Hey everyone! I’m happy to be reporting another solid month of dividend income. How good was it? You won’t have to read too far to find out.
The year of amazing dividend raises continued, too, and I’m excited to share those results as well.
Finally, November offered up some volatility, just like October, but that can often present mis-priced stocks to sell or buy. I followed an active October with more of the same in November, so I’ll summarize the transactions and check out the impact on my future dividend income.
As a result of all this activity, the Portfolio page will once again have a few more updates than usual.
Let’s see how I finished out the month of November…
Dividend Income
November’s dividend income came in at $628.38. Let the $600/mo. streak begin! I wasn’t expecting to reach $600 this month, but Starbucks (SBUX) paid on the last day of November this year, as opposed to the first day of December last year. This year’s December’s income will take a little hit, but I can live with that.
This dividend total resulted in a whopping 42.06% YoY increase compared to the $442.33 from November 2017.
A total of 14 companies paid me a dividend this month. The largest amount came long-time holding Procter & Gamble (PG), delivering close to $89. PG continues to be as steady as ever in paying those dividends. The smallest amount came from Cognizant Technology Solutions (CTSH) with a shade over $20. I’ve held CTSH a little over 1 year, and haven’t built up the position since the initial purchase. The company started paying dividends shortly after I bought it. I can see adding to this position over time, as I’m looking to boost my technology holdings.
The dividend amounts from Abbvie (ABBV) and Realty Income (O) mainly increased, or were significantly helped, thanks to 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. That nice bump in the Fastenal (FAST) dividend is thanks to two dividend raises over the past year. Love it! CTSH had a good increase as well. Companies that are new to paying dividends usually have very strong dividend growth to start out, and you can see that with CTSH.
The decreased dividend total from Omega Healthcare Investors (OHI) is the result of some partial OHI sales I’ve made in the past 7 months. I believe the dividend will continue to dip next quarter, as one of my partial sales has yet to be reflected.
A good set of new dividend payers arrived this November compared to last year… four of them, no less. This includes Texas Instruments (TXN), Nexstar Media Group (NXST), and Lowe’s Companies (LOW). I’m still on the lookout to add to TXN when I can – I’d like to double my current position. NXST was a nice add this past April. It was already delivering a nice return for me prior to today when it popped up some more thanks to their confirmation of a deal to acquire Tribune Media. LOW is another position I’d like to build further – I was able to scoop up a few shares recently to help with that effort. The arrival of Starbucks here is not due to initiating a new position, but rather a change in the month the dividend was paid by SBUX compared to last year.
No dividend sources disappeared compared to last year. Yeah!
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. November saw an addition of $17.23 from this category. This total was up slightly from the middle month of last quarter (i.e. August). Note – the lack of any additional forward dividend income from OHI is due to me choosing to not reinvest the dividend for this particular stock. However, I will most likely turn reinvestment of dividends back on for OHI now that I’ve pared down this position over the past few months.
Dividend Raises
November continued a monster 2018 with regard to dividend raises for me.
I had 6 Portfolio companies raise their dividend, with 5 of the 6 delivering 10% or more.
It started with ABBV raising for a 2nd time this year, nearly 11.5% in this case. This was on top of a 50% raise back in February!
New holding D.R. Horton (DHI) didn’t disappoint in their first raise for me, providing a stellar 20% increase.
Air Lease (AL) was phenomenal in delivering a 30% raise. This is a big holding for me and thus it delivered an outstanding punch to my forward dividend income.
Announcing an expected 2-cent increase was Nike (NKE). Hard to complain about a 10% dividend raise! One of these days I think Nike is really going to ratchet up their dividend increases. The company certainly has room to do so given their payout ratio in the 30% range.
Hormel (HRL) announced a solid 12% raise, too. Plenty to like about this!
Finally, I got an unexpected raise from Quest Diagnostics (DGX) near the end of the month. The raise came 3 months earlier than expected, but it was oh so welcome! This was the 2nd raise of the year for DGX, following an 11.1% raise back in February. This was the smallest of my dividend raise percentages this month at 6%.
