipating in September will come from American Tower. I'm projecting that AMT will announce a 2.8% increase in its quarterly dividend per share to $1.47.

If my projection is correct, my net annual forward dividends would edge higher by $0.48 across my three shares of AMT.

Expected Dividend Increase #6: VICI Properties (VICI)

The next payout boost that I'm predicting for next month will be from VICI Properties. I estimate that VICI will declare a 5.6% bump in its quarterly dividend per share to $0.38.

Across my 33 shares of VICI, my net annual forward dividends would be lifted by $2.64 by such a raise.

Expected Dividend Increase #7: Verizon Communications (VZ)

The seventh dividend increase that I'm expecting in September will come from Verizon Communications. I believe that VZ will announce a 2% raise in its quarterly dividend per share to $0.6525.

If this prediction is fulfilled, my net annual forward dividends would increase by $1.00 across my 20 shares of VZ.

Expected Dividend Increase #8: McDonald's (MCD)

The next payout raise that I'm anticipating for next month will be from McDonald's. I'm projecting that MCD will declare a 7.2% boost in its quarterly dividend per share to $1.48.

Across my three shares of MCD, my net annual forward dividends would be boosted by $1.20 by such a dividend increase.

Expected Dividend Increase #9: Starbucks (SBUX)

The ninth dividend increase that I'm predicting in September will come from Starbucks. I estimate that SBUX will announce an 8.2% hike in its quarterly dividend per share to $0.53.

If this is proven correct, my net annual forward dividends would be lifted $1.60 higher across my 10 shares of SBUX.

Expected Dividend Increase #10: Philip Morris International (PM)

The next payout raise that I'm expecting for next month will be from Philip Morris International. I believe that PM will declare a 0.8% increase in its quarterly dividend per share to $1.26.

Across my 13 shares of PM, my net annual forward dividends would inch $0.52 higher by this dividend announcement.

Expected Dividend Increase #11: Microsoft (MSFT)

The eleventh dividend hike that I'm anticipating in September will come from Microsoft. I'm projecting that MSFT will announce a 9.7% lift in its quarterly dividend per share to $0.68.

If this ends up being right, my net annual forward dividends would increase by $0.72 across my three shares of MSFT.

Expected Dividend Increase #12: Lockheed Martin (LMT)

The next payout raise that I'm predicting for next month will be from Lockheed Martin. I estimate that LMT will declare a 7.1% boost in its quarterly dividend per share to $3. 

Across my four shares of LMT, my net annual forward dividends would surge $3.20 higher as a result of this dividend increase.

Expected Dividend Increase #13: U.S. Bancorp (USB)

The thirteenth and final dividend increase that I'm expecting in September will come from U.S. Bancorp. I believe that USB will announce a 6.5% raise in its quarterly dividend per share to $0.49.

Assuming this is correct, my net annual forward dividends would be lifted $1.56 higher across my 13 shares of USB.

Concluding Thoughts:

I received $9.284 in dividend increases from five of my stocks during the month. This equates to investing $265.26 in fresh capital at an average net yield of 3.5%. Looking ahead to September, I am forecasting $21.154 in additional annual forward dividends stemming from dividend raises. That would be the equivalent of investing $604.40 in capital at a 3.5% net dividend yield.

As my portfolio grows larger, so too is the impact of dividend raises on my net annual forward dividends. I'm excited to continue accumulating shares of wonderful businesses to help this figure continue to grow.

Discussion:

How was your August for dividend boosts?

Are you projecting any first-time dividend raises for September like I am with IIPR, MCD, USB, and VICI?

I appreciate your readership and welcome your comments below!

Tuesday, August 23, 2022

A Major Net Worth Milestone And The Biggest Takeaway

As I'm writing this blog post on Friday, the rain is finally tapering off here in Central Wisconsin. And the rest of the day is expected to be sunny with a high temperature of 77 degrees Fahrenheit. The next few days are going to be more of the same weather wise. Needless to say, I'm going to get outside as much as I can while the weather is ideal.

With that aside, my net worth passed the $100,000 milestone on July 28. Here is the biggest lesson that I have learned over the past five years that I have been striving toward this moment as an investor.


The Savings Rate Is Far More Important During The Accumulation Phase

Just as Warren Buffett's right-hand man at Berkshire Hathaway named Charlie Munger put it decades ago: "The first $100,000 is a bitch, but you gotta do it." No matter how frequently used this expression is, it is a universal truth in the personal finance arena.

Unsurprisingly, that's because essentially everybody has to start from next to nothing. Simple math also tells us that even the greatest investors can't turn a modest sum of money into a fortune overnight. After all, a 100% return on $100 is still just $200.

Through the first three years of working my first real job, my annual gross income each year was less than $30,000. But I was regularly saving more than 50% of my net income, excluding the $26,000 in tuition that I paid the first two years while finishing undergrad.

This explains why my net worth back in August 2019 was around $20,000. The most mind-boggling thing to me is that my net worth was about $60,000 when I quit my day job to write for The Motley Fool in July 2021.

Over the last 13 months alone, my net worth has surged approximately 75% higher. Some of that was due to appreciation in the equity markets. But the vast majority of that spike in net worth was the result of simply earning much more net income each month to invest, which pushed my savings rate up to the 70% range. This really drives home the point that the first few hundred thousand dollars is more about your savings rate than your investment returns. And it's why I suspect that I will likely achieve a $200,000 net worth by Fall 2024.

Concluding Thoughts:

I'm grateful to be in a position to reach a net worth in excess of $100,000 at the age of 25. At this point, it will only take three doublings to bring my net worth to nearly $1 million. I look forward to actively contributing investment capital toward this end while my existing investments compound.

Discussion:

Has your net worth reached $100,000 yet? 

If so, what lessons did you learn along the way?

As always, I appreciate your readership. Please feel free to leave a comment below!

Tuesday, August 16, 2022

September 2022 Dividend Stock Watch List

As I'm writing this blog post, the temperature is expected to reach a high of 74 degrees Fahrenheit today. And the next week of weather looks like it will be in the mid-70 degrees to low-80 degrees Fahrenheit range here in Central Wisconsin. That's why I plan on getting outside as much as possible in the days ahead.

With August almost already half over, now is as good of a time as any to start planning a few weeks ahead for possible dividend stock purchases in September.


Image Source: Pexels

Dividend Stock #1: Albemarle (ALB)

Albemarle is a leading specialty chemicals business. The company's predominant business is lithium, which made up 55.3% of its net sales through the first half of 2022. The remaining 44.7% of its net sales was generated from its bromine and catalysts segments (info from Albemarle Q2 2022 earnings press release).

With the penetration rate of electric vehicles expected to soar from just 3.4% of all new car sales in 2021 to 29.5% by 2030, global lithium demand is going to rapidly grow for the foreseeable future. That's why analysts are forecasting 77.2% annual adjusted diluted EPS growth over the 2021 base of $4.04 for the next five years.

Trading at a forward P/E ratio of 13.3 at the current $281 share price (as of August 13, 2022), ALB appears to be a bargain. ALB's 0.6% dividend yield is minuscule. But with the company's significant growth potential in the years ahead, it should prove to be an incredible dividend growth stock.

Dividend Stock #2: Bristol-Myers Squibb (BMY)

With mega-blockbusters such as the anti-coagulant drug co-owned with Pfizer (PFE) called Eliquis and cancer drugs Revlimid and Opdivo, Bristol-Myers Squibb is one of the most dominant pharma companies in the world. As I explained in a recent Motley Fool article on Cigna and BMY, the latter also has a deep drug pipeline to propel its adjusted diluted EPS higher over time.

The stock's 2.9% dividend yield also seems to be well-covered with a dividend payout ratio set to come in under 30% in 2022. Yet the stock is a downright bargain at a forward P/E ratio of 9.4 at the current $76 share price (as of August 13, 2022).

