Why Financial Independence Demands Both Defense and Offense

As I'm writing this blog post, it's currently Tuesday, October 6th, 2026. The temperature here in Central Wisconsin is poised to reach a high of 74 degrees Fahrenheit later today. Thus, I plan on spending a bit of time outside.

With that aside, I wanted to shift the focus of the blog a bit this week to the mechanics of wealth building and achieving financial independence (e.g., total passive income that meets or exceeds total expenses).

In the traditional personal finance playbook, we're often told to pick a lane. Play strict defense: Clip coupons, obsess over every penny of expense creep, and hunker down. Or, play pure offense: Hustle harder, chase higher active income, and let compounding take care of the rest.

The problem? In a macroeconomic environment defined by persistent inflation, creeping overhead (e.g., surging healthcare costs, rising groceries, etc.), and systemic friction, playing only one side of the board is a losing strategy. To truly build a bulletproof financial foundation, both elements must be mastered simultaneously.

1. The Fortress (The Defensive Moat)

Defense is about locking down your baseline so that external shocks can't penetrate your perimeter. For individual investors, this means keeping fixed costs lean, eliminating toxic liabilities, and ensuring that basic survival expenses are protected by high savings rates and tangible assets.

This will look at least a little different for everyone, but the goal is to lower your break-even point so drastically that you become unfazed by economic turbulence. The sobering reality, however, is that defense alone is a slow grind. If you only focus on cutting expenses, you'll quickly reach a mathematical floor. You typically can't out-save an aggressively inflating baseline forever.

Take my personal finances for instance. The vast majority of my spending (80%+) comes from housing, groceries, healthcare, and modest transportation/car insurance expenses. Thus, these categories are optimized to a point that's well below my means. This allows me to routinely save and invest over 70% of my net income.

2. The Engine (The Offensive Push)

Of course, a high savings rate is made much easier with a higher income once you have your expenses locked down. This is why offense matters so much.

Wealth acceleration happens here. Offense is about expanding your earning capacity. This could be done through leveraging specialized intellectual capital to scale income, seeking out yield, and turning active skills into scalable revenue streams.

The goal is to push your income velocity as far ahead of the broader economic inflation curve as possible. The reality is that pure offense without a defensive foundation in place leaves you vulnerable to lifestyle creep and systemic shocks.

3. The Synthesis: The FI Playbook

When you combine a locked-down defensive baseline with an aggressive, scaling offensive engine, something powerful happens: Asymmetrical compounding.

Every dollar added to your income widens the gap between your earnings and fixed expenses. When macro costs rise (like my expected 20%+ hike in my catastrophic health insurance plan premium for next year), you don't flinch all that much. You simply adjust your output slightly, leaving the friction far behind where the median consumer gets squeezed.

Concluding Thoughts:

True financial sovereignty is about building an impenetrable fortress while also launching strategic raids from it. If you want to pull away from the pack, stop choosing between defense and offense. Master both, and let the system work against itself.

Discussion:

When building toward financial independence, where do you find yourself leaning more naturally: Locking down your defensive baseline (cutting expenses and optimizing fixed costs) or pushing the offensive engine (scaling active income)?

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

September 2026 Dividend Income

As I'm writing this blog post, it's currently Monday, September 28th. The temperature here in Central Wisconsin is set to reach a high of 74 degrees Fahrenheit with a sunny forecast. That's why I'll be spending some time outside later today!

With that out of the way, I'll be quickly outlining my net dividend income for September 2026. Without further ado, let's jump into it!

Net Dividends Approached $800

In September 2026, I received $790.59 in net dividends (including ADR fees for BAM). Sequentially, this grew by 5.3% over the $750.91 in net dividends collected in June 2026.

Compared to the $623.20 in net dividends received in September 2025, that's equivalent to a 26.9% growth rate over the year-ago period.

Within my Robinhood account (formerly Charles Schwab), I collected $435.30 in net dividends from 37 companies. First-time dividend payments from Genpact Limited (G) and Hamilton Lane Incorporated (HLNE) more than offset the timing of NVIDIA Corporation's (NVDA) dividend (payable on Oct. 1)

I also received $170.76 in net dividends from 15 companies in my Robinhood IRA portfolio. The timing of NVDA's dividend reduced my company count by one versus June 2026.

Within my Capital Income Builder (CAIBX) mutual fund in a retirement account from my employer out of college, I collected $105.89 in net dividends.

I also received $57.70 in net dividends from seven companies in my Fidelity solo 401k portfolio.

Finally, I collected $20.94 in net dividends from seven companies within my Webull account.

Concluding Thoughts:

The dividend growth portfolio is chugging along. By God's grace, as I keep saving and investing in the months to come, I think that net dividend growth will remain in the upper-20% range (28.3% YTD) due to compounding.

Discussion:

How was your September 2026 for dividend income?

Did you receive any first-time dividends in the month as I did with G and HLNE?

Thanks for reading and please feel free to comment below!

September 2026 Stock Purchases

As I'm writing this blog post, it's currently Monday, September 21st, 2026. Tomorrow is the first official day of fall, but it looks like it's already unofficially here. The temperature here in Central Wisconsin is only going to reach a high of 63 degrees Fahrenheit later today.

With that aside, I will be quickly highlighting my stock purchases for September 2026. Let's jump into it!

Stock Purchase #1: Amazon.com, Inc. (AMZN)

I purchased an additional three shares of Amazon.com at an average cost of $254.00 a share. Curious readers can check out my investment thesis for AMZN in my September 2026 Stock Watch List blog post.

Stock Purchase #2: Broadcom (AVGO)

My next purchase was three more shares of Broadcom at an average price per share of $369.53. Interested readers can find my investment thesis for AVGO in my October 2026 Stock Watch List blog post. This lifted my net annual forward dividends by $7.80, which equates to a 0.70% net dividend yield.

Stock Purchase #3: British American Tobacco (BTI)

I also added another 21 shares of British American Tobacco at an average cost of $56.13 a share. That marked the first time I added to BTI since April 2025. This boosted my net annual forward dividends by $68.04, which is equivalent to a 5.77% net dividend yield.

Stock Purchase #4: Hamilton Lane Incorporated (HLNE)

My next purchase was 10 more shares of Hamilton Lane at an average price per share of $103.38. Readers can find my investment thesis in my September 2026 Stock Watch List blog post linked earlier. That transaction increased my net annual forward dividends by $24.00, which works out to be a 2.32% net dividend yield.

Stock Purchase #5: Intuit (INTU)

I also added another two shares of Intuit at an average cost of $344.58 a share. My investment thesis is unchanged since it last appeared on my May 2026 Stock Watch List. This raised my net annual forward dividends by $11.04, which equates to a 1.60% net dividend yield.

Stock Purchase #6: UnitedHealth Group Incorporated (UNH)

My next purchase was two more shares of UnitedHealth Group at an average price per share of $395.50. The thesis is basically the same as when it was featured in my April 2026 Stock Watch List. The transaction upped my net annual forward dividends by $18.56, which is equivalent to a 2.35% net dividend yield.

Concluding Thoughts:

In September 2026, I deployed $5,669.07 in net capital (including $105.89 in net dividends from my CAIBX mutual fund holding in my former employer-sponsored account). That added $132.53 in net annual forward dividends, which works out to be a 2.34% net dividend yield.

My net annual forward dividends have grown by $30.718 in September 2026 from dividend increases as well. Along with lower revisions in ADR dividends from recent strengthening in the USD, this lifted my net annual forward dividends from around $8,175 heading into the month to nearly $8,325 moving into October 2026.

Discussion:

How was your capital deployment for September 2026?

Did you start any new positions during the month?

Thanks for reading and please feel free to comment below!

Expected Dividend Increases for October 2026

As I'm writing this blog post, it's currently Monday, September 14th, 2026. The temperature here in Central Wisconsin is set to reach a high of just 66 degrees Fahrenheit with a rainy forecast. Needless to say, I probably won't be going outside today.

With that aside, I'll be looking at the dividend announcements in September 2026. I will also be looking ahead to the payout raises that I'm anticipating for October 2026. Let's dig into it!

Actual Dividend Increases for September 2026

Dividend Increase #1: Realty Income (O)

Realty Income announced a 0.2% increase in its monthly dividend per share to $0.2715. This fell short of my expectation for a 1.5% raise in its monthly dividend per share to $0.2750 outlined in this series' previous blog post. Still, I do expect the customary big raise to be announced at some point this year, along with the several smaller raises.

Across my 153 shares of O, my net annual forward dividends edged $0.918 higher due to this dividend announcement.

Dividend Increase #2: U.S. Bancorp (USB)

U.S. Bancorp declared a 3.9% raise in its quarterly dividend per share to $0.54. My net annual forward dividends grew by $2.08 across my 26 shares from this dividend declaration.

Dividend Increase #3: VICI Properties (VICI)

VICI Properties announced a 2.2% increase in its quarterly dividend per share to $0.46. This was below my forecast of a 3.9% raise to $0.4675.

