Dividend Update - December 2015

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Includes: AFL, BAC, BDX, BP, CCP, CMI, CNP, COP, CVX, EMR, HAL, HRS, HSY, IBM, JNJ, KO, MCD, MMM, MSFT, NSC, O, PSX, ROST, TGT, TROW, UL, UN, UNP, UTX, V, VFC, WBA, WFC, XOM
by: Passive Income Pursuit

Summary

Keeping tabs on the dividends I receive each month to track my progress toward financial independence.

Dividend growth investing provides a positive portion of return each and every month.

December 2015's dividends saw a 0.9% decrease from September 2015, but a 12.3% increase year-over-year.

It's the end of one month and the beginning of another so it's time for my favorite update: my dividend update. These dividend updates reflect all dividends that I receive through my investing pursuits. I hope they 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 open up all sorts of possibilities.

The end of each quarter is always a great time for dividend growth investors since many companies make payments during that time. As such my December haul was over double what November brought in. I received a total of $840.93 in dividends in my FI Portfolio during the month. I also received $5.97 in my Loyal3 Portfolio bringing my total taxable account dividends to $846.90. My Roth IRA also contributed $39.75 in dividends received during December. Across my taxable accounts, FI Portfolio and Loyal3, I received $6.024.82 in dividends during 2015 which is well above the $4,557.17 received during 2014.

FI Portfolio

My FI Portfolio showed a slight dip compared to the dividends received in September of this year although that's entirely due to Pepsico (NYSE:PEP) and Wal-Mart (NYSE:WMT) making their last payments of the year in September rather than December. Although the combination of Coca-Cola (NYSE:KO), select dividend reinvestment, and dividend increases helped to close the gap and make it just a $8 shortfall. Quarter over quarter it worked out to a 0.9% decrease but on a consistent payout basis it worked out to a 1.6% improvement. Year over year the dividends received showed a 12.3% rise. Year to date I received $5,906.24 in dividends within my FI Portfolio.

Loyal3 Portfolio

My Loyal3 Portfolio showed some rather impressive increases with the quarter over quarter increase amounting to 23.9% and the year over year comparison coming to 55.5%. Although that's coming off extremely small bases of just $4.82 and $3.84, respectively. Year to date I received $118.58 in dividends within my Loyal3 Portfolio.

Roth IRA Portfolio

After Novembers dividend no show month for my Roth IRA December brought in a much better $39.75. Quarter over quarter that's actually a 10.2% decline although that's due to Wal-Mart paying in September but not in December. Excluding the Wal-Mart payment from Septembers haul there was a slight 0.7% improvement quarter over quarter. Year over year there was a 6.4% gain. Year to date I received $263.27 in dividends within my Roth IRA.

Dividend Raises During the Month

A total of 3 of my holdings announced dividend increases in December which is dividend growth investing at work. You mean a company I own a piece of, albeit tiny, wants to pay out more of their profits to me just because I own part of the company? Sign me up! W. P. Carey (NYSE:WPC) started things off with a 1.5% raise. Realty Income (NYSE:O) also provided a 0.3% bump to their dividend as well. AT&T (NYSE:T) ended the dividend increase announcements for my holdings with a 2.1% raise. Combined the dividend increases added $3.37 to my forward dividends without me doing anything extra. That's nothing spectacular but a raise is a raise.

Unfortunately, December also saw a big cut to my dividends when Kinder Morgan, Inc. (NYSE:KMI) announced a 75% decrease in their quarterly payout. I closed my position in Kinder Morgan later in the month in order to harvest some losses for tax purposes. Prior to the cut Kinder Morgan was the largest dividend payer within my portfolio providing over $440 in annual dividends. The dividend cut and subsequent sale reduced my forward dividends significantly.

Looking Forward

My forward 12-month dividends for my FI Portfolio are up to $5,493.35. Forward dividends in my Loyal3 Portfolio ended the month at $61.06 bringing the total taxable account forward dividends to $5,554.41. My Roth IRA's forward 12-month dividends inched slightly higher to $272.33.

Monthly Average

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. My monthly average so far in 2015 is $492.19. That's about a $113 increase from where my year to date average was at the end of 2014. With more contributions/investments and expected dividend increases the gap should continue to widen.

Click to enlarge

Dividends Received Breakdown

FI Portfolio Dividends - December 2015
Company Dividends Rec'd DRIP Shares
Wells Fargo (NYSE:WFC) $20.63 --
ConocoPhillips (NYSE:COP)* $13.53 0.247
Bank of America (NYSE:BAC) $8.09 --
McDonalds (NYSE:MCD) $75.57 --
Coca-Cola (KO) (Valuation Analysis) $53.97 --
Phillips 66 (NYSE:PSX) $4.64 --
Emerson Electric (NYSE:EMR) (Full Analysis) $29.36 --
Walgreens Boots Alliance (NASDAQ:WBA) $24.86 --
Harris (NYSE:HRS) $41.25 --
Cummins (NYSE:CMI) $22.74 --
Target Corporation (NYSE:TGT) $71.87 --
Aflac (NYSE:AFL) $30.10 --
BP (NYSE:BP) $48.06 1.375
Microsoft (NASDAQ:MSFT) $14.81 --
Chevron (NYSE:CVX) $60.26 0.695
ExxonMobil (NYSE:XOM) $47.99 0.512
Realty Income $17.47 --
IBM (NYSE:IBM) $39.29 --
Visa (NYSE:V) $9.54 --
Johnson & Johnson (NYSE:JNJ) (Valuation Analysis) $56.41 --
Halliburton (NYSE:HAL) $25.18 --
Unilever (NYSE:UL) $10.25 --
3M (NYSE:MMM) (Valuation Analysis) $18.46 --
United Technologies (NYSE:UTX) $8.96 --
Ventas (NYSE:VTR) $16.47 0.297
T. Rowe Price Group (NASDAQ:TROW) $10.40 0.143
Becton, Dickinson & Company (NYSE:BDX) (Valuation Analysis) $5.28 --
Ross Stores (NASDAQ:ROST) $6.60 --
Union Pacific (NYSE:UNP)* $13.20 --
Hershey Company (NYSE:HSY) (Valuation Analysis) $6.41 --
Care Capital Properties (NYSE:CCP) $2.85 --
CenterPoint Energy (NYSE:CNP) $26.43 1.618
December 2015 Total $840.93
2015 Total $5,906.24
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Loyal3 Portfolio Dividends - December 2015

Company Dividends Rec'd DRIP Shares
V.F. Corporation (NYSE:VFC) (Valuation Analysis) $1.17 --
Hershey $1.21 --
Coca-Cola $1.93 --
Unilever $1.66 --
December 2015 Total $5.97
2015 Total $118.58
Click to enlarge
Roth IRA Portfolio Dividends - December 2015
Company Dividends Rec'd DRIP Shares
Bank of America $5.08 0.301
Wells Fargo $10.38 0.188
Norfolk Southern (NYSE:NSC) $24.29 0.262
December 2015 Total $39.75
2015 Total $263.27
Click to enlarge

A full list of my holdings can be found here.

*Position has since been closed.

Disclosure: I am/we are long T, WPC, O, WFC, BAC, MCD, PSX, EMR, HRS, TGT, BP, CVX, XOM, IBM, V, JNJ, HAL, UL, MMM, UTX, VTR, TROW, BDX, ROST, HSY, CCP, CNP, VFC, NSC, KO, WBA, CMI, AFL, MSFT.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I am not a financial professional. Any mention of companies is not an endorsement or recommendation to purchase shares. Investing involves risks.