Dividend Update: February 2015
The highlight of my month is tallying all of the dividend payouts that pour themselves into my brokerage accounts. This is real cash that I can use however I want, and it arrives each month like clockwork. I invest in and own companies that have histories of raising those dividends every single year. Although my dividends totals are tiny at the moment, they’re growing every quarter and year as I make consistent contributions to my portfolio and reinvest all of my dividends. I’m building an ever growing stream of income that will one day be used to pay all of my daily expenses.
In February, the total amount of dividends I received from six different businesses was $90.77. I used my dividend reinvestment plan (DRIP) for all it, making sure that next quarter will be even bigger. Here’s what that looked like over the month.
For now, I aim to lock in bigger payouts every quarter. February’s payouts of $90.77 grew 3.69% over last November’s $87.54. The growth came solely from dividend reinvestment and dividend raises; that’s impressive for only a 3 month time frame. Looking back further, my payouts increased 55.30% from last year’s $58.45. I shaded these values lighter on the graph below for easy comparison.
While I haven’t yet hit a total of $1,000 in lifetime dividends, my goal is to receive $2,050 in 2015 alone. I’ll have to collect an average of $170.83 each month to make it happen, and after two months I’ve brought in even less that with only $147.63 so far this year. This slow start is expected and fresh contributions and dividend raises will take root to raise these totals as the year progresses. Here’s how my dividends received goal looks so far.
Once a year, and sometimes more, each business I own announces a dividend raise; this affects my portfolio in such a positive way. Who can deny the power of an investment strategy where I get more raises than in my day job? Here were dividend increase announcements from my portfolio in February.
I was disappointed with Walmart’s second inadequate raise in a row. I typically expect at least a 7% dividend increase from businesses each year, and this was barely 2%…again. Luckily, I have only a very small holding of this company in my Loyal3 account and won’t be adding any more shares until I see better increases in the future. My total annual dividend income rises by over $6 when I include the 8.5% increase from United Technologies. Slow and steady is just the way I like it.
My lifetime dividends are tracked purely for inspiration. It’s great knowing this passive cash flow routinely gets reinvested and starts making money of its own. I can’t wait to look back several years from now and see how many dividends have contributed to my portfolios cost basis.
I anticipate a big month of dividends in March. Also by popular request, I’ll be releasing my portfolio and dividend payout spreadsheets as downloadable Google templates. There will be a video tutorial to boot, so stay tuned!
What were your dividend totals in February? Did you see good growth?
Photo Credit: Jeremy Cai @ www.unsplash.com