Dividend Income Update – May 2015

The start of every month is exciting for all dividend income investors as we look back at the previous month and see how much passive dividend income our portfolios generated. May was exciting as ever as my year over year numbers continue to highlight the trifecta magic of dividend investing which includes, adding fresh capital, dividend raises and basic compounding to create an ever increasing passive income stream. Even if I stopped adding fresh capital today and every dividend stock I owned kept all distributions flat without a single raise my passive income stream will still continue to grow.

 

Some notable news for the month of May. Foremost, as you will see below, I received my very first distributions from my newly created IRA account which holds three REITs (HCP, HCN, VTR), a new investment vehicle for my overall portfolio as I have traditionally stuck to dividend growth stocks exclusively without any REITs, MLPs or the like. I am thinking of keeping my IRA as REIT exclusive just to see how it can perform as an independent long term investment. Second, my ROTH income continues to climb nicely as near monthly investments in my Canadian bank holdings (TD, BNS, RY) are juicing those returns. With that being said, let’s take a look back at my May dividend income.

 

Dividend income from my taxable account totalled $221.52 up from $172.79 an increase of 28.20% from May of last year.

 

Dividend income from my ROTH account totalled $86.38 up from $22.69 an increase of 280.69% from this time last year.

 

Dividend income from my IRA account totalled $12.89 up from $0 from this time last year.

 

Grand total for the month of May: $320.79.

 

Who says dividend growth investing doesn’t work? Just look at the figures above and see what fresh capital, dividend raises and compounding can do to year over year income.

 

Brokerage Account

Year to date dividends: $1,224.33

DateDescriptionSymbolAmount
05/01/2015DIVIDEND:GISGIS$31.33
05/01/2015DIVIDEND:YUMYUM$23.28
05/08/2015DIVIDEND:BCRBCR$0.88
05/08/2015DIVIDEND:CLXCLX$9.88
05/11/2015DIVIDEND:APDAPD$31.30
05/15/2015DIVIDEND:ABTABT$13.04
05/15/2015DIVIDEND:ABBVABBV$44.93
05/15/2015DIVIDEND:CLCL$6.47
05/15/2015DIVIDEND:PGPG$11.93
05/20/2015DIVIDEND:CATCAT$48.48
Total: $221.52

 

ROTH Account

Year to date dividends: $373.95

DateDescriptionSymbolAmount
05/01/2015DIVIDEND:YUMYUM$6.81
05/01/2015DIVIDEND:TDTD$36.21
05/15/2015DIVIDEND:PGPG$7.09
05/20/2015DIVIDEND:CATCAT$11.98
05/27/2015DIVIDEND:RYRY$24.29
Total: $86.38

 

IRA Account

Year to date dividends: $12.89

DateDescriptionSymbolAmount
05/20/2015DIVIDEND:HCNHCN$5.77
05/26/2015DIVIDEND:HCPHCP$7.12
Total: $12.89

 

Are any of these dividend stocks in your portfolio too? How was your May dividend income? Please let me know below.

 

Disclosure: Long all above

66 thoughts on “Dividend Income Update – May 2015

  1. $1,224.33 is just incredible. I’m excited to see returns like that once I get going.

    I haven’t seen it just yet, but truth be told I haven’t looked too hard, but have you shared how much it takes to invest to see numbers like that?

    You don’t have to share but I’m genuinely interested. And of course I realize it varies based on the dividend payout rate and that sort of thing.

    In any case, can’t wait to see next month’s update. 🙂
    FI Monkey recently posted…Emergency Fund Update – 80%My Profile

    • Hi FIM,

      Be patient and continue to invest regularly and you’ll hit those numbers and exceed them. We all have to start somewhere. You can see that even today I still receive “only” double digit income from my ROTH account. It takes time, patience and consistency to grow your portfolio. You must have a long term time line of five to ten years out before you start to see some real progress.