These raises contributed an incredible $123.38 to my annual forward dividend income. As I said, it was an impressive month for dividend raises.
I’d have to invest $4,470.29 at my portfolio’s average yield of 2.76% in order to equal the same boost to my annual forward dividend income that these dividend raises provided.
Looking to December, I’m expecting only 2 small dividend raises: one from Realty Income (O) and the other from W.P. Carey (WPC). Since these companies generally raise quarterly, the increase will most likely be in the very low single digits.
Dividends Due To New Investment
As I mentioned earlier, there were plenty of transactions in November. The month saw 3 purchases and 4 sales. All the purchases were adds to existing positions, while all the sales were partial sales of existing positions. I’ll briefly summarize these here…
This first two transactions were covered in my Recent Transactions (OHI & ABBV) post.
On 11/1, I sold 20 shares of OHI at $33.48/sh.
On 11/2, I bought 14 shares of ABBV at $79.85/sh.
The next group of four transactions was discussed in my Recent Transactions (HRL, LOW, WPC, MO) post.
On 11/21, I sold 50 shares of HRL at $45.35/sh.
On 11/21, I added 25 shares of LOW at $88.45/sh.
On 11/21, I sold 15 shares of W.P. Carey (WPC) at $68.64/sh.
On 11/21, I added 20 shares of Altria (MO) at $54.54/sh.
The final transaction was a sale of some shares of ABBV. This transaction has not been detailed as part of a Recent Transactions post, as it occurred quite recently, on the last day of the month.
On 11/30, I sold 14 shares of ABBV at $94.25/sh. Over the past few weeks, I’ve made three add-on 14-share buys of ABBV as the price came down. The buys were at approximately $94, $85 and $80. With the share price recovering so quickly, I decided to sell the most expensive lot at a tiny profit. I look at this as a swap of my $94 shares for $80 shares. This will free up the investment cash for purchases of other stocks, and still leave me with plenty of ABBV shares.
With more selling than buying, all these transactions resulted in a net investment of -$852.46, and a net decrease of $44.30 in my annual forward dividend income.
Summary
I like the continued growth I’m seeing in my dividend income. November delivered YoY growth over 42%, and dividend income of $628.38. Through November, dividend income for 2018 now stands at $7,459.94.
In addition, thanks to my dividend income topping $600 in November, I’ve kicked off what I hope to be a long streak of $600+ months.
My forward dividend income totals are boosted by the combination of reinvested dividends, dividend raises, and investment of new capital. I continue to track this group of three income boosters each month this year, in the table below.
Thanks to an awesome November with 6 raises and over $123 in additional forward dividend income, ‘Dividend Raises’ is approaching my dream goal of $1K for the year. Unfortunately, with only a couple of light dividend raises expected in December, I most likely won’t make it. However, two or three unexpected raises in December could get the job done, and given how 2018 has gone, I won’t rule it out. Let’s go!
‘Reinvested Dividends’ continue their steady climb. A total over $260 for 2018 is looking like a strong possibility.
My frequent selling in November led to a negative number for ‘Investment of Capital’. Not to worry, I expect this to be a short-term issue. However, it was the 2nd time I had a negative number in 2018. Still, the better than $612 in additional forward dividend income has come from over $26K of capital investment… not too shabby.
November’s total of $96.31 in additional forward dividend income continued to vault me well past my 2018 annual goal of $8,700. At the end of November, my annual forward dividend income total reached just over $9,082. We’ll see how high I can take this number with just 1 month remaining in the year.
Are you ready for the dividend home stretch in 2018? Any of your 2018 goals still on the table? Please feel free to comment.
I have updated the Portfolio & Dividends pages in conjunction with this monthly update.
Nice progress, ED. And a very nice YoY increase even without Starbucks. – Mike
Thanks, Mike! Yeah, Starbucks moving up their dividend payment added a nice shot to my November dividend total, which was already well ahead of last year’s total. I probably should have checked the SBUX dividend payment date and I wouldn’t have been surprised. 🙂
Great work all around ED, and I particularly love that boost from the dividend raises! There are so many things to like in this update, from the new streak of $600+ months to the amount of reinvested dividends and raises to moving past the $9k milestone. I really like the moves you are making with your portfolio.
