June 2019-Dividend Growth

It’s one of the most active months of the quarter for dividend payments. June really shows our dividend growth progress over time. 13 of our 15 holdings are making payments, with 2 making special payments. We made additional investments in 2 of our existing holdings.

Dividends

Here is a view of our current pay schedule for dividends.

Review of May

In May, we received 4 dividend payments from companies totaling $107.58. While April fell short of our 2019 investment income goal we did fulfill 79.1% of the $150 per month milestone.

June Dividends

June was a busy month for us. Especially so early on in this dividend growth story. The majority of our holdings made payouts. 13 out of our 15, to be exact. We received a total of $257.47 in dividends, which was more than 2x what we received in May.

We had 2 of our stocks issue special payments. MAIN announced their semi-annual cash dividend to be paid out in June.

ARCC was the other special dividend payer. While it’s only an additional .02 per share, that’s really a 10% bonus in the normal quarterly payout. ARCC already yields near 9%, so this is a pretty nice.

As always, we reinvest our dividends, which contributes to our savings rate.

June Investments

We made 2 new investments this month. The majority ($994.39) went towards APLE to have more funds diversified towards real estate, and ABBV after their move to make an acquisition.

Apple Hospitality is a monthly paying dividend REIT. They yield right around 7.5%, give or take. While they help diversify us since we don’t own any physical real estate at this time, they also help balance out our monthly income. We added an additional 64 shares in June, which adds an additional $6.40 per month of income.

In addition to that, we jumped at the chance to add to our AbbVie position. AbbVie announced that it would be acquiring Allergan for $63 Billion. Now, I’m sure there is a case that AbbVie didn’t get the best value for this deal, but that’s somewhat irrelevant to me. My first responsibility as a dividend investor is to do the best I can to ensure my investments continue to pay and grow over time. Ultimately, this acquisition helps the changes that we hold this stock forever and continue to receive dividend payments. AbbVie is currently our largest holding by weight (13.15%) and pays us a cost adjusted 5.3% yield. We averaged down our cost by purchasing an additional 8 shares for $536.95. That purchase adds $2.85 per month to our average monthly return.

Take Aways

Not only did we have a nice dividend return in June, but we also grew our future monthly returns. Our additional investments in AbbVie and Apple Hospitality increased our average monthly income by $9.25. As of this post, our average monthly return for the year is $121.17. We have now made it 80% of the way towards our goal of $150 per month in dividend income. We did surpass that threshold in actual payouts this month, so we just need to keep following our process and we’ll soon be able to raise the bar.

Here is a link to our Goals.

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Dustin

Author of firein10.com Tracking my goal of achieving financial independence in 10 years.

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