Dividend Update - March 2016

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Includes: AFL, BAC, BDX, BP, CCP, CMI, CNP, CVX, DIS, EMR, HAL, HRS, HSY, IBM, JNJ, KO, MCD, MMM, MSFT, NSC, O, PEP, PSX, ROST, TGT, TROW, UL, UTX, V, VFC, VTR, 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.

March 2016's dividends saw a 2.7% decrease from December 2015 and a 9.1% increase year-over-year.

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.

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 March haul showed some really spectacular numbers. I received a total of $817.19 in dividends in my FI Portfolio during the month.

I also received $5.30 in my Loyal3 Portfolio, bringing my total taxable account dividends to $822.49 for the month. My Roth IRA also contributed $40.00 in dividends in March, all of which were reinvested. Across my taxable accounts, FI Portfolio and Loyal3, I've received $1,413.34 in dividends year to date and $67.90 within my Roth IRA.

FI Portfolio

My FI Portfolio led the way in terms of dividends received, but it did suffer a slight 2.8% decrease compared to December. Much of that is just noise though due to uneven payment schedules such as Coca-Cola (NYSE:KO) paying in December but not in March, and PepsiCo (NYSE:PEP) doing the opposite with no payment in December but a payment in March.

The year over year comparison gives a better idea of growth that was experienced through new capital, dividend growth and select dividend reinvestment. Compared to March 2015, dividends received increased $72 or 9.3%.

Since I've closed some positions as well as added new capital, I like to look at how my dividend performed on a constant payout basis, i.e., the same companies that paid in March 2015 as in March 2016. From dividend reinvestment and dividend increases over the last 12 months, March 2016's dividend showed 9.8% growth from March 2015. Not bad considering one of those holdings, Bank of America (NYSE:BAC), didn't announce an increase and Unilever (NYSE:UL) was subject to negative exchange rates. First quarter 2016 dividends show a 4.0% increase from first quarter 2015.

Loyal3 Portfolio

My Loyal3 Portfolio had an 18.6% increase year over year, although it declined on a quarterly basis due to the payout schedules and currency exchange. Year to date my Loyal3 holdings have provided $16.37 in dividends, which is a slight decline compared to 1Q 2015, attributed primarily to Walt Disney Company (NYSE:DIS) changing from annual to semi-annual payments this year. Adjusted for the Disney payout, the 1Q dividends from 2016 showed a 17.9% rise from the year ago quarter.

Roth IRA Portfolio

March was a welcomed return to dividend receipts after February's goose egg. Quarter over quarter, March's dividends showed a 0.6% improvement from December. The year over year increase came to a much more respectable 4.3% due to a dividend increase from Wells Fargo (NYSE:WFC) last year and dividend reinvestment. First quarter 2016 totals showed a 6.1% increase from first quarter 2015's mark of $64.02.

Dividend Raises During the Month

Five! Five different companies that I own announced dividend raises during March, 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!

These raises came from all across the economy; from a bank, a retailer, a cereal maker, a landlord and an industrial gas provider. These 5 companies combined to increase my forward dividends by $15, and so far this year dividend increases have boosted my expected dividends by over $67.

Based on the historical increase announcements, I expect 7 increases and possibly an eighth to be announced as well. So April should be a pretty bountiful month for dividend increases!

Looking Forward

My forward 12-month dividends for my FI Portfolio are up to $5,503.26. Forward dividends in my Loyal3 Portfolio ended the month at $62.98, bringing the total taxable account forward dividends to $5,566.25. My Roth IRA's forward 12-month dividends are at $254.49.

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 2016 is $465.66. That's about a $26 decrease from where my year to date average was at the end of 2015. This trend should continue over the next 6 months since investment capital will be light to non-existent.

Dividends Received Breakdown

FI Portfolio Dividends - March 2016
Company Dividends Rec'd DRIP Shares
Wells Fargo $20.63 --
Bank of America $8.09 --
McDonalds Corporation (NYSE:MCD) $75.57 --
Halliburton (NYSE:HAL) $31.96 --
Phillips 66 (NYSE:PSX) $4.64 --
Emerson Electric (NYSE:EMR) $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) $48.89 1.700
Microsoft (NASDAQ:MSFT) $14.81 --
Chevron Corporation (NYSE:CVX) $61.01 0.680
Exxon Mobil Corporation (NYSE:XOM) (Analysis Here) $48.36 0.474
Realty Income (NYSE:O) $18.20 --
IBM (NYSE:IBM) $39.29 --
Visa (NYSE:V) (Analysis Here) $9.54 --
Johnson & Johnson (NYSE:JNJ) (Analysis Here) $56.41 --
PepsiCo (Analysis Here) $43.24 --
Unilever $9.83 --
3M Company (NYSE:MMM) $19.98 --
United Technologies (NYSE:UTX) $8.96 --
Ventas REIT (NYSE:VTR) $16.69 0.271
T. Rowe Price Group (NASDAQ:TROW) $10.88 0.150
Becton, Dickinson & Company (NYSE:BDX) $5.28 --
Ross Stores (NASDAQ:ROST) $7.58 --
Hershey Company (NYSE:HSY) $6.41 --
Care Capital Properties (NYSE:CCP) $2.85 --
Centerpoint Energy (NYSE:CNP) $27.91 1.38
March 2016 Total $817.19
2016 YTD Total $1,396.97

Loyal3 Portfolio Dividends - March 2016

Company Dividends Rec'd
V.F. Corporation (NYSE:VFC) (Analysis Here) $1.17
Hershey Company $1.21
PepsiCo $1.33
Unilever $1.59
March 2016 Total $5.30
2016 YTD Total $16.37
Roth IRA Portfolio Dividends - March 2016
Company Dividends Rec'd DRIP Shares
Bank of America $5.10 0.371
Wells Fargo $10.45 0.218
Norfolk Southern (NYSE:NSC) $24.45 0.312
March 2016 Total $40.00
2016 YTD Total $67.90

A full list of my holdings can be found here.

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

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.

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