      If you want to see the size of my portfolio just click over and see my cost basis for each account I have. This will give you an idea of how much money I invested to get to where I am today. Of course, as a dividend growth investor my primary goal is not for capital appreciation and portfolio growth rather dividend income growth. My portfolio is probably one of the more conservative among the dividend bloggers as I hold many high quality names that yield under 2.5%. That’s OK with me as I prefer long term dividend growth rather than unsafe current yield. Many who just start out have stars in their eyes and like to buy high single digit or double digit yielding stocks only to have the dividend cut or eliminated. Hope this answers your question. Thank you for commenting.

      • That definitely answers my question. I am also interested in playing the long game in whatever it is I do end up chasing in terms of investing. I’ve tried doing things fast, but it’s pretty clear that while it might be counterintuitive to many, getting to FI isn’t about taking shortcuts. It’s totally about being slow and methodical. Purposefully choosing a horizon and then taking firm, steady steps towards it.

        Also, thank you for answering my stupid questions. I promise, there are plenty more where that came from!
        FI Monkey recently posted…Reducing Expenses and Curbing ImpulsesMy Profile

    • Hi DL,

      Thank you for your words of support. For a “quiet” month May proved to be fairly substantial. Going forward I may make buys in the REIT space as they seem to be beaten down pretty bad in recent times. We’ll see. But the names you mention, ABT, CAT and RY are all solid in my book and given enough money I’d be buying all three. Thank you for stopping by and commenting.

  2. May isn’t one of my larger dividend months, but I received nice income from Procter & Gamble and General Mills. It’s great to see year over year growth. I really should make the time to plot out my year over year growth from these accounts. Have a great weekend DivHut
    -Bryan
    Income Surfer recently posted…The Two Sides of Our PortfolioMy Profile

    • Hi IS,

      Happy to be a fellow shareholder with you in two dividend stalwarts PG and GIS. One of the fun parts of writing these updates is seeing the year over year growth. It really makes for some great and inspirational content. This is the point of being a dividend growth investor… the ability to create an ever increasing passive income stream. Enjoy your weekend and thank you for stopping by.

  3. We have a lot of different companies paying us money in the month of May, but the totals still add up to just about the same. I’ll definitely come back and see if I can pick up one of your companies above that pays in an “off” month. I like the idea of spreading out my monthly totals so they are just about even. I’m good at budgeting so it won’t really matter once I use the income to pay the bills but I just like to do it.

    The great thing about the markets is you can go about generating income and picking investments in so many different ways but as long as you reach your goals, then its all the same.

    Keep up the great work DivHut
    American Dividend Dream recently posted…Dividend Income – May 2015 UpdateMy Profile

    • Hi ADD,

      While May is not as exciting as the end of quarter months it can still be a good money maker as many solid dividend payers distribute their dividends during the month. The reality is that we’ll have to budget somewhat once we live off our dividends as distributions will not be even on a month to month basis but no worries as I’m sure that we all have the discipline to budget just as we all have the discipline to continue to invest every month in dividend paying stocks. I appreciate your continued support. Thanks for stopping by.

  4. Great job DivHut! Its amazing what coming up with a plan and staying committed to it will do over a short period of time. And just imagine the results as your time horizon expands. Solid YoY growth. Keep up the good work.
    JC recently posted…Recent BuyMy Profile

    • Hi JC,

      Thank you for your continued words of encouragement. Having a plan is key and even more so is sticking to it. I remember holding my stocks in 2009 and seeing my entire portfolio deep in the red along with dividend cuts from WFC and GE and IR to name a few. I held strong, sold nothing and continued to buy every single month like I always have. Look forward to more great year over year results. Thank you for stopping by and commenting.

    • Hi John,

      Happy to be a fellow shareholder with you in both HCP and YUM. The way the REITs are behaving in recent weeks it looks like they’ll warrant new capital being added. For YUM, I’d like to wait for its valuation to come down a bit. Seems a bit rich at current levels. I appreciate your comment.

