Dividend Update - May 2016

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Includes: AAPL, APD, DE, GIS, HCP, JPM, KMI, O, OHI, PG, PSX, SBUX, T, VZ, 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.

May 2016's dividends saw a 1.4% increase from February 2016 and a 15.8% decrease year-over-year. Yikes!

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. You can check my dividend income or progress pages to see what dedication to an investment plan can give you.

The middle month of the quarter is a decent month for my dividends. During May my FI Portfolio delivered $315.41 in dividends. I also received $1.36 within my Loyal3 Portfolio, bringing my total taxable accounts' dividends to $316.77. I also have a small Roth IRA Portfolio; however, none of the holdings pay dividends in May so it was a big fat zero for the month. Across all three accounts, excluding the effect of taxes, I received $316.77 in dividends in May and have received $2,096.11 year to date.

FI Portfolio

My FI Portfolio showed a 1.4% increase compared to February, but a 15.8% decrease compared to last year. At first glance the year over year comparison is quite disappointing, although there is a valid explanation for the decline. The decrease was completely attributable to the dividend cut and my subsequent sale of Kinder Morgan, Inc. (NYSE:KMI). Kinder Morgan was my largest dividend payer prior to my closing of the position providing over $400 per year of dividends. On a constant payout basis, excluding Kinder Morgan's May 2015 dividends, the year over year comparison jumps to a 17.0% increase due to dividend increases over the last year as well as adding 30 shares of Omega Healthcare Investors (NYSE:OHI) to my portfolio. Year to date I've received $1,979.88.

Loyal3 Portfolio

My Loyal3 portfolio had a great percentage increase, although the dollar amount was a bit underwhelming. Dividends in May represented a 9.7% increase compared to February due solely from the dividend increase from Apple in April. Year over year my dividends showed an excellent 17.2% increase due to the aforementioned dividend increase as well as two small additional purchases within my Loyal3 account. Year to date I've received $24.99 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 $91.24 in dividends within my Roth IRA.

Dividend Raises During the Month

May was a slow month for dividend increases for my investments with only two increases across all three accounts. One within my FI Portfolio and one within my Roth IRA. Phillips 66 (NYSE:PSX) announced an excellent 12.5% increase to the dividend, which increased my FI Portfolio's forward dividends by $2.32. J.P. Morgan Chase Bank (NYSE:JPM) also announced a solid 9.1% dividend increase, which added $3.62 to my Roth IRA Portfolio's forward 12-month dividends. In my FI Portfolio I've received 23 increases from 21 companies, increasing my forward 12-month dividends by $111.93. 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 it? Sign me up! That's the dividend growth strategy in action.

Looking Forward

My forward 12-month dividends for my FI Portfolio are up to $5,549.40. Forward dividends in my Loyal3 Portfolio ended the month at $63.74 bringing the total taxable account forward dividends to $5,613.14. My Roth IRA's forward 12-month dividends increased to $259.49, thanks to the JPMorgan Chase dividend increase during May.

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 $466.10, which is a slight decline from the $492.19 average for 2015.

Historic Monthly Dividends Received From My Real Life Portfolio Click to enlarge

Dividends Received Breakdown

FI Portfolio Dividends Received Breakdown May 2016
Company Dividends Rec'd DRIP Shares
Procter & Gamble (NYSE:PG) $45.80 --
AT&T (NYSE:T) (Full Analysis Here) $24.52 --
Air Products & Chemicals (NYSE:APD) $15.89 --
Realty Income (NYSE:O) $18.25 --
HCP, Inc. (NYSE:HCP) $46.66 --
General Mills (NYSE:GIS) $30.03 --
Verizon (NYSE:VZ) (Full Analysis Here) $24.30 --
Starbucks (NASDAQ:SBUX) $11.24 --
YUM Brands (NYSE:YUM) $19.37 --
Deere & Company (NYSE:DE) $36.15 --
Omega Healthcare Investors $43.20 1.321
May 2016 Total $315.41
2016 YTD Total $1,979.88
Click to enlarge

Loyal3 Portfolio Dividends Received Breakdown May 2016

Company Dividends Rec'd DRIP Shares
Apple (NASDAQ:AAPL) $1.36 --
May 2016 Total $1.36
2016 YTD Total $11.07
Click to enlarge

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

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. (KMI) is mentioned in this article, but is not currently held within my portfolio.