Keep up the great work!
You’re telling me, DivvyDad…. my dividend raises have greatly exceeded my expectations this year. I’m eager to see what my weighted dividend growth will be for 2018.
I’m excited to have started the $600/mo. streak in November. Projections show I should be above that level until April. Hopefully, with Q1’19 raises and reinvested dividends in January, I won’t have too much trouble reaching $600 for April. We’ll see.
Crossing the $9K level for annual forward dividend income was terrific, especially considering I thought that would occur in 2019. It won’t be long before I set some goals for 2019. It will be interesting to see how high I think it can get.
Great Month ED! Glad to see your $600+ streak is going on strong! 🙂 That is a fantastic YOY increase as well. Looks like we will both be in the $10K forward dividends club real soon. Keep it up! 😀
Yes, $10K in forward dividend income is on the horizon for both of us, MDD. It’s definitely happening in 2019.
Starting the $600/mo streak is exciting, too. It’s amazing to think that much $$$ is coming in each and every month… and that it will only get bigger from here.
Thanks for stopping in!
wow ED
great post! loved reading about the power of your dividend re investemtns and raises. Dam almost 1000 extra just from dividend raises? That is huge..
haha, your income was pretty dam good as well.
just solid
keep it up man!
cheers
Thanks, Rob. I love writing about those monster dividend raises. What a year! One month to go and I’m hoping that some magic happens and I reach the $1K threshold due to dividend raises.
This month’s income was great, and I can’t wait to see what another year of raises can do to that number.
Amazing month! Massive year over year growth and over 600 $ in dividends. On top of that, SIX massive dividend increases in one month, which is just astonishing!
Those dividend increases were all terrific, Deluge. When 6% is the smallest increase, you know things are rolling. It was the 3rd time I’ve crossed $100 in a month due to dividend raises. Here’s hoping for more of the same. I trust you are receiving your share of raises as well.
ED, there is a lot to like about this divvy growth. Congrats. We share three companies this month: OHI, SBUX and TXN. I’m aslo looking to add more TXN. It is a high-quality business in my opinion. Fundamentals are fantastic. In case volatility remains, we’ll see even better buy prices.
Cheers
Alex
The growth was great, Alex. However, I don’t expect my Portfolio grow at such a nice pace next year. I’ll enjoy it while it lasts, though.
I’m with you on TXN. It looks like a winner long-term. I’ll most likely be adding if it happens to drop below $90 for no significant reason.
I thought about adding some SBUX months ago under $50, but found myself allocating funds elsewhere. Oh well, can’t catch them all.
I know you sold out of OHI. I’ve been reducing my OHI stake in order to reduce my exposure to the dividend (same as you). Given the recent price rise, I may find myself paring back a tad more.
Nice blog! I started a blog 6 months ago at 67 and am looking for blogs that I can learn from. I know it is hard work and often frustrating. I will give a good try even though I know I don’t have as much ‘time’.
Thanks, Trippe!… and welcome. It’s terrific that you got your blog going. It’s definitely a lot of work, but rewarding, too.
I think you’ve got plenty of investing time. If you peruse many of the blogs around the DGI community, you’ll be astounded with what can be accomplished in just a few years. It’s certainly a fun ride.
Hope to have you visit again.
Hi ED,
That’s a terrific month! Congrats on starting the $600+ streak. I like how thoroughly you go through each holding of your portfolio and what happened throughout the month.
Talking about my goals, I am very close to my goal for passive income during 2018.
P.S. Would you mind if I started using a similar chart to yours (the tripod) when checking which categories contribute to dividend income growth each month? I really like your table and it is possible to reinvest dividends at my new broker now, so I thought it would be great to use a similar chart to yours 🙂
Keep it up!
BI
Definitely happy with how the month turned out, BI. I’m glad you like the coverage for the holdings, too.
If you are close to your goal with a month to go, it sounds promising that you’ll reach it. I’ll be stopping by soon to check out how November treated you.
