The fall season is my favorite time of the year–football season is in full swing, trees are changing colors and leaves are falling, and we take an opportunity to spend time with family and friends over Thanksgiving.
Being able to stuff ourselves on delicious food doesn’t hurt either.
But in all seriousness, while we should be expressing gratitude on a daily basis, Thanksgiving does bring the reminder to take a step back and be thankful for all the blessings that we have in our lives.
It is also a great opportunity to give back and do something for those that are not as fortunate.
This year we have made a more concerted effort to do both throughout the year, and as I share this latest dividend income report, I wanted to pause and say thank you to each and every one of you for taking time out of your day to stop by and be a part of the community here. That is something that I cherish a great deal.
November 2018 Dividend Income Summary
Mr. Market continued to take swings to the upside and downside throughout November and there were quite a few buying opportunities presented to DGI investors as a result.
However, regardless of the price swings, one thing that remained steady was the inflow of dividend payments.
The month of November brought in a solid $500.15 in dividends!
Unfortunately, last month did not have any dividends from the index funds in my retirement accounts, but the breakdown between my brokerage account and IRA is as follows:
- Brokerage: $408.70
- Retirement: $91.45
Let’s look at all of the individual dividends received:
While I love to see this kind of growth, computing the YoY growth is not entirely accurate at this point because I did not begin a focused effort to invest in dividend stocks until earlier this year.
Therefore, while 193% growth is impressive, it does not paint an entirely accurate picture.
However, one thing that is quite impressive is that the growth in the ABBV dividend from 2017 to 2018 is entirely based off of reinvested dividends and dividend raises. That is approximately 55% growth year-over-year!
Overall, the reinvested dividends have added an additional $20.61 in projected annual dividend income!
That is by far my largest month yet in terms of PADI generated solely by reinvested dividends, and is my second double-digit month of the year (with the other being in August).
November 2018 Purchases
While November did not come close to the ridiculous amount of capital that I was able to deploy in October, I was able to invest an additional $4,888.87 of new capital into the portfolio.
As a quick recap of the November purchases:
There were 6 transactions (the one missing from above was my purchase of VYM in my Vanguard account) across 3 different companies and one ETF.
The purchases break down as follows, including the amount of additional PADI generated:
- XOM :: 20 shares @ $78.00/share that added $65.60 in PADI
- PRU :: 20 shares @ $91.01/share that added $72.00 in PADI
- TGT :: 15 shares @ $67.45/share that added $38.40 in PADI
- VYM :: 6 shares @ $82.82/share that added $15.30 in PADI
Overall, these purchases boosted my projected annual dividend income by $191.30 and have me knocking on the door of my revised goal of $5,500 for next year (excluding my index funds).
Looking back at the dividend income report from last month, it is interesting to note that while I invested approximately $3,000 less in capital I nearly matched the increase in PADI–and this is because the positions purchased this month have a higher dividend yield than those bought last month.
November 2018 Dividend Raises
The month of November delivered a respectable three companies that raised their dividend with two of them being a solid double-digit raise!
AbbVie got the month rolling with a 11.46% raise followed by Snap-on delivering a robust 15.85% increase! The last raise for the month was delivered by Disney with a more modest 4.76% raise.
Here you can see the impact of these raises:
These three raises combined have resulted in an increase of $69.35 in projected annual dividend income. Similar to the reinvested dividends, this is the highest increase that I have received purely from dividend raises!
Looking forward, I am anticipating dividend raises in December from Abbott, Franklin Resources, and AT&T. In some years that list would include Disney, as they typically declare their raise in the last week of November or first week of December, and this year it was the former.
I am not expecting much from Abbott or AT&T; however, Franklin Resources has had a solid double-digit raise for the last 5 years so it would be great to see something above 10%.
As I mentioned in the opening, I have a lot to be grateful for this year and one of those things is to be blessed with a well-paying job that provides for my family and allows me to invest this kind of money on a monthly basis.
While I didn’t set any new records this month–at least not when including those long-standing index funds, however excluding index funds this is a new record from investments started this year as a DGI investor–I am extremely happy with my results in November.
The dividend tripod–reinvested dividends, dividend raises, and new capital investments–added a very respectable $281.26 in PADI during the month of November.
That brings me to a total of $5,296.09 in PADI and leaves me $203.91 from my revised goal. If I can obtain the right prices for a couple of purchases, I believe the three legs of the dividend tripod will deliver me to success.
As an example of the power of DGI investing, consider that the $89.96 in PADI received from reinvested dividends and dividend raises would require approximately $2,760 of capital invested at my portfolio’s average yield of 3.26%!
Pretty darn nice if you ask me!
Last but not least, checking in on my goal to receive $2,500 in dividend payments in 2018 we see that the $500.15 received in November has pushed me up to $2,321.31 in total.
That leaves $178.69 needed to reach my goal. At the end of October I still expected it to be pretty tight on reaching this goal, however now I know that I will not only meet this goal but will exceed it by a modest amount.
The month of December is shaping up to be rather impressive, due in large part to those index funds that will pay out before the end of the year. However, even looking only at my brokerage account and the REIT ETF that I built in my IRA, the last month of the year looks like it will be quite nice.
It feels like it has been a blur since I began this DGI journey and now we are approaching the new year.
I’m pleased with the growth of my dividend portfolio in the month of November and I am focusing in on finding the right buying opportunities over the next few weeks to close the year strong.
How was your month of November?