Across my 180 shares of VICI, my net annual forward dividends surged $7.20 higher due to this dividend announcement.

Pending Dividend Increase #1: Microsoft (MSFT)

Microsoft hasn't yet announced its next dividend, either. However, I remain confident that it will raise the payout by 9.9% to $1.00.

Across my 26 shares of MSFT, my net annual forward dividends would surge higher by $9.36 due to such a dividend announcement.

UPDATE: MSFT announced a 7.7% raise in its quarterly dividend per share to $0.98. My net annual forward dividends grew by $7.28 across my 26 shares of MSFT.

Pending Dividend Increase #2: Philip Morris International (PM)

Philip Morris International has yet to declare its next dividend. I'm sticking with my expectation of an 8.2% raise in the quarterly dividend per share to $1.59.

My net annual forward dividends would rise by $8.64 across my 18 shares of PM from such a dividend declaration.

UPDATE: PM declared an 8.8% hike in its quarterly dividend per share to $1.60. This raised my net annual forward dividends by $9.36 across my 18 shares.

Bonus Dividend Increase: McDonald's (MCD)

A few weeks earlier than I anticipated, McDonald's upped its quarterly dividend per share by 3.8% to $1.93. While this was less than the 5.9% increase to $1.97, the upside was that MCD is now a Dividend King.

Across my nine shares of MCD, my net annual forward dividends grew by $2.52 from this announcement.

Expected Dividend Increases for October 2026

Expected Dividend Increase #1: AbbVie (ABBV)

The first dividend raise that I'm anticipating for October 2026 will come from AbbVie. I believe that ABBV will announce a 5.2% lift in its quarterly dividend per share to $1.82.

Across my 14 shares of ABBV, my net annual forward dividends would rise by $5.04 due to such a dividend announcement.

Expected Dividend Increase #2: Agree Realty (ADC)

The next dividend increase that I'm expecting for next month will be from Agree Realty. My guess is that it will declare a 1.9% increase in its monthly dividend per share to $0.272.

My net annual forward dividends would edge $1.20 higher across my 20 shares of ADC from such a dividend declaration.

Expected Dividend Increase #3: American Electric Power (AEP)

The third dividend raise that I'm predicting for October 2026 will come from American Electric Power. My best guess is that AEP will announce a 2.1% increase in its quarterly dividend per share to $0.97.

Across my 15 shares of AEP, my net annual forward dividends would inch up by $1.20 due to such a dividend announcement.

Expected Dividend Increase #4: A.O. Smith (AOS)

The next dividend increase that I'm anticipating for next month will be from A.O. Smith. I believe that AOS will declare a 5.6% raise in its quarterly dividend per share to $0.38.

My net annual forward dividends would increase by $0.96 across my 12 shares of AOS from such a dividend declaration.

Expected Distribution Increase #5: Energy Transfer (ET)

The next distribution bump that I'm expecting for October 2026 will come from Energy Transfer. My guess is that ET will announce a 0.7% increase in its quarterly distribution per unit to $0.3425.

Across my 207 units of ET, my net annual forward distributions would rise by $2.07 due to such a dividend announcement.

Expected Dividend Increase #6: Lockheed Martin (LMT)

The next dividend raise that I'm predicting for next month will be from Lockheed Martin. My best guess is that LMT will declare a 5.2% increase in its quarterly dividend per share to $3.63.

My net annual forward dividends would grow by $2.88 across my four shares of LMT from such a dividend declaration.

Expected Distribution Increase #7: MPLX LP (MPLX)

The seventh distribution boost that I'm expecting for next month will be from MPLX LP. My guess is that MPLX will declare a 12% lift in its quarterly distribution per unit to $1.206.

My net annual forward distributions would climb higher by $36.26 across my 70 shares of MPLX from such a distribution declaration.

Expected Dividend Increase #8: Visa (V)

The ninth dividend raise that I'm predicting for October 2026 will come from Visa. My best guess is that V will announce a 13.4% hike in its quarterly dividend per share to $0.76.

Across my 12 shares of V, my net annual forward dividends would surge $4.32 due to such a dividend announcement.

Pending Dividend Increase #1: Accenture plc (ACN)

Accenture plc has yet to declare a hike in its payout. Still, I believe that ACN will boost the quarterly dividend per share by 9.8% to $1.79. I shifted this to October due to the Q4 2026 earnings report falling on that day.

My net annual forward dividends would rise by $17.92 across my 28 shares of ACN from such a dividend declaration.

Concluding Thoughts:

My net annual forward dividends jumped by $30.718 in September 2026 from my six dividend raises. That would equate to investing $1,023.93 at a 3% net dividend yield.

If my nine raises for October 2026 play out as anticipated, my net annual forward dividends would soar by $71.85. This would be equivalent to investing $2,395.00 at a 3% net dividend yield.

Discussion:

How has your September 2026 been for dividend boosts?

Are you expecting any first-time dividend hikes like I expect with ACN next month?

I appreciate your readership and welcome your comments below!

October 2026 Stock Watch List

As I'm writing this blog post, it's Tuesday, September 8, 2026. The temperature here in Central Wisconsin is set to reach a high of 73 degrees Fahrenheit later today. Rain is in the forecast throughout the day, so I likely won't be spending any time outside.

With that aside, I'm probably finished with capital allocation for the month of September 2026. So, I will be taking now as an opportunity to highlight several stocks at the top of my watch list over the next few weeks and heading into October 2026. Let's dive into it!

Stock #1: Amazon.com (AMZN)

The first stock on my watch list for October 2026 is Amazon.com. Readers will notice that this one has become a frequent flyer on the Watch List blog posts, having just appeared in the September 2026 Stock Watch List blog post as well.

The gist of the thesis is that AMZN's Q2 2026 earnings report validated the investment thesis. AWS recorded the strongest quarter of growth since Q4 2021. That was when AWS grew revenue by about 40% to an annual run rate of $71 billion. In Q2 2026, the segment's growth accelerated from 28% in Q1 2026 to 37% in Q2 2026 (concluding the second quarter with a $169 billion annual run rate). That was more than double the 17% growth of AWS in Q2 2025 on a much smaller base. This offers the clearest proof that AMZN's outsized capex in recent years is bearing fruit.

AMZN's AI and chips businesses also each surpassed $25 billion annual run rates in Q2 2026 (with triple digit percentage YOY growth rates). Only NVIVIA and Broadcom have bigger businesses.

Just like I noted in the previous post of this series, North America and International net sales growth were also strong. Each segment's net sales grew at mid-teens percentage rates in Q2 2026. That sets up AMZN's OCF per share growth to top 25% annually over the next few years.

The company's AA S&P credit rating with a stable outlook also drives home the point that its financial positioning is impeccable.

GNG Research

From the current $256 share price, the stock is priced at a forward 12-month P/OCF ratio of 12.2. That's much lower than the 10-year average P/OCF ratio of 23.5 and 36% less than my $398 fair value per share estimate (a fair value multiple of 19). This also represents a 29% discount to the $361 fair value per share estimate (a fair multiple of approximately 17) from my friends at GNG Research.

Stock #2: Broadcom (AVGO)

The next stock on my watch list for next month is Broadcom.

AVGO stands at the intersection of high-performance custom semiconductor for major hyperscalers and enterprise infrastructure software. Driven by massive secular tailwinds in AI and strategic acquisitions (e.g., VMware), the company has cements its place as a critical backbone of modern digital infrastructure.

These secular growth catalysts explain why the FAST Graphs analyst consensus is for non-GAAP EPS to compound by 60%+ annually through FY 2028 (~71%, 64%, and 63%), off a FY 2025 base of $6.82. Because AVGO is growing so fast, the balance sheet is also being deleveraged. That's why it enjoys an A- S&P credit rating with a positive outlook.

AVGO's 0.7% dividend yield is modest. However, the non-GAAP EPS payout ratio is set to be in the low-20% range in FY 2026. That provides it plenty of room to compound the payout at a low double-digit percentage rate annually for the foreseeable future, while also retaining capital for growth.

At the current $362 share price, AVGO is trading at a forward 12-month P/E ratio of just 20.1. This is far below the three-year FAST Graphs average P/E ratio of 30.4 and 28% under my fair value per share estimate of $505 (a fair value P/E ratio of 28).

Stock #3: BlackRock (BLK)

The third stock on my watch list for October 2026 is BlackRock. Readers can find my investment thesis in my August 2026 Stock Watch List blog post and my July Seeking Alpha article.

The gist of my thesis is that net revenue and adjusted diluted EPS vaulted higher by double-digits in Q2 2026. That was made possible by the eighth straight quarter of organic base fee growth surpassing 5% (it was 8% in Q2 2026). BLK's YTD net inflows of $321 billion in the first half of 2026 more than doubled the first half of 2025.