As for the table… Yes, please take what you want… names, format, whatever. One nice benefit… I’ll know exactly what I’m looking at when I visit your site. 🙂
It’s terrific that you’ll now have the option to reinvest dividends. Hopefully, you can have that in place for the start of 2019.
That is some serious income, very solid names too! I love the ‘added forward income’ column, especially because we don’t really have that possibility here in The Netherlands yet. Keep on growing your portfolio with those solid names mate!
DI
Thanks, DI. It was a good month, for sure. I’ll keep chugging along, no question.
I started showing the ‘additional forward income’ at the beginning of the year. I enjoy seeing where the dividend income growth is coming from.
Hopefully, you’ll get the chance to re-invest your dividends in the near future. It’s absolutely a simple way to keep growing your positions and a nice partner for the dividend raises in terms of boosting the compounding effect within your portfolio.
ED,
Wow, 42% YOY growth is incredible, not to mention closing in on $10k in forward annual dividends on the horizon! Keep it up and here’s to $10k+ forward annual dividends some time in 2019!
Hi Kody. I experienced some great YoY growth this time around. It was boosted a bit when SBUX moved up their dividend payment from Dec. to Nov. However, it think the growth would have been impressive nonetheless.
I can see that $10K in annual forward dividend income coming my way. It’s only a matter of time… definitely in 2019, but which month?
Thanks for visiting and sharing your thoughts.
That’s how you do it. Keep building that passive income stream and putting up those nice double digit year over year gains. With those recent sells you had you must be sitting on some nice cash pile. Will you deploy it all in December? We had just a handful of names in common but I’m sure that will change over time. Look forward to your 2018 total!
Hey DivHut! I wish I had a pile of cash ready to deploy, but most of my sales were followed very shortly by one or more buys of similar amounts. I was essentially swapping positions as I went along.
The passive income has certainly grown in 2018, and I’m excited to see what will transpire next year as well. I’m quite certain I’ll surpass $10K in annual forward dividend income sometime next year, but I’m hoping to bring in $10K in dividend income, too. This may prove to be difficult though, as I’m not expecting to deploy nearly as much capital as I did this past year.
Great work, another fantastic month. I’m currently looking at buying more US stocks and you have some nice dividend payers in your portfolio that I will take a look at.
Thanks, Matthew. It was a terrific month, indeed.
I’ll be interested to see what U.S. stocks you end up with. What’s on your shopping list? Any particular sectors you are targeting?
Hey ED, I was sure I already commented on your blog but it seems to have been lost in the digital void. Awesome to see you breaking $600 and lets hope that’s the beginning of your new streak. We share no less then 6 companies so we are doing something right 🙂
No worries, Mr. Robot. It’s here now. 🙂
I’m thinking this month is the start of what I hope to be a long $600/mo. streak.
Wow, 6 companies in common… quite a few, almost half my total. Hopefully that total will continue to grow over the years as our portfolios grow.
Hope you are getting your sleep these days!
Wow. ED. Just Wow. Over $123 from dividend increases alone? These are just some incredible results right here. You placed a song on my article and I told you I had the perfect one. This is a song from one of my favorite and greatest bands out there….Led Zeppelin. For this month, and so many others you have posted, I’ve got “A Whole Lotta Love” ***guitar solo***
Bert
I can’t say enough good things about the dividend raises this year, Bert. I’ve tried to lean toward companies that are delivering solid dividend growth each year, and in 2018 they have truly delivered big. I can’t wait to check out the weighted dividend growth for my Portfolio in just a few weeks.
Ah… Led Zeppelin. You chose a good song there, Bert. I’m quite familiar with it. Excellent choice!
As always, thanks for stopping by and sharing your thoughts. Enjoy the holidays.
Likes your very detailed reports each months!
Congrats on getting close to reach the $10K level in annual projected income.
Exciting times… let’s keep on rolling that snowball 🙂
Thanks, Steps2FI. Love to hear that you like the report.
Yes, exciting times as I approach $10K in forward dividend income. Hopefully I can attain that level before mid-2019. January and February should be telling as I expect lots of dividend raise announcements to kick off the year.