Dividend Update - August 2013
There wasn't much news on the portfolio for the month except for two small purchases, one in IBM and one in Visa. I'm a big fan of both companies although I have to admit that Visa is probably going to be more of a total return investment thanks to the sub 1.00% starting yield. Feel free to check out my analysis on IBM and on Visa if you want to learn more about the qualities that make for good investments. Other than that it was a pretty quiet month, but the beauty of a dividend growth investing strategy is that the dividends will continue to roll in from high quality companies every month. This was my first month that wasn't on the March, June, September, December payout schedule to surpass the $100 mark. Although July almost made it, coming up less than $4.00 short. So a little bit of an investing milestone was accomplished and going forward I expect to continue to receive at least $100 every month from here on. That's passive income I can use to invest in other opportunities now or use to pay for expenses later.
I received a total of $174.32 in dividends in my FI portfolio in August, bringing the annual total to $1,296.35. This was a over an 1100% increase from August 2012 and just over a 200% increase from May 2013. Now if only I could find a way to consistently have increases like that. I know they're going to be coming down going forward but it's still great to see how far I've come in just 3 months and one years time. Unfortunately none of the companies I own in my Roth IRA paid any dividends during August. I know the percentage increases will only be heading lower but as long as steady progress is being made I'm happy. So far in 2013 I've received $113.72 in dividends in my Roth IRA.
My goal for 2013 was to receive $2,750 in combined dividends and option income. While I'm going to blow past that goal, thanks to my option income outpacing my dividend income so far, I'm still holding out hope that I'll be able to hit that mark in just dividends. Without any further investment or dividend increases I should receive around $2,450 this year in dividends. That leaves me about $300 short which will be hard to make up since I'll receive just one dividend payment from any new purchases. I'll still shoot for it but I won't go chasing yield or dividend payments. I'm still going to stick with trying to buy quality companies at fair prices.
My FI Portfolio's forward 12-month dividends are now at $2,917.55, which is actually lower than at the end of July thanks to selling off some more shares of Halliburton. This is 83.36% of the way towards my goal of reaching $3,500 by the end of 2013. In order to reach my goal I'll have to invest around $18k over the last 4 months of the year at an average yield of 3.25%. Given the new budget due to the house purchase that might end up being a bit of a stretch. There were no new purchases in my Roth IRA so my forward 12-month dividends are still at $222.47.
I've updated my Dividend Income page to reflect August's changes.
How did your dividends do in August?
I received a total of $174.32 in dividends in my FI portfolio in August, bringing the annual total to $1,296.35. This was a over an 1100% increase from August 2012 and just over a 200% increase from May 2013. Now if only I could find a way to consistently have increases like that. I know they're going to be coming down going forward but it's still great to see how far I've come in just 3 months and one years time. Unfortunately none of the companies I own in my Roth IRA paid any dividends during August. I know the percentage increases will only be heading lower but as long as steady progress is being made I'm happy. So far in 2013 I've received $113.72 in dividends in my Roth IRA.
My goal for 2013 was to receive $2,750 in combined dividends and option income. While I'm going to blow past that goal, thanks to my option income outpacing my dividend income so far, I'm still holding out hope that I'll be able to hit that mark in just dividends. Without any further investment or dividend increases I should receive around $2,450 this year in dividends. That leaves me about $300 short which will be hard to make up since I'll receive just one dividend payment from any new purchases. I'll still shoot for it but I won't go chasing yield or dividend payments. I'm still going to stick with trying to buy quality companies at fair prices.
