Dividend Income Update August 2015

The beginning 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. August 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.

 

For the last several months I have been adding to my existing holdings and I intend to keep adding to those holdings rather than initiate new positions as I am finding ample opportunity to average down on some high quality names sporting much better yields and values. This fact is most reflected in my year over year increase in dividend income in my ROTH as I have been continually adding to my Canadian banks, a little bit at a time, for many months. With that being said, let’s review my August dividend income.

 

Dividend income from my taxable account totalled $227.49 up from $183.25 an increase of 24.1% from August of last year.

 

Dividend income from my ROTH account totalled $97.83 up from $24.51 an increase of 299.1% from this time last year.

 

Dividend income from my IRA account totalled $47.95 up from $0 from this time last year.

 

Grand total for the month of August: $373.27.

 

Brokerage Account

Year to date dividends: $2,012.77

DateDescriptionSymbolAmount
08/03/2015DIVIDEND:GISGIS$31.58
08/07/2015DIVIDEND:YUMYUM$23.39
08/07/2015DIVIDEND:CLXCLX$10.36
08/10/2015DIVIDEND:APDAPD$31.48
08/14/2015DIVIDEND:CLCL$6.51
08/14/2015DIVIDEND:ABBVABBV$45.27
08/17/2015DIVIDEND:PGPG$12.03
08/17/2015DIVIDEND:ABTABT$13.11
08/20/2015DIVIDEND:CATCAT$53.76
Total: $227.49

 

ROTH Account

Year to date dividends: $658.47

DateDescriptionSymbolAmount
08/03/2015DIVIDEND:TDTD$48.41
08/07/2015DIVIDEND:YUMYUM$6.81
08/17/2015DIVIDEND:PGPG$7.09
08/20/2015DIVIDEND:CATCAT$13.18
08/25/2015DIVIDEND:RYRY$22.34
Total: $97.83

 

IRA Account

Year to date dividends: $72.44

DateDescriptionSymbolAmount
08/20/2015DIVIDEND:HCNHCN$21.38
08/25/2015DIVIDEND:HCPHCP$26.57
Total: $47.95

 

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.

 

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

 

Disclosure: Long all above

53 Comments

  1. We’ve both got TD and RY and I’m hoping to add to my existing positions in September too. I’ve only been dividend investing since Oct of last year and you would think after almost a year the ‘magic’ feeling of receiving dividend income would dissipate but it doesn’t – It just keeps rolling in and growing and becoming more exciting. Cheers

    1. Hi DA,

      I know the feeling of having that dividend income continually roll in. I have been an exclusive dividend growth investor for about eight years and I can tell you that I still look forward to the beginning of every month so I can tally my previous month of passive income. It is very much addictive and self-serving as you can literally watch your year over year income rise. Markets rise and markets fall but the goal is to have dividends go up every year no matter what. Thank you for commenting.

  2. Hi DivHut,

    Great month once again!
    Looks like you are going to hit your $2500 annual dividend milestone.
    That’s an amazing accomplishment.

    Looking forward to your future updates.

    Best wishes, DfS

    1. Hi DfS,

      The total goal for the year should be $4k from all my accounts and I’m excited that I already reached my total passive income received in 2014 with four months to go this year. The trifecta of dividend investing really helps push that passive income along. Fresh capital, dividend raises and compounding all help us generate an ever growing passive income stream. Thank you for your kind words and for stopping by and commenting.

  3. Great numbers divhut. While the market is going up and down and is generally unpredictable, your dividends are going up and very stable.
    D4s

    1. Hi D4s,

      Thank you for your continued support. As you stated the market is quite unpredictable but dividends remain “constant.” Or at least a lot more stable than stock prices which is the main concern for any dividend growth investor. As always, I appreciate the comment.

  4. Dividend income investing is always a fun way to balance gaining asset appreciation while having that steady income stream coming in month after month. It almost reminds me of buying rental properties in real estate. $373 for the month is awesome. If all months forward were like that you would have a nice $3600 yearly check. Not a bad ‘side hustle’.

    1. Hi BYNW,

      You said it. Dividend investing is very similar to investing in real estate. You are basically adding income producing assets to your net worth which can not only appreciate but also provide you with an income stream. The goal is to keep buying fair valued stocks that raise dividends and continually grow that ‘side hustle’ income. Thank you for stopping by and commenting.

    1. Hi R2R,

      Thank you for your kind words and support. The start of a new month always makes me happy as I get to tally my dividend income and see where I stand. Keep that snowball growing!

  5. DH,

    “Who says dividend growth investing doesn’t work?”. Well, not me. 🙂

    You are putting up some rather impressive growth percentages. Nice work. Considering the number of years you have before retirement, I can only envision you being rather content with your income at that time. Thanks for the update.

    Steve

    1. Hi DG,

      Thank you for the kind words regarding my growth. The ROTH account is where most of the 2015 action has been which is why the year over year growth is so high. If you have been following along then you already know that I have been buying the Canadian banks almost every month for about a year which is reflected in those ROTH numbers.

