Dividend Update - February 2016

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Includes: AAPL, APD, DE, GIS, HCP, KHC, KMI, O, OHI, PG, SBUX, T, VZ, WMT, YUM
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.

February 2016's dividends saw a 25.7% decrease from November 2015 and a 12.8% increase year-over-year. On a constant payout basis dividends increased 10.4% year over year.

Better late than never, but it's high time that I report on my dividends for February. 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 fun money, or even to provide for an annual vacation; the key is that it can provide options and open up all sorts of possibilities.

This update reflects all dividends received in my real-life portfolio. Dividend totals do not reflect the effect of taxes.

February's dividend haul was a pretty solid bump up from January's start to the year. I received a total of $311.11 in dividends within my FI Portfolio during the month. I also received $1.24 in my Loyal3 Portfolio bringing my total taxable account dividends to $312.35. I have a small Roth IRA Portfolio as well; however, none of the positions pay dividends in February so it was a big fat zero for the month. Across all three accounts, excluding the effect of taxes, I received $312.35 in dividends during February and have received $618.75 year to date.

FI Portfolio

My FI Portfolio showed a decline of 25.7% and 12.8% on both a quarter over quarter and year over year basis, respectively. While the comparisons look pretty bleak much of that is due to the dividend cut and me subsequently closing my position in Kinder Morgan, Inc. (NYSE:KMI) during December 2015. On a constant payout basis, i.e. the same companies paying across both periods, the year over year increase came to 10.4%. Much of the increase was attributed to dividend increases. Year to date I've received $579.78 in dividends.

Loyal3 Portfolio

On the surface my Loyal3 Portfolio was a bit of a disappointment as well with a 62.5% quarterly decline, but a solid 18.1% year over year increase. The quarter over quarter decline was due to management at Kraft-Heinz Company (NASDAQ:KHC) apparently unable to make up their mind on a dividend payout schedule. On a constant payout basis the year over year comparison comes to 18.1% with Apple (NASDAQ:AAPL) being the only contributor. Year to date I've received $11.07 in dividends.

Roth IRA Portfolio

The comparisons are easy to make for my Roth IRA Portfolio since no dividends were received across any of the time periods. So no increases were realized, but no declines either. Year to date I've received $27.90 in dividends within my Roth IRA.

Dividend Raises During the Month

A total of 6 of my holdings announced increases during February which is dividend growth investing at its finest. 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! What was really cool about the dividend increases during February was the diversity of industry representation. An industrial conglomerate, some beverage and snack giants, an asset manager, the world's largest retailer and a bank joined in as well. Year to date dividend increases have increased my forward 12-month dividends by $52.76 without me contributing to their operations.

Looking Forward

My forward 12-month dividends for my FI Portfolio are up to $5,552.21. Forward dividends in my Loyal3 Portfolio ended the month at $62.47 bringing the total taxable account forward dividends to $5,614.68. My Roth IRA's forward 12-month dividends declined by about $17 due to closing my Wal-Mart (NYSE:WMT) position and sit at $253.35.

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. The rolling 3-month average is $473.57 which is a slight decline from the $492.19 average for 2015.

Click to enlarge

Dividends Received Breakdown

FI Portfolio Dividends - February 2016
Company Dividends Rec'd
Procter & Gamble Company (NYSE:PG) $45.35
AT&T Inc. (NYSE:T) $24.52
Air Products & Chemicals (NYSE:APD) $14.97
Realty Income (NYSE:O) $18.20
HCP, Inc. (NYSE:HCP) $46.66
General Mills (NYSE:GIS) $28.72
Verizon (NYSE:VZ) $24.30
Starbucks Corporation (NASDAQ:SBUX) (Analysis Here) $11.24
YUM Brands (NYSE:YUM) $19.37
Deere & Company (NYSE:DE) $36.15
Omega Healthcare Investors (NYSE:OHI) $41.63
February 2016 Total $311.11
2016 YTD Total $579.78
Click to enlarge

Loyal3 Portfolio Dividends - February 2016

Company Dividends Rec'd
Apple $1.24
February 2016 Total $1.24
2016 YTD Total $11.07
Click to enlarge

A full list of my holdings can be found here.

Disclosure: I am/we are long KHC, PG, T, APD, O, HCP, GIS, VZ, SBUX, YUM, DE, OHI, AAPL.

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: Investing involves risks. Any mention of a company in this article is not a recommendation to buy or sell. Please consult a financial professional prior to investing and do your own due diligence. Kinder Morgan, Inc. is mentioned in this article but I no longer have a position in the company.