December 2019 Dividend Income

I received $532.77 in taxable December 2019 dividend income. I crushed my previous monthly record and almost doubled my 2018 December income. I was excited to see this month shake out, but VTI’s $0.8855/share dividend was better than I was hoping for.

December is always my best month of the year, but this kind of income is incredible.

Dividend Growth

20% raise for Visa! And 11% for Microsoft! V, MSFT, and MCD are three of my bigger holdings. This was a good month.

But then there was VTI. VTI pretty much dwarfed everything else in my portfolio this month. It’s hard to believe. I’ve been contributing a lot to VTI lately, but it was still a shock to see the effect their December payout had on my portfolio.

VTI’s rolling average 4-quarter dividend payout went up from $0.685 to $0.726, or 6%. Since it’s my largest holding, that had a huge effect on my forward income calculation. VTI’s next payout could just as easily bring its average down, but for now, I get an annual raise of $67.88 just from VTI.

I’d have to invest $4,076 at my portfolio’s average yield of 2.00% to generate $81.52 more in annual income. This easily goes down as my best month so far.

Forward Dividend Income

I eased up on new contributions this month, but my forward dividend increase was still in a good spot thanks to December raises and reinvestments.

I am holding back on taxable contributions a bit in order to fund my 2020 Roth IRA early in the new year. Ally Bank also introduced “buckets” in their savings accounts, and I’ve started setting aside funds for house projects, vacations, and even next year’s holidays. These buckets will force me to build up my base savings before I spend it on other things. Has anyone else started using their buckets?

Purchases – VTI, IFF

Purchased 14.23 shares of Vanguard Total Stock Market (VTI) @ $157.85/share

If you’ve followed my last few months, you know I’m working toward a 50/50 balance in my portfolio of VTI versus individual stocks. As of this post, I’m there! I’m actually a bit over on VTI, and can now get back to making more individual stock pickups.

Why do I put so much into VTI? This deserves its own post, but to sum it up:

  • I want to be in stocks that don’t offer dividends, like Amazon and Netflix
  • Picking individual stocks is fun for me, but I don’t believe myself to be smarter than the market
  • I tend to own more established, older companies in my individual holdings. VTI exposes me to smaller-cap and newer companies.

Purchased 1 share of International Flavors & Fragrances (IFF) @ $119.98/share

I love IFF’s business model. Everything in the house from food to soap uses some sort of flavor or scent. Coincidentally, IFF creates and provides flavors and scents. Their dividend growth has been slowing down the last few years, along with their share price, but I like companies whose products can be used so broadly. I see this as a defensive stock.

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

4 thoughts on “December 2019 Dividend Income

  1. It was definitely a banner month for you, Dozer. That blue column on the far right of your dividend chart really stands out.
    Any particular reason that your MMM dividend is in bold? Maybe something you wanted to share?
    Some awesome raise percentages for you in December. It’s nice when the raises can push your forward dividend income higher even when you are not investing as much.
    With VTI now at your preferred allocation, I look forward to seeing what stocks you’ll choose to add, or add to.
    Good luck in 2020.

    1. Another great observation ED! I’m honestly not sure why MMM was in bold. It’s a google sheets pivot table, and I’ve tried clearing the formatting a number of ways. Chalking it up to the mystery of Sheets for now!

  2. Great post! Always interesting to see how others approach their investments and how it plays out. Appreciate the month-by-month breakdown.

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