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John And Jane - February Dividend Income Tracker - Taxable Account

Matthew Utesch profile picture
Matthew Utesch


  • This is the 4th month I have officially tracked dividend income and it was the strongest month yet with a total of $1271.50 of dividends received.
  • AT&T, EPR Properties, Mesabi Trust, Realty Income, Simon Property Group, Spectra Energy Partners, TransMontaigne Partners, and Westlake Chemical Partners all increased their dividends payments.
  • A brief overview and discussion of the current state of the stock market.
  • The taxable account has very few changes left to be made but this doesn't mean we set it on auto-pilot and forget it.
  • This article includes all payout updates for February as well as a brief overview of what we are expecting in March.

Investment Thesis

February marks the fourth month that John and Jane have had a well-established concentration of stocks in their taxable portfolio. A total of eight stocks in the taxable portfolio delivered increased dividend payments during the month of February.

As I continue to document John and Jane success my long-term goal is to create a database that allows for year-over-year (YoY) comparisons that demonstrate the power and simplicity of dividend investing. In addition to documenting the past, I also like to forecast the upcoming month of dividends because I believe it helps keep expectations in check.

As always, I would like to include a disclaimer that states this article is based on an actual portfolio for clients' of mine. The goal is to build a portfolio of dividend-paying stocks, bonds, etc. that will continue to produce a long-lasting income stream with a minimal emphasis on capital appreciation.

Dividend and Distribution Increases

Similar to in my update from January, John And Jane - January Dividend Income Tracker, another eight stocks in John and Jane's portfolio delivered increased dividends in the month of January. The remainder of the section is used to give a brief overview of the companies and document the total dividend increase:

AT&T (T): AT&T kind of feels like an income investor's best friend. I mean, who doesn't like a company that currently pays a yield of 5.5% and has consistently grown their dividend for 33 years straight? The stock has struggled to find its footing as it waits to meet the Department of Justice in court concerning its $85 billion merger with Time Warner (TWX). Personally, I think it's worth the wait because AT&T operates a company that excels in almost any economic environment. Just think about it: How many people in the United States could

This article was written by

Matthew Utesch profile picture
**Effective 8/20/2023 I will be looking to change platforms because Seeking Alpha has indicated it will no longer support the publishing of my retirement article series John & Jane because it involved too much previous history analysis. I plan to continue this series in a video format on YouTube and apologize in advance for my delay as I build this out.https://www.youtube.com/@consistentdividendinvestor/featuredGraduated in 2011 with degrees in Pre-Law and Business Administration from Eastern Washington University. Completed my MBA at Whitworth University in May of 2017. Over the last decade, I have worked exclusively in the finance industry. I have acquired specialized knowledge in multiple areas, most notably, Secondary Marketing, Underwriting (specializing in subprime credit), and recently established an Indirect Auto Dealer Lending Program for Canopy Federal Credit Union. I am now the Director of Indirect and Retail Underwriting.Started my first Roth IRA at the age of 16, but began seriously investing closer to 2011 at the age of 22. My investment strategy is largely focused on generating retirement income from dividend-paying stocks. I do not hold any professional investment licenses, but I spend a significant amount of time educating children, teenagers, and young adults on basic finance. I also specialize in cash-flow analysis for those nearing retirement or who are in retirement.

Analyst’s Disclosure: I am/we are long SKT. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article reflects my own personal views and is not meant to be taken as investment advice. It is recommended that you do your own research. This article was written on my own and does not reflect the views or opinions of my employer. I recently sold a number of stocks I was previously long on in order to pay off a significant amount of debt and increase my cash-flow available for investing going forward.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

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Comments (19)

What is total investment, target return, and annualized return projected using today’s data?
Matthew Utesch profile picture

Please see my response above for part of the answer to your question. The focus with the taxable account is strictly cash-flow created by the dividend with very little attention given to capital gains (with the exception that stocks with an increased risk profile are the first to be sold because the whole idea is consistency of cash-flow). For all of my estimates in 2018 I have used a 3%, 4%, and 5% as my worst-case, mid-case, and optimistic scenario for dividend increases. As noted above, the value of shares is approximately $225k with a dividend payout of $12k annually giving us a 5.3% yield. I hope this answers your question.

charmainerouse82 profile picture
Hey my name is charmaine I’m interested in building a better portfolio for my stocks would you help sincerely troubled investor.
Matthew Utesch profile picture

I shot you a message.

What is the total investment of this couple?
Matthew Utesch profile picture

Total investment of this account is approximately $225k. The annualized current dividend yield of this account is approximately 5.3% (cost basis yield is approximately the same due to the fact that most of these investments were recently established after we sold a significant number of mutual funds to establish this portfolio). Please see my previous articles to give you a better idea of the changes that were made.

Matthew Utesch profile picture

You bet. I'll be writing about the IRA portfolios soon so that will give a much more well-rounded picture of their portfolio.

littlecubbie2019 profile picture
Why no technology? I’d say add some msft and csco
Matthew Utesch profile picture

They actually have a decent amount of tech in their IRA's (which I will be writing articles about around the middle of this month because they are newer/less established portfolios). Their IRA's are more focused on tech because many of those companies tend to be included in my buy/sell strategy whereas their taxable portfolio has little to no selling in order to avoid taxable consequences.

There are definitely some good names out there. I am pretty fond of MSFT, ORCL, and a few others.

Thanks for reading and commenting,
Matthew Utesch, most of these strike me as ordinary, rather than qualified, dividends. Would love to hear further discussion as to how the dividends are actually treated tax-wise, whether that was a consideration for you when making your decisions and, if not, why not.

Thank you for your contributions because it seems as though few people write about investing for taxable accounts. In such situations, it is essential for the after-tax benefits to grow more than the combination of inflation and rising income taxes.
Matthew Utesch profile picture

Some of the dividends are ordinary (the portfolio as a whole has more qualified-payers than it may seem) along with a number of partnerships. Based on the passing of the new tax bills the difference between tax rates for ordinary and qualified dividends is significantly lower than it was previously and I estimate the true tax rate on those to be closer to 22-25% versus what used to be in the 30-33% range before.

Because non-qualified stocks tend to come with a higher yield this can also help offset the expense associated with tax consequences (although I still believe it is important to limit this). You are definitely correct in that it is important to focus on the big picture because if you do not control your taxes you are missing the 2nd half of a two-part equation. I included many of the ordinary dividends to add consistency on a month-to-month basis and also did this know that their tax rate would fall as they got closer to retirement.

Hopefully this provides the detail you were looking for. Let me know if you have any other questions or comments. I'd eventually love to write an article in the future that focuses on this topic because you are correct that taxable accounts tend to get ignored as a topic.

Thanks for reading and adding to the conversation,

I would fund only the ROTH if conditions/earning's allow.
Do you get a commission every time they buy? For the monthly income your on overload. I hope for their sake your fee based only.
Matthew Utesch profile picture

John and Jane get a special deal from me. Let's just say my reduced fees save them around $10k a year over what they were paying their advisor before. As for monthly income being on overload are you referring to the monthly dividend stocks or the income for the month in general?

Thanks for reading and commenting,
Stocks of course, wow i could do this for free. I'll bet their getting the special deal, where do i sign up.lol
Matthew Utesch profile picture
Let's just say that these individuals have been wonderful to work with and I have benefitted from them working with me more than compensation could do.

Personally, I don't think the monthly income stocks are on overload. It represents around $150/monthly income currently. I think its pretty reasonable.

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