Because of this operating momentum, the FAST Graphs analyst consensus is for the asset manager's adjusted diluted EPS to compound by 15.1% annually through 2028, off a 2025 base of $48.09. BLK's balance sheet is also a fortress, with an AA- S&P credit rating and a stable outlook. That provides it with a low cost of capital to further complement its business with additional bolt-on acquisitions.

BLK's 2% dividend yield is right in the sweet spot for me. This is because the adjusted diluted EPS payout ratio is poised to be in the low-40% range for 2026. That paves the way for more double-digit percentage dividend hikes over the next few years.

GNG Research

From the current $1,122 share price, the stock is priced at a forward 12-month P/E ratio of 18.1. That's 12% below the FAST Graphs 10-year average P/E ratio of 20.7 and my fair value per share estimate of $1,278 (a fair value multiple of 20.7). This is also 14% less than the $1,300 fair value per share estimate from GNG Research.

Stock #4: PepsiCo (PEP)

The next stock on my watch list for next month is PepsiCo. Curious readers can find my investment thesis in the July Seeking Alpha article that I did for Treading Softly.

The crux of it is that PEP is showing resilience in international markets and through higher net prices. That helped its net revenue to grow by 6.4% to $24.18 billion in Q2 2026. The company's core EPS edged 3.8% higher to $2.20 during the quarter.

PEP plans to maintain its focus on permissible and portion-control innovation (i.e., healthier or functional options and portion-control formats). Functional hydration and zero-sugar beverages promise to be key growth areas for PEP. Better price points on multipacks and variety packs are aimed at appealing to budget-conscious shoppers to drive volume growth.

Actions to create value through bundles and combined food-and-beverage solutions at away-from-home channels/enterprise productivity goals are also tailwinds. Thus, the FAST Graphs analyst consensus is for constant currency core EPS to rise by 5.3% annually through 2028, off a 2025 base of $8.14.

Like BLK, PEP's A+ S&P credit rating also affords it a low cost of capital for bolt-on acquisitions to further complement its business. The consumer staple's 4.3% dividend yield provides a significant lift to the income of my basket of stocks for this month. This starting income is also secure, with the payout ratio positioned to be in the upper-60% range for 2026. That should allow for 4% to 5% annual dividend growth over the next several years.

At the current $138 share price, PEP is trading at a forward 12-month P/E ratio of 15.5. This is well below the FAST Graphs 10-year average P/E ratio of 22.8 and 14% under my updated fair value per share estimate of $160 (18x).

Stock #5: WEC Energy Group (WEC)

The final stock on my watch list for October 2026 is WEC Energy Group. My investment thesis is largely the same as it was in my June Seeking Alpha article.

WEC's $37.5 billion five-year capital spending plan can drive the expected rate base growth needed for high single-digit percentage annual diluted EPS growth for the foreseeable future. The driving factor for this sizable capex is the attractiveness of the I-94 corridor to large customers, such as data centers. The land is relatively flat and undeveloped, which is a positive for such customers. As is the fact that Wisconsin's climate reduces the energy required for mechanical cooling, which is a major expense for data centers. The abundant supply of water from the Great Lakes is the icing on the cake.

WEC is also financially sound, with an A- S&P credit rating and a stable outlook. The 3.6% dividend yield is secure, too. The payout ratio is likely to register in the high-60% range, which should support approximately 7% annual dividend growth over the next few years.

GNG Research

From the current $107 share price, WEC is priced at a forward 12-month P/E ratio of 18.2. That's moderately below the FAST Graphs 10-year average P/E ratio of 21 and 7% under my $115 fair value per share estimate (a fair value P/E ratio of 19.5). Shares are also trading at a 9% discount to the $117 fair value per share estimate of GNG Research (roughly 20x).

Concluding Thoughts:

That's it for now. Five world-class companies that I'd like to add to in October 2026. My planned allocation for the month should keep me around a mid-2% yield while offering plenty of upside potential through a combination of growth and undervaluation.

Discussion:

Are any of AMZN, AVGO, BLK, PEP, or WEC on your watch list for October 2026?

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

Thank you for your readership and I look forward to your comments below!

August 2026 Dividend Income

As I'm writing this blog post, it's currently Monday, August 31st, 2026. The temperature here in Central Wisconsin is expected to top out at a high of 90 degrees Fahrenheit (and a heat index of 99) later today. That's why I was glad to get outside for a bit earlier this morning when it was much cooler.

With that aside, I will be outlining my net dividend income for August 2026. Without further ado, let's dig into it!

Net Dividends Topped $800

In August 2026, I received $830.52 in net dividends (including withholding taxes for Novo Nordisk, as well as ADR fees for British American Tobacco and NVO). Compared to the $737.61 in net dividends collected in May 2026, this represents a 12.6% quarterly growth rate. Backing out dividends from NVO that were last paid in April 2026, that equates to a quarterly growth rate of 7.7%.

My net dividends received in August 2025 were $622.85. This is equivalent to a 33.3% year-over-year growth rate.

In my taxable Robinhood account, I collected $754.37 in net dividends from 19 companies. The timing of the dividend payment from NVO is what led to my company count being one higher than in May 2026. It's also worth noting that the loss of dividend income from Alliant Energy stemming from my May 2026 sale was offset by the added income from Accenture plc, which I started buying in July 2026.

I received $37.68 in net dividends from four companies in my Robinhood IRA portfolio. This company count was unchanged and the slight increase in net dividends versus May 2026 was due entirely to dividend raises from NNN REIT and Realty Income.

In my Fidelity solo 401(k) account opened in March, I collected $21.21 in net dividends from my June 2026 purchase of Mastercard and my May 2026 purchase of NNN REIT.

Finally, I received $17.26 in net dividends from three companies (Enterprise Products Partners, British American Tobacco, and Energy Transfer) in my Webull portfolio.

Concluding Thoughts:

August 2026 was the first month in which my net dividends surpassed $800. Through the first eight months of 2026, my net annual forward dividends have grown by 28.5% over 2025. As I keep aggressively saving and investing, I believe that by God's grace, I will sustain a high-20% growth rate in net dividends for 2026.

Discussion:

How was your dividend income in August 2026?

Did you receive any first-time dividends during the month as I did with ACN?

Thanks for reading and please feel free to comment below!

August 2026 Stock Purchases/Sales

As I'm writing this blog post, it's currently Monday August 24th, 2026. The temperature here in Central Wisconsin is set to reach a high of 76 degrees Fahrenheit later today. Paired with a sunny forecast, this is the perfect day for me to get outside for a while.

With that out of the way, I will be getting into my stock purchases and sales for August 2026. Let's dig into it!

Stock Purchase #1: Accenture plc (ACN)

I added another eight shares of Accenture plc at an average price per share of $172.86. Interested readers can find my investment thesis for ACN in my August 2026 Stock Watch List blog post. This lifted my net annual forward dividends by $52.16, which is equivalent to a 3.77% net dividend yield.

Stock Purchase #2: Amazon.com (AMZN)

My next purchase was three more shares of Amazon.com at an average cost of $260.00 a share. Curious readers can peruse my investment thesis for AMZN in my August 2026 Stock Watch List blog post linked earlier.

Stock Purchase #3: Domino's Pizza (DPZ)

I also scooped up another three shares of Domino's Pizza at an average price of share of $339.75. Once again, readers can check out my investment thesis for DPZ in my August 2026 Stock Watch List blog post linked above. That raised my net annual forward dividends by $23.88, which equates to a 2.34% net dividend yield.

Stock Purchase #4: Hamilton Lane (HLNE)

After opening a 30 share starter position in HLNE earlier in the month (more on that in a moment), I added an additional 10 shares at an average cost of $99.00 per share. This increased my net annual forward dividends by $24.00, which works out to be a 2.42% net dividend yield.

Stock Purchase #5: NVIDIA (NVDA)

I also added five more shares of NVDA at an average price per share of $220.00. Curious readers can find my investment thesis in my August 2026 Stock Watch List blog post linked above. That added $5.00 to my net annual forward dividends, which is equivalent to a 0.45% net dividend yield.

Stock Sales: FedEx (FDX) and TJX Companies (TJX)

Due to valuation and the resulting impact on overall forward-looking total return potential, I opted to close my positions in FedEx and TJX Companies at triple-digit percentage long-term capital gains. I sold four shares of the former for $325.74 each and 11 shares of the latter at $158.54 apiece.

Together, these moves lowered my net annual forward dividends by $40.64.

Stock Purchase: Hamilton Lane (HLNE)

I redeployed all but $42.56 of the net proceeds into a 30 share starter position in Hamilton Lane at an average cost of $100.14 a share. Curious readers can find my investment thesis in my September 2026 Stock Watch List blog post. This move added $72.00 to my net annual forward dividends.

Concluding Thoughts:

In August 2026, I deployed $5,229.57 in net capital. My stock purchases and stock sales added $136.40 to my net annual forward dividends. That equates to a 2.61% net dividend yield.

If my two pending dividend raises play out as anticipated, my net annual forward dividends will have increased by $18.60 in August 2026. Along with upward revisions in ADR dividends from strength in the GBP and CAD, this would boost my net annual forward dividends from roughly $8,010 at the start of August 2026 to roughly $8,175 going into September 2026.

