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Long only, value, dividend investing
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Summary

  • Keeping tabs on the dividends I receive each month to track my progress towards financial independence.
  • Dividend growth investing provides a positive portion of return each and every month.
  • May 2014's dividends saw an 8.9% increase from February 2014 and 182.7% in year-over-year.

May was a solid month for dividends, and pretty much steady as she goes. These dividend updates reflect all dividends that I receive through my investing pursuits, and I hope can help inspire you to take control of your own finances and invest to build a passive income stream. What you use that stream for is up to you, whether it's to fund early retirement, just provide some FI/FU money, or even to provide for an annual vacation; the key is that it can provide options and opens up all sorts of possibilities. You can check my dividend income or progress page to see what dedication to an investment plan can give you. I was able to set a personal best in dividends received during March, which is great motivation and helps to keep me on track.

I received a total of $244.51 in dividends in my FI portfolio in May, and have received a total of $1,387.81 through the first five months of 2014 and over 50% of the dividends I received in all of 2013. I'm 30.84% of the way towards my goal of $4,500 in dividends received for the year, so I'm off pace to hit my goal as of now, but I think with additional investment and dividend increases, I should be able to get close. With half the year almost done, it'll depend on whether I can get two dividend payments from each additional purchase. The Roth IRA continues to see very little growth, as I can't make new contributions due to being above the income threshold, but I'm not too worried about that. The main thing is to make sure the taxable account continues to increase month after month. I didn't receive any dividends in my Roth IRA during May, so I'm still at $66.51 for the year. For my FI portfolio, May saw an 8.9% increase over February 2014 and a great 182.7% increase over May 2013. Step by step, month after month is the name of the game with dividend growth investing.

I wasn't very active in the markets during May, as the markets didn't present a lot of opportunities and I was quite busy dealing with my grandfather after his fall. I did initiate a new position in YUM Brands (NYSE:YUM), though, and I hope to get a chance to add to the position at better valuations. With the new purchase and dividend increases, my forward 12-month dividends increased to $4,332.63. My forward dividends are now 86.65% of the way towards my goal of $5,000 by the end of the year. That's now over $360 per month that I can expect to receive barring further increases or purchases. It's exciting to see the forward 12-month dividends continue to move higher and higher, as they will eventually allow me to reach financial independence and at least contemplate retiring early. My Roth IRA's forward 12-month dividends ended May at $225.03. Back in mid-April, I turned off automatic dividend reinvestment for all positions in my portfolio to try my hand at putting capital to work at the best value possible. So reinvestment won't add to dividend growth going forward.

Below is the chart showing the monthly dividend totals for each year that I've been investing, as well as the monthly average. It's not always an increase, as some companies have weird payout schedules and eventually some positions will get dropped, but the long-term trend is what matters. It's great to see that my 2014 average through the May is at $277.56 and well above 2013's monthly average of $212.23. With more contributions/investments and expected dividend increases, the gap should widen that much more.

(click to enlarge)

FI Portfolio - Dividend Income

Company

Dividend Amount

DRIP Shares

Procter & Gamble (NYSE:PG)

$29.87

--

AT&T (NYSE:T)

$9.70

--

Kinder Morgan Inc. (NYSE:KMI)

$91.75

--

Air Products & Chemicals (NYSE:APD)

$14.14

0.118

Realty Income (NYSE:O)

$10.16

--

HCP Inc. (NYSE:HCP)

$44.23

--

American Realty Capital Properties (NASDAQ:ARCP)

$16.03

--

General Mills (NYSE:GIS)

$14.46

--

Verizon (NYSE:VZ)

$6.89

--

Starbucks (NASDAQ:SBUX)

$7.28

--

May Total

$244.51

2014 Total

$1,387.81

I've updated my Dividend Income page to reflect May's changes. A full list of my holdings can be found here.

Source: Dividend Update - May 2014

Additional disclosure: Investing involves risks. Please consult a financial professional and do your own due diligence before investing. The author is not responsible for losses of any kind by readers.