Hello again!  I’m back with another monthly dividend income report… this time for June 2023.  With this being a quarter-ending month the dividend income is expected to be better than most months, and that held true this time as well.

I can’t say 2023 has been overly kind to my Portfolio since I noticeably trail the performance of the S&P 500 so far this year, but progress is being made nonetheless.  The dividend reinvestment, dividend raises and investment of capital keep the dividend income growing and that’s ultimately what I want.

Let’s get a preview of my dividend income post this month before diving into the details…

I tallied an impressive dividend total topping $1.7K this month (much greater than the $1.2K monthly minimum I’m targeting in 2023).  The final total, which you’ll see shortly, didn’t establish a new record for me, but it did put a nice smile on my face.

Year-over-Year (YoY) dividend growth was unfortunately my worst percentage of the year thus far.  I didn’t manage a double-digit percentage, and obviously fell well short of my 15% target.

Additional forward dividend income from reinvested dividends surpassed my $35 monthly target with ease.  In fact, it easily eclipsed $55.  Keep reading to see where the number finished.

While my dividend raises in 2023 haven’t been up to par, June turned out better than expected.  Part of that was due to an unexpected raise from one of my holdings that froze its dividend last year.  I’ll let you know which company this was later in the post.

I had my lightest month of 2023 with regard to new capital investment.  Thus, any additional forward dividend income generated from investment of capital was minimal, too.  How small might the income boost from investment of capital be?  Well it wasn’t my worst total of the year, but it barely pushed in the double-digits.  Stay tuned for the final number.

Thankfully, the forward dividend income contributions from all 3 of my sources (reinvested dividends, dividend raises, and investment of capital) was back to reaching a triple-digit total.  In fact, it was my 3rd best total in 2023.  Somewhat surprising!  The total is upcoming.

Of course, I’ve updated my monthly and annual dividend income progress charts to include June results.  I look forward to sharing the updates.

Let’s get to the specifics in this month’s dividend income report, beginning with my dividend income…

 

Dividend Income

 

My Portfolio tallied a healthly $1,748.47 of monthly dividend income in June.  This was my 2nd best total ever, only trailing the $1,846.18 posted this past March.

YoY dividend growth for June came in at 7.69%.  This was my lowest growth total of the year.  I failed to reach double-digits and came up way short of my 15% monthly target.

A total of 22 companies paid me a dividend in June.  A whopping 8 of those companies delivered triple-digit dividends, with each surpassing $114.

My largest June dividend came from Qualcomm (QCOM).  The company paid me $167.45, which bested the $160.56 from T. Rowe Price Group (TROW).

Microsoft (MSFT) provided my smallest dividend at $10.41.  I’d like to boost this dividend by owning more shares, but the shares always seems so expensive.  Oh the dilemma!

The increased dividend amounts from Johnson & Johnson (JNJ), Skyworks Solutions (SWKS), Pinnacle West Capital (PNW), Visa (V), NextEra Energy (NEE) & MSFT were each helped by one or more purchases over the past year.  The big jump from Main Street Capital (MAIN) was due to a supplemental dividend this month.

Increased YoY amounts for all other companies were a result of dividend increases and reinvested dividends over the past year.  I added more than $21 in YoY dividend gains from AVGO, north of $16 from Pepsico (PEP), better than $14 from QCOM, and a bit more than $9 each from TROW and Aflac (AFL).

Of the stocks that paid me both last year and this year, only one showed a payout reduction.  That stock was V.F. Corp (VFC), which cut its dividend more than 40% back in February.

My one new dividend payer for June was Whirlpool (WHR).  My Portfolio received a $26.60 dividend from WHR – not a bad debut.

Unfortunately, I had two stocks no longer paying me a dividend in June.  These stocks were Gilead Sciences (GILD) which I sold due to weak performance and slowing dividend growth, and 3M Co. (MMM) which I sold due to a questionable earnings outlook and deteriorating dividend safety.

As is typically the case, all my dividends got automatically reinvested into the stocks that paid them.  The additional forward dividend income boost that resulted from the dividend reinvestments was $57.33.  This crushed the $35 monthly target I have – as most quarter-ending months do.  TROW provided the largest reinvestment boost, contributing more than $7 of additional forward dividend income.  MAIN chipped in another $5, while Walgreens Boots Alliance (WBA), QCOM and PEP added over $4 each.

As a result of June’s reinvested dividends, I purchased close to 16 new shares of stock.  This included over 2 shares of WBA and AFL, and over 1 share of MAIN, VFC, QCOM and TROW.  DRiP, DRiP, DRip…

 

Dividend Raises

As I noted earlier, June turned out to be better than I thought with regard to dividend raises.

I heard dividend raise announcements from 4 of my holdings, with 3 of the 4 raises topping 5%.  Considering none of my raises last month reached the 5% mark, it felt good.

In fact, I had one of the dividend raises come in north of 10%.  I hadn’t had a raise percentage top 10% since February, so I was happy to see that streak come to an end.

My first raise announcement in June was the best.  It was a 13.94% hike from UnitedHealth Group (UNH) that added nearly $25 of additional forward dividend income.  This raise just topped the 13.79% boost provided by the company last year.  UNH has long been one of my better stocks for dividend growth and the company didn’t disappoint in 2023.

