February 2019 Dividend Income

I received $83.57 in taxable February 2019 dividend income. My dividend income is a bit frozen lately with no new contributions, but I am happy to see it still coming in and even still growing with just raises and reinvestments.

I’ve frozen contributions until I’m employed again, which will be a few months. After I get laid off (tomorrow!), I play to take some classes and develop a new skill set.

“Freezing my contributions” may not be entirely correct. As I saw this layoff coming, I was able to nearly max out my 2019 401k and will soon max out my 2019 Roth IRA. So, my retirement savings are still on a good track!

Dividend Growth

Another relatively slow month with only two dividend increases. Both were in the very healthy 10%+ range. I’d have to invest $347 at my current 2.37% portfolio yield to increase my income that much.

ABBV has been amazing, but I worry about their dividend sustainability. Bottom line, my initial yield at purchase was 4.0%, and my yield on cost is now up to 6.7% in under two years.

Payout Ratio = $1.07 * 4 / Googlefinance(ABBV, “eps”)

Forward Dividend Income

Why the -$8.92 in the new investments category? VVC was acquired and I received the cash buyout this month. I lost about $35 of annual dividend income, but I used the cash on two shares of CSCO and started a new position in Avery Dennison. My new holdings add about $26 in annual dividends. I liked VVC and will miss it, but I’m excited to add AVY into my holdings.

Purchases and Sales – AVY, CSCO, VVC

Sold 18 shares of Vectren (VVC) @ $72.00/share

This is my first sale in quite some time, and it was not optional. VVC was bought out and $72 were paid for each share owned. It was one of the all-time best dividend growth stocks for a long time. I wish I didn’t have to sell it, as I probably would have held forever.

Purchased 2 shares of Cisco (CSCO) @ $46.80/share

I’ve been picking up shares of Cisco here and there, and they’ve amounted to almost $900 in my portfolio at this point. I had a bit extra after the VVC sale, so picked up two more shares.

Purchased 12 shares of Avery Dennison (AVY) @ $103.93/share

I’ve had this one on my watchlist for a long time! Packaging is involved in so much of our lives. Dividend growth has averaged 11-12% the last six years, and I think there’s room for share value growth too. Sad to see VVC go, but happy to be a new owner of AVY.

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

6 thoughts on “February 2019 Dividend Income

  1. Good luck with looking for a new job. This is also one of the reasons why I like dividend stocks. If we are unable to work, the dividend stocks will give cash flow for survival.

  2. Hi Dozer, hopefully you are not out of employment too long, but it sounds like you have a plan to bridge the gap.
    Good progress despite the lack of investment in the dividend portfolio. Good to hear the retirement accounts are almost all set for 2019.
    I remember looking at AVY years ago, but not recently. Perhaps I’ll give it another look as it’s always been a company I liked, as I use their engineering notebooks.

  3. Hello Dividend Dozer,

    Nice work there! Good luck in your career search. I almost have an MBA and have had a hard time finding employment and gaining experience. Those were some solid dividend raises from HRL and ABBV that will benefit the compounding in the future for your account.

  4. Good dividends coming in. Sorry to hear about your job. One day when the dividends grow large enough you won’t have to worry about that anymore!

    Cheers

  5. I’m sorry to hear about the job Dozer. Been in a rough patch myself lately. You will emerge strong, with more focus and a better head of steam towards financial independence. In terms of stocks, I liked the purchases and the moves you made. Keep your head up and continue chugging along.

    Bert

    1. Thanks for the kind words Bert! Being in the oil and gas industry the last few years has been a bumpy ride. Same to you – keep chugging. I definitely look up to what you’ve been able to do!

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