Dividend Stock #3: Philip Morris International (PM)

Philip Morris International is the largest tobacco company in the world. And as I discussed in a recent Motley Fool article, the stock is a great buy for income investors.

That's because PM's market-smashing 5% dividend yield is reasonably safe for a tobacco company based on its dividend payout ratio. Not to mention that analysts are predicting steady adjusted diluted EPS growth over the medium term. The cherry on top is that the stock's forward P/E ratio of 16.7 at the current $99 share price (as of August 13, 2022) is a slight discount to the tobacco industry.

Concluding Thoughts:

September's capital deployment will be lighter as I build up my emergency fund. I'm continuing to strive toward a balance between low yield, high growth, moderate yield, moderate growth, and high yield, low growth dividend stocks as my purchases. I'm excited for yet another month to bring high-quality dividend growth stock purchases with it.

Discussion:

Are any of ALB, BMY, or PM on your watch list for September 2022?

If not, what stocks are you watching for next month?

As usual, thanks for reading. I look forward to your comments below!

Tuesday, August 9, 2022

July 2022 Dividend Income

As I'm writing this blog post, the high temperature for today is expected to reach 86 degrees Fahrenheit. Temperatures will top out tomorrow at a high of 92 degrees Fahrenheit. But then temperatures will be in the ideal low-70 degrees to low-80 degrees Fahrenheit range for a few days. 

With July 2022 having been over for nearly a week, I will be taking a look at my net dividend income for the month. The spoiler alert is that my net dividend income was yet again a record for the first month of the quarter.




Analysis:

I received $176.10 in net dividends during July 2022. This is equivalent to a 26.5% growth rate over the $139.19 in net dividends collected in April 2022.

On a year-over-year basis, my net dividends received soared 62.6% higher compared to the $108.32 in net dividends collected from my portfolio in July 2021.

Taking a deeper dive, I received $165.47 in net dividends from 26 stocks in my Robinhood account. In addition, I collected $10.48 in net dividends from five stocks within my Webull portfolio. Lastly, I received $0.15 in net dividends from seven stocks in my M1 Finance account.

My net dividends collected were boosted by $36.91 from April 2022 to July 2022, which was due to the following activity within my portfolio:

I received my first dividend payment from Comcast (CMCSA) in the amount of $4.59 in my Robinhood account, which was the result of my decision to purchase 17 shares of the stock back in April.

My net dividends collected from Cisco (CSCO) were $4.18 higher within my Robinhood portfolio, which was due to the doubling of my position to 22 shares in June.

I received an extra $0.86 in net dividends from Main Street Capital (MAIN) in my Robinhood account, which was the result of my decision to add four more shares to my stake in May.

My net dividends collected from Realty Income (O) were $0.01 higher within my Robinhood portfolio, which was due to the company's 0.2% dividend increase in June.

I received an additional $4.24 in net dividends from STORE Capital (STOR) in my Robinhood and Webull accounts, which was the result of my 11 share purchase in June.

My net dividends collected from W.P. Carey (WPC) increased by $0.01 within my Robinhood portfolio, which was due to the 0.2% dividend raise in June.

I received my first dividend payment in the amount of $10.50 from Innovative Industrial Properties (IIPR) in my Robinhood account, which was the result of my decision to open a position in the stock in April.

My net dividends collected from Medtronic (MDT) were $2.29 higher within my Robinhood portfolio, which was due to the stock's 7.9% dividend increase in May and my purchase of three extra shares in June.

I received an additional $1.56 in net dividends from Leggett & Platt (LEG) in my Robinhood account, which was the result of the 4.8% dividend increase in May and my purchase of three more shares during the month.

My net dividends collected from Medical Properties Trust (MPW) were boosted by $5.22 within my Robinhood portfolio, which was due to my purchase of 18 more shares in June.

I received a first-time dividend payment from FedEx (FDX) in the amount of $3.45 in my Robinhood account, which was the result of my dividend stock purchases in May.

My net dividends collected from American Tower (AMT) were $0.09 higher within my Robinhood portfolio, which was due to the 2.1% dividend raise in May.

I received an extra $2.28 in net dividends from Eastman Chemical (EMN) in my Robinhood account, which was the result of my purchase of three more shares in May.

My net dividends collected from GSK plc (GSK) were $2.36 less within my Robinhood portfolio, which was due to the differing dividend payment amounts and the cut ahead of the Haleon (HLN) spinoff.

I received $0.01 less in net dividends from my M1 Finance account, which was also the result of GSK's dividend announcement.

Concluding Thoughts:

Quarter in and quarter out, my net dividends are consistently increasing. Factoring in expected dividend increases and capital deployment, August 2022 is going to be my portfolio's final month of net dividend income below $200 for any given month.

Discussion:

How was your dividend income in July 2022?

Did you collect any first-time dividends as I did with CMCSA, FDX, and IIPR?

Thanks for your readership and feel free to comment below!

Tuesday, August 2, 2022

July 2022 Dividend Stock Purchases

As I'm writing this blog post on July 29th, it's expected to reach a high of 77 degrees Fahrenheit today while also being sunny. And temperatures won't be much hotter than that over the next couple of days here in Central Wisconsin. This perfect weather is precisely why I will be spending at least several hours outside this weekend. 

With that out of the way, the timing of the month means that it's time to check out my stock purchases for July 2022.


I started off the month of July by purchasing eight shares of VICI Properties (VICI) at an average cost of $30.02 a share. Readers interested in a more detailed explanation of this dividend stock purchase can check out my Motley Fool article on the stock and Medical Properties Trust (MPW) that was published a few weeks ago. This transaction added $11.52 in net annual forward dividends to my portfolio.

The next dividend stock that I added to during the month was Merck (MRK). I picked up an additional three shares of the stock at a cost per share of $90.83. My reasons for scooping up more shares of MRK can be found in this Motley Fool article from June on the stock and Amgen (AMGN). As a result of this purchase, my net annual forward dividends surged $8.28 higher.

I also snatched up five units of Magellan Midstream Partners (MMP) in July at an average cost of $46.62 per unit. It has been a while since I have covered MMP, but my buying rationale remains the same compared to this Motley Fool article from last December. Due to this transaction, my net annual forward distributions soared higher by $20.75.

The fourth dividend stock that I picked up during the month was British American Tobacco (BTI). I increased my position by six shares at an average cost per share of $40.43. For my rationale on executing this transaction, I would refer interested readers to my recent Motley Fool article on the stock and Leggett & Platt (LEG). As a result of this purchase, my net annual forward dividends vaulted $17.82 higher.

I also scooped up five shares of Iron Mountain (IRM) in July at an average cost of $48.32 a share. For my buying rationale on IRM and why I also like American Tower (AMT), readers can take a peek at this Motley Fool article. This purchase boosted my net annual forward dividends by $12.37.

The sixth dividend stock that I added to during the month was Mastercard (MA). I increased my position by one share at a total cost of $320.73. As I alluded to in a recently published Motley Fool article on Visa (V) and MA, the latter should continue to be an especially promising wealth compounder in the future. This helped my net annual forward dividends edge $1.96 higher.

I also picked up five more shares of ONEOK (OKE) in July at an average cost of $55.29 a share. This lifted my net annual forward dividends by $18.70.

The eighth stock that I purchased during the month was another share of Amazon (AMZN) at a cost of $110.07. As I explained a few months back, AMZN is an e-commerce, advertising, and cloud computing juggernaut. It probably won't be paying a dividend until the end of this decade or the start of next decade. But by the time it does, it will likely be at least a 5-bagger from my current cost basis.