  5. Another excellent month, DH.

    I must admit–being a UK investor–I don’t currently hold any of your holdings. That being said, Procter & Gamble is looking increasingly attractive at the moment. If it continues to show share price weakness I may well take a small dip into it!

    Keeping your Roth IRA as a REIT-only vehicle sounds a good idea. Easier for you to ascertain just how effective your REIT investments are.

    Keep up the good work!
    Dividend Drive recently posted…BUY: Stock Spirits Group–Spirited Growth in Central and Eastern Europe?My Profile

    • Hi DD,

      PG is starting to look more attractive as its price declines but I still can’t get over the valuation it’s trading at for now. If things come a little more in line it will be making my buy list.

      Since my IRA is new I thought why not make it REIT exclusive for fun. I’ll probably be adding other REIT names to that account over time once I feel adequately invested in the big three health REITs already there. Thank you for stopping by and commenting.

    • Hi KeithX,

      Thank you for the continued support. Baby DivHut just bought JNJ and EMR three days ago so no dividend yet but I will post those update periodically and maybe even create a new baby DivHut page chronicling dividend growth from his birth. As always, I appreciate the comment.

    • Hi MRtWaF,

      Great article you wrote about the Canadian banks. If you have been following my blog for the last year or so you already know that I have been buying up Canadian banks every month a little at a time. It definitely has impacted my ROTH dividends in a positive way as those positions grew with fresh capital, compounding and dividend raises all taking effect. I appreciate your comment.

    • Hi DE,

      I can’t complain about my May results. The numbers don’t lie which is why dividends are real and cannot be faked. I’d love to add more PG to my portfolio but not at current price/valuation. CAT is much closer to a potential buy for me of the two. I’ll be doing baby DivHut updates every now and then. He just bought his first two stocks three days ago so no dividends yet. Thank you for stopping by and commenting.

    • Hi AT,

      Thank you. This is why we blog, to share and exchange ideas. Some of us like index investing and ETFs and some like individual stocks. There is no question that each method has its merits and one can make a case for following both investing styles. Happy to have you comment here and follow along my dividend growth journey. Have a great weekend.

    • Hi Tawcan,

      As always I appreciate your continued support. If we’ll depend on this dividend income stream in ten, twenty or thirty years from now we better make sure that we’re diversified just in case a company fails or is acquired one day. The less dependent we are on any one particular company the safer we’ll be in the future. Thank you for commenting.

    • Hi Adam,

      That’s the point of investing in high quality dividend stocks… when the market performs less than perfect you have that dividend income to even things out. Of course, being a dividend growth investor I am more concern with a growing stream of passive income rather than capital (portfolio) growth. It’s always nice to see a stock you bought go up in value but when you are in the accumulation phase of dividend growth investing that just means it becomes more expensive to buy stocks and you cannot acquire as many shares compared to when the prices are lower. Thank you for stopping by and commenting.

    • Hi DD,

      Thank you for your continued support. The new IRA account was more for tax purposes than anything else. I wanted to do an IRA to ROTH conversion but the taxes to convert was way too high so I said ‘screw it’ let’s keep everything in an IRA and start a new portfolio there. I can’t complain about my May results though and I’m excited to see how my REIT income will enhance my overall 2015 results. As always, I appreciate the comment.

  6. Good progress on monthly Dividend Congratulations! DH whats your thoughts about investing in REITS at this time when the interest rate could change (rise) any time. Isn’t that going to lower the REITS price if that happens? I am personally interested in putting some money in Omega Healthcare Investors Inc (OHI) as the current price valuation is much low however I am afraid of interest rate correlation and other attributes of REITS that I am not so familiar of. Do you have any advice for me. Thank you!