      I’m already 42 and never had a plan to “retire” at 40 like many other dividend investors. I have been self-employed for 18 years and enjoy what I do as it gives me time and flexibility to travel and be with my new baby. In other words, even at my age, I don’t plan to touch any of my dividends for at least another two decades which still gives me plenty of time for compounding and growth. As always, I appreciate your comment.

  6. How do you deal with the withholding from Canadian dividends in a ROTH account?

    1. Hi Dave,

      A treaty between the U.S. and Canada allows for zero withholding tax on any Canadian stocks held in a retirement account such as an IRA or ROTH. If you hold Canadian stocks in a regular taxable account the withholding on your dividends is 15%. This is why I keep my TD, BNS and RY in my ROTH and receive the full dividend. Thank you for your question.

  7. Awesome stuff, DivHut. I’m loving some HCP at these prices.

    You gotta drop a graphic in here, though. That year-over-year growth is so much prettier when you have some fancy bar charts to show. 😉

    Eric

    1. Hi R29,

      Thank you for your continued support. Like you, I also like HCP, VTR and HCN. I’m still holding off on adding to those REITs for now as I’m spotting a lot of value in several industrial names and the Canadian banks still.

      I hear you regarding adding graphs/charts. Is DivHut a little too plain 🙂 I just like to share the DG journey via text but I guess it couldn’t hurt to throw a graph in once in a while. Maybe a year end recap? Thank you for stopping by and your suggestion.

  8. Nicely done DivHut, very solid growth across the board. Might need to buy some HCP at the current price.

    1. Hi Tawcan,

      I appreciate the kind words and continued support. I have no complaints about my year over year progress and like where I’m at going into the home stretch of 2015. I see you aren’t the only one who likes HCP at current levels as Retire29 and myself like it too among other health REITs. As always, I appreciate you stopping by.

    1. Hi BSR,

      Well, I wouldn’t call it “free” money as I had to put in the work to get the asset in the first place but I get your point. Passive income is a thing of beauty and whenever money can line your pockets without having to lift a finger, no matter the amount, you are ahead of the game. Thank you for stopping by and commenting.

  9. I bought RY and TD after the ex-div date. RY is getting a dividend increase so I’ll get to enjoy it in 3 months I guess :). Canadian banks are taking a beating due to Canada entering into the recession and the government keep decrease interest rate to boost the economy. While the interest rate can be a factor on the profits, but I feel Canadian banks’s dividend payouts are pretty secured. I’m bullish on Canadian banks.

    1. Hi Vivianne,

      Your comment highlights my sentiment exactly. Even though the near term for Canada and it’s economy looks pretty bad, I feel that we are being presented an excellent buying opportunity with the Canadian banks yielding as much as they are and trading at much better values than just over a year ago. As long as the dividend remains safe, which it is currently for TD, BNS and RY, I’ll continue to add to my holdings. Happy to be a fellow TD and RY shareholder. Thank you for commenting.

    1. Hi MSF,

      Thank you for the support. These are definitely the best posts to share. Appreciate the comment!

  10. Hi DivHut,

    Those are awesome YOY increases! The stocks we share in common are PG and YUM. I eventually would also like to own GIS, CL, and CLX – possibly also APD, ABT, and CAT.

    1. Hi ACI,

      Every stock you mention has been in my portfolio for about eight years and I have no intention of selling any of them for a long, long time, if ever. The consumer staples are my favorite long term sector to hold as it’s a relatively less volatile sector than others. The problem with that of course is that most names trade at very high valuations, but I guess that’s the price you pay for long term stability and growth. Happy to have a couple names in common with you for August. Thank you for commenting.

  11. DivHut,
    Very nice YOY improvement. Really seeing that snowball start to move now. I saw your prior month purchases also, and I liked them – between Canadian Banks and industrial companies its hard to go wrong right now. Keep up the good work and hopefully travel slows down for my work, but lets not count on that last one.
    – Gremlin

    1. Hi DG,

      After that late August swoon and first week of September volatility, many high quality names began to trade at very compelling prices, value and yield especially in the industrial sector where it’s been a while since we have seen some decent value there. Stick with the high quality names, diversify and just hold through thick and thin and watch that snowball grow. As always, I appreciate you stopping by.

  12. DH,

    Another very solid month right there. Moving in the right direction. 🙂

    Great companies up there as well. Glad to be a fellow shareholder with you in a number of them.

    Keep it up!

    Cheers.

    1. Hi DM,

      Thank you for your continued support along this DGI path. Slowly but surely we are all moving in the right direction as dividends beget more dividends. Always nice to be a fellow shareholder in some really top notch quality names. Can’t believe we are heading towards the end of 2015 soon. Will be interesting to see how our fellow DGI’ers have done in terms of passive income earned. Thank you for commenting.

  13. Nice progress, Keith. I just added to HCN today. Also long CL, GIS, PG.

    1. Hi KeithX,

      Always appreciate the kind words and continued support. I am liking HCN as well as other health REIT names. In fact, HCN is my weakest performer and I may want to average down on that position sometime this month. For now, I’ll continue to focus on the Canadian financial names and some industrial names that have been beaten down. Thank you for stopping by and commenting.

  14. DH,

    Congratulations on the August dividend income. ABBV and HCN are two to watch on my list for a possible purchase before the end of the year. Thanks for sharing.

    -DD

    1. Hi DD,

      Thank you for your kind words. Both names on your watch list look interesting with my preference towards HCN among the two. Of course, there are many other high quality names that saw their share prices decline quite drastically which is where my focus has turned to in the near term. Keep building your dividend snowball. Than you for commenting.

  15. Great month. These dividend income posts never fail to motivate. I like your plan of never really retiring. Thanks for sharing.

    – HMB

    1. Hi HMB,

      I totally agree. Reading and writing about dividends always stokes the fire for further investing. I like how our posts continually motivate one another. Retiring is a state of mind more than anything. Some might have said I retired at age 24 when I started my business. I work from home, travel when I want and most importantly I can be with my new baby. I just call retirement, enough money that you have time to do what you want. I’m not wealthy by traditional standards. I drive a 2009 Honda Civic, live in an apartment and wear clothes till they go out of fashion and eventually come back into fashion 🙂 It’s this low maintenance lifestyle that enables me to have the luxury of time and for that I feel very blessed. Thank you for commenting.

  16. Congrats on a great month of dividends 🙂 This is such a strong showing of businesses paying you out, especially all the amazing consumer companies that I’d love to own. Keep at it, and hope all is well with the family!

    1. Hi MDG,

      Thank you. Can’t complain about my consumer staples. I have long loved that sector for my long term dividend portfolio. It’s just been a long, long time since I added to any of those names as their valuations have gone sky high. Believe me, I’d love to add to my PG, GIS, KMB, CL, CLX, KO, PEP, UL and more. With another market swoon I may get that chance. Thank you for asking about the family. All is well. As always, I appreciate your comment.

  17. Nice passive income, DH! congrats on increasing more than 20% in taxable account. You are building a strong source of income that keeps giving you blessings. Keep racing!

    1. Hi R2R,

      Slowly buy surely the dividends keep rolling in. As I always say, the market may rise and fall on a whim but the dividends we receive are always stable and reliable. As long as I can put up decent year over year growth for my dividend income I’ll be happy. Thank you for stopping by and commenting.

  18. That’s a pretty good level of income. I just got into the Canadian bank market with an initial position in BNS. They seem to be popular with the dividend growth investing crowd, and BNS has been paying out dividends since 1833. That’s a pretty good track record if you ask me. Hoping to build up my own income over time.

    1. Hi Chris,

      All dividend income starts out slow in the beginning. By staying consistent with your investments you’ll be surprised at how fast things can accumulate. The Canadian banks are quite popular among many DGI bloggers for good reason. As you stated, many have a long dividend track record and all have performed well during the last financial crisis maintaining dividends and not cutting or eliminating like many American banks at the time. Take a look at this blog post regarding Canadian banks. Thank you for sharing your thoughts.

    1. Hi IT,

      That’s the beauty of personal finance. It’s personal. For my money, peace of mind and relative “hands off” approach I prefer to invest exclusively in dividend paying stocks. Within that realm I focus mostly on the dividend aristocrats and other stocks that have a long history of dividend payouts and raises. I don’t intend to sell any holdings in my portfolio as I’m seeking to create an ever growing passive income stream for the future. I have held all my stocks through the market meltdown of 2008/09 and simply added to my holdings at much better prices and value. While I’m not one to time markets, I simply want time in the markets. Kudos for avoiding the August swoon. For me, it just provided better buying opportunities in some high quality companies. Thank you for stopping by and commenting.

  19. Wonderful receiving all these checks from awesome businesses. Keep it up DivHut. Only gets better from here. You have an awesome portfolio bud. Very Conservative and Defensive. Sleep well at nite for sure. I like that strategy and over time, I’ll be heavy towards consumer staples and healthcare.
    Keep Hustling Hard.
    Cheers bud.

    1. Hi DH,

      Thank you for your kind words and continued support. I sleep quite well with my portfolio holdings. No high yield chasing for me. Just stable, reliable growing dividends. Sure wish we could get more consumer staples on sale. It’s been a while since I added to that sector and would like to buy more. The hustle continues! Thank you for commenting.

    1. Hi DD,

      Thank you for the continued support. Tallying up passive income is always nice. These are truly the best posts to read and write. Thank you for commenting.

  20. Sorry I’m late to the party here, but great month DivHut. Those are some serious dividend growth rates right there. I love writing and reading these articles to see everyone’s YOY growth rates. It is shocking (and amazing) how quickly your dividend income grows. A beautiful thing. Keep up the great work!

    Bert

    1. Hi DD,

      No such thing as too late. I always welcome your comments at any time. I agree that these are the best posts to read and write. As we all know, the proof is in the dividend pudding and it’s hard to argue with this investing strategy as we are all putting up real numbers and highlighting real growth in passive income. Thank you for your continue support and comment.

    1. Hi divorcedff,

      Thank you for your continued support. That’s the plan. Keep investing bit by bit each month and growing that dividend snowball. Thank you for commenting.

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