We are one month from the dividend income showdown in December. Yes, this month marks the preparation for the biggest dividend month of them all. Reviewing this current month's dividend income results reminds me that all of the hard work throughout the year is about to enter the dividend portfolio. November was a great month. There was unexpected news on dividend increases, as well as improvements along the way. Outside of this past month being freezing, with slight snow and too many leaves, collecting dividend income has warmed up my days! It's time to dive in and review the results.
I received a total of $538.65 of dividend income in November. Another record, no doubt, but not by much and wasn't as strong of a dividend earning increase versus other competing months. However, it's in the green or positive. Further, the 401(k), Health Savings Account (HSA) and all dividends are automatically invested/reinvested and helps take the emotion out of timing and making a decision. Also, to find out why I max out my 401(k) and HSA, please refer to the 3rd part of my tax series, (though I have the breaks on the 401k, as I recently posted due to the 6 month waiting period, only a little over 1 month of waiting to go!) as that describes the magnitude of benefits to increase the amount you can invest due to reduction in taxes. Here is the breakdown of dividend income for the month of November!
AT&T (NYSE:T) came in with the triple-bagger in dividend income, crossing the $100 barrier mark. What is wild with T, their stock price is absurdly low for that dividend aristocrat, with a dividend increase looming. Can they cross the 7% yield threshold? It's getting awfully close. The Kinder Morgan (NYSE:KMI) dividend is looking really nice coming in, as well as the reinvestment as such a low price - grabbing almost 2 shares on this DRIP. Also, I am getting SO close to earning over $100 from Citizens & Northern (NASDAQ:CZNC), when adding up the dividend income from both types of accounts (i.e. taxable and retirement); I know this will cross $100 going forward, which is exciting. In addition, my purchase in Starbucks (NASDAQ:SBUX) is starting to show the dividend, as well as their 20% dividend increase from earlier this year.
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 total of $246.65 (up from $198.11 last year) or 44.60% of my income from retirement accounts and the other 55.40% was from my individual taxable account portfolio. This ratio also has stayed fairly consistent, with a slight increase to the taxable account (which I like). Additionally, this shows from retirement accounts that I'm all ready for my set it and forget it mentality to keep that income going.
Dividend Income Year over Year Comparison
Now, I will compare the previous year's linked month to this month. What's not included in last year's is a one-time dividend of $112.11, as it's not a typical amount. Therefore, when including that one-time dividend to November 2017 (to be conservative), my dividend income was up 9.80%! My goal is to be well over $600 in dividend income next year. Starbucks was a new name, as well as WestRock (NYSE:WRK), both increasing their dividend in the time I've owned them. Lastly, dividend increases and reinvestment fueled the other dividend income growth, with no dividend cuts.
A month wouldn't be a month without high quality companies increasing their dividend! See the small chart below for the details on the dividend increase announced this month from my portfolio.
Dividend increases this month did not disappoint! 4 companies lined up November with dividend increases. The BIG surprise here is First Energy (NYSE:FE) making that come back with a 5.56% increase baby! Hormel (NYSE:HRL) did not disappoint with their double-digit banger, but Emerson (NYSE:EMR) stayed on their molasses pace of… 1%. However, that wasn't the only surprise, as ANOTHER company decided to increase their dividend twice, with Rockwell (NYSE:ROK) adding another 5.44% to that forward payout. Four companies in November is solid, and in order for me to add $20.28 to my dividend income, I would have to invest $579.43 at 3.50%!
Dividend Income Conclusion & Summary
The name of the game is to learn and act in the right manner. Then, using what you have learned, in order to trend where you want to be. The plan is to maximize every dollar for investment opportunities and live a balanced life. My plan is to show that dividend income can act as a revenue engine to take back control of your life. Dividend investing, once you learn the right way, becomes easier and starts to make quite a bit of sense!
As I discussed in my normal monthly expenditures article, the dividend income would cover almost 55% of my average $984 monthly expense, which includes the mortgage, property taxes, insurance and utilities. This shows promise, and as long as I keep those expenses in check, this coverage will continue to grow bigger and closer to the 100% mark. What a month, everyone, what a month. In a similar fashion, all of the investing from last year and moves this year show that my aim to save 60% of my income, and making every dollar count has allowed promising results already this year.
Did you enjoy your Thanksgiving? Spend Black Friday investing into dividend income stocks, for when the market was open for the half-day? I hope we are all making every single dollar count, as we march towards the final month of the year and the final month to reach our 2018 goals! Please share your dividend income thoughts below, as well as anything else you are noticing or seeing from my results. Thank you again, good luck and happy investing!