Another month down and another month closer, they say. Closer to financial freedom! This pursuit of financial freedom and/or financial independence has been such a ride, I cannot wait for what’s to come. The fireworks have come and gone and now we are hitting into the peak summer heat here in Ohio and it will start to cool down towards the end of the month, as Fall begins to enter our territory. Hopefully, that means that just the temperature outside is cooling and that my portfolio’s dividend income is heating up! Let’s dive into my dividend income results from the month of August!
This month I received a total of $370.67. Now this wasn’t an all-time record like last month, but this is a record earning month for my July dividend income articles. This is what I (as well as most of the community) consider an “off-month” for dividend investing, as the quarter-calendar end months are typically more robust. I always imagine that once the dividend income in this off-months reaches 4 digits, that financial independence should be right around the corner. See my chart below and what occurred in July to lead to these results.
Interesting, eh? Actually, Kraft (NASDAQ:KHC), as we have been talking, has a quarter-end pay schedule, therefore, is no longer paying in July. This entity, though, was replaced by my investment in Cisco (NASDAQ:CSCO) recently, helping to offset the non-KHC payment. Similarly to last year, Philip Morris (NYSE:PM) has carried the torch as the biggest payment here, representing approximately 25% of the income. This will/should decrease over time as I make additional investments in new companies and additional capital in current investments.
Similarly, I have split out between the individual stock amounts and the retirement accounts, as the ” – R” indicates a retirement account dividend (or the furthest column to the right). I separate these two, as I like to know what portion of my dividend income is coming from those retirement accounts that I cannot touch until 59.5 (barring any other usage rule I could use). Here, it shows that I received a solid total of $36 (up from $32.43 last year due to dividend reinvestment & dividend increases) or 9.7% of my income from retirement accounts and the other 90.3% was from my individual taxable account portfolio. Additionally, this shows from retirement accounts that I’m all ready for my set it and forget it mentality to keep that income going. To see my portfolio – one can go to our portfolio summary page.
Dividend income year-over-year comparison
So from last year’s July dividend income statement to this year’s income statement, the increase was 6.18%. Damn, that’s it? Well, as stated earlier, the Kraft (KHC) dividend payment schedule change doesn’t help. Further, looking at the dividend income above, all of them are greater than last year's, which is always a good sign. The two largest dividend increases year over year happen to be Realty Income (NYSE:O) at 10.45% & Canadian Imperial (NYSE:CM) at 15.85%. O’s is very easy to explain, the company increases dividends almost at least quarterly and in-conjunction with a monthly dividend reinvestment occurring, equates to solid dividend income increases year, after year. With CM, this is a combination of dividend increases, in addition to the strengthening of the Canadian dollar at $0.80 US to 1 CAD. I will gladly take these increases, no doubt!
Solid results here. Do I want better dividend income increases? You betcha. With my latest August Stock Watch List, Cisco is high on my list, so I may double my position, which will then produce better results for this month, as well as its other quarterly counterparts.
Further, I traditionally talk about my dividend increase announcements over the month of July. Sadly, there were none, so that section of this article will be removed. I hope that this gets on track in August, such as those companies on Bert’s August Dividend Increase list!
Dividend Income Conclusion & Summary
As I discussed with my updated – normal monthly expenditures at the moment, this $370.67 would cover ~38% of my average $984 monthly expense for my house, including utilities. Looking to boost my dividend income, as my auto loan is almost at an end and I look forward to unlocking a new cash flow source, so the dividend income this month and going forward will taste that much better. In similar fashion – all of the investing from last year and moves this year, show being frugal to save 60% of my income, that every dollar counts, has helped me in achieving lofty goals that I set in place for my 2017 year. LET’S GO!!!!
Not sure that I actually notate this, but all of my dividend income is being reinvested. I know, some may say with the overvaluation in the market that I should turn it off. However, I try not to time the market and I’d rather let dividend reinvestment do its thing. Further, I know my dividend income is going to be higher because I won’t let it stay stagnant or go the other direction. Obviously, I will ensure this in a prudent fashion, but we need to just go for it, in every single that we do, and this includes investing into strong dividend income producing stocks. Though this month had an increase, it does need to be better if I want to be financially independent any time soon.
How did your July dividend income summaries go? I am waiting on the flurries to start trickling in so that we can summarize them in our post for everyone. I love to see the different companies individuals own and see their progress each and every month. I am looking to make a few dividend stock purchases coming up, as I’ve been on the sidelines for almost two months, and you know how that usually goes for me… haha. Thanks everyone for stopping by, wish everyone the best of luck and happy investing out there!