Speaking of advertising giants, I initiated a six share position in Alphabet (GOOGL) in July at an average cost of $111.40 a share. The parent company to Google and YouTube is the undisputed leader of digital advertising. GOOGL boasted a 28.6% market share in 2021, which was meaningfully ahead of Facebook (FB) at 23.8% and AMZN at 11.3%.

This significant competitive advantage is why analysts believe GOOGL will deliver 13.7% annual earnings growth over the next five years. And at a current year P/E ratio of 21.5, the stock is trading at an attractive valuation for the long haul. Similar to AMZN, I believe GOOGL will be a powerful dividend payer in due time. In the meantime, the capital gains should be spectacular.

Concluding Thoughts:

I deployed $2,605.52 in capital during the month of July across a wide array of stocks. High growth stock purchases like AMZN, GOOGL, and MA will be grand slam dividend growers in 2030 and beyond in my opinion. And my midstream, REIT, tobacco, and pharma additions will provide both significant immediate and future income.

My stock purchases for the month added $91.40 in net annual forward dividends to my portfolio, which is a 3.51% weighted average dividend yield. Dividend increases received in July chipped in another $16.22 to my net annual forward dividends. This led my portfolio's net annual forward dividends to spike from just over $2,960 at the start of the month to a bit less than $3,070 heading into August.

Discussion:

How was your July 2022 for stock purchases?

Did you add any new holdings to your portfolio like I did with my purchase of GOOGL?

I appreciate your readership and welcome your comments below!

Tuesday, July 26, 2022

Expected Dividend Increases for August 2022

As I'm writing this blog post, the temperature here in Central Wisconsin is 90 degrees Fahrenheit and it feels like it is 94. The good news, however, is that the high temperatures will dip down into the high-70 degrees Fahrenheit to low-80 degrees Fahrenheit range starting on Sunday. 

With that aside, there is barely a week left in July. That means it's time to check out the dividend increases in my portfolio for the month and look ahead to what I'm expecting for August.

Actual Dividend Increases for July 2022

Dividend Increase #1: Enterprise Products Partners (EPD)

Enterprise Products Partners announced a solid 2.2% increase in its quarterly distribution per unit to $0.475. This is exactly what you'd come to expect from a high-quality midstream company. And it doesn't hurt that the stock offers a 7%-plus distribution yield to boot.

Across the 36 units of EPD that I own, this boosted my net annual forward distributions by $1.44 due to the distribution announcement.

Dividend Increase #2: Cummins (CMI)

Cummins declared an 8.3% increase in its quarterly dividend per share to $1.57. This came in just above my projection of a 7.6% raise in the quarterly dividend per share to $1.56. This was the first boost in my net annual forward dividends from CMI since I purchased the stock. And I believe it will be the first of many more.

My net annual forward dividends surged $2.40 higher across my five shares of CMI as a result of the payout raise.

Dividend Increase #3: Clorox (CLX)

Clorox announced a 1.7% bump in its quarterly dividend per share to $1.18. This was a bit above the $1.17 quarterly dividend per share announcement that I was forecasting. CLX's first dividend increase for me was light. But once the business has rebounded over the next few years, I expect dividend growth to meaningfully accelerate.

Across my two shares of CLX, my net annual forward dividends inched $0.16 higher due to the dividend raise.

Dividend Increase #4: Duke Energy (DUK)

Duke Energy declared a 2% increase in its quarterly dividend per share to $1.005. This was well below my prediction of a 5.1% raise in the quarterly dividend per share. DUK's raise was disappointing, but there's nothing wrong with being conservative. The company always has the option of making up for its low raise in future years.

My net annual forward dividends edged upward by $0.48 across my six shares of DUK as a result of the dividend lift.

Dividend Increase #5: National Retail Properties (NNN)

National Retail Properties announced a 3.8% raise in its quarterly dividend per share to $0.55. This was precisely what I was projecting, which is a great raise for a high-yielding REIT.

Across my 12 shares of NNN, my net annual forward dividends increased by $0.96 due to the dividend announcement.

