Dividend Income Update – April 2012

Another month has passed by, and it’s time for me to post an article on my favorite subject: dividend income. The reason why I love to post articles on dividend income is because it’s pure numbers. It’s hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time and get closer to covering one’s expenses.

Below, you can see my dividend income from the month of April. Although not as high as March, it was still awesome to receive money from companies that are out there supplying the world with necessary goods every single day. I feel like every time someone buys a can of Coke or fills up their vehicle’s gas tank I get a little piece of that transaction. Although the tangible dividend in my brokerage account is ultimately what I see and care most about, it still is nice to have that emotional and intangible feeling of being a tiny slice of the entire world economy and profiting from it.

I hope these monthly dividend income reports provide inspiration for any investors out there that are just starting out. It’s easy to see these payments rising month after month and it shows that it’s possible to one day pay for monthly expenses with dividends, which would provide an investor opportunities and freedom to pursue other interests than full-time work. Without further ado:


April 2012 Dividends Received

  • The Coca-Cola Company (KO) – $10.20
  • Wal-Mart Stores, Inc. (WMT) – $15.11
  • Altria Group, Inc. (MO) – $21.32
  • Illinois Tool Works Inc. (ITW) – $12.60
  • Philip Morris International Inc. (PM) – $61.60
  • Total S.A. (TOT) – $23.63
  • Medtronic, Inc. (MDT) – $8.97
  • SYSCO Corporation (SYY) – $7.83

Total dividends received during the month of April: $161.26

Great! That’s over $150 in my monthly income that I wouldn’t have had otherwise. Although I selectively reinvest all dividends on a monthly basis, it’s great to know that if I ran into a tough financial position I could use that small, but rising, income stream to get myself out of a temporary jam. That kind of flexibility is just one thing I love about dividend growth investing.

This total is significantly less than the total I received last month, but I expected this due to the fact that a much smaller portion of my portfolio pays out in April.  However, looking back one year, this is a huge increase over the total dividends received in April 2011 as I more than doubled my monthly take in one year. Based on my expenses over the course of April, I was able to cover 12.5% of all expenditures last month purely by dividends!

I want to make sure I note that the dividend received by TOT is after foreign tax withholding. That’s the actual amount that hit my brokerage account, and this is how I always list foreign dividends. Technically the dividend is higher, but I won’t receive the portion withheld until I claim it as a credit on my tax return.

This is another step towards reaching my goal of receiving $2,000 in dividend income through the year of 2012. With the first four months of this year behind me, I’ve now received $724.79 in dividends in 2012. That’s 36.2% of my goal, so I’m on pace to easily exceed it.

I’ll update my dividend income page to reflect March’s dividends.

How did the month of April treat you? 

Full Disclosure: Long all aforementioned equities.

Photo Credit: sscreations

Comments

  1. Chandan says

    I congratulate you on your consistency. Well done ! I hope you stick with it. Thank you also for updating us. It is much appreciated.

    • says

      Chandan,

      Thanks for the congratulations. I appreciate the support.

      I do hope I have the ability to stick with it and stay consistent. I’m lucky to be gainfully employed and making a pretty decent middle class income in this economic environment. I try to continuously remind myself of that fact.

      I’m glad you enjoy the updates. I hope your own journey is going well.

      Best wishes!

    • says

      Deedubs,

      The increase was great! I’ve been blessed.

      Thanks for your continued support. It’s nice to see our journeys both going so well so far in 2012. May we continue to have good luck and make great financial decisions!

      Take care!

    • says

      Investing Early,

      Thanks for the kind comment. I’m truly glad that I inspire others. You, and most of the readers that stop by and comment, also inspire me. I think it’s the community that we have as fellow investors that keep us all motivated and on track with our goals.

      Keep up the great work.

      Best wishes!

    • says

      Investment Road to Freedom,

      Thanks! Yes, I’m doing better than expected so far. I set my goal pretty close to what I actually received last year, but it looks like I didn’t set the bar high enough for 2012. It’ll be nice to see where I finish this year and I can accurately set the bar from there for 2013.

      You had a great month as well. Keep up the good work!

      Take care.

  2. says

    Congrats on a great month. April was good to me, basically because of Invesco (IVR). I’m sure that won’t continue forever, but I’m certainly enjoying it. I’m on track to be FI (at my more spendy rate) in 2020. Which will put me at 45, which is okay because I am enjoying the journey.

