Despite the fact that my dividend portfolio was just established in May, there were a limited number of dividends received from stocks that I’ve held for a number of years prior to establishing my new dividend focused strategy.
With that new strategy, these monthly dividend income reports will serve as a great way to review the overall growth of my portfolio as well as the year-over-year growth in dividend payments.
May 2018 Dividend Income Summary
The Divvy Dad Portfolio (DDP) received $221.46 in dividends in May. Looking back to the 2017 records shows that this was a nice 31.49% increase from the prior year–not too shabby!
The May dividend income is as follows:
| Ticker | May 2018 | May 2017 |
|---|---|---|
| AAPL | 76.65 | 66.15 |
| ABBV | 113.69 | 73.43 |
| ABT | 31.12 | 28.84 |
| Total | 221.46 | 168.42 |
| YoY Growth | 31.49% | |
May 2018 Purchases and Forward Dividends
Having just established my dividend growth portfolio in May, there were quite a few purchases made as I invested a lump sum to build a solid foundation. For reference, here are all of the positions that were opened in May:
The best part about building a new portfolio is the crazy year-over-year growth that can be achieved while the overall capital levels are still quite modest. Over time that will minimize, but in the meantime it will certainly be enjoyed.
Looking at forward dividends for May 2019, based on my current portfolio as it stands now I am looking at $375.34 next year. Through continued capital investments and reinvested dividends, that number should likely be even a little higher. Assuming I hit that target, it would be approximately 70% YoY growth!
Summary
One of the best parts about dividend investing is seeing the tangible results of how every dollar is working for you, earning more dollars that will also do work for you. And that is how the dividend snowball can really pick up steam.
While it is a natural tendency to want to rush the process when you’re just starting out, it is important to appreciate that it takes time and to remain focused on implementing the strategy. Realizing that I was able to achieve a 31% YoY growth in May without adding any additional capital to those three dividend paying stocks is a great feeling. Looking forward to next year and the expected 70% YoY growth is even more exciting!
June will be a slow month as many of the new positions that pay out in June were not purchased before the ex-dividend date, however there have already been a couple of payments received.
Slow and steady wins the race.
Looks like you have built a very solid foundation of dividend payers there. Looking forward to seeing them pay out for you and the growth that comes with the reinvestment/ compounding. Cheers!
Thanks, I appreciate the feedback as it is always nice to hear perspective from people that have been involved with dividend stocks far longer than I have been. Between adding new capital and reinvesting dividends, I am excited to see the growth of this portfolio!
Great results. Happy to see another jump aboard the DGI train. You are holding many great classic long term dividend payers/growers. Keep building up that passive income stream one share at a time.
Thanks DivHut, it has been long overdue to start making more advantage of my taxable account (not ideal to hold so many divs in a taxable account but I already max tax-advantaged accounts with other investments). For too long I refrained from investing in fear of the taxes, but I want to see what I can do to expedite my FIRE target or allow for a more conservative SWR. Looking forward to this DGI train picking up steam!
Woah, great month Divvy Dad. I was excited enough for you when I read the dividend summary. But then I saw the stocks you purchased and nearly fell over. That will produce A TON of great dividend income going forward and I’m excited to see your future income reports. Keep up the great work!
Bert
Thanks Bert, I sure hope so and I’m looking forward to when I start getting all of the dividends from them. Had a handful come in last week that I was able to get into ahead of the ex-dividend date. Last major piece will be establishing some REITs once an old pension of mine completes the transfer over to an IRA.
WOW! You just went out there and got busy! Well done. I am really surprised, there are 12 holdings that we don’t share. Goes to show you, everybody sees things a little differently. You’ll love keeping the blog. It’s fantastic motivation to keep going when times get rough. Maintaining a chart of growing monthly dividend income has kept me focused during lulls. Welcome to the club, I look forward to following your journey!
Haha, thanks TDP! Behind the scenes there were a couple of weeks of research and agonizing that I might be overlooking something and selecting poorly, however I eventually had to put confidence in my guidelines and take the leap!
I am super excited to not only be involved in DGI now, but also back to the blogging scene. I used to operate a number of blogs for quite a few years, but at that time my goal was to build an income and now I am just doing this for my enjoyment and to chronicle the path from $0 to $? in dividend payments. I look forward to following your journey–and quite a few others too–as we work towards our goals!
Welcome to the dividend community DD. Looks like we have a lot of holdings in common like many of us do. Fishing from the same pond as I like to say. Looking forward to your future moves and the income that flows from them. Tom
Thanks Tom, and you’re right that quite a few people that share their portfolios have a good deal of overlap. It is nice to look for those areas of difference and add those tickers to the list for further due diligence too. It has been fun seeing where everyone is at on their journey and jumping into the fray!
Welcome to the community Pops 🙂 it’s a wonderful bunch of people who all share a belief that we should own our own time and use it to live a purposeful life.
It seems to me you’ve built a stable foundation on which to build further. Keep it up, I’ll be rooting you along 🙂
You’re spot on that the DGI community is full of great people. One of the great things that I really enjoy is how everyone is very helpful and transparent, as the different perspectives and feedback can provide insight / lessons that you might not think of on your own.
Thanks for the support!