Dividend Increase #6: J.M. Smucker (SJM)

J.M. Smucker declared a 3% bump in its quarterly dividend per share to $1.02. This came in slightly lower than the 5.1% raise that I was expecting. But the stock's 10% raise in the prior year compensates for this in my opinion. 

My net annual forward dividends rose by $0.36 across my three shares of SJM as a result of the payout raise.

Dividend Increase #7: Wells Fargo (WFC)

Wells Fargo boosted its quarterly dividend per share by 20% to $0.30.

Across my eight shares of WFC, my net annual forward dividends soared $1.60 higher due to the dividend announcement.

Dividend Increase #8: Energy Transfer (ET)

Energy Transfer announced a 15% increase in its quarterly distribution per unit to $0.23. The company is continuing to make significant progress in restoring its quarterly distribution per unit to $0.305.

My net annual forward distributions were boosted by $7.20 across my 60 units as a result of the payout hike.

Dividend Increase #9: Hershey

Hershey announced a 15% raise in its quarterly dividend per share to $1.036. This was well above the 9.2% raise that I was expecting.

Across my three shares, this increased my net annual forward dividends by $1.62.

Expected Dividend Increases for August 2022

Expected Dividend Increase #1: Altria Group (MO)

The first dividend raise that I'm expecting in August is from Altria Group. With mid-single-digit annual earnings growth set to continue over the next several years for the stock, I believe MO will announce a 4.4% raise in its quarterly dividend per share to $0.94.

If right, my net annual forward dividends would spike $3.84 higher across my 24 shares of MO as a result of the payout hike.

Expected Dividend Increase #2: BP plc (BP)

The other payout increase that I'm anticipating next month will be from BP. I believe that the company will announce a 3.8% raise in its quarterly dividend per share to $0.335.

Across my 11 shares, my net annual forward dividends would be boosted by $0.546 by such a dividend announcement.

Expected Dividend Increase #3: Essential Utilities (WTRG)

I'm still awaiting a dividend raise from Essential Utilities. Since WTRG will be reporting its second quarter earnings on the first Wednesday of August, I believe that will be the date that the company actually announces its raise. But I am maintaining my projection of a 7.2% hike in the quarterly dividend per share to $0.2875 in the final week of the month.

My net annual forward dividends would be bumped up by $0.772 across my 10 shares of WTRG if my prediction comes to fruition.

Concluding Thoughts:

I received $16.22 in dividend increases from nine of my holdings for the month. This would be the equivalent of investing $463.43 of fresh capital at a net dividend yield of 3.5%.

Dividend raises will slow down for my portfolio in August. But I believe that MO will more than make up for it.

Discussion:

How was your July 2022 for dividend raises?

Did you get any first-time payout hikes like I did with CMI, CLX, DUK, and HSY (as well as the increase that I'm still expecting from WTRG)?

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

Tuesday, July 19, 2022

August 2022 Dividend Stock Watch List

As I'm writing this blog post, the high temperature is expected to reach 72 degrees Fahrenheit today here in Central Wisconsin. And over the next few days, the temperatures will range from the high-70 degrees Fahrenheit to low-80 degrees Fahrenheit. This is truly perfect weather, which makes it very pleasant to be outside.

With half of July behind us already, I'll be looking ahead a few weeks to potential dividend stocks to purchase in August 2022.


Image Source: Pexels

Dividend Stock #1: National Retail Properties (NNN)

National Retail Properties is the first dividend stock on my watch list for August. As I noted in a Motley Fool article on the stock and Simon Property Group a few weeks ago, NNN is a high-quality single-tenant net lease REIT.

The company's thousands of properties throughout the U.S. and its resilient business model have allowed it to raise its dividend for 33 consecutive years. This is after the most recent 3.8% dividend increase that was announced today, July 15.

And given its mid-60% dividend payout ratio, NNN should be able to keep the dividend increases coming for many more years. Best of all, the stock's 5% dividend yield can be snatched up at a forward price-to-AFFO-per-share ratio of just over 14 (based on the $44 share price as of July 15, 2022).

