Dividend Income Report :: December 2018

Stacks of Money

The time between Thanksgiving and New Year’s Eve always seems to be a blur–one moment we are stuffing ourselves with turkey and the next we are popping the cork on a bottle of champagne to celebrate the end of another year.

With the close of another year, it is a good time to reflect on whether or not you accomplished your goals and determine what you want to achieve in the new year.

In addition, it also means that it is time for another dividend income report.

December 2018 Dividend Income Summary

There is no doubt that the stock market performance was not what a lot of people wanted to see as we closed out the year. However, as someone that is still in the accumulation phase of saving, I welcome down markets as it means that every dollar can buy more than it can in strong markets.

Of course the risk there is that what you’re buying will recover along with the stock market at some point in the future. Certainly there are no guarantees, but by selecting quality dividend paying companies it is a risk that I am comfortable taking.

Through all of the ups and downs, the dividend checks never stopped rolling in and it was quite the month.

The month of December brought in an unreal $13,980.77 in dividends! * see note below

Moving forward I will provide a more granular breakdown on the source of the dividends as well, including whether they came from my taxable brokerage account, Rollover IRA (this is separated from retirement as it is purely focused on dividends versus index funds in my retirement accounts), or my retirement accounts.

  • Brokerage: $432.48
  • IRA: $61.70
  • Retirement: $13,486.59

Note: The total for the retirement accounts above includes both dividend and capital gains distributions. In Fidelity, they report the number as a combined dividend transaction. As it’s more effort to break down, I am opting to report that as a combined income distribution.

For the purists, this month I did calculate it out and the dividend payment was $3,474.65 and the capital gains distribution was $10,011.94. That would mean the pure dividend total was $3,968.83 for the month.

Let’s look at all of the individual dividends received:

Brokerage Account:
TickerDecember 2018December 2017
YoY Growth2457.54%
AFL11.770.00
BLK15.650.00
CMI34.470.00
EAT17.370.00
HD15.550.00
JNJ14.550.00
K8.530.00
KO9.130.00
MDP22.270.00
MMM13.690.00
MSFT9.230.00
NEE5.620.00
PRU40.710.00
SBSI19.360.00
SNA23.770.00
TGT4.510.00
VTSAX0.0016.91
VYM149.730.00
XOM16.570.00
Total432.4816.91

Last December, I only had VTSAX in my brokerage account and that was my only dividend. I’ve since sold that position and redeployed that capital across my other holdings to better align with the DGI strategy.

Here are the numbers from the holdings in my Rollover IRA:

Rollover IRA:
TickerDecember 2018December 2017
YoY GrowthINFINITE
EPR (IRA)16.280.00
MAIN (IRA)23.690.00
O (IRA)15.790.00
STAG (IRA)5.940.00
Total61.700.00

Overall, the reinvested dividends from both accounts have added an additional $17.69 in projected annual dividend income!

That is my 2nd largest month in terms of PADI generated solely by reinvested dividends, and third double-digit increase of the year. The highest month was just last month in November.

December 2018 Purchases

December was a busy month that included a number of purchases as well as some reshuffling of funds from Vanguard to Fidelity. In total, there were purchases worth $10,443.95 made including $4,103.96 of new capital.

As a quick recap of the December purchases:

December 2018 Stock Purchases

In addition to the transactions above, I purchased 70 shares of VYM as part of the reshuffling that I did when liquidating my VTSAX position in my Vanguard brokerage account.

