Hey everyone… welcome to another monthly dividend income report. This time I’ll be adding up May’s dividends.
It was another good month of dividends delivered by my Portfolio. The dividends continue to arrive like clockwork, and the year over year (YoY) growth continues to leave me excited.
Let’s see those numbers!
Dividend Income
May’s dividend income totaled $590.19… creeping up on $600! This extended my streak of $500+ months to six! Compared to the $425.22 from May 2017, this was a superb 38.80% increase.
A total of 13 companies paid me a dividend this month. The largest amount came from Omega Healthcare Investors (OHI), delivering $113.52. The lowest amount came from my smallest portfolio position, Texas Instruments (TXN), totaling $15.50.
The dividend amounts from Hormel (HRL), Starbucks (SBUX) and Realty Income (O) mainly increased as a result of additional purchases over the past year.
Increased amounts for the other companies were a result of dividend increases and reinvested dividends over the past year.
There were no decreased dividends this month! That’s 2 months in a row. This usually occurs due to partial sales, although a dividend cut could be the culprit as well. Thankfully, no dividend cuts have occurred within the Portfolio.
Two new dividend payers arrived this May. The first was Nexstar Media Group (NXST), and the second was TXN. These companies will continue to help diversify my dividend payment sources.
In the “Add’l Fwd Inc” column, I show the amount of additional annual forward dividend income that resulted from reinvesting each of this month’s paid dividends. May saw an addition of $15.02 from this category. This was a decrease from the comparable month of last quarter (i.e. February), solely as a result of choosing not to reinvest the dividend from OHI. OHI already provides the largest dividend of the month, but I’m de-emphasizing its contribution moving forward. I’m doing this by having sold of small portion of my shares recently, and by not reinvesting the quarterly dividends. In August, I expect my dividend from OHI to be a shade over $80.
Dividend Raises
After a scorching start to 2018 with regard to dividend raises, and a slower pace in March & April, things cooled off even more in May. Only 1 Portfolio company raised their dividend, and it was a modest one.
Cardinal Health (CAH) offered up an annual raise of 3.01%. Given the recent struggles of CAH, any raise has to be viewed favorably.
I’m certainly happy one of my Portfolio companies delivered a raise, otherwise it would have been a shutout.
The raise contributed $5.75 to my annual forward dividend income, which now stands at about $8,395. May’s $ increase thanks to dividend raises was a sharp drop from the $50+ totals I’ve had the past two months. June should see some improvement though.
I’d have to invest $210.62 at my portfolio’s average yield of 2.73% in order to equal the same boost to my annual forward dividend income that the dividend raise provided.
Next month I expect to see dividend raises from Lowe’s Companies (LOW), Target (TGT) and W.P. Carey (WPC). In fact, LOW actually already made an announcement on 6/1, but I’ll save that for next month’s report!
As I look over the dividend payer list for May, I see I’ve got two companies that have frozen their dividend for the time being: OHI and CVS. OHI is dealing with lack of payments from a couple of its larger tenants, while CVS is planning to reduce its balance sheet leverage that will spike if the Aetna acquisition comes to fruition. I’ll be monitoring these two closely over the coming months, but in the meantime it doesn’t look like I can expect a dividend raise from either of them anytime soon.
Dividends Due To New Investment
I had one sale and two purchases in May.
On the 1st of the month, I made a partial sale of OHI, and used the proceeds to add some shares of Pepsico (PEP). You can read more about this is my Recent Transactions (OHI & PEP) post.
Then, about 1 week later, I initiated a position in LOW. My Recent Buy – LOW post has my thoughts regarding this transaction.
The result of all these transactions was a small forward dividend income increase. The partial sale of OHI brought a hefty decrease of $132, while the purchase of some PEP shares brought an increase of $51.94, and the purchase of LOW brought an increase of $98.40, for a net of $18.34 for May.