    • says

      My Saving Style,

      Becoming FI at 45 years old would be fantastic! That is certainly much earlier than most people and would be tremendous. I’m still hoping to get there by 40, but of course there are always bumps in the road. It’s important to remember it’s a journey, not a destination…as you accurately point out!

      I hope we continue to enjoy the journey.

      Best wishes.

  3. says

    DM,

    Thanks for sharing your progress, it’s fun and informative to watch others build their nest eggs. I like the direction you’re going with your portfolio, imagine where you’ll be a year from now!

    CI

    • says

      CI,

      It’s definitely fun to watch others build wealth, and it’s really interesting to see what others are buying/selling.

      I like the direction of your portfolio as well! I like your COP buy today. Gotta love that yield!

      Best wishes!

  4. says

    DM,

    You are continuing to make tremendous progress. Kudos! To help put things in perspective, your payout on a low-paying month (April), has still exceeded my TOTAL payout for this year! Granted, I started dividend investing this year, but clearly the powers of compounding are working their magic. Keep up the consistency and you’ll not only meet your goals, but exceed them. Great work, and it must feel very rewarding seeing your nest egg grow a little bit every month.

    • says

      FI Fighter,

      Thanks for stopping by and offering up such tremendous support. It’s truly appreciated! I have so far exceeded all expectations on where I thought I’d be.

      Don’t fret on the slow start to earning dividends. The compounding effect will really start to take hold pretty soon and before you know it you’ll be receiving triple-digit monthly totals.

      Based on where you’re already at at 27 years old, you’ll be far ahead of where I’m at right now. Keep up the solid progress and keep sharing.

      Take care!

    • says

      inq,

      I’m not totally impressed with SYY. It’s my smallest holding, so I continue to hold. It’s got a decent yield, that is growing slowly. The biggest thing that has concerned me is FCF and the FCF payout ratio. They are still the strongest name in their business so I think eventually the fundamentals will improve as they pass on rising input costs.

      Best wishes!

  5. Anonymous says

    I own both SYY and WAG and they just don’t do much. Thinking about moving on to something better. What are your feeling on these two DM?

    Bill from Wmsport

    • says

      Bill,

      I don’t follow WAG closely. I wonder what really separates them from the CVS that is usually located right across the street? Do they have an economic advantage or moat? Again, I ask because I don’t follow closely.

      As far as SYY is concerned, usually a flat stock price is good news as it allows you to increase your position size for less money than a rising stock price would. Under other circumstances I’d continue to build my SYY position as the yield is fairly high and it’s the biggest player in its market. The FCF payout ratio is what bothers me however, and until it lowers (due to passing on rising input costs which would increase margins) I’ll continue to hold. I hold for the strong yield, but if they stop growing the dividend I’ll head for the exits.

      Take care!

    • says

      I am doing good. not great.. As you said every little step counts.

      April Dividends are:

      NLY – $28.42
      ERF- $10.12
      O- $8.12
      PM- $38.50
      MO- $22.55
      AHITX- $21.94
      FKINX- $30.00

      $159.65 Total Dividends
      Total Portfolio value $41,112.00

    • says

      jdavis4982,

      That’s pretty good! You received a dividend total only a couple dollars less than what I received with a portfolio that’s much less. I’d say you’re doing great and really maximizing your potential there.

      I’ve thought about getting into the mREIT’s to really boost my portfolio’s yield, but even with the Fed holding down rates for a while I still feel uncomfortable with them. Gotta sleep at night! Good to see it’s working out for you.

      Best wishes!

  6. says

    April 2012 Dividend received:

    XHY 21.12
    HYI 6.96
    HEJ 10.92
    HYM.UN 80.96
    CHR.B 708.90
    ERF 65.88
    PGF 60.27
    BPF.UN 22.60
    XDV 3.85
    XPF 7.12
    JE 26.2
    FP 14.15
    BMO Monthly Us Dollar Fund 64.87

    TOTAL FOR APRIL
    1093.80 $ (From an asset of +/- 81000$)

    • says

      efraenkel,

      Wow. That’s a huge month of dividends for the size of your investment. I’d be careful about investing in such high yield equities though, as the high payout ratios can lead to reduced/eliminated dividends or other firms issuing equity to pay for dividends will, of course, lead to a loss/return of your capital.

      At any rate, that’s a huge month! I hope you continue to receive monster dividends.

      Best wishes!

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