While July was a fairly quiet month in terms of dividend payers, the DGI community has been sharing some outstanding results for the month of August–and I’m joining that party with a new record of my own.
Excluding the dividends received in my 401(k) and IRA on the quarter-ending months, the mid-quarter months are my best performer from a dividend growth perspective.
August 2018 Dividend Income Summary
The DivvyDad Dividend Portfolio wrapped up the month of August with a solid $434.05 in dividends. Looking at just my dividend focused portfolio, the results this month easily knocked my prior record of $221.46 out of the water.
In large part, the reason for that is because the DGI portfolio that I have built is now receiving dividends from all of the holdings.
With a new portfolio, the first few months were hit or miss based on the ex-dividend dates compared to when I started building the portfolio. Unlike prior months, I will also be able to calculate an actual YoY growth this month too!
The August dividend income is as follows:
|Ticker||August 2018||August 2017|
As great as it is to surpass the $400 milestone, I am even happier to see that 156.38% YoY growth. As you can see, most of that growth is from all of the new positions that have been established since last year (makes sense since I didn’t really have a DGI portfolio last year).
With all dividends being reinvested, I was able to add an additional $14.93 in forward dividend income without lifting a finger.
August 2018 Purchases
The portfolio began to pick up steam with new capital additions in July, and I continued right where I left off by investing an additional $4,640.49 in new capital during August.
As a quick recap of the August purchases:
Cummins was on my radar for awhile, and I was finally able to pull the trigger to add an additional 7 shares at $140.88/share. These 7 shares will add an additional $31.92 in forward dividend income.
Being happy with that entry price, you know I couldn’t resist an extra nibble when the price dropped a little more…
That’s right–just a few days after making the first buy, I jumped at the chance to add some more to my Cummins position when the price took another dip. I was able to add an additional 10 shares at $136.869/share.
These 10 shares will add an additional $45.60 in forward dividend income.
Having just missed my limit order on Altria before their massive dividend increase, I was able to take advantage of the market movement and grabbed an additional 30 shares at $58.75/share the day after their announcement.
These 30 shares will add an additional $96.00 in forward dividend income.
The final purchase that was made in August was my automated contribution that goes towards the Vanguard High Dividend Yield ETF. The monthly contribution was able to add 6 shares at $87.19/share.
These 6 shares will add an additional $14.76 in forward dividend income.
Collectively, the August purchases have added a robust $188.28 in forward dividend income to the portfolio. I’m really hoping to crack the $200 milestone one of these days, but this is still a great addition from new capital.
August 2018 Dividend Raises
The dividend raises were a little bittersweet, as I was expecting to receive two raises but only one was announced. Fortunately, the one that was announced was a pleasant surprise which lessened the sting of the missing raise.
On the downside, I was expecting a dividend raise from Brinker International (EAT) as they have historically announced their raise in the month of August. Unfortunately, there was no raise announced and during their earnings call they were asked about the lack of a raise and CEO Wyman Roberts responded:
Honestly, the Board approved a dividend payout as part of this quarterly announcement, so that commitment continues. We are comfortable with the dividend payout ratio and the yield that it had been generating. So I think the dividend speaks for itself from that commitment level. I don’t think it is signaling anything of any significance in that regard, Steve.
I am keeping a close eye on this one, as they have a 13 year history of increasing their dividend. Hopefully they will come through with an increase in November when they have their next earnings release.
On a more positive note, Altria (MO) announced their 2nd dividend increase of the year and surprised many with a very healthy 14.29% increase. It seemed like most people were expecting closer to 8% after they had announced a 6% increase earlier in the year. It is always nice to see those double-digit raises!
This one raise from Altria added an additional $26.57 in forward dividend income.
September should see a few additional raises as well, with Microsoft, Verizon, and OGE Energy Corp. leading the way. Historically, Starbucks has also announced their raise in September; however, after they came out with a big 20% raise just a couple of months ago, I am not expecting them to surprise investors the way Altria has done.
It was exciting to see a month that was busy with dividend payments and new capital being invested. The cherry on top was the fantastic dividend raise from Altria. All of that resulted in my first month over $400–heck, it is my first month going over $300 as well–and a very respectable 156% YoY growth.
You may recall that I made some adjustments to tracking annual forward dividend income, and that is represented below:
Here you can see that my reinvested dividends added $14.93 in forward income and the Altria dividend raise added an additional $26.57 to that for a grand total of $41.50 in forward dividend income with absolutely no effort.
To put that into perspective, I would have had to invest an additional $1,511.92 in new capital at my average portfolio yield to equal that amount of forward dividend income–and yet it cost me nothing.
Looking on an annual basis, I have more than surpassed the dividends received in all of 2017 and I am closing in on doubling that amount. That progress should continue to accelerate if I am able to continue adding new capital to the portfolio as well. I am excited to see what the future holds with consistent contributions, dividend raises, and reinvested dividends.
Checking in on my 2018 goal you will see that I am still not quite at the half-way mark. However, based on current projections I would finish the year with approximately $2,400.
As I expect to continue adding new capital, and my pension rollover should be complete soon, I remain confident that I am going to achieve this goal before the year ends.
All in all, I feel as though August has been a very successful month with great YoY growth and a nice boost to forward dividend income!
While I expect September will see a slightly lower dividend total (excluding dividends in my 401(k) and IRA), I am anticipating a few more dividend raises and will look to continue adding new capital if I find the right opportunities.
How was your month of August?