Summary
May was sort of a mixed bag. I had some nice YoY growth on the dividend income side, and nearly touched $600 in dividend income. I also stayed above the $500 mark for dividend income for a 6th consecutive month, so it was nice to extend that streak. However, I only realized small gains with regard to forward dividend income (at least compared to months from earlier this year).
Although not as strong as previous months, my forward dividend income total was again boosted by reinvested dividends, dividend raises, and investment of new capital. I continue to track this trifecta of income boosters each month this year, in the table below.
The totals for ‘dividend raises’ and ‘investment of new capital’ continue to vie for leadership in delivering additional forward dividend income. I have a feeling that ‘dividend raises’ will be the leader by year’s end, as I don’t see me investing a lot of new capital. It’s impressive to see the impact dividend raises can have on portfolio growth.
May’s results left me needing $305 (or $44/mo.) of new forward dividend income to reach my goal of $8,700 by year’s end. This is a slight increase in the needed monthly amount compared to last month, but I’m still looking good to achieve my annual goal.
I now look forward to June dividends, where I expect terrific results to be achieved. June will also bring a close to Q2’18, and provide a chance to see where I am with respect to my 2018 goals. Until then…
Did your May dividend income bring any surprises? Any big jumps in paid dividends or forward dividend income? Please share in the comments!
I have updated the Portfolio & Dividends pages in conjunction with this monthly update.
Hi,
Nice detailed report. I also sold OHI in my taxable, but still own some in my Roth. It is great to be able to add to PEP at these levels, and may purchase again in June. Excited for June income! Thanks for sharing your May activities.
Happy to share what I’m doing, S2FI. I enjoy hearing about the activity in everyone’s portfolios as well. Start of the month is always a good time as all the dividend reports start rolling in. I just read your May report… outstanding totals for you. Keep it up!
these are nice dividend numbers, congrats. div raises were impressive, is it tax reform driven I wonder?
Welcome, coco. Good question… I had so many unexpected dividend raises early in 2018 (shortly after tax reform passed), that I wouldn’t be surprised if that was the primary contributor.
It’s hard to say yet if my weighted dividend growth for this year will be better than years past, but right now I’d say that will be the case. Hope to see you again, coco.
ED – these results are freaking incredible. I’m blown away by your growth rates and progress that have been displayed here so far in 2018. Congratulations my friend and keep up the great work. I’m pumped as hell for you and a excited to see you knocking on the doorstep of $600 in an off month. By the way, that dividend from OHI is SWEET! I’ve never received a three-digit dividend from a non-mutual fund before.
Bert
I’m definitely on a good run, Bert. Your excitement for me is motivating, for sure. Thank you!
I’ve had a few $100+ payments so far, all from either WPC, OHI or QCOM. I’ve done partial sales on WPC and OHI to scale those back, so now only QCOM currently crosses that threshold. Obviously, it’s much easier to reach $100 with a high dividend payer like the two REITs I have. However, crossing $100 for a single payer will be a regular occurrence if I stay the course. I’ve currently got PEP at over $90, and XOM and PG at over $80.
Great progress – nearly $600 a month is awesome.
We’re hitting it on the 3rd month of each quarter, but we have a long way to go to get to these kind of numbers for the first and second months of each quarter.
Congrats and thanks for sharing. – Mike
I bet it won’t be long before you’re hitting on the other months, too, Mike. Keep making those purchases and it can be amazing how it builds.
Love the “Additional Forward Income” column and the way you lay out reinvestments, raises, and additional contributions. Pretty cool that your raises and reinvestments are outpacing your contributions for the year. That is a long-term goal of mine.
Thanks, Dozer. I really enjoy tabulating those ‘additional forward income’ categories and sharing them. It’s great that the reinvestment & raises are so significant. It provides me with an idea of how my Portfolio can grow even in the absence of injecting more capital.
Yeah! The streak continues into the sixth month, good for you!
Hitting almost $600 is just amazing. We are 4 companies this month. Awesome to see what large numbers can do.