The purchases break down as follows, including the amount of additional PADI generated:

  • MO :: 33 shares @ $53.00/share that added $105.60 in PADI
  • BLK :: 5 shares @ $383.00/share that added $62.60 in PADI
  • VYM :: 70 shares @ $81.70/share that added $178.50 in PADI
  • XOM :: 15 shares @ $71.85/share that added $49.20 in PADI
  • BEN :: 41 shares @ $29.85/share that added $42.64 in PADI
  • GIS :: 20 shares @ $38.58/share that added $39.20 in PADI
  • TGT :: 25 shares @ $65.00/share that added $64.00 in PADI
  • WSM :: 25 shares @ $49.70/share that added $43.00 in PADI
  • K :: 15 shares @ $55.95/share that added $33.60 in PADI

Overall, these purchases boosted my projected annual dividend income by a whopping $365.34–the total above is $618.34 but that was offset by the loss of $253.00 in PADI from selling the Vanguard Total Stock Market Index.

The increase in PADI also pushed me beyond my revised goal of reaching $5,500 by the end of the year as I finished the year with $5,708.06 in projected annual dividend income!

December 2018 Dividend Raises

It was nice to end the year with a solid five dividend raises, including two double-digit raises!

W.P. Carey kicked things off with a tiny 0.49% increase but that was quickly followed by Franklin Resources announcing a robust 13.04% increase. Next up was Realty Income with their rather standard 0.23% increase and then AT&T with their 2.00% increase. Last but certainly not least was Abbott delivering a 14.29% raise!

Here you can see the impact of these raises:

December 2018 Dividend Raises

These five raises combined resulted in an increase of $29.76 in projected annual dividend income.

As BEN announced their raise just before I added the additional 41 shares that were purchased in December, I did not include that above. If I were to include that, the total would be an increase of $72.40 and that would be my largest increase solely from raises.

In January, I am anticipating raises from 3M, CMS Energy, Kimberly Clark, Meredith Corporation, and Realty Income. There may be raises from AFLAC and BlackRock as well.

Summary

It has been a wild and crazy ride since I began this journey ~7 months ago.

The year closed out with a few new purchases as well as my first significant tweak to the portfolio when I exchanged an index fund for dividend growth stocks. Throw in a few raises and reinvested dividends and it turned out to be a great month!

December 2018 Projected Annual Dividend Income

The dividend tripod–reinvested dividends, dividend raises, and new capital investments–added a very respectable $412.79 in PADI during the month of December.

Taking a look at the entirety of 2018, I am quite amazed at the results that I achieved.

Not only was I able to collect $2,815.49 in dividends from my brokerage account and Rollover IRA, I made some changes to my 401(k) that resulted in a massive increase in dividends (and capital gains). My old 401(k) did not produce any type of distribution and therefore I assume the distributions were being rolled back into the funds.

Here is a quick look at the distributions from my retirement accounts between 2017 and 2018:

Total Dividends Earned

You can notice the impact of the change that I made to my 401(k) beginning in Q4.

One of my goals in retirement is to touch the principal as little as possible, therefore seeing the combined total of $20,113.48 received in 2018 is extremely encouraging. I’m not sure we will reach 100% of our desired fatFIRE income just through distributions, however it will certainly mean we can take a much more conservative withdrawal.

I am beyond excited about what the future holds, and I hope everyone has a prosperous year ahead!

Did you close out December and 2018 on a strong note?

Do you think I am lazy by including the capital gain distributions moving forward?

26 thoughts on “Dividend Income Report :: December 2018”

  1. Receiving almost 4 000 $ in dividends is already an incredible amount and that exceeds my annual passive income. When you add the capital gains distributions (had to google what that meant), the amount is just unbelievable!

    Looks like you have also been really busy purchasing stocks in December. There are couple companies that I am not familiar with, so I have to read more about those later this week!

    1. Thanks DD, appreciate the feedback. For those companies that you’re not familiar with, I shared more details on the posts about those purchases so that could help provide a little bit of background if you’re interested.

      Re: the capital gains distributions, one of the big differences is in the tax treatment. However, as those are all in my retirement account, there are no tax implications at this time. I wish Fidelity separated them out better as they are not a dividend, but unfortunately they lump it all together as one transaction.

