July 2021 Dividend Income

I received $114.61 in taxable dividend income for July 2021. This is a decent 7% improvement from last year at this time, and would be 14% ignoring my discontinued PPL payment (I sold PPL last year).

I’m actually a bit surprised it’s not more of an increase, but I simply haven’t contributed much to my July payers in the last year. Many have good dividend increase histories, but are not in high-growth mode (MO, MDT, KO, KMB, IFF, CINF, and CAH could all be classified like this).

ticker total_payout_2021 total_payout_2020
RSG $20.40 $12.15
MO $18.06 $17.64
MDT $16.38 $13.12
KO $13.02 $12.71
KMB $9.12 $8.56
IFF $8.47 $8.25
CINF $8.19 $7.69
CSCO $7.40 $7.20
CAH $7.36 $7.29
EMN $6.21 $5.94
PPL $0.00 $6.22
$114.61 $106.77

It’s still a solid month for me, and I’m always happy to be above $100.

Dividend Growth

percent_increase annual_increase_dollars
CAH 1.01% $0.29
MDT 8.62% $4.80
Total $5.09

I wish my dividend increases were all evenly spread throughout the year, but they are not. After adding $33 in annual income from increases alone in June, I have to settle for only $5 this month. I’m accustomed to small increases from CAH, and was pleasantly surprised by MDT’s 8%+ increase. Medtronic is very consistent.

Forward Dividend Income

Year: 2019 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
dividend_increases $7.00 $3.10 $36.71 $4.55 $5.99 $22.83 $3.01 $5.04 $13.20 $6.44 $2.61 $29.35 $139.83
dividend_reinvestments $2.47 $-12.99 $3.47 $2.02 $2.05 $4.22 $1.80 $1.60 $6.79 $1.78 $1.78 $9.57 $24.56
new_contributions $-0.30 $6.03 $0.02 $1.06 $0.03 $-0.51 $188.35 $276.00 $147.06 $93.04 $146.50 $32.79 $890.06
Total $9.17 $-3.86 $40.20 $7.63 $8.07 $26.54 $193.16 $282.64 $167.05 $101.26 $150.89 $71.71 $1,054.46
Year: 2020 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
dividend_increases $1.44 $8.76 $18.54 $-52.15 $-22.73 $31.08 $3.81 $0.00 $19.47 $4.96 $20.70 $26.81 $60.69
dividend_reinvestments $1.88 $1.55 $10.38 $9.07 $1.78 $7.85 $-3.23 $2.50 $8.02 $1.57 $2.07 $9.03 $52.47
new_contributions $2.24 $17.81 $37.11 $-1.16 $9.41 $6.34 $-30.23 $11.93 $-0.25 $0.19 $19.35 $51.72 $124.48
Total $5.56 $28.12 $66.03 $-44.24 $-11.54 $45.27 $-29.65 $14.43 $27.24 $6.72 $42.12 $87.56 $237.62
Year: 2021 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Total
dividend_increases $1.08 $9.35 $28.05 $5.84 $8.98 $33.05 $5.09 $0.00 $0.00 $0.00 $0.00 $0.00 $91.44
dividend_reinvestments $1.61 $1.62 $8.89 $1.64 $1.95 $7.14 $1.21 $0.00 $0.00 $0.00 $0.00 $0.00 $24.06
new_contributions $68.26 $60.80 $67.00 $61.99 $56.84 $101.65 $42.09 $0.00 $0.00 $0.00 $0.00 $0.00 $458.62
Total $70.95 $71.77 $103.94 $69.47 $67.77 $141.84 $48.39 $0.00 $0.00 $0.00 $0.00 $0.00 $574.13

This was my smallest month so far in 2021 in terms of added annual income. I’m actually very happy with this month:

  1. I completed (and paid for) an exterior repainting project on my house. Some much-needed small repairs were done, which gives me peace of mind regarding water damage that had been building up and accelerating.
  2. My large individual purchases this month were Apple and Microsoft, which both have yields under 1%. As a result, my current annual dividend income only nudged up slightly. I hope these will be good purchases to look back on 20+ years from now!

Purchases – AAPL, MSFT, TXN, VTI

One of my 2021 goals was to add to the very top of my portfolio, and I did a bit of that this month. It is psychologically tough to add to positions after watching them grow so much, but I feel like letting them grow on their own is neglecting them.

6.0 shares of Apple (AAPL) @ $144.75/share. Cost Basis: $868.50. Forward Income: $5.28/year

I’m banking on Apple being a no-brainer holding, even at a high cost.

3.0 shares of Microsoft (MSFT) @ $284.92/share. Cost Basis: $854.76. Forward Income: $6.72/year

I’m banking on Microsoft being a no-brainer holding, even at a high cost.

0.8 shares of Texas Instruments (TXN) @ $188.57/share. Cost Basis: $151.45. Forward Income: $3.28/year

I had a few dollars from dividends to use this month, so I picked up a partial share of Texas Instruments.

Purchased 10.0 shares of Vanguard Total Stock Market Index (VTI) @ $224.19/share. Cost Basis: $2,241.85. Forward Income: $28.03/year

My VTI momentum continues, making up 55% of my purchase power this month. I consider it the slow and steady way to financial independence. It started off boring, but I don’t think it is boring now that I’m seeing some significant dividends each quarter!

4 thoughts on “July 2021 Dividend Income

  1. Solid month, Dozer. Accounting for the PPL sale last year, results are even better, and its probably a better representation of the income growth of the remaining positions.
    You continue to invest a good chunk each month… keep it going as long as you can, as the income in growing nicely thanks to those investments.
    Wanted to ask about MDT… Do you pay foreign tax on the MDT dividends, or do you not have to since the stock is also listed on U.S. exchanges? If the latter, I might be more inclined to add it to my watchlist due to the high quality of the company.

    1. Great question about MDT. For now, US shareholders are exempt. It seems my brokerage handles the paperwork involved automatically.

      Here’s the quote and source:

      ‘Beginning with the dividend payable on April 15, 2015, payments will be subject to an Irish withholding tax unless the shareholder that is beneficially entitled to the dividend is a resident of the United States or a resident of a country listed as a “relevant territory”, …’

      https://newsroom.medtronic.com/opportunities-obtain-irish-dividend-withholding-tax-dwt-exemption

  2. PPL is also on my list to replace. Maybe with additional ED shares or PNW.

    You had a great month Dozer, triple digits are awesome! We share the CAH and MDT increases. I pay 25% tax on MDT due to their Ireland domicile. I pay 15% on US stocks.

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