I heard next from Realty Income (O) which delivered one of its token quarterly dividend raises of 0.20%.  By itself, this raise doesn’t move the needle much, but coupled with the other quarterly raises and the one large raise O usually provides, the overall raise percentage from O for the year might end up in the 3%-4% range.

Next was a solid raise announcement from Caterpillar (CAT).  The company delivered an 8.33% boost, surpassing the 8.11% hike from the year prior.  This year’s raise is right in line with CAT’s 5-year dividend growth rate.  This raise provided over $18 of additional forward dividend income.

The last raise announcement came courtesy of JPMorgan Chase & Co. (JPM).  After freezing the dividend last year, JPM delivered a 5.0% raise.  This was the company’s first raise since Sept. 2021.  The magnitude and frequency of dividend raises from JPM have been impacted by the Federal Reverse requirements stemming from banking stress tests.

 

 

Accounting for all the dividend raises in June, my forward dividend income increased by $60.67.  This amount was better than the $32.53 I had last month.  It also topped the $33.45 from June of last year.

I’d have to invest $2,136.27 at my Portfolio’s current yield of 2.84% in order to receive the same boost to my forward dividend income as this month’s raises.

Looking ahead to July, I’m expecting raise announcements from Cummins (CMI), WBA and National Retail Properties (NNN).  Only three dividend raises would match the fewest number I’ve had in a month this year.  Since CMI and NNN are small holdings, I don’t expect they’ll add a large amount of additional forward dividend income.  Meanwhile, I expect a sub-1% raise from WBA.  Thus, even though WBA provides a good annual dividend total, the small raise percentage will prevent a good increase in my forward dividend income.

 

Dividends Due To New Investment

It was a slow month on the Portfolio transactions front in June.  I made a single purchase and nothing else.

I added to an existing position that I established just this past February, trying to grow the position since it is one of my smallest holdings.

The stock I bought is in the Real Estate sector, one of my least represented sectors.

Details for the purchase can be found in the following post…

 

Recent Buy – AMT

 

My buy resulted in an investment of $374.00 into my Portfolio.  My forward dividend income increased by a total of $12.56.  This was my 2nd lowest monthly total of additional forward dividend income due to new capital investment this year.

With the stock I bought being an existing holding, the number of stocks in my Portfolio remained at 60.

 

Tallying Up The Additional Forward Dividend Income

In 2023, I continue tracking my additional forward dividend income generated each month from the trifecta of sources: reinvested dividends, dividend raises, and new capital investment.

I show 2022 totals as well, so that we can compare as the year progresses.

For June, I’m happy to see a monthly triple-digit total for additional forward dividend income again after breaking a 9-month streak in May.

 

 

I registered $130.56 of additional forward dividend income in June when accounting for all the sources.  This fell about $30 shy of what I totaled last June, but it was better than the $91.28 from last month.

Dividend Raises provided most of my additional forward dividend income in June, but Reinvested Dividends were a very close 2nd.  Investment of Capital failed to contribute significantly this month due to my lone purchase.

At the midway point of 2023, I’m about $100 off last year’s pace.  This is all due to the reduced contributions from Dividend Raises, which you’ve heard me mention the past few months.  Since 2018, the majority of my additional forward dividend income each year has come from Dividend Raises.  Thus, having this category come up short is a definite obstacle to exceeding last year’s additional forward dividend income total.  Maybe things will pick up in the back half of 2023, but I’m not optimistic.

 

Progress Charts

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

It was good to cross the $1.7K threshold in June, for just the 2nd time ever.  Doing the same in September looks like a strong possibility.

 

 

 

On an annual basis, here’s what the dividend totals look like.

The $8,657.37 that I’ve collected in 6 months of 2023 is more than the entire amount I collected in 2018.  That’s the kind of progress that motivates me to keep going as a dividend growth investor!

 

 

Summary

The quarter-ending month of June did not disappoint for dividends.  I posted my 2nd best dividend total ever and I now look forward to growing my dividend totals in the 2nd half of 2023.

I raked in more than $1,748 in dividends from 22 dividend payers.  Eight payers each provided more than $114, with QCOM topping the list with more than $167.

The YoY dividend growth was a bit underwhelming though, coming up just below 7.7%.  This was my lowest growth percentage of the year and the first time I failed to reach double-digits.

I dripped over 16.5 new shares of stock by reinvesting my dividends in June.  This led directly to more than $57 of additional forward dividend income.

Close to $61 in additional forward dividend income came from dividend raises during the month.  Four of my holdings raised their dividend in June, with the largest being a nearly 14% hike from UNH.

With only one Portfolio transaction in June (a small buy of AMT), the additional forward dividend income from investment of capital was stifled… I added less than $13.

Tallying the contributions from all sources, I managed a triple-digit month once again, topping $130 in additional forward dividend income for June.

As for my Portfolio’s annual forward dividend income, I finished the month with a total of $17,467.15 (or an average of $1,455.60/month).

 

Did you set a dividend record in June?… for total dividends or number of payers?  Which stock provided your largest dividend this month?    Please share in the Comments!

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