I was certainly happy to extend the streak, Mr. Robot. Maybe some time next year I can start a streak of $600+ months! We’ll see.
Thanks for stopping in and commenting… I always appreciate your input.
Good job. Just barely missed $600.00. that is awesome. then looking at those dividend raises and seeing you are almost at $500.00 already that is awesome. Keep it up
Yes, oh so close to that $600 mark… I will probably have to wait a few months to eclipse that level for a non-quarter-ending month. I’ll just have to be patient and let the Portfolio grow.
The dividend raises have been terrific this year. However, the raises have certainly cooled off. Looking ahead, October and November seem to be lining up as good months for dividend raises. Some significant dividend raises then will be a nice way to cap off 2018.
Great month ED! OHI was my second largest payer for the month. 🙂 Nice job closing in on the $600 mark! Keep it up! 😀
Thanks, MDD. Hopefully, the worst is over for OHI. They’ve had a nice price recovery this past month. They should continue to be a significant dividend payer for me despite my trimming of the position.
ED,
Congrats on a great month and 6 in a row over $500!!! I’m still hanging on to OHI a bit longer. They do make me nervous, but the share price has finally come back around to the price I first bought the stock. The big red negative isn’t quite so bad now. Nice job scooping up some Pepsi as well!!
Hi MH. Yeah, never any fun to negative numbers in the profit/loss column. Glad you made it all the way back on OHI. Perhaps you were able to average down during their decline?
Happy to add to PEP for the first time in years. I think the value was too good not to add at least a little more.
Hi ED,
Always a pleasure to read your monthly reviews! Great month, great growth, and I don’t think you are coming back to months below $5oo 🙂
I personally had my best month, but I’m on a different league so far 😀
Keep it up!
-BI
Hi BI. Thank you, I’m glad you enjoy the monthly updates. I think I can keep the $500/mo. streak alive if I can make it in July…. time will tell.
I’m happy to hear you had your best month… I’ll stop by your site soon to check out the details.
Congrats on the solid double-digit increase from last year ED and another solid performance. We share 4 companies that paid us dividends in May, but all in all you have strong and diversified stocks helping your bottom line.
I made some good progress in May, DP. I feel like I’m pretty well diversified in terms of sectors, and I strive to be diversified in terms of where the income is coming from as well. That’s partially why I reduced my OHI position a bit, as it had grown to a size larger than I wanted to see.
I’ll be stopping by your site soon to see how May treated you.
wow nice e.d.
that is a solid income in a off month. basically what my best month is.
great writeup and detailed report.
love seeing all that added forward dividend income.
keep it up
Hi Rob. Thanks for your comments on my monthly report. It’s nice to hear that the format is working for the readers.
You have an outstanding portfolio and have grown it very quickly through your diligent saving and investing. I suspect you’ll see lots of ‘best months’ moving forward.
Glad you stopped by, Rob… I hope you’ll become a frequent visitor.
Thanks for sharing your dividend income update, Engineering Dividends! Awesome results in terms of nearly reaching $600 in dividends and the 38.80% increase. I also like how you include the raises in your report.
My May dividend income didn’t bring any surprises. May is my lowest month for dividend income, but I still experienced a nice increase compared to the last quarter. Thanks again for sharing the detailed writeup. Great report!
Hi Graham! I’m always happy to share my dividend income report. Nothing more exciting than counting up the dividends.
My YoY increases have been holding steady at a percentage that’s higher than I might expect. I suspect they’ll have to cool off soon. In the meantime, I’ll happily take it.
I’m looking forward to dropping by your site and checking out your report.
Wow, you have such a nice portfolio! I am really drooling when I see your numbers, really cool how you show the forward added dividend income from your dividend reinvestments too! Keep doing what you’re doing while inspiring newer DGI investors like me!
DI
Hi DI! Thank you for your kind words about my portfolio & efforts.
I think you are on a good track. The fact that you’ve already started on the DGI path and are monitoring your progress will lead to good things for you in the future.
Just keep at it… time is your friend.