Not only is the weather heating up due to the arrival of summer, but my Portfolio is on fire as well.  I’ve got a new monthly dividend income record to report.  Sure, these records are bound to occur over time in a growing portfolio, but it’s nice to see the totals arrive nonetheless, as it provides evidence that one’s dividend income is headed in the right direction.

Earlier in the month I was finally able to cross $10K in forward dividend income, too, which was awesome.  I hit this milestone with the help of a few purchases.

Following that milestone with this month’s record dividend income keeps the momentum going.  It seems there’s always something good to report each month, so that makes putting these reports together enjoyable.

Wait no more.  Here is June’s monthly dividend income report…

 

Dividend Income

In June, I collected a record dividend total of $1,133.21.  This was a record for any month, and the first time I crossed $1,100.  I tallied a 9.73% YoY increase compared to the $1,032.69 from June 2018.  Too bad I couldn’t reach the 10% growth mark, but it’s close.

A total of 17 companies paid me a dividend this month.  The largest amount came from Qualcomm (QCOM).  I believe this is the largest dividend payment I’ve ever received from any single stock.  Pepsico (PEP) was close to eclipsing $100 as well… next quarter for sure.  The smallest dividend amount came from Visa (V) at $20.46.  V has the smallest yield in my Portfolio, under 0.6%, but it’s been an incredible performer as far as dividend growth and price gains go.

The increased dividend amounts from Gilead Sciences (GILD), Blackrock (BLK), Target (TGT), and Skyworks Solutions (SWKS) were helped by small 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 dividend pop from Union Pacific (UNP) was mainly thanks to two healthy dividend raises in the past 12 months.

Usually, if I have a YoY dividend decrease from a dividend payer, it’s because I made a partial sale of that stock.  However, I’m happy to report I had no such decreases this month.  No dividend cuts to report either, although I don’t believe I’ve recorded one since officially kicking off my Portfolio in 2015… and let’s keep it that way.  🙂

June brought only one new dividend payer compared to last year.  That stock was 3M Co. (MMM).  MMM is currently below my purchase price at year-end 2018, despite a small relief rally recently.  Thus, I’m keeping an eye on it for a potential chance to bolster my position and average down at the same time.

A couple of Consumer Discretionary stocks are no longer paying me dividends this June.  Both Hanesbrands (HBI) and Hershey (HSY) were sold last year as part of my Portfolio reshuffling.  Both have done well (along with the market) since my sale of each, but I’m happy with the adjustments I made.  If I were to buy either again, HSY would be my preference.

June saw an additional forward dividend income boost of $35.51 thanks to reinvesting my dividends this month.  This too is a record amount for any month.  I love it!

Starting this year, I introduced another column in the dividend income table to show the actual number of “New Shares” that were purchased with the reinvested dividends.  In June, my reinvested dividends resulted in the purchase of over 12.4 new shares of stock.  In just half a year, I’ve added over 68 shares of stock due to reinvesting dividends.

 

Dividend Raises

A handful of dividend raise announcements came in June.  A couple were from quarterly announcers.  Both were small, as expected.  In addition, I had a significant raise arrive near the end of the month, salvaging the monthly total, if you will.

In all, I had 4 companies announce a dividend raise in June.

Realty Income (O) started the June announcements for my Portfolio.  It was a 0.22% raise for the monthly dividend payer.  This is one of the four smaller raises that O offers up in conjunction with their one larger raise.

TGT came in with a 3.13% raise.  This percentage was within my range of expectation, but perhaps on the low side.  TGT has been performing better in recent months, so hopefully that can translate into bigger raises in the future.

My 2nd small raise for June came from W.P. Carey (WPC).  WPC offered up a 0.19% raise.  The company has really slowed down their dividend growth over the past few years.  It’s been in the 2-3% range each of the past 3 years, but it appears it will dip under that level in 2019.

Thankfully, JPMorgan Chase & Co. (JPM) surprised me with an early dividend raise announcement later in the month.  The announcement was one quarter early, as I had it slated for September.  In any case, I’ll take it.  The raise was 12.5%, effective with their October dividend payment.  The announcement came after the company got approval of their capital plans from the Federal Reserve Board.

