Time is flying by and we are already into July, which means it is already time for another dividend income report–the second such report since establishing my new DGI portfolio.
Unfortunately, due to having just established my portfolio at the end of May, there are a number of June payouts that I missed due to buying after the ex-dividend date.
Those include the following: 3M ($MMM), AFLAC ($AFL), Cummins ($CMI), Exxon Mobile ($XOM), Microsoft ($MSFT), Prudential Financial ($PRU), Snap-on ($SNA), Southside Bancshares ($SBSI), and Target ($TGT).
June 2018 Dividend Income Summary
The Divvy Dad Portfolio (DDP) received $202.66 in dividends in June, with an additional $104.38 that I missed out in June due to my purchase date. On the bright side, come September I will receive payouts on all of those positions.
Unlike the May dividend income report, I did not hold any positions in my taxable account that paid dividends in June 2017. Therefore I am unfortunately unable to calculate my YoY % increase because last year was a big fat $0.
The June dividend income is as follows:
|Ticker||June 2018||June 2017|
|YoY Growth||HUGE =)|
June 2018 Purchases and Forward Dividends
There was $1,562.00 in new capital invested during the month of June, which was split over the following two investments:
In hindsight, I made my Starbucks ($SBUX) purchase a little too early as it continued to drop another few percent after I made my purchase.
However, my buy of 20 shares @ $51.85 will add $28.80 in forward dividend income. If you’d like to read more about why I felt this was a good buy, take a look at my analysis of purchasing Starbucks.
The purchase of Vanguard Total Stock Market Index is not truly aligned with the DGI strategy, however being a long-time index fund investor it was just too hard for me to not have some coverage with index funds despite the low yield.
My buy of 7.57 shares in VTSAX will add $8.71 in forward dividend income.
Currently I have this setup as an automated transaction, where I contribute $525.00 to my Vanguard account every month to purchase VTSAX. I’m contemplating a change to that where I would buy VYM in place of VTSAX, however being a fan of hands-free automation means that will be a bit more manual.
Unfortunately you cannot setup an automatic investment into an ETF at Vanguard, so I would have to change to a deposit into their money market fund and then manually make my VYM purchase. Despite the more manual effort required, the dividend yield on VYM is much nicer than VTSAX–and I already have sufficient coverage on index funds via my 401(k) and IRA accounts.
I may make this change in the near future to put more focus on those divvys.
While I don’t track the dividends paid out in my retirement accounts as part of this blog, I thought it would be helpful to mention those on a quarterly basis to demonstrate the overall picture of my passive income stream from dividends.
For the 2nd quarter, I received $870.67 in dividends in my tax-advantaged accounts.
That represents a 12.2% YoY increase compared to 2017. As nice as it is to see the double-digit YoY increase, it was a drop from the 20.7% YoY increase achieved in 2017.
Looking at my overall dividend picture, I received $1073.33 in total dividends for June!
While the combined picture is certainly motivating, I am driven to get my taxable accounts up to the 4-digit level independent of the tax-advantaged accounts.
As the June dividend income reports begin to come in across the DGI community, I know people are excited because June represents a quarter end–and for many people those are their highest paying months.
Oddly enough, as I look at my forward dividends, my quarter ending months are not my highest paying months. My portfolio currently has the best payouts in February, May, August and November. Part of that is because I have held Apple, Abbott, and AbbVie for quite a few years and therefore have a larger position than I do for anything else in my DGI portfolio.
Over time I expect that to change as new capital balances out the portfolio weightings, and I am sure the quarter ending months will become my top paying months as they don’t lag behind by too much now.
How was your month of June?