Dividend Income Report :: June 2019

Dividend Income Report June 2019

The other day in my dividend income report for May I had mentioned how other priorities had taken me away from writing. What I didn’t mention is that it has also reduced the time I have devoted to researching positions and being active in the market–as you will see later on.

That is why I felt the image above was so appropriate and summarizes one of the benefits of dividend growth investing.

Each dollar that is deployed in the market essentially behaves like my own employee. It goes to work for me every day and recruits more employees to come and work for me. Those new employees complete their orientation (e.g. deposited into my account in the form of dividends) and then they join the senior level employees in recruiting even more employees.

While I have been busy tending to other things, those employees have continued to do their work for me.

Time for an employee review!

June 2019 Dividend Income Summary

There are seven months each year where my dividend income gets a nice boost from the index funds held in my various retirement accounts, and the quarter-ending months make up four of those seven. Given that I have been investing in those retirement accounts longer than I have with my new dividend-focused brokerage account, naturally those numbers are bigger.

Over time I am hoping to close that gap, but until then I am happy to report that the month of June brought in a stellar $1,566.76 in dividend income that was broken down as follows:

  • Brokerage: $633.55
  • IRA: $63.52
  • Retirement: $869.69

While the retirement accounts produced less than they did in March due to the variable dividend payments of index funds, I am thrilled to see that the brokerage account has broken through the $600.00 milestone for the first time!

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

Brokerage Account:
TickerJune 2018June 2019
YoY Growth212.62%
AFL--12.36
BAC--15.23
BLK--33.39
CMI--34.99
EAT17.1017.67
HD10.3020.81
JNJ7.2015.55
K8.1017.19
MDP21.8023.96
MMM--43.60
MSFT--9.31
NEE5.5512.66
PEP18.5529.36
PRU--46.20
SBSI--25.30
SNA--24.06
TGT--30.41
VTSAX51.04--
VYM63.02128.79
WBA--44.00
XOM--48.71
Total202.66633.55

The really exciting part of this for me is that I have finally reached the point where I will have more appropriate year-over-year comparisons.

As I had built my portfolio in May of last year, I began to receive the first flow of dividends last June although there were still quite a few companies where I had not purchased prior to the ex-dividend date. However, for those that did payout last June, you can see that some have had nice increases as I have continued to add to those positions.

The total also received a little boost from WBA, as my rookie mistake with options delivered the first dividend.

You will also note the change with the Vanguard Total Stock Market Index, as I had made a decision at the end of last year to remove that holding from my brokerage account and split that investment across the Vanguard High-Yield Dividend ETF and a few other holdings.

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

Rollover IRA:
TickerJune 2018June 2019
YoY GrowthSuperb!
EPR0.0017.48
MAIN0.0023.58
O0.0016.32
STAG0.006.14
Total0.0063.52

Here you can see that I still don’t have proper numbers for a YoY comparison as I did not establish the Rollover IRA until later in the year. It is interesting to note that my REIT / BDC self-made ETF has the lowest payout in the quarter-ending months, and if it were not for the monthly payers I would have no income here.

With all that said, reinvestment of dividends in my brokerage account and Rollover IRA have added an additional $22.33 in projected annual dividend income.

June 2019 Purchases

Remember when I mentioned that I had not been as active in the market? Well, that is evident here because I did not make any purchases during the month of June.

Unfortunately this is the second month this year where I did not deploy any new capital. The first time was in March as that was another time when I had been preoccupied with things away from the blog. I don’t want to rush into making any purchases for the sake of making purchases, therefore I have been less active as I have not felt that I’ve had the time to devote to research the way I like.

While this will certainly make it more difficult for me to reach my goals, I believe it is the prudent thing to do.

June 2019 Dividend Raises

The sleepy days of summer have definitely hit the dividend raises, as while there were four raises received in the month, not a single one of them was above my preferred target of 6% in annual growth.

Cracker Barrel was the front-runner with a 4.0% increase while Target delivered a 3.13% increase. It is hard to get too excited about the raises from Realty Income and W.P. Carey as they were both less than an 0.25% increase. Womp-womp!