I was looking for a Starbucks (SBUX) raise in June as well, but it never came.  I think they may be reverting to the September timeframe for an announcement, similar to what they had before an early announcement last year.

 

These raises contributed $27.54 to my additional forward dividend income.  This was a tad shy of last month’s total, and about half of the $50/mo. target I’ve set.

I’d have to invest $1,020.00 at my Portfolio’s current average yield of 2.70% in order to equal the same boost to my annual forward dividend income that these dividend raises provided.  June’s market climb resulted in my Portfolio’s average yield falling from 2.85% to 2.70%.

As for dividend raises upcoming in July, I’m expecting to see annual increases from SWKS, as well a couple of regional banks that are new to my Portfolio as of last month in Chemical Financial (CHFC) and Zions Bancorp. (ZION).  I’m also curious to see if BLK or Fastenal (FAST) might offer up a 2nd dividend raise this year (similar to last year).  I don’t expect it given this year’s reduced raise percentages as a whole, but I can hope.

 

Dividends Due To New Investment

June saw an increase in Portfolio transaction activity.  I sold my Bank OZK (OZK) position and established 4 new positions in my Portfolio.  Two of the new stocks were regional banks meant to directly replace OZK.  These were CHFC and ZION.  I then followed that up with a small purchase of both storage REIT Iron Mountain (IRM), and materials maker Eastman Chemical (EMN).

You can read all the details on these in my Recent Transactions (OZK, CHFC, ZION, IRM, EMN) post from last month.

From a forward dividend income perspective, here’s what resulted from each transaction:

OZK sale – $193.66 decrease

CHFC buy – $136 increase

ZION buy – $72 increase

IRM buy – $122.20 increase

EMN buy – $74.40 increase

The net result of this investment activity was a $210.94 increase to my additional forward dividend income.  As noted at the beginning of this post, this threw me over the $10K level.

The $210.94 of additional forward dividend income was also the most I’ve added thanks to Investment of Capital in nearly 2.5 years.  It was also the first time I’ve cracked $200 since Jan. 2018.

 

Tallying Up The Additional Forward Dividend Income

This year I continue with tracking the additional forward dividend income generated each month from the trifecta of sources: reinvested dividends, dividend raises, and new capital investment.

I’m also showing 2018’s totals so that that we can compare as the year goes along.

As noted in previous 2019 reports, I anticipate that my Reinvested Dividends total will move higher in 2019, but that I’ll see a reduction in the total from the Dividend Raises and the Investment of Capital.

 

The additional forward dividend income was dominated by Investment of Capital this month, despite the record total from Reinvested Dividends.  The total from Dividend Raises trailed the pack.  All in all though, it was my best month of the year in terms of pushing forward my future dividend income.

Half way through 2019, I’m averaging over $136/mo. of additional forward dividend income.

 

Progress Charts

The following are progress charts, also available on my Dividends page.

The YoY gains continue, even though I dipped below a 10% YoY growth number this month.

 

 

On an annual basis, here’s what the dividend totals look like.  Nearly $5K for the 1st half of 2019!  Can I reach $10K in actual dividends for the year?  I’d love to have to adjust the Y axis numbers.

 

Summary

It was a record month!  I tallied over $1,133 in dividend income on nearly 10% YoY growth.

Not to forget, several stock additions to my Portfolio in June thrust me over the $10K forward dividend income hurdle.

My four dividend raises did not provide record totals, but I’ll take the additional forward dividend income that comes with the announcements.

However, I did establish a new monthly record for additional forward dividend income due to reinvestment of dividends.

At the end of June, my Portfolio’s forward dividend income stands at $10,078.38.  My new target becomes $12K, or $1K/mo.

While July doesn’t look to be a record-setter, I expect it to reveal more YoY growth and stout dividend totals that continue to push me towards my annual goals.

Happy Independence Day to all of my U.S. readers!

 

Were you able to add any stocks to your portfolio before June’s market gains were over?  Are your dividend totals heating up, too?  I look forward to hearing all about it in the Comments!

I have updated the Portfolio & Dividends pages in conjunction with this monthly update.