Dividend Income Report :: October 2018

October Dividend Income Report

When I was a youngster partaking in the tradition of trick-or-treating on Halloween, we would always dare each other to say the following elaborated version of the common “Trick or Treat” when arriving at a door:

Trick or treat, smell my feet, give me something good to eat.

As we look back on the month of October, I think Mr. Market had a few tricks as well as a few treats and there were even a few days that felt about as bad as having to smell someone’s feet.

October 2018 Dividend Income Summary

Coupled with the shenanigans from Mr. Market, we also have the opening month of the quarter and for many that means a relatively quiet month from a dividend perspective.

I mention that because when prices are on the decline, your dividends will purchase a larger portion of shares when reinvested–so having a slow month on the dividend front means there aren’t as many dollars being reinvested at depressed prices.

So just how spooky was the month of October?

Before sharing the total, I will remind you that beginning with last month’s dividend income report I began including the dividends from the index funds in my retirement accounts. In addition, I shuffled some of those accounts around recently and that has had an immediate impact on this month’s total.

The month of October has brought in an impressive $1,388.59 in total dividends!

That actually surpassed my total from last month–which was a quarter ending month–and sets a new overall record.

As you will see below, this total is driven by my retirement accounts and I will admit that I am still a little torn on including these dividends because I haven’t reflected those accounts in my spreadsheet or projected annual dividend income. I’m still giving this some thought, but here is the current breakdown:

  • DGI Portfolio: $273.32
  • Retirement Accounts: $1,115.27

Let’s examine where all of these dividends came from:

TickerOctober 2018October 2017
YoY GrowthMIND-BLOWING =)
BEN13.670.00
EPR16.200.00
GPC7.980.00
IRM48.180.00
KMB18.170.00
KO9.050.00
MAIN9.750.00
MO53.150.00
O15.710.00
OGE20.260.00
STAG5.920.00
STOR9.900.00
UNIT30.000.00
WPC15.380.00
FUSVX (R)1,115.270.00
Total1,388.590.00

One of the challenges with this being my first year of having a dedicated DGI portfolio and tracking dividends in general is the inability to truly track YoY growth.

Therefore, to give some context, comparing this month to the prior quarter opening month I see that I’ve had 151.32% quarter-over-quarter growth. The bulk of that increase is from the REITs that are now hitting my account, with a small offset from the fact that Disney does not pay quarterly.

One bright spot was the Altria ($MO) dividend more than doubling since the last quarter. That increase is a combination of additional purchases that were made plus their increased dividend.

Overall, the reinvested dividends have added an additional $5.42 in projected annual dividend income.

That number would have been higher had I not made a mistake with my REIT holdings, as those dividends were not reinvested this month. When making the purchases, I assumed that they had inherited my account preference to reinvest the dividends but unfortunately they had not. As soon as I realized the mistake, I updated the account but per Fidelity guidelines I had missed the cut-off time to make the change and have it be effective for these payouts.

That has since been resolved so all of those dividends will be reinvested moving forward.

October 2018 Purchases

While September had been quiet from a purchase perspective, October presented plenty of buying opportunities and therefore I was able to add a total of $7,870.60 in new capital to the portfolio!

As a quick recap of the October purchases:

October 2018 Stock Purchases

In hindsight, I should have been a bit more patient with my purchase of Snap-on as the price got hammered down quite a bit more from where I made my two purchases. However, my two purchases totaling 20 shares have added $65.50 in PADI.

Meanwhile, the other purchases include:

  • Genuine Parts Company :: 10 shares @ $94.80 that adds $28.80 in PADI
  • Home Depot :: 5 shares @ $182.50 that adds $20.60 in PADI
  • BlackRock :: 5 shares @ $396.00 that adds $62.60 in PADI

The last purchase that is not represented above is my automated deposit of $525.00 into my Vanguard account that went towards purchasing an additional 7 shares of VYM @ $83.20/share. That purchase adds $17.85 in PADI based on the most recent dividend.

In total, these new purchases have boosted my projected annual dividend income by $195.45 and helped push me over that $5,000 milestone.

For the amount of capital being deployed, I would have liked to see the PADI increase by more however most of these purchases were in companies that have a yield quite a bit lower than my portfolio’s average yield (but generally have higher growth rates).