Dividend Stock #2: Visa (V)

The next dividend stock I'm considering purchasing next month is Visa. For an in-depth explanation of why Visa is on my watch list, I'd refer interested readers to my Motley Fool article on the stock from early June.

V continued to deliver double-digit net revenue and earnings growth when it reported its earnings results for the first quarter a while back. Since cash will continue to be displaced by alternative payment methods, this should enable high earnings growth to continue for the next decade or more. 

Along with V's dividend payout ratio in the low-20% range, this should translate into robust dividend growth in the years to come. And at a forward P/E ratio a bit over 29 (based on the $210 share price as of July 15, 2022), V is priced to create significant wealth over the long run.

Dividend Stock #3: Texas Instruments (TXN)

The final dividend stock that I'm thinking about buying in August is Texas Instruments. As I explained in a Motley Fool article on the stock (and Norfolk Southern and McDonald's), TXN will benefit from a positive industry outlook.

Growing demand for semiconductor chips will help TXN's earnings to grow in the high-single-digits to low-double-digits annually. Along with the stock's well-covered 2.9% dividend yield, this makes TXN a solid stock for income, income growth, and total returns.

The stock can be purchased at a forward P/E ratio of just below 18 (based on the $160 share price as of July 15, 2022), which is a solid value for a stock of TXN's quality.

Concluding Thoughts:

August should be another month of capital deployment around $2,500 to $3,000. My dividend stock purchases as of late are a decent balance of high-yield, low growth dividend stocks, moderate-yield, moderate growth dividend stocks, and low-yield, high growth dividend stocks in my opinion.

Discussion:

Are any of NNN, V, or TXN on your watch list for next month?

If not, what stocks are you considering buying in August 2022?

As always, I appreciate your readership. Please feel free to comment below!

Tuesday, July 12, 2022

A Major Milestone Has Been Achieved

As I'm writing this blog post, the temperature here in Central Wisconsin is reaching into the high-70 degrees Fahrenheit range. And these ideal temperatures are anticipated to last into the next few days. That's why I will aim to get outside as much as I can this weekend!

Equally as important, my dividend growth stock portfolio just reached a milestone. I'll detail what that milestone was and a couple of takeaways from it.

The First Takeaway: Annual Forward Dividend Income Accomplishments Are Getting Faster and Faster


My annual forward dividend income surpassed $3,000 at the start of July 2022. And experience has taught me that annual forward dividend income is very much the snowball rolling down the hill analogy that many have used before me. 

For context, it took me two and a half years to go from $0 in annual forward dividend income in August 2017 to $1,000 in March 2020. It took just a year and a half to reach $2,000 from that point in September 2021. And my most recent achievement clocked in at just 10 months to top $3,000 in annual forward dividend income.

Just as impressive is the fact that my annual forward dividend grew by $7.014 from dividend increases alone in June 2022. This was more than the double the $3.15 in net dividends collected in October 2017 - - my first month of being paid dividends.

The Second Takeaway: Every Extra $1,000 Provides Even More Motivation

What makes dividend growth investing especially great is that it is self-reinforcing. That is, the more success you have with the strategy through deploying fresh capital, reinvesting dividends, and receiving payout raises, you also aim higher.

And the success of the strategy has also allowed me to stay the course during market crashes like the COVID-19 induced bear market and the bear market that happened this year.

Concluding Thoughts:

I'm very blessed to have exceeded $3,000 in annual forward dividend income after four years and 10 months to the day that I made my first dividend stock purchases on September 5, 2017. With my undergraduate years behind me and my total net income rising with each quarter, the next $1,000 increments should come slightly faster than the 10 months it took me to move from $2,000 to $3,000 in annual forward dividend income.

Discussion:

What was your most recent dividend growth stock milestone?

Are you taking full advantage of the market downturn that has occurred in 2022?

As usual, thanks for reading. Please feel free to leave a comment below!

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!