    • Hi Dipu,

      REITs have historically performed well during higher interest rate environments and as such I’m not too concerned about the upcoming rate increase especially for the health REITs that have a long term tailwind with the aging of the ‘baby boomer’ generation. That being said I fully expect knee jerk reactions to Fed interest rate hikes and better buying opportunities for all the REITs in the future. You already see that happening in recent weeks as bond yields have risen and interest rate chatter dominated the headlines taking down all the REITs. I do not time the markets as I cannot know exactly when the interest rate hike will ‘hit the fan’ so I am comfortable in nibbling on REITs myself currently. I own the big three health REITs (VTR, HCP, HCN) and feel comfortable averaging down as prices fall while collecting a generous income from each while I wait. I have OHI on my watch list but for now will stick to the ‘big three’ health REITs. Thank you for stopping by and asking your question.

      • Thank you for sharing your ideas DH. I very much appreciate the knowledge and success story you share and inspire to everyone. I have a question it might just be very dumb one as i am trying to learn things slowly. Can you tell me where can i check corporate credit rating score from agency’s like moody’s or S&P? Is the corporate credit ratings score like A, B, C and their financial instruments like- bonds ratings the same thing or are these 2 different ratings? I believe corporate credit rating score is what represent their financial instrument rating score itself and its the same thing. I would very much appreciate your advice

        • Hi Dipu,

          That’s the beauty of our online dividend investing community. We all like to share our own investment ideas and are happy to help others. In general, my investment philosophy is one of patience and slow and safe dividend growth. My portfolio is probably one of the more conservative ones you will see online as I focus more on dividend aristocrats rather than the high yielding REITs, mREITs, MLPs, BDCs and the like. I know many who start out are eager to get as much yield as possible and often “invest” in companies that cannot pay a sustainable yield and usually get burned when that inevitable dividend cut occurs. Of course, nothing is guaranteed which is why we hold a number of different stocks. My portfolios alone have over forty holdings.

          To answer your question about corporate credit ratings, I have used Morningstar in the past and found the information to be reliable enough. That being said, when evaluating a potential investment for any of my portfolios I do not use credit ratings as a criteria. Hope this helps.

          • Thanks for the info DH. I went through Morningstar but not sure where to find the company credit rating. I was trying to check credit ratings only as one of the key criteria for REITS as any upgrade in the ratings could lower company long term debt cost.
            I know through reading articles for e.g REIT like OHI has moody’s rating Ba1 but i am not sure where to easily find this information. Do i need to register or become member for moodys.com? This might be a real dumb question but i would rather ask you anyway than be unaware. you can let me know anytime in your convenience. Thanks a lot!

            • Hi Dipu,

              No dumb questions here. Just ask away. I would suggest Moody’s for the information you are seeking. You can register for free and see the different credit ratings for any REIT you want. I just checked on the Moody’s site and it looks like OHI has a Baa3 credit rating as of 07 May 2015. Hope this answers your question.

  7. I do not own any of those dividend stocks. I will be focusing on higher yielding stocks now to boost the income. There is that always discussed balance approach – higher yield, lower growth or wise versa. I think at the beginning of building the portfolio it is OK to accept bigger risk and take higher yielding stocks and as you age, you slowly shift towards less riskier stocks, but lower poyout (although higher growth). So until 2020 I plan investing into higher yield and after that shifting to higher growth. Or should I do the right opposite? hmm, good question, right? What do you think?
    Martin recently posted…PPL spun off to a new Talen Energy. Shall I keep it or sell it?My Profile

      • Hi Tom,

        There’s no doubt that a savings rate is more important than an income rate. I feel we have a savings/investing problem more so than an income problem. After all earning $200K a year doesn’t mean much if you spend $201K a year. Have a high savings rate to start and use that money to invest in high quality dividend names for two or three decades and you’ll create a solid diversified passive income stream for yourself. Thank you for commenting.