Discussion:

How was your capital deployment for the month?

Did you close any positions (as I did with FDX and TJX) or open any new positions (as I did with HLNE) in August 2026?

I appreciate your readership and welcome your comments below!

Expected Dividend Increases for September 2026

As I'm writing this blog post, it's currently Monday August 17th, 2026. The temperature here in Central Wisconsin is set to reach a high of 82 degrees Fahrenheit later today. Along with a sunny forecast, that makes it a perfect day to spend some time outdoors!

With that said, I will be looking at my dividend announcement activity in August 2026. I'll also be looking ahead to the payout hikes that I'm expecting for September 2026. Let's get into it!

Actual Dividend Increase for August 2026

Dividend Increase: Carlisle Companies (CSL)

Carlisle Companies announced a 13.6% boost in its quarterly dividend per share to $1.25. Talk about an emphatic way to become a Dividend King! In this series' prior blog post, I was only expecting a 9.1% raise to $1.20.

Across my 11 shares of CSL, my net annual forward dividends surged $6.60 due to this dividend announcement.

Pending Dividend Increase #1: Intuit (INTU)

Intuit has yet to declare its next quarterly dividend per share. But I'm standing by my expectation of a 15% hike in the quarterly dividend per share to $1.38.

My net annual forward dividends would jump $7.20 higher from such a dividend declaration across my 10 shares of INTU.

UPDATE: As anticipated, INTU declared a 15% boost in its quarterly dividend per share to $1.38. This raised my net annual forward dividends by $7.20 across my 10 shares of INTU.

Pending Dividend Increase #2: Altria Group (MO)

Altria Group hasn't announced its next quarterly dividend per share yet. Still, I anticipate a 4.7% increase in its quarterly dividend per share to $1.11.

Across my 24 shares of MO, my net annual forward dividends would rise by $4.80 due to such a dividend announcement.

UPDATE: As I expected, MO announced a 4.7% increase in its quarterly dividend per share to $1.11. Across my 24 shares of MO, my net annual forward dividends grew by $4.80.

Expected Dividend Increases for September 2026

Expected Dividend Increase #1: Accenture plc (ACN)

The first dividend raise that I'm anticipating for September 2026 will come from Accenture plc. My best guess is that ACN will declare a 9.8% hike in its quarterly dividend per share to $1.79.

My net annual forward dividends would rise by $12.80 across my 20 shares of ACN from such a dividend declaration.

Expected Dividend Increase #2: Microsoft (MSFT)

The next dividend boost that I'm predicting for next month will be from Microsoft. I believe that MSFT will announce a 9.9% raise in its quarterly dividend per share to $1.00.

Across my 26 shares of MSFT, my net annual forward dividends would rise by $9.36 due to such a dividend announcement.

Expected Dividend Increase #3: Realty Income (O)

The third dividend bump that I'm expecting for September 2026 will come from Realty Income. My guess is that O will declare a 1.5% increase in its monthly dividend per share to $0.2750 (the REIT tends to announce four smaller increases each year and one larger increase).

My net annual forward dividends would grow by $7.248 across my 151 shares of O from such a dividend declaration.

Expected Dividend Increase #4: Philip Morris International (PM)

The next dividend hike that I'm anticipating for next month will be from Philip Morris International. My best guess is that PM will announce an 8.2% raise in its quarterly dividend per share to $1.59.

Across my 18 shares of PM, my net annual forward dividends would climb $8.64 higher due to such a dividend announcement.

Expected Dividend Increase #5: VICI Properties (VICI)

The fifth dividend raise that I'm predicting for September 2026 will come from VICI Properties. I believe that VICI will declare a 3.9% increase in its quarterly dividend per share to $0.4675.

My net annual forward dividends would surge $12.60 higher across my 180 shares of VICI from such a dividend declaration.

Concluding Thoughts:

My net annual forward dividends rose by $18.60 in August 2026. This would be equivalent to investing $620.00 at a 3% net dividend yield.

If my five dividend boosts in September 2026 play out as anticipated, my net annual forward dividends would rocket higher by $50.648. That would be like investing $1,688.27 at a 3% net dividend yield.

Discussion:

How was your August 2026 for dividend boosts? Did you receive any first-time raises in your portfolio like I did with CSL and INTU?

Are you expecting any first-time dividend raises like I am with ACN?

Thanks for reading and please feel free to comment below!

September 2026 Stock Watch List

As I'm writing this blog post, it's currently Tuesday, August 11th. The temperature here in Central Wisconsin reached a high of 85 degrees Fahrenheit today, with a heat index of 89 degrees. So, I limited my time spent outside.

With August almost half in the books, I will be turning my attention to several of the picks at the top of my watch list for September 2026. Without further ado, let's dive into it!

Stock #1: Amazon.com, Inc. (AMZN)

The first stock on my watch list for September 2026 is Amazon.com. I'm running it back from my August 2026 Stock Watch List blog post.

The Q2 earnings report released on Jul. 30 reinforced my investment thesis. The key highlights included the strongest quarter of growth for AWS since Q4 2021 (when AWS grew by roughly 40% to a $71 billion run rate business). In Q2 2026, the segment's growth accelerated from 28% in Q1 2026 to 37% in Q2 2026 (bringing the annual run rate to $169 billion heading into Q3 2026). 

For more context, AWS barely grew 17% on a much smaller base in Q2 2025. This is the latest and most concrete proof that the outsized capex in recent years is paying off in spades.

Then, there's the fact that the AI and chips businesses each topped $25 billion (with triple digit percentage YOY growth rates). Only NVIDIA and Broadcom have bigger businesses.

North America and International sales growth was exceptionally strong as well, with both growing at mid-teens percentage clips in Q2 2026. Overall, the company's OCF per share growth is poised to exceed 25% annually over the next several years.

AMZN is a financial fortress, with an AA S&P credit rating and a stable outlook.

GNG Research

From the current $272 share price, the stock is priced at a forward 12-month P/OCF ratio of 13.5. This is well below the 10-year average P/OCF ratio of 23.5 and 29% below my $382 fair value per share estimate (a fair value P/OCF ratio of 19). That also represents a 20% discount to the $342 fair value per share estimate (a fair value P/OCF ratio of roughly 17) of my friends at GNG Research.

Stock #2: Hamilton Lane Incorporated (HLNE)

The next stock on my watch list for the month ahead is Hamilton Lane Incorporated. After recently having sold a couple of lower conviction holdings to open a 1%+ starter position, this is a newcomer to my watch list.

As of Jun. 30, 2026, the global private markets investments solutions provider serving mostly institutional investors had $1.06 trillion in assets under management/advisement. Of that amount, $914.1 billion was AUA. The remaining $146.3 billion was AUM.

As private wealth professionals boost their market market investments in 2026 and beyond, this is an undeniable tailwind for HLNE. That's why the FAST Graphs analyst consensus is for its non-GAAP EPS to compound by 10.4% annually through FY 2029, off a FY 2026 base of $5.90.

The company's interest coverage ratio to kick off FY 2027 wasn't far off of 500, which is a testament to its financial strength. HLNE's non-GAAP EPS payout ratio is also likely to be in the mid-30% range for FY 2027, which should provide it plenty of room to hand out 10%+ annual dividend hikes over the next few years (very attractive when paired with a 2.3% starting yield).

GNG Research

At the current $106 share price (in after hours trading), HLNE is trading at a forward 12-month P/E ratio of 14.5. That's far less than the nine-year average P/E ratio of 24 and 34% under my $161 fair value per share estimate (a fair value P/E ratio of 22). This is also 26% below the GNG Research fair value estimate of $143 per share (a fair value P/E ratio just above 19).

Stock #3: Mastercard Incorporated (MA)

The third stock on my watch list for September 2026 is Mastercard Incorporated. This is returning to the watch list for the first time since June 2026.

The company has ample growth drivers for the future. The biggest one is that the world is transitioning from cash to alternative payments. Mastercard's mix of the network effect and competent execution should power more growth in the credentials on its network (over 3.7 billion as of Jun. 30, 2026), gross dollar volumes, and switched transactions over the long term.

The digitalization of payment methods is also a complementary growth catalyst for Mastercard. This is because it raises the demand for its value-added services, such as fraud, identity, and cyber. That's why mid-teens percentage annual adjusted diluted EPS growth is likely over the next several years for Mastercard.

The company's A+ S&P credit rating also provides it with the low cost of capital to execute the occasional bolt-on acquisition that's complementary to the business. The 0.6% dividend yield is modest, but the payout ratio is likely to be in the high-teens percentage range for 2026.

GNG Research

From the current $565 share price (in after hours trading), Mastercard is priced at a forward 12-month P/E ratio of 25.8. This is meaningfully below the 10-year average P/E ratio of 34.3 and 14% under my $656 fair value per share estimate. Shares are even more undervalued versus the GNG Research fair value per share estimate of $672, a 16% discount to fair value.