October 2018 Dividend Raises

The month of October brought only one dividend raise, but that is not a huge surprise as most of the companies in my portfolio announced raises earlier in the year.

The one raise was a modest 4.0% increase from Iron Mountain as highlighted below:

October 2018 Dividend Raises

This single increase has added $7.71 in projected annual dividend income. While that is not an earth-shattering increase, every dollar counts and each of these dollars are now working for me to earn more money moving forward.

Looking forward, I am not expecting much in November with Snap-on being one of the few companies that typically declare their dividend increase during the 11th month. They have given solid, double-digit increases the last few years so I am hoping for at least 15% this year and should know within the next week or so.

Summary

While the month of October brought a good deal of volatility, it also presented a number of great buying opportunities as well. While I would have liked to time some of them a little better, over the long-term that should be but a blip on the radar.

Including my retirement account dividends, I’ve set another record having surpassed last month’s quarter ending record.

Projected Annual Dividend Income - October 2018

Through the three legs of the dividend tripod, I was able to add $208.58 in PADI during the month of October. I’m going to need strong performance from each of the three legs over the remaining two months to meet my revised goal of $5,500 in projected annual dividend income, but I am up for the challenge.

The $13.13 in forward income from the reinvested dividends and dividend raises might not seem like a lot, but that would have required approximately $400.00 in new capital at my current 3.28% average dividend yield.

Annual Dividend Income Goal - October 2018

The dividends received in October have moved me closer to my annual goal of receiving $2,500 in dividend payments during this inaugural year of my dividend portfolio. My total of $1,821.16 leaves me $678.84 short of my goal with two months to go.

While I will not have a lot of wiggle room, I am confident that my projections for November and December will push me past my goal.

Looking solely at my DGI portfolio, the opening month of the quarter continues to be my quietest month but the gap is narrowing. The addition of FUSVX in my retirement account certainly gave a huge boost this month, although that fund’s payout is not on a standard quarterly cycle.

There was a great deal of capital added to the portfolio in October, although it was added to lower yielding stocks that have historically demonstrated much higher growth in their dividend. Hopefully Snap-on comes through with a healthy raise in November and continues that trend, but time will tell.

Overall, despite the volatility in the market, I am pleased with the results from October across the board.

How did you fare in October? Did you get a trick or a treat?

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

  1. sweet dd!

    congrats man huge month. I definately think you should include your retirement account. why not? its a passive income.

    way to throw down stacks too! great purchases and taking advantage of the dip.

    keep it up man
    cheers

    1. Thanks PCI, and I am leaning towards continuing to include the retirement account but to also have some distinct separation as I enjoy seeing how the DGI focused portion is performing since I largely started from scratch there this year.

  2. As for October for me DD: Net Worth Down. Forward dividend and interest income up. That is what I love about DGI. You win even when you lose. Anyway, your trick or treat phrase is a riot. I remember it well as a kid. How about this jingle for Xmas coming up….

    Jingle bells, Batman smells, Robin laid an egg
    Bat mobile lost a wheel and the Joker got away
    Hey

    1. Haha, yeah that is another one of those good jingles that I loved as a kid.

      I am in the same boat with you re: the net worth declining while the forward dividend income and interest income going up. That definitely softens the blow and demonstrates just how beneficial the DGI approach can be.

  3. WOW $7,870.60 in added capital this past month. That sir is just impressive! your dividend income is outstanding considering you received $0 last year same time. The power of DGI is just astronomical. Congratulations on the impressive numbers, I look forward to keeping tabs on your progress.

    P.S. I noticed the hefty position taken in SNAP. What are your projections for this company?

    1. Thanks Dr. D, I was a little surprised myself as I totaled up all of the investments and is definitely far more than I am typically able to invest. September had been quiet though so I had some extra capital from the prior month.

      To clarify, my position is in SNA (Snap-on) not SNAP. Snap-on is primarily known for their tools that are sold to professionals, and is in a completely different sector from SNAP.

  4. Good job. Next year you will have a good comparison to compare to. Most definitely keep the retirement accounts in the report. Good to see the comparison between taxable and non taxable. Keep it up

    1. I had been hoping to touch the green in October but didn’t quite make it. However, with the dividends that have already come in for November I am now into the green and closing in on the $2k mark.