  2. Wow DivvyDad, you have been buying up a storm in December! Amazing how quickly you are building your portfolio and the associated dividends that will just keep growing! Look forward to diving in for a closer look at some of your specific stock investments. Hope you keep this momentum up for 2019!

    Cheers, Frankie

    1. Thanks Frankie! I’m trying to make up for lost time and build that portfolio as quickly as possible, and am fortunate to be in a position to save a good amount of money on a regular basis. I’ll definitely continue giving it all I’ve got to make 2019 even better!

    1. Most definitely! Everything is being reinvested and will continue to make that snowball grow bigger and bigger for years to come.

  3. wtf!

    what just happened? wow man thats a incredible month. . soo many buys soo much growth and those totals? just huge

    you are just killing it! Im looking forward to seeing what you do this year.

    keep it up
    cheers
    Rob

    1. Haha, thanks PCI! It was definitely a great month and I’m excited to blow this out of the water in the coming year!

    1. Thanks Alex!

      It is hard to believe that 7 months have elapsed since I began this journey, but every moment of it has been fantastic. I am excited about what the future holds and how I can challenge myself to do even better.

    1. Thanks Tom, and you’re absolutely right the quality of the decisions improves the more you know and understand the details. Appreciate all of the feedback and support!

  4. Where do I begin? There’s a lot going on here, and it’s all good! Amazing totals for the month and year. Usually, the PADI from reinvested dividends are slow to grow, but even those are moving up quickly. You’ve got the dividend snowball turning into an avalanche. 😁
    I can’t wait to see what you can accomplish in 2019 given what you’ve done in only 7 months in 2018. Keep up the outstanding efforts. 2019 should bring on the YoY comparisons for you very soon…. looking forward to those, for sure.

    1. Thanks ED, and I appreciate all of the feedback and support that you’ve provided me over these 7 months as well.

      It is encouraging to see the reinvested dividends boosting the PADI, and I am looking forward to a full 12 months of that this year. Love the idea of the snowball turning into an avalanche, as that will be awesome. I’m looking forward to the day when I get my reinvested dividends and raises producing more than new capital like you have had!

      It will be nice to hit that point where I’ve had the full portfolio for 12 months; since most of my positions were opened at the end of May, I will be looking at the 3rd quarter as the first month for most of the positions!

  5. With that kind of crazy income you are already setting up yourself for a strong 2019 to build on especially with that sum being reinvested. I always rite that I like to see the buying continue even when the markets are in turmoil. December certainly looked very busy for you with many high yielding buys. Keep it up!

    1. Appreciate the feedback Keith, and we share that sentiment about buying in good markets and bad markets. Actually, I prefer to invest in times of turmoil as that usually presents the best buying opportunities. The key is to have a strategy and remain true to that strategy.

      It was definitely a good month and I am looking forward to setting new heights in 2019!

  6. Wow! Over $4,000 of fresh capital deployed in December and nearly $4,000 in pure dividends collected! I’d try to put that into words, but I honestly can’t. Fantastic month, setting up what will most definitely be a great 2019. Keep it up!

    1. Thanks Kody, I was a little shocked myself when I tallied everything up but was definitely pleased with the results. I’m focused on keeping this beast fed for sure!

  7. Wow, that’s one way to end the year DivvyDad! Just to put it into perspective, $14k would cover expenses for our family for ~8-9 months!
    Amazing work done over the year and I will just join others at congratulating you. Keep it going and it will be interesting to follow your progress throughout 2019. With the recent buys, you are set to keep breaking those records 🙂
    BI

    1. Thanks BI, and let me say that you’re doing an awesome job yourself with managing your cost of living / expenses on an annual basis! Unfortunately our annual expenses are quite a bit higher, therefore I still have a long journey ahead of me.

    1. Thanks Matthew, I am loving it too! I look forward to those purchases starting to pay off as we move forward in 2019 for sure!

  8. What’s not to like here DivvyDad? Its such an inspiring sight to see you making your moves and deploying your capital. And just look at the results, simply amazing.

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