My FI Portfolio's forward 12-month dividends are now at $2,917.55, which is actually lower than at the end of July thanks to selling off some more shares of Halliburton. This is 83.36% of the way towards my goal of reaching $3,500 by the end of 2013. In order to reach my goal I'll have to invest around $18k over the last 4 months of the year at an average yield of 3.25%. Given the new budget due to the house purchase that might end up being a bit of a stretch. There were no new purchases in my Roth IRA so my forward 12-month dividends are still at $222.47.
| Company | Dividend Amount | DRIP Shares |
|---|---|---|
| Proctor & Gamble (PG) | $18.34 | 0.225 |
| AT&T (T) | $9.49 | -- |
| Alcoa (AA) | $0.91 | -- |
| Kinder Morgan, Inc (KMI) | $51.39 | 1.375 |
| Caterpillar (CAT) | $24.92 | 0.292 |
| Vodafone (VOD) | $52.13 | -- |
| Air Products & Chemicals (APD) | $12.78 | 0.120 |
| Realty Income (O) | $4.36 | 0.101 |
| August Total | $174.32 | |
| 2013 Total | $1,296.35 |
I've updated my Dividend Income page to reflect August's changes.
How did your dividends do in August?
Do you receive the partial stocks from the DRIP or is it rounded down to the nearest whole unit with the residual carried forwards to the next dividend? Do you worry in the event you were to sell a stock you would lose this partial stock (obviously it wouldn't be a large amount of money you'd be leaving on the table, but it's something!)
ReplyDeleteFI,
DeleteYes, my brokerage does allow me to receive fractional shares. I'm not really sure how they go about doing the fractional shares when I sell but I've always received the full proceeds including the fractional shares when I have sold. It just usually takes an extra day or two for the fractional shares to be processed. Although I've started to disable the DRIP for most of my positions because it just becomes a bookkeeping nightmare when I do sell because there's just so many lots. So most of the DRIPs are turned off now except for the positions I don't ever think I'll sell, PG, KO, XOM, CVX...
Thanks for stopping by!
Nice work!
ReplyDeleteI own some of the same companies... T, PG. I never intend to sell them.
DRIPping fractional shares is great. My brokerage in Canada does not allow that.
Mark
MOA,
DeleteI don't intend to sell PG ever, although T is a step below as far as I'm concerned. But it's not like I'm looking to get rid of them.
Dripping fractional shares is definitely a perk for the no doubt going to hold forever stocks. Although for companies that might be a little less high quality I've stopped the DRIP so it's less paperwork in case I ever need to sell.
Thanks for stopping by!
Pursuit,
ReplyDeleteGreat month. I really like your purchase of IBM shares! :)
Solid dividend tally there. Great progress. And your option income is off the charts.
Keep up the great work!
Best wishes.
DM,
DeleteThanks I noticed you joined forces with me as well on IBM. Would love a split with IBM just to let me acquire more shares, I hate seeing just a 10 share position.
Obviously I'm more focused on the dividend income because that is steady and fairly hands off. The option income is just a bonus while I'm able to monitor the markets closer but it's much more lumpy. It'll probably slow down some the rest of this year but I'm hoping to get back into it near the end of the year as my budget stabilizes.
Thanks for stopping by!
Another solid month for you. It's great that you'll be getting over $100 in dividends every month going forward. Raising that monthly baseline is an important sign of progress. Best of luck as you work toward your dividend goals as we move into the final third of 2013.
ReplyDeleteDGM,
DeleteYou had a great month as well! It's an exciting milestone to be able to say that going forward I'll continue to receive at least $100 every single month. I'm glad that it's starting to even out a bit more on a monthly basis, although I'm not too concerned about that. I can't believe that 2013 is in the home stretch. Hope the new job is going well.
Thanks for stopping by!
Great month! I find DRIP tracking to be a pain for my private spreadsheets & public blog, but pretty easy tax wise if you use Turbo Tax or a tax preparation service. Turbo Tax has an option to import data from my broker. This year I just printed my statements and let the local tax center figure it out.
ReplyDeleteCI,
DeleteIt's not that difficult but now that I'm getting a more meaningful stream of dividends I want to take advantage of selective reinvestment rather than just dripping back into every company. I'm still keeping the drip going though for the KO, CVX, XOM, PG...the forever stocks. I do own some companies though that while my intentions are to own forever, they aren't quite at the same level as some of the others. It's more just a preemptive move to clear up paperwork should I have to sell due to changes in the company.
Thanks for stopping by and keep up the good work!
Thanks I found this blog but supposedly I'm looking for tax Preparation Tucson, Arizona, so keep on posting!
ReplyDelete