    • Hi Martin,

      Everyone is at a different point in their investing/saving career. Some opt for very high yield and accept the risk of decreased or eliminated dividends while others opt for the lower yielding but but solid dividend growers instead. For my money I’ll go the lower yielding growing dividends rather than the higher yielding (unsafe) dividends. If your time horizon is long enough you do not need to risk your investment capital nor dividend income stream for the potential current high yield that may disappear when you least expect it. Just look at the recent ARCP debacle. Many lost capital and dividend income from that one. Thank you for stopping by and commenting.

    • Hi DM,

      Thank you for the words of encouragement. No doubt $300 in a month just for being you is a great amount to receive. As we all know, that’s a car payment, utilities, eating out money and more. The beauty, of course, is that if we continue to do things right our passive income stream will only grow year over year. As you stated, “Life is good for us dividend growth investors.” I couldn’t agree with you more. Thank you for stopping by and commenting.

    • Hi BSR,

      Great way to look at dividend income. Many on the outside fail to see the big picture and do not get excited about relatively ‘small’ dividend distributions. They might say something like, “Big deal about $300.” It’s nothing. But it’s not nothing, it’s something and as you stated it can pay for half of a monthly grocery bill or all utilities or a full car payment as I commented to DM. It’s all about building up a passive income stream one step at at time. As always, I appreciate your comment.

  8. Congratulations on another solid month of passive income DH! Seems like you have a small position on HCP/HCN combo, are you planning to add more position now that rates are going higher and REITs prices heading lower? I love Realty Income O among REITs and its worth to take a look if price continues to fall.
    FrugalityToFinancialFreedom recently posted…Portfolio update – May 2015My Profile

    • Hi FTFF,

      Thank you for your kind words. I just started a small position in the big three health REITs, HCP, HCN and VTR. After about eight years of being a dividend growth investor I figured it was time to take the leap into the REIT space. Going forward in the near term I plan to add to my existing three REITs with an eye towards expanding my REIT holdings overall. Among other names I am looking at is OHI, NHI, LTC, WPC, DLR and O. With all the turmoil in the REIT space in recent weeks I may just stick to my big three health REITs for now. I, like everyone else, am waiting for that inevitable announcement from the Fed which will no doubt create a great buying opportunity as everyone will shun REITs at that time. Thank you for stopping by and commenting.

    • Hi EL,

      It’s all about being consistent. First, of course, with being able to save each month so you have money to invest, and second actually making an investment as opposed to trying to time the market or find “better buying opportunities.” Good luck going for your $5K this year. I made an unofficial goal of $4K for my portfolio. Thank you for stopping by and commenting.

  9. DivHut,

    Solid month. I fully agree, YOY growth is so clearly helped by dividend increases and reinvestment. I know other people have found other ways to make money, but DGI appears to be the most logical and straightforward of them all.

    Congrats on the income,
    Gremlin
    Dividend Gremlin recently posted…Weird Places for AdviceMy Profile

    • Hi DG,

      Appreciate the support as always. As you know these are the best posts to write and the most fun to read. I still don’t understand how some people cannot see the real effects of a DGI strategy as the results are easily measured and quantifiable. Thank you for commenting.

  10. DivHut,
    Good job getting over $320. It definitely shows being steady is a key ingredient. I have PG, CAT, GIS, HCP as well. Your other companies are good for me to check out so that I can add income in this period.
    D4s
    Div4son recently posted…My Screen for June 2015My Profile

    • Hi D4s,

      For an “off” month I was quite happy with the results from each of my accounts. It’s all about making those steady monthly buys whenever cash is available and being able to tune out the talking head noise. Thank you for stopping by and commenting.

    • Hi DH,

      Believe me, I appreciate all the support and comments received from our DGI community. I am still amazed at how much we all support one another in our FI quest no matter what age or where we are in our individual journey. As long as free cash sits in my account it will be deployed. High markets, low markets, all markets. Looking forward to the rest of June and other potential buys for the month. As always I appreciate your comment.

  11. Hey DH,
    $320 on an off month and you can almost feel that it’s going to break the $500 then 1k a month mark consistently. Focusing on quality dividend stocks is probably the safer strategy to REIT’s and MLP’s. I strayed away from an MLP due to the K1 tax form i’d need to file at the end of the year but I’m really thinking of jumping back into them. Cheers on another month, hope this end of quarter month will be very profitable.
    -Rich
    Redeemed Finance recently posted…Recent Buy – Ship Finance InternationalMy Profile

    • Hi RF,

      That’s the plan. My long term goal, though a while away, is to average $1K a month. I agree with you in general about simply sticking to traditional quality dividend stocks, however, my portfolio is full of those types of investments which is why I started to nibble in the health REIT space. While there is risk with any stock, REIT, MLP, etc. that we buy, the key is to mitigate any potential havoc by simply diversifying. I am comfortable starting out with several small health REIT positions in my portfolio and see how it develops. Thank you for stopping by and sharing your thoughts.

  12. Great year on year increases there DH, Dividend growth investing does work, your numbers show this as they continue to increase!

    I had a good month for my small little portfolio, good to see my own dividends trickling in each month – only small amounts but I look forward to seeing them grow bit by bit!
    weenie recently posted…Peer to Peer Lending – 12 Month ReviewMy Profile

    • Hi weenie,

      I appreciate your continued support and kind words. You have to love the DGI strategy. As you stated the numbers show in plain sight the growth that one can achieve. I saw your results and encourage you to continue on your journey. The largest building or biggest dam is all started with one small brick. Keep building. Thank you for stopping by and commenting.

  13. All I can say is keep making that money. I’m doing everything in my power to save money so I can pour it all into dividend stocks. I’m in the middle of Not Spending Any Money Week. It’s going to be one week a month where the only things I spend money on is transportation and any immediate financial obligations I have.

    I save $50 a week by bringing sandwiched to work each day.

    Good luck to you, DivHut, and everyone else on their investment journeys. We’ve all got our work cut out for us!

    Sincerely,
    ARB–Angry Retail Banker

    • Hi ARB,

      Thank you for your words of encouragement. There’s little doubt that we all have a huge mountain to climb but it’s OK as long as we are continually taking steps. To me that’s one of the most important components to be being a dividend growth investor, taking steps. Each month being consistent and making buys during market highs and lows and every economic climate in between. By being consistent with purchases you’ll be able to roll that forward dividend income into more dividend income. Good luck with your Not Spending Any Money Week. I have read about this from other bloggers as ‘spending fasts’ can be a great way to save a chunk of money in a short amount of time. Saving $50 a week is huge! That’s well over a couple grand in a year. Now imagine that that $2K+ going into a 3% yield dividend growth stock. That’s how it’s done. Thank you for stopping by and commenting.

    • Hi Laura,

      Thank you for your kind words. I’m actually looking to get to about $4000 for the year between all my accounts which is looking pretty good so far. I have already noticed a snowball effect in my taxable account as I now have several dividend distributions that buy more than one share which really helps the next dividend payment received. I reinvest all my dividends in general. Thank you for stopping by and commenting.

  14. Hi DivHut,

    $320 a month in dividend is amazing! It definitely would cover my utility bills. Thanks for stopping by today and commenting. You gave me the motivation to update my dividend income page. P&G has been on my list to purchase. I hope to do so soon!
    Budgetbuddha recently posted…Unexpected CostsMy Profile

    • Hi Budgetbuddha,

      Sorry for the delayed response. DivHut was having hosting issues with GoDaddy.

      Glad my posts and updates can provide some motivation. As you can see by the many dividend blogs out there we are all at different points on the same path/journey and each of our portfolios started churning out modest dividends that have grown over time. Needless to say, I was very happy with my May results and with almost half the year gone I can get a good estimate of my total full year return which will surpass my 2014 dividend income. I’m also watching PG more closely these days as the price and yield are making it look more attractive though I’d like a little better valuation. Thank you for stopping by and commenting.

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