Here you can see the impact of these raises:

Dividend Raises June 2019

These four raises combined resulted in an increase of $8.67 in projected annual dividend income.

That total just barely surpassed the results from last month and is my second lowest total for the year.

Looking ahead to July, I am expecting a slow month again with Cummins, Kellogg, and Walgreens set to announce raises. Spoiler alert, Cummins and Walgreens have already announced raises at the time of this posting and Cummins definitely delivered!

Summary

While the month of June was definitely quiet from the blogging front as well as the new investment front, I believe the results were actually quite impressive.

Excluding my retirement accounts, I achieved a new record month–both in terms of the combined total from my brokerage account and Rollover IRA as well as my brokerage account surpassing $600.00 independently.

Dividend Income Summary

The trend is definitely moving in the right direction and I cannot be anything but pleased when I look back at the total from this time last year.

With no purchases being made in June, the dividend tripod was missing one of the legs and that resulted in my second lowest increase in PADI for the year. With the combination of reinvested dividends and dividend raises, the portfolio achieved an increase of only $31.00 in total PADI. Here you can see how each leg of the tripod contributed:

Projected Dividend Income June 2019

The brokerage account now stands at a PADI of $4,695.00 and continues to increase; however, my goal of reaching $6,500.00 by the end of the year is beginning to look extremely difficult. I won’t waive the white flag just yet but it will be a rough road.

The historical trend is that September is the worst performing month of the year, therefore I might continue to be a bit more conservative in my price targets and look at potentially stock-piling a little cash to strike if that trend holds true this year.

Even with a quiet month like I had here, the PADI increase from raises and reinvested dividends is equitable to having invested approximately $1,000 given the current average dividend yield of my portfolio.

How was your month of June?

15 thoughts on “Dividend Income Report :: June 2019”

  1. Like the LEGO image!!! I just love dividends of the same reason – this passive income just makes me happy no matter what!
    Great job with your progress. Exciting to see your graphs in 12 months time!

    1. Thanks EDB, it definitely is a great feeling to see that income hit the account on auto-pilot. Appreciate the feedback!

    1. Thanks Frankie! I was a huge fan of Lego as a kid, as were both of my kids. Stepping on them in the dark of night was never fun, but when I saw this image I knew that it was the right one haha!

  2. Divvy D –

    Heck yes and nice work! I understand the drought of nut purchasing stock. I didn’t do any buying June, as well. Sad, but also, am hopeful it’ll let me capture new opportunities.

    -Lanny

    1. Thanks Lanny, and I was just reading Bert’s update on SA and noticed that he too didn’t have any purchases. It is a good test of patience though, so there are still lessons to be learned.

  3. Another solid month of income, DivvyDad. All that investment work you did over the past 12 months is certainly showing up. Look at all those new dividend payers!
    Congrats on cracking the $600 dividend mark in your brokerage account, and on already surpassing last year’s dividend totals. Impressive.
    I hear you with regard to the smaller dividend raises. This year’s dividend raise percentages make me long for 2018. Still, if the raises stay ahead of inflation, it’s hard to complain too much.
    Go attack those 2019 investment goals in the second half.

    1. Thanks ED, and until you noted it, I had not even realized that the total from this month pushed me past the total from all of last year! As much as we all love those big and juicy raises, you’re right that anything above inflation is nice and keeps the machine humming along.

      I’ll definitely be putting up a fight to try and achieve those goals!

  4. Hey DD,

    I’m in the same boat as you with not making any buys in June. It was a tough month to find value, in my view, and I wasn’t in any rush to throw money at the market (though I did in July, which offered much the same).

    Either way, you pulled in great dividend totals in July. Great job. If only the +200% YOY gains could continue, eh? It’d simplify matters.

    Take care,
    Ryan

  5. Great report. Hitting the $1.5k mark is an amazing achievement. These dividend reports inspire me to work harder on building my portfolio so I can put more employees to work. I really like that metaphor. It takes a complex topic like investing and makes it easy for even a child to understand. Bravo sir!

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