Honorable Mentions: PepsiCo, Inc. (PEP) And Verizon Communications Inc. (VZ)

On the income side of the equation, I'm planning on buying more PepsiCo, Inc. and Verizon Communications Inc. In the case of the former, I laid out my case in this Seeking Alpha article. In short, I also believed VZ to be a decent value, having redeployed proceeds from my T. Rowe Price Group sale in July 2026 to it.

Concluding Thoughts:

That's all for now. Five quality businesses that I would like to add to in September 2026. Overall, I'm leaning toward a slight preference toward the growth-oriented names in terms of allocation. The more income-oriented names in the portfolio and the HLNE hybrid should keep me around the mid- to high-2% yield that I target.

Discussion:

Are any of AMZN, HLNE, MA, PEP, or VZ on your watch list for next month?

If not, what stocks are you watching for September 2026?

I appreciate your readership and welcome your comments below!

July 2026 Dividend Stock Purchases/Sales

As I'm writing this blog post, it's currently Tuesday, August 4th. The temperature here in Central Wisconsin reached a high of 81 degrees Fahrenheit earlier today, which was quite nice. Also of note, today is the 17th birthday of my family's cat, Thomas!

With that aside, the beginning of another month means it's time to highlight my dividend stock purchases/sales in July 2026. Let's dive into it!

Dividend Stock Purchase #1: Brookfield Asset Management (BAM)

I purchased another 24 shares of Brookfield Asset Management at an average cost of $48.98 a share. In my July 2026 Stock Watch List blog post, I outlined my investment thesis for BAM. This boosted my net annual forward dividends by $48.24, which equates to a 4.10% net dividend yield.

Dividend Stock Purchase #2: Genpact Limited (G)

My next purchase was 39 more shares of Genpact Limited at an average price per share of $29.48. Interested readers can find my investment thesis in my July 2026 Stock Watch List blog post linked earlier. That lifted my net annual forward dividends by $29.25, which is equivalent to a 2.54% net dividend yield.

Dividend Stock Purchase #3: McDonald's Corporation (MCD)

I also picked up another four shares of McDonald's Corporation at an average cost of $268.61 a share. Curious readers can peruse my investment thesis in my July 2026 Stock Watch List blog post. This raised my net annual forward dividends by $29.76, which works out to a 2.77% net dividend yield.

Dividend Stock Purchase #4: Microsoft Corporation (MSFT)

My next purchase was an additional two shares of Microsoft Corporation at an average price per share of $395.19. Readers can check out my investment thesis in my July 2026 Stock Watch List blog post. That increased my net annual forward dividends by $7.28, which equates to a 0.92% net dividend yield.

Dividend Stock Purchase #5: NVIDIA Corporation (NVDA)

I picked up another five shares of NVIDIA Corporation at an average cost of $208.13 a share. My investment thesis can again be found in my July 2026 Stock Watch List blog post. This move added another $5 to my net annual forward dividends, which is equivalent to a 0.48% net dividend yield.

Bonus Dividend Stock Purchase: Royal Gold, Inc. (RGLD)

My next purchase was an additional six shares of Royal Gold, Inc. at an average price per share of $192.77. Interested readers can find my investment thesis in this Seeking Alpha article co-produced with Treading Softly. Given that this increased my net annual forward dividends by $11.40, this works out to a 0.99% net dividend yield.

Dividend Stock Sales: Air Products & Chemicals (APD), Coca-Cola (KO), Rexford Industrial Realty (REXR), and T. Rowe Price Group (TROW)

I closed four positions in July 2026. I started the month by selling five shares of Air Products & Chemicals for an average price per share of $310.91. 

I also sold 30 shares of Rexford Industrial Realty for $34.06 apiece. 

Next, I closed out a 10 share position in Coca-Cola for $84.02 a share.

Finally, I sold six shares of T. Rowe Price Group for $120.17 a share.

Each of these sales were executed because of slow dividend growth, excessive valuations, or some combination of the two. These transactions reduced my net annual forward dividends by $140.80.

Dividend Stock Purchases: Accenture plc (ACN), Domino's Pizza, Inc. (DPZ), and Verizon Communications (VZ)

I rolled my proceeds from the APD and REXR sales plus an additional $250.11 into 20 starter shares of Accenture plc at an average cost per share of $141.32. Readers can find my investment thesis for ACN in my August 2026 Stock Watch List blog post.

I put my proceeds from my KO sale and an additional $984.04 into opening a six share starter position in Domino's Pizza, Inc. at an average price of $304.04 a share. Once again, the rationale for this move can be found in my August 2026 Stock Watch List blog post.

Lastly, I took my TROW sale proceeds and another $1.85 to add another 15 shares to my position in Verizon Communications at an average cost per share of $48.19. Overall, I thought this was a decent value for VZ.

In total, these moves added $220.61 to my net annual forward dividends.

Concluding Thoughts:

In July 2026, I deployed a record $7,623.01 in net capital. All of my wheeling and dealing added $210.74 to my net annual forward dividends, which equates to a 2.76% net dividend yield.

My net annual forward dividends also rose by $31.822 from 10 dividend raises in July 2026. These factors boosted my net annual forward dividends from around $7,770 to begin the month to about $8,010 heading into August 2026.

Discussion:

How was your capital deployment in July 2026?

Did you close any positions (as I did with APD, KO, REXR, and TROW) or open any new positions (as I did with ACN and DPZ) in the month?

Thanks for reading and please feel free to comment below!

July 2026 Dividend Income

As I'm writing this blog post, it's currently Monday, July 27th. The temperature here in Central Wisconsin reached 98 degrees Fahrenheit, with the heat index easily topping 100 degrees earlier today! As a result, I didn't really spend much time at all outside.

With that out of the way, I'll be going over my net dividend income for July 2026 now that the month is essentially over. Without further ado, let's jump into it!

Net Dividend Income Surpassed $350

In July 2026, I collected $359.31 in net dividends (including ADR fees for GSK). This was down 11.2% over the $404.84 in net dividends received in April 2026. Adjusting for the timing of dividend payments from Novo Nordisk and NVIDIA, my net dividends would have grown by 9.8%.

Against the $268.61 in net dividends collected in July 2025, that equates to a 33.8% year-over-year growth rate.

In my Charles Schwab account (and later taxable Robinhood account from a transfer), I received $262.16 in net dividends from 21 companies. As I alluded to earlier, the difference in company count and the decline in dividends versus April in this account was entirely attributed to the timing of dividend payments from NVO and NVDA.

I also collected $65.96 in net dividends from five companies in my Robinhood IRA portfolio.

Since opening Fidelity solo 401(k) in March and beginning funding in April 2026, I received my first dividends for the first month of a quarter in July 2026. These amounted to $23.60 from three companies (Automatic Data Processing, VICI Properties, and Intuit).

Lastly, I collected $7.59 in net dividends from two companies (Philip Morris International and Altria Group).

Concluding Thoughts:

When backing out the impact of timing of dividends from NVO and NVDA, my net dividend income was a new all-time high for the first month of a quarter. Through the first seven months of 2026, my net dividend income has jumped 27.6%. As I keep saving and investing as much as possible in the months to come, I believe that with God's providence, I can maintain a high-20% growth rate in dividend income in 2026.

Discussion:

How was your July 2026 for dividend income?

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

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

Expected Dividend Increases for August 2026

As I'm writing this blog post, it's currently Tuesday, July 21st. The temperature here in Central Wisconsin is set to reach a high of 75 degrees Fahrenheit later today, with a sunny forecast. In other words, the forecast is absolutely perfect. So, I plan on getting outside today after the recent hot stretch!

With that aside, I will be going over the dividend raises that I have received thus far in July 2026 (and updating the others as they are announced in the coming days). I'll also be looking ahead to the payout boosts that I'm anticipating next month. Let's dig into it!

Actual Dividend Increases for July 2026

Dividend Increase #1: Cummins (CMI)

Cummins declared a 10% hike in its quarterly dividend per share to $2.20. That beat my prediction of an 8% raise to $2.16 in this series' prior blog post.

My net annual forward dividends rose by $4 across my five shares of CMI due to this dividend declaration.

Dividend Increase #2: Duke Energy (DUK)

Duke Energy announced a 1.9% increase in its quarterly dividend per share to $1.085. This came in just below my forecast of a 2.3% increase in the quarterly dividend per share to $1.09.

Across my six shares of DUK, my net annual forward dividends edged $0.48 higher from this dividend announcement.

Distribution Increase #3: Enterprise Products Partners (EPD)

Enterprise Products Partners declared a 1.8% raise in its quarterly distribution per unit to $0.56. That was more than the 0.9% bump to $0.5550 that I was expecting.

My net annual forward distributions rose by $11 across my 275 units of EPD due to this distribution declaration.

Dividend Increase #4: JPMorgan Chase (JPM)

JPMorgan Chase announced a 10% boost in its quarterly dividend per share to $1.65. This was better than the 6.7% raise to $1.60 that I predicted.

Across my six shares of JPM, my net annual forward dividends grew by $3.60 from this dividend announcement.

Dividend Increase #5: NNN REIT (NNN)

NNN REIT declared a 3.3% raise in its quarterly dividend per share to $0.62, which was in line with my forecast.

My net annual forward dividends were lifted by $5.76 across my 72 shares of NNN due to this dividend declaration.

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

J.M. Smucker announced a 1.8% increase in its quarterly dividend per share to $1.12. This was less than the 2.7% raise to $1.13 that I was expecting.

Across my three shares of SJM, my net annual forward dividends inched $0.36 higher from this dividend announcement.

Dividend Increase #7: Wells Fargo (WFC)

Wells Fargo declared an 11.1% hike in its quarterly dividend per share to $0.50. That met my expectations.

My net annual forward dividends grew by $1.60 across my eight shares of WFC from this dividend announcement.

Pending Distribution Increase #1: Energy Transfer (ET)

Energy Transfer has yet to declare its next distribution. However, I continue to believe that ET will declare a 0.7% increase in its quarterly distribution per unit to $0.34.

My net annual forward distributions would increase by $2.07 across my 207 units due to such a distribution declaration.

UPDATE: As expected, ET declared a 0.7% bump in its quarterly distribution per unit to $0.34. Across my 207 units, this raised my net annual forward dividends by $2.07.

Pending Dividend Increase #2: Union Pacific (UNP)

Union Pacific hasn't yet announced its next dividend. Still, I'm maintaining my expectation for a 5.1% raise in the quarterly dividend per share to $1.45.

Across my nine shares of UNP, my net annual forward dividends would grow by $2.52 from such a dividend announcement.

UPDATE: UNP announced a 2.9% increase in its quarterly dividend per share to $1.42. Given the ongoing merger with Norfolk Southern, the conservatism makes sense. This increased my net annual forward dividends by $1.44 across my nine shares of UNP.

Pending Dividend Increase #3: Essential Utilities (WTRG)

Finally, Essential Utilities hasn't declared its next dividend, either. However, I'm sticking with my forecast of a 5.1% increase to $0.36.

My net annual forward dividends would edge $1.462 higher across my 21 shares due to such a dividend distribution.

UPDATE: WTRG declared a 5.3% increase in its quarterly dividend per share to $0.3606. Across my 21 shares of WTRG, that lifted my net annual forward dividends by $1.512.

Expected Dividend Increases for August 2026

Expected Dividend Increase #1: Carlisle Companies (CSL)

The first dividend boost that I'm expecting for August 2026 will come from Carlisle Companies. I believe that CSL will announce a 9.1% raise in its quarterly dividend per share to $1.20.

Across my 11 shares of CSL, my net annual forward dividends would grow by $4.40 from such a dividend announcement.

Expected Dividend Increase #2: Altria Group (MO)

The next dividend raise that I'm forecasting for next month will be from Altria Group. My best guess is that MO will declare a 4.7% increase in its quarterly dividend per share to $1.11.

My net annual forward dividends would rise by $4.80 across my 24 shares due to such a dividend declaration.

Expected Dividend Increase #3: Intuit (INTU)

The final dividend boost that I'm predicting for August 2026 will come from Intuit. My guess is that INTU will hike its quarterly dividend per share by 15% to $1.38.

Across my 10 shares of INTU, my net annual forward dividends would surge $7.20 higher from such a dividend announcement.

Concluding Thoughts:

My net annual forward dividends rose by $31.822 across 10 dividend raises in July 2026. That would be like investing $1,060.73 at a 3% net dividend yield.

If my three dividend hikes in August 2026 materialize, my net annual forward dividends would grow by $16.40. This would be equivalent to investing $546.67 at a 3% net dividend yield.

Discussion:

How was your July 2026 for dividend raises?

Are you expecting any first-time payout boosts in August as I am with CSL and INTU?

I appreciate your readership and welcome your comments below!

August 2026 Stock Watch List

As I'm writing this blog post, it's currently Tuesday, July 14th. The temperature here in Central Wisconsin is set to reach a high of 94 degrees Fahrenheit later today, with a heat index above 100 degrees! In fact, there's a heat advisory in place until tonight. Needless to say, I'll be drinking even more water than usual and spending much less time outside.

Now that August is only a couple of weeks away, I will be highlighting some of the picks on my watch list for next month. Let's jump into it!

Stock #1: Accenture plc (ACN)

The first stock on my watch list for August 2026 is Accenture plc. For my investment thesis, curious readers can peruse my recent listicle with Treading Softly on The Dividend Kings.

Basically, ACN takes care of the most important business functions for over 9,000 clients in 120 countries. These include finance/accounting, human resources, supply chains, and marketing/sales. Despite meaningful geopolitical disruptions, the mid single-digit percentage topline growth (+5.6% to $18.72 billion) in Q3 2026. ACN's adjusted EPS jumped 8.9% to $3.80 during the quarter.

The company's recent launch of Accenture Edge to target the $240 billion addressable market of middle-market companies ($300 million to $3 billion in annual revenue) is a significant growth opportunity. By offering ready-to-deploy solutions that package their large-enterprise expertise for smaller clients, this is poised to drive topline growth for years to come. 

Along with a $9 billion acquisition budget for FY 2026, ACN is insulating its business against AI automation of traditional consulting services. Aside from being supported by its free cash flows, the company also leverages an AA- S&P credit rating that provides a low cost of capital for acquisitions.

This is why I'm confident that the company can put up 6% to 7% annual adjusted EPS growth over the next several years.

ACN's 4.8% dividend yield is also well-covered. That's supported by an adjusted EPS payout ratio poised to be in the upper-40% range for FY 2026. This should allow for 8% to 10% annual dividend growth over the next few years, which is very compelling when mixed with ACN's generous starting income.

GNG Research

At the current $135 share price, shares are trading at a forward 12-month P/E ratio of just 9.3. This is a fraction of the FAST Graphs 10-year average P/E ratio of 25.7 and my fair value multiple of 20 (a $291 fair value per share estimate). That implies shares are priced at a 54% discount to my fair value estimate. When using the $347 fair value per share estimate of my friends over at GNG Research, the discount to fair value is an even more striking 61%.

Stock #2: Amazon.com, Inc. (AMZN)

The next stock on my watch list for next month is Amazon.com, Inc. Interested readers can find my investment thesis in a May Seeking Alpha article.

The gist is that AMZN sits at the intersection of numerous growth tailwinds, including a thriving e-commerce/Ads/subscription business, quickly growing AWS sales, and a soaring customer silicon business. 

Further e-commerce retail growth is going to be made possible by a combination of price competitiveness (the average prices of products offered on Amazon in Q1 2026 decreased versus Q1 2025), expansion of its massive selection (it added 600-plus new notable brands in Q1 2026), and leaning even more into convenience (perishable sales were up 40x year-over-year and Rufus agentic AI shopping assistant active users were up 115% while engagement was up nearly 400%).

AWS's backlog almost doubled over the year-ago period (+92.6%) to $364 billion (excluding a $100 billion deal with Anthropic in April) in Q1 2026. Sequentially, this was up 49.2% from Q4 2025.

And even though AMZN's chips business is mostly for AWS, the roughly $50 billion annual run rate would be the third biggest on the planet if it were its own business, trailing only NVIDIA and Broadcom. Of the portion sold to other customers, the annual run rate surpassed $20 billion in Q1 2026 (a triple-digit percentage year-over-year growth rate).

AMZN's balance sheet is also spectacular, with an AA S&P credit rating and a stable outlook. For these reasons, operating cash flow per share is forecasted to grow by 25%+ annually over the medium term.

At the current $247 share price, the stock is also trading at a forward 12-month P/OCF ratio of just 12.9. This is far below the FAST Graphs 10-year average P/OCF ratio of 23.5 and 36% under my $384 fair value per share estimate (a fair value P/OCF ratio of 20).

Stock #3: BlackRock, Inc. (BLK)

The third stock on my watch list for August 2026 is BlackRock, Inc. Readers can find my investment thesis in my April Seeking Alpha article.

Basically, BLK is fundamentally thriving. Robust market performance in its higher-fee public markets book and client demand for international iShares ETF exposure are driving fee expansion. Organic base fees grew 8% in Q1 2026, which was the highest first quarter growth in the past five years and seventh straight quarter over the 5% target.

As corporate profits continue to expand over time, this will also drive further assets under management/revenue/adjusted diluted EPS growth for BLK. The potential for alt-inclusive 401(k) options to begin launching in 2027 could represent a catalyst for the company in terms of significantly higher fees over time (even with relatively modest allocation to private alternatives in target-date funds).

That's why solidly double-digit percentage annual adjusted diluted EPS growth over the next few years is arguably the base case for BLK. The balance sheet is also a fortress, with an AA- S&P credit rating and a stable outlook. Combined with an adjusted diluted EPS payout ratio poised to be in the low-40% range in 2026, this makes the 2.2% dividend yield reasonably secure.

GNG Research

The stock is also a decent value. At the current $1,025 share price, BLK is priced at a forward 12-month P/E ratio of 17.5. That's less than the 10-year average P/E ratio of 20.7 and is 12% below my $1,169 fair value per share estimate (a fair value multiple of 20). Relative to the GNG Research fair value per share estimate of $1,253, the discount is even more pronounced at 18%.

Stock #4: Domino's Pizza, Inc. (DPZ)

The next stock on my watch list for next month is Domino's Pizza, Inc.

Having just added this position to my portfolio earlier this month, this one is a newcomer for me. I have observed DPZ for years and covered it several times in my time at The Motley Fool. A major positive to me is that 99% of the 22,000-plus Domino's stores are owned by independent franchisees. Since franchisees fund the capex for new store openings and day-to-day operations, the parent company maintains a very efficient, capital-light profile. 

This allows for corporate cash flow to be recycled into share buybacks, dividends, and into R&D for their digital-ordering ecosystem. That is what enabled DPZ to be one of the best long-term performers in the stock market up until the stock price's peak just a few years ago. As the franchise network grows, the supply chain volume of the dough and ingredients distribution business also grows, creating operating leverage.

While DPZ's growth has slowed down from the sky-high pandemic pace, it remains respectable. The FAST Graphs analyst consensus is for diluted EPS to compound at around 9% annually over the next few years. 

The interest coverage ratio leaves a bit to be desired at 5.3x in Q1 2026, but it was an improvement over 5x in Q1 2025. It's also worth noting that the capital-light business model affords it more flexibility than most companies in this regard.

DPZ's 2.6% dividend yield is arguably sustainable, too. The diluted EPS payout ratio is likely to register in the low-40% range in 2026. That should leave plenty of room for 10%+ annual dividend growth for the foreseeable future.

DPZ's valuation is also quite appealing. At the current $310 share price, the stock is trading at a forward 12-month P/E ratio of only 15.5. This is much lower than the FAST Graphs 10-year average P/E ratio of 30.3 and is 23% below my $401 fair value per share estimate (a fair value P/E ratio of 20).

Stock #5: NVIDIA Corporation (NVDA)

The fifth stock on my watch list for August 2026 is NVIDIA Corporation. This one has been no stranger to my watch list in 2026. As such, I would refer interested readers to my July 2026 Dividend Stock Watch List blog post for the sake of brevity.

GNG Research

Concluding Thoughts:

There you have it. Applying my currently planned allocations, my weighted average net dividend yield will be just above 2.1% (I'll add a small stake in an existing high-quality income stock to bump this up to 2.3% or 2.4%). Once again, I believe this basket of stocks provides a solid mix of market-beating income, exceptional value, and double-digit percentage blended earnings/OCF growth potential.

Discussion:

Are any of ACN, AMZN, BLK, DPZ, or NVDA on your watch list for August 2026?

If not, what stocks are you watching in the coming weeks?

Thanks for reading and please feel free to comment below!

June 2026 Dividend Stock Purchases/Sale

As I'm writing this blog post, it's currently Tuesday, July 7th, 2026. The temperature here in Central Wisconsin reached a high of 86 degrees Fahrenheit (with a heat index of 90) earlier today.

Now that the month of June is behind us, I will be taking a moment to briefly outline my dividend stock purchases and sale for the month. Let's dig into it!

Dividend Stock Purchase #1: American Water Works Company, Inc. (AWK)

I added another 10 shares of American Water Works at an average price per share of $122.47. In my June 2026 Stock Watch List blog post, I discussed my investment thesis for AWK. This added $35.80 to my portfolio's net annual forward dividends, which is equivalent to a 2.92% net dividend yield.

Dividend Stock Purchase #2: Mastercard Incorporated (MA)

My next purchase was two more shares of Mastercard at an average cost of $491.48 a share. Interested readers can once again reference my June 2026 Stock Watch List blog post for my investment thesis. The transaction increased my net annual forward dividends by $6.96, which equates to a 0.71% net dividend yield.

Dividend Stock Purchase #3: Main Street Capital Corporation (MAIN)

I boosted my position in Main Street Capital by 20 shares at an average price per share of $51.68. Originally, I was going to add to my position in MPLX LP. It ran up a bit too much for my liking, so I instead decided to add to MAIN. In my view, the BDC is basically a wonderful business trading just below value value from here. Along with modest NII per share growth, this should provide a path to low double-digit percentage annual total returns over the medium term. This lifted my net annual forward dividends by $87.60, which works out to an 8.48% net dividend yield.

Dividend Stock Purchase #4: Microsoft Corporation (MSFT)

My next purchase was three more shares of Microsoft at an average cost of $464.14 a share. Curious readers can peruse my investment thesis in my June 2026 Stock Watch List blog post linked earlier. The $10.92 increase in net annual forward dividends is equivalent to a 0.78% net dividend yield.

Dividend Stock Purchase #5: NVIDIA Corporation (NVDA)

I also increased my position in NVIDIA Corporation by another four shares at an average price per share of $220.62. Readers can pore over my thesis in the June 2026 Stock Watch List blog post linked earlier. This helped my net annual forward dividends to edge $4 higher, which equates to a 0.45% net dividend yield.

Stock Sale: FedEx Freight Holding Company Inc. (FDXF)

Upon receiving a couple of shares of FedEx Freight Holding Company Inc. upon completion of the spinoff from FedEx Corporation, I decided to ultimately part ways with this very small position at $165.83 apiece. Since FDXF doesn't pay a dividend, this move didn't reduce my net annual forward dividends.

Dividend Stock Purchase: Genpact Limited (G)

I redeployed the proceeds into another 12 shares of Genpact Limited at an average cost of $27.69 a share. Readers can find my thoughts in my May 2026 Stock Purchases/Sale blog post. This works out to a 2.71% net dividend yield.

Concluding Thoughts:

In June 2026, I deployed $5,622.07 in net capital (including $105.28 in net dividends from my CAIBX mutual fund holding in my former employer-sponsored account. Including the $9 increase from capital deployment, my net annual forwards rose by $154.28. That's equivalent to a 2.74% net dividend yield.

My net annual forward dividends grew by $3.478 from dividend announcements in June 2026 (not counting downward adjustments in ADR dividends due to currency translation). These variables lifted my net annual forward dividends from $7,620 heading into the month to roughly $7,770 moving into July 2026.

Discussion:

How was your capital deployment in June 2026?

Did you close any positions as I did with FDXF (or open any new positions) during the month?

I appreciate your readership and welcome your comments below!

June 2026 Dividend Income

As I'm writing this blog post, it's currently Tuesday, June 30th. The temperature here in Central Wisconsin hit a high of 92 degrees Fahrenheit and a heat index of 104 earlier today! Needless to say, I didn't spend much time at all outside today.

Now that the month is over, I'll briefly highlight my net dividend income for June 2026. Without further ado, let's dig into it!

Net Dividend Income Topped $750

In June 2026, I collected $750.91 in net dividends (including ADR fees for BAM). Sequentially, this was up 8.2% over the $694.11 in net dividends received in March 2026.

Against the $615.38 in net dividends collected in June 2025, this is equivalent to a 22% year-over-year growth rate.

In my taxable Robinhood account (formerly my Charles Schwab account), I received $427.06 from 37 companies. The lower company count versus March 2026 was specifically due to the sales of United Parcel Service (UPS) and Pinnacle West Capital (PNW) in February 2026, as well as the sale of Aflac (AFL) in May 2026.

In my Robinhood IRA portfolio, I collected $171.90 in net dividends from 16 companies. The extra company in the portfolio that paid a dividend here was Meta Platforms (META), which I added to the IRA back in February 2026.

I also received $105.28 in net dividends from my Capital Income Builder (CAIBX) mutual fund in a retirement account from my employer out of college. The higher share count led to a slight increase in my net dividends from this source.

In my Fidelity solo 401k account, I collected $25.73 in net dividends from six companies. Since this was just opened in April, all of the income from this account was new to me.

Finally, I received $20.94 from seven companies in my Webull portfolio.

Concluding Thoughts:

June 2026 represented another passive income milestone for the portfolio, with net dividend income surpassing $750 for the first time. Through the first six months of 2026, my net dividend income surged 27%. As I continue to aggressively save and invest in the months ahead, I believe that this net dividend income growth rate will slightly accelerate with the help of math and above all else, God's grace.

Discussion:

How was your June 2026 for dividend income?

Did you receive any first-time dividends as I did with Genpact Limited?

Thanks for reading and please feel free to comment below!

Scaling Passive Income: How I Grew My Forward Dividends by 60%+ in Two Years

As I'm writing this blog post, it's currently Tuesday, June 23rd. The temperature here in Central Wisconsin reached a high of 78 degrees Fahrenheit today, so I was eager to spend some time outside!

Digging into the topic of today, building wealth through dividend growth investing is often described as a slow, methodical process - a marathon rather than a sprint. The speed at which this engine fires is heavily influenced by strategy, discipline, and consistent capital allocation.

Looking back at my portfolio data from June 2024 to June 2026, I am pleased to share that I have achieved a significant acceleration in my passive income stream. Over this two-year window, my net annual forward dividends surged higher by 62.8%. More specifically, from June 2025 to June 2026 alone (the latter blog post will be out next week), I saw a 28.7% increase, with my projected annual income rising from $6,035 to $7,765.

Achieving this level of growth requires more than simply holding "blue-chip" stocks. It takes a focused strategy. Here is how I moved the needle.

1. Prioritizing Dividend Growth And Quality Over High Yield

One of the most common pitfalls for income investors is yield chasing. That's buying stocks with unsustainable, sky-high dividends (generally, anything coming close to a 10% yield isn't viable). By leaning even more into companies that retain the majority of their earnings and that have a demonstrated history of dividend growth, I haven't had a dividend cut since Medical Properties Trust slashed its dividend in August 2023.

In dividend investing, it's arguably just as important to not go backward as it is to receive generous payout raises. Along with my preference to balance income with capital appreciation, this informs why I constructed the underlying holdings in my portfolio to only pay out 45% of their expected earnings for 2026. The improved growth from this capital retention strategy gives my portfolio much better total return prospects than static high-yielders.

2. Aggressive Capital Deployment and Dividend Reinvestment

Of course, growth at this pace isn't possible through dividend hikes alone. Consistent capital injections are a must. During these two years, I consistently saved and invested anywhere from 50%+ to 70%+ of my after-tax income (typically at the very beginning of each month to automate my contributions). Since I have been investing for less than nine years now, my monthly capital contributions remain the driving force behind my compounding machine.

My capital velocity has especially picked up in recent months as my income has scaled more from my professional development. Along the way, I have also selectively reinvested my dividends back into whatever I viewed as the best opportunities at the time.

3. Sector Diversification

I have also been meticulous to not allow any one particular sector of my portfolio produce too much of my passive income. The energy sector (specifically midstream) is my biggest income contributor, contributing roughly one-quarter of my passive income. By diversifying more defensive holdings with tech-oriented dividend growers with my barbell strategy, I protected the portfolio against volatility.

This helped me to keep my cool through the selloffs over the last couple years without panic-selling, which kept mt capital working in the highest-quality companies the market has to offer.

Concluding Thoughts:

Reaching $7,765 in annual forward income has me knocking on the door of the biggest milestone for my portfolio yet: $10,000, which will mark the start of the journey from five figures to six figures. At my current pace, this is probably about a year away for me.

More important than the dollar amount, though, the portfolio is becoming self-sustaining. If one is looking to accelerate their own dividend growth, remember that the most important variables are the ones you control: your savings rate, your focus on companies that grow their payouts year in and year out, and reinvestment.

Discussion:

As you work toward your own passive income goals, what is the biggest controlled variable (e.g., savings rate or reinvestment) that has helped you maintain your momentum during market volatility?

I appreciate your readership and welcome your comments below!

Expected Dividend Increases for July 2026

As I'm writing this blog post, it's currently Tuesday, June 16th. The temperature here in Central Wisconsin is set to reach a high of 67 degrees Fahrenheit later today. That's quite cool for this time of the year, but I'll still take it!

Now that the month is more than half complete, now would be a good time to highlight the dividend raises that I received in June 2026. I'll also look ahead to the raises that I'm expecting for July 2026. Let's get into it!

Actual Dividend Increases for June 2026

Dividend Increase #1: Medtronic (MDT)

Medtronic announced a 1.4% increase in its quarterly dividend per share to $0.72. This was less than the 5.6% increase in the quarterly dividend that I was anticipating in this series' previous blog post.

Across my 13 shares of MDT, my net annual forward dividends grew by $0.52 from this dividend announcement.

Dividend Increase #2: Realty Income (O)

Realty Income declared a 0.2% bump in its monthly dividend per share to $0.2710. Since O hasn't yet elected to deliver its one bigger dividend raise for the year yet, this missed my expectation for a 1.7% raise to $0.2750.

My net annual forward dividends edged $0.918 higher across my 153 shares of O due to this dividend declaration.

Dividend Increase #3: UnitedHealth Group (UNH)

UnitedHealth Group announced a 5% raise in its quarterly dividend per share to $2.32. This was a bit below the 6.3% boost to $2.35 that I was predicting.

Across my 13 shares of UNH, my net annual forward dividends grew by $5.72 from this dividend announcement.

Dividend Adjustment: FedEx Corporation (FDX)

On an adjusted basis, FedEx raised its quarterly dividend per share by 4% to $1.22. On an absolute basis, this was lower than the prior quarterly dividend per share of $1.45. That's due to the recent spinoff of its freight business (FedEx Freight Holding Company). Overall, I do believe that this will unlock more value for shareholders. Along with the impact on my passive income being minimal, I don't mind this move.

My net annual forward dividends decreased by $3.68 due to the dividend adjustment across my four shares.

Expected Dividend Increases for July 2026

Expected Dividend Increase #1: Cummins (CMI)

The first payout boost that I'm expecting for July 2026 will be from Cummins. My best guess is that CMI will declare an 8% hike in its quarterly dividend per share to $2.16.

Across my five shares of CMI, my net annual forward dividends would grow by $3.20 from such a dividend declaration.

Expected Dividend Increase #2: Duke Energy (DUK)

The next dividend raise that I'm anticipating for next month will come from Duke Energy. I believe that DUK will announce a 2.5% increase in its quarterly dividend per share to $1.09.

My net annual forward dividends would edge higher by $0.60 across my six shares due to such a dividend announcement.

Expected Distribution Increase #3: Enterprise Products Partners (EPD)

The third distribution increase that I'm expecting for July 2026 will be from Enterprise Products Partners. My guess is that EPD will declare a 0.9% increase in its quarterly distribution per unit to $0.5550.

Across my 275 units of EPD, my net annual forward distributions would rise by $5.50 from such a distribution declaration.

Expected Distribution Increase #4: Energy Transfer (ET)

The next distribution bump that I'm predicting for next month will come from Energy Transfer. My best guess is that ET will announce a 0.7% increase in its quarterly distribution per unit to $0.34.

My net annual forward distributions would grow by $2.07 across my 207 units of ET due to such a distribution announcement.

Expected Dividend Increase #5: JPMorgan Chase (JPM)

The fifth dividend raise that I'm anticipating for July 2026 will be from JPMorgan Chase. I believe that JPM will declare a 6.7% raise in its quarterly dividend per share to $1.60.

Across my six shares of JPM, my net annual forward dividends would rise by $2.40 from such a dividend declaration.

Expected Dividend Increase #6: NNN REIT (NNN)

The next dividend increase that I'm expecting for next month will come from NNN REIT. My guess is that NNN will announce a 3.3% bump in its quarterly dividend per share to $0.62.

My net annual forward dividends would jump $5.76 higher across my 72 shares due to such a dividend announcement.

Expected Dividend Increase #7: J.M. Smucker (SJM)

The seventh dividend raise that I'm predicting will be from J.M. Smucker. My best guess is that SJM will declare a 2.7% increase in its quarterly dividend per share to $1.13.

Across my three shares of SJM, my net annual forward dividends would inch $0.36 higher from such a dividend declaration.

Expected Dividend Increase #8: Union Pacific (UNP)

The next dividend increase that I'm anticipating will come from Union Pacific. I believe that UNP will announce a 5.1% raise in its quarterly dividend per share to $1.45.

My net annual forward dividends would rise by $2.52 across my nine shares of UNP due to such a dividend announcement.

Expected Dividend Increase #9: Wells Fargo (WFC)

The ninth dividend raise that I'm expecting will be from Wells Fargo. My guess is that WFC will declare an 11.1% hike in its quarterly dividend per share to $0.50.

Across my eight shares of WFC, my net annual forward dividends would grow by $1.60 from such a dividend declaration.

Expected Dividend Increase #10: Essential Utilities (WTRG)

The final dividend increase that I'm predicting will come from Essential Utilities. My best guess is that WTRG will announce a 5.1% raise in its quarterly dividend per share to $0.36.

My net annual forward dividends would edge higher by $1.462 across my 21 shares of WTRG due to such a dividend announcement.

Concluding Thoughts:

My net annual forward dividends grew by $3.478 in June 2026 (not counting downward adjustments in ADR dividends from a stronger USD as of late). This would be equivalent to investing $115.93 at a 3% net dividend yield.

If my 10 dividend raises that I'm expecting for July 2026 play out as anticipated, my net annual forward dividends would climb $25.472 higher. That would require investing $849.07 at a 3% net dividend yield to replicate.

Discussion:

How has your June 2026 been for dividend raises thus far?

Did you or do you expect to receive any first-time dividend hikes this month?

Thanks for reading and please feel free to comment below!