  5. That was an impressive total for the month of October. I’m sure you’ll be pleased with your year over year totals once those new purchases kick in their dividends. Always happy to see the buying continue in earnest. Keep it up.

    1. Thanks Keith, and you’re right that it is really nice when the next cycle comes around and the additional purchases begin paying that dividend! As you repeatedly hammer home on your site, it’s important to continue executing the strategy and not be consumed with what the market is doing. Doing my best to just consistently keep putting my capital to work.

  6. Great work! Really terrific performance, and that total (especially for a “down month”) is unreal! I have the same challenge of deciding what to include in my totals every month. In my case, I’ve decided to track things separately for now with the possibility that I will add them to my reports going forward.

    I think your comment about dividend growth is right on point. Even though the yields may be lower now, your actual income should significantly increase every year. The BLK and HD purchases fall squarely in this category.

    Looking forward to your end of the year reports. Keep up the great work!

    1. Thanks, and my down month was certainly boosted by FUSVX that pays on an April, July, October, and December schedule. However, even excluding that I am still thrilled with the growth just from the DGI stocks themselves.

      I am thinking about starting a 2nd spreadsheet to track the index funds in retirement accounts, as that will allow me to keep some separation but pull things together here for sharing combined totals. I was just forecasting what the December payments should look like from the index funds, and I think the December report will be a good one!

      Thanks for the feedback FIREman!

    1. Thanks Lanny. I’m not sure I am following your question—all of these dividends are being reinvested. Is that what you meant?

      The timing here really worked well as I moved some retirement funds around as September ended, and just a few days later received the nice dividend from FUSVX. Could not have timed it better!

  7. Mind-blowing is an excellent way to describe your month DivvyDad. This is unbelievable. You continue to put a TON of capital to work and the FIRE continues to grow in your belly. I freaking love it. Congrats on the great work!

    Bert

    1. Thanks Bert, that FIRE is definitely growing and I am driven to not only reach my goals but completely blow them out of the water and reach heights that I never considered when starting this journey! It is so exciting to think about where I will be in 3 years or 5 years, as I don’t have any plans of slowing down! Likewise, I am equally excited to see where the broader DGI community will be as well because that lights a FIRE in me too as I love sharing this ride with others.

  8. Wow, DivvyDad! That’s a mind boggling amount of capital that was put to work in October. The dividends are really starting to snowball at this point, increasing the impact of reinvestment and dividend increases. Keep it up!

    1. Thanks Kody, I did surprise myself a bit but after a slower than normal September there was some excess capital to deploy and the market volatility provided some nice opportunities.

    1. Thanks BI, it was definitely a nice assist from FUSVX, which has now changed to FXAIX, so it really helped this month. Unfortunately January will still be a quiet opening month as this index fund pays on an April/July/October/December schedule.

  9. It was a mind-blowing month for you, DivvyDad. Love the infinite YoY growth.
    Congrats on surpassing the $5K PADI milestone, too.
    You’ve been working hard to adjust the portfolio this year with account transfers and such. It will be nice to see that settle down a bit next year and have the YoY comparisons begin. Quite exciting.
    For what it’s worth, I’d like to see you separate out the taxable DGI portfolio from the retirement ones. Sounds like you were leaning that direction anyway, but I wanted to put my vote in. 😀
    Keep up the great work. It’s amazing what you’ve accomplished in just a few short months.

    1. Thanks ED, I’ve loved every minute since starting my DGI portfolio and am really looking forward to next summer once I’ve passed the full year mark.

      One of the challenges in separating out is my REITs have all been included in my spreadsheet already and I’d have to try and back all of that out. What I’m thinking of doing is leaving that as-is but any future retirement investments, and my other retirement accounts, will be tracked separately. That might not be the cleanest but it will be the easiest way for me to separate things without redoing a bunch of work.

  10. What’s not to love about this update DivvyDad? It has everything, big spending (on stocks), amazing dividend haul and an infinite growth number.

    Already looking forward to your numbers next year. You’ll be surpassing even your own imagination I reckon.

    Keep crushing it!

    1. Thanks Mr. R!

      Now if only I could figure out a way to maintain that YoY growth number moving into next year! I am definitely looking forward to what next year will hold.

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