October 2018 Dividend Update

I received $164.83 in taxable October 2018 dividend income. This includes a VTI payment that usually pays in the third month of each quarter, but was paid in October this time. I’m socking money away for my wedding/home improvements, but I’m still able to dedicate a good amount each month to growing my DGI portfolio. Also, I started a new position this month in UNH!

If you check my portfolio page, you’ll notice that my Traditional IRA is now empty. I rolled my Traditional IRA, along with my old employer’s 401k, into my new employer’s 401k. I’m not sure if I will be close to the Roth IRA limit, but I’m preparing in case I need to do a backdoor Roth IRA in the next year or two.

October 2018 Dividend Growth

I decided to start tracking VTI increases (or decreases) on a trailing 12-month average basis. I did this retroactively for my entire time holding VTI. On a rolling 12-month average basis, its dividend generally increases. VTI along with MO were amazing for me this month. I would have had to invest $1,012 to at my current 2.44% yield to generate the additional future income I got from dividend raises instead. Wow!

October 2018 Forward Dividend Income

My favorite chart of the month, but with some improvements! The foreground (red and gray bars) still show my new forward annual income.

But now, the light gray, yellow, and green shaded area shows my average forward monthly dividend income. The yellow and green are due to reinvestments and dividend raises. Those two colors show how much of my income is thanks to DGI at each point in my portfolio history. My raises and reinvestments are really pulling their weight just two years into my journey.

October 2018 Purchases – VTI, UNH, HRL, MCD, ADM, PFE

7 shares of Vanguard Total Stock Market ETF (VTI) @ $143.30/share; and 7 more shares @ $137.64/share

I keep adding to my VTI holding. It continues to bore me, but boring is good.

1 share of Pfizer (PFE) @ $44.34/share, 1 share of Archer Daniels-Midland (ADM) @ $49.02/share, and 1 share of Hormel Foods (HRL) @ $41.64/share

Along with CSCO, I keep picking up shares here and there of these DGI stocks whenever I have enough in my account. They’re all becoming decent dividend payers for me.

3 shares of UnitedHealth (UNH) @ $267.49/share

I’ve had my eye on UNH for a very long time. It’s current dividend is quite small, but dividend growth and share appreciation have been strong for a long time. I’d like to double this holding next month and make it one of my main bets.

1 share of McDonald’s (MCD) @ $166.70/share

Just bolstering one of the best stocks in my portfolio. I have to admit, I’ve been liking going to McDonald’s here and there lately as well.

 

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

8 thoughts on “October 2018 Dividend Update

  1. Dozer –

    Love the massive contributions you are making. You are adding income each and every week to your portfolio, staying consistent and bolstering positions in strong companies – MCD, PFE, ADM and HRL – all just fricken awesome. Keep it up.

    -Lanny

    1. Always like when you stop in Lanny! I appreciate the feedback. My portfolio turned two years old this month actually. I give you and bert lots of credit for giving me a blueprint to follow!

  2. Wow, Dozer! $165 in a month is very impressive. Not to mention it’s only going to rapidly grow from here with the continued strong contributions in excellent companies. Keep it up!

    1. Thanks Kody! The VTI really helped and I only have to wait two months for my next VTI payout. Good times!

  3. Love the progress you are making, Dozer.
    That green shaded area in your chart is really starting to widen…. can’t get enough dividend raises!
    Another round of great buys for you this month. I’m sure I’ve mentioned it before, but I like your stock choices. You are adding to some terrific companies. Nice to see your dividends tick upward thanks to your resumption of capital investment a few months ago.

    1. Appreciate it ED! UNH and MDT have been some recent adds, and AVY/ADP/AFL/ITW are the last four I’d like but haven’t added yet. I don’t mind the low yields now since I plan on holding on for a long time. I like measuring by dividend income, but growth potential is nice too.

      Glad you like the choices! I think we have similar thought processes.

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