July 2018 Dividend Income Update

I received $91.63 in taxable July 2018 dividend income.

My life these days consists of saving hard for a wedding! I keep building my emergency fund as well. I’ll probably carry double the emergency fund that I did prior to my surprise bathroom project. That was a lesson!

You can actually see where my dividend income stagnated around December 2017 to June 2018. Now, my recent contributions are kicking in and I can see my chart trending up again. I’m happy about that! But, I’m honestly even happier that I’ll have a more solid savings in place for upcoming life expenses and any other surprises that may come up.

July 2018 Purchases

7 shares of Vanguard Total Stock Market ETF (VTI) @ $144.84/share

Now that I’m making decent contributions into my taxable account again, I want to stay disciplined and keep building my total stock market ETF. This pays a dividend that generally grows over time, and gives me exposure to companies I like but who don’t pay dividends, like Amazon. I got this purchase in right before the end of the month.

2 shares of McDonald’s (MCD) @ $156.97/share

This purchase makes McDonalds a significant dividend payer in my portfolio. I’d like to keep building it into one of my top ten holdings!

1 share of Visa (V) @ $132.44/share

I remember reading only a few months ago that Visa wouldn’t be able to maintain $100/share. I’d rather bet on Visa than against them. The low yield keeps this off a lot of dividend growth investors’ radars, but low current yield is one of the outcomes when share price climbs so steadily!

1 share of Walt Disney (DIS) @ $104.85/share

When I think of companies that will be around when I die, Disney is the definition of that. I was overdue to add some DIS to my portfolio after holding my original purchase from when I first started investing.

2 shares of Accenture (ACN) @ $166.97/share

Besides rapid dividend growth and low payout ratio, why am I loving Accenture these days? Accenture can work for just about any company to help make them better. Also interesting is Accenture’s ability to bring blockchain technology into companies to streamline their operations. I’m excited about blockchain applications in real life (aside from Bitcoin), and Accenture gives me exposure to blockchain technology.

1 share of 3M (MMM) @ $202.33/share

Similar to DIS, I picked up MMM early in my dividend growth investing days. It started as one of my main holdings, but has since fallen down my list as I grow my portfolio with other companies. Also similar to DIS, it was time to grow my MMM holding a bit to keep it well-represented in my portfolio. I still love the company, its products, and its legendary dividend growth history.

July 2018 Dividend Growth

A very quiet month! I was spoiled the last few months. Still, I will take it. My July 2017 dividend raises were similarly quiet.

My dividend increases in July totaled up to $2.11 in additional annual income, which would have required $92 of additional investments at my current portfolio yield of 2.30%.

July 2018 Forward Dividend Income

I’m very excited to add this visualization to my monthly updates! This layout is thanks to Engineering Dividends, who gave me permission to use their format with my own data. I highly recommend following Engineering Dividends.

  • Reinvested Dividends: my monthly dividend income reinvested at my average 2.35% dividend yield. No additional work required on my part.
  • Dividend Raises: the sum of my dividend raises for the month. No additional work required on my part.
  • Investment of Capital: the number of shares I purchase for the month multiplied by the current annual dividend payment for each stock. This comes directly from additional work on my part.

My goal is to keep Investment of Capital steady each month, and gradually watch my income from Reinvested Dividends and Dividend Raises increase over time. It’s amazing that I actually have more forward income this year due to Reinvested Dividends and Dividend Raises (which I didn’t have to work for at all!). This is because I’ve been coasting this year while replenishing my emergency fund, etc. My Investment of Capital will increase, but in the long run, my Reinvested Dividends and Dividend Raises will eventually outpace my Investment of Capital permanently.

July 2018 Taxable Income

 

Head on over to my portfolio page if you’d like to see what companies pay me in other months!

6 thoughts on “July 2018 Dividend Income Update

  1. Dozer –

    I fricken love that spreadsheet. That’s the full dividend picture, no doubt, reinvestment, raises and contributions. Keep that income going my friend, you’re doing awesome!

    -Lanny

    1. It’s really everything that matters in one snapshot! What dollars are added to my forward dividend income, and what is the source of those dollars? I’m also envisioning an XY Line Chart with two lines. One line will be income from Investment of Capital. The second line will be the sum of income from Reinvested Dividends and Dividend Raises for each month. I expect Investment of Capital will stay fairly horizontal, but erratic. The second line should be somewhat smoother and exponential, and will be a great visualization of the snowball effect. Thanks for stopping by Lanny.

  2. Hi Dozer. It’s good to see the bars moving higher again on the monthly dividend chart. Hopefully there won’t be any more unexpected expenses in your near future.
    Great to see the forward dividend income table! I’m glad you decided to implement it. It will be terrific to see these numbers for another DGI blogger. Did you have to go back to collect the data from the beginning of the year, or did you already have it?
    The stocks/ETFs you added to this month are some strong ones. They should deliver for you for years to come. Nice job.

    1. Thank you ED! Thanks again for encouraging the community to share ideas.

      I had most of the past dividend payment (and therefore reinvestment) data in easy-to-manipulate columns. I’ve also been tracking the monthly additional income from dividend raises.

      I did have to enter my purchases for the year, along with what the quarterly dividends were at the time of those purchases. Luckily it was only 26 purchases in all. Not too much work. I’ll probably add a “purchases” tab to my tracking sheet and refine the formulas in the cells a bit to make it more automatic. As a buy-and-hold investor, I never tracked purchases in my sheet since I’m not too worried about costs basis.

      Also good unexpected news (instead of unexpected expenses)! I accepted a new job starting later this month. I should have a bit more freed up for investments. I’ll have to make a full post about adjustments I’ll make regarding that.

  3. Congratulations with a great month! You’ve found the way up again. Sometimes you have a setback, but what matters is the trend over a longer period of time. You own a nice bucket of quality names. I particularly like CSCO, DIS and KMB. THUMBS UP!

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