Feb 10, 2019

Dividend Income - January 2019

First month of the year 2019 is in the books and it's time to summarize dividend income. Looking back to January 2018, I was able to collect $230.44. That month was exceptional, thanks to bonus dividend by Old Republic International Corp. (ORI). Unfortunately no bonuses this year, which means $70 is wiped off the table. Otherwise all companies that paid dividend in Jan 2018 still remain in my portfolio. There are also two new payers compared to last year: Illinois Tool Works Inc. (ITW) and Leggett & Platt Inc. (LEG). In total 15 companies paid dividend to me this month. Here is the comparison table of January 2018 and 2019 dividends:


CompanySymbolJan 2018Jan 2019
Algonquin Power & UtilitiesAQN.TO17.4721.15
Bank of Nova ScotiaBNS.TO18.9624.65
Baxter International IncBAX3.203.80
Cisco Systems IncCSCO14.7918.15
Illinois Tool Works IncITW09.00
Kimberly-Clark CorpKMB16.4923.00
Leggett & Platt IncLEG015.96
Main Street Capital CorpMAIN6.086.24
Medtronic plcMDT7.8212.00
PPL CorpPPL16.5920.50
Realty Income CorpO8.2910.17
Republic Services IncRSG8.289.00
Rogers Communications IncRCI.B.TO9.609.60
W.P. Carey IncWPC19.1922.66
Xcel Energy IncXEL13.6819.38
Old Republic International CorpORI70.000
TOTAL
$230.44$225.26

All right, so the total this January was $225.26. This means 2,2% decrease year-over-year. Well, I wouldn't like to see minus here, but there is a good explanation as you can see in the table above. The nature of bonus dividends. They are nice when you receive them, but there is no continuity.

I have been targeting 20% growth every month (except April months) in previous years, but this year I decided to raise the bar a little bit. So, from now on I would like to see at least 25% growth every month (except April months). January didn't meet that target, that's for sure. But if I remove ORI's bonus divy from the picture, my income grew from $160.44 to $225.26. This represents 40,4% increase year-over-year. I think this shows that the potential is there.

Good progress at KMB thanks to dividend raise and additional shares bought. And of course ITW and LEG as new payers compared to last year. The biggest payment came from BNS.TO. Here are my dividends in a graph:
All right then, time to set the dividend income goal for this year! I have decided it to be a big nice round number of $5,000. This would mean 24,1% increase to 2018's income. At the moment my forward 12-month dividend income sits around $4,400 which means that I must be active on the buying front to reach that goal. And I will also need some help from my holdings in the form of dividend raises. Speaking of, several raises already declared this year which is fantastic.

All these companies should pay dividend again in April. Before next ex-dividend date I'm currently looking to buy additional shares at ITW and LEG. These I would say are sure things, but in practice I will be buying many others in this group as well.

Please note that I don't make any currency conversions here. I report dividends as they appear in their own currency. This time BNS.TO and RCI.B.TO were paid in CAD, and the rest in USD. Additionally all numbers are before taxes. This prevents currency fluctuations and tax hassles from affecting my progress.

Thanks for reading. Dividend Income page has been updated to include January dividends.

Disclosure: Long all stocks mentioned

6 comments:

  1. I think it's very reasonable to take the special dividend away from the expected income. This was a once off so I think it a good idea to compare it to what you were expecting, therefore, over 40% increase YoY is fantastic. Well done!

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    1. Thank you BHL. Yeah, I think that I made good progress this month, even though at first glance it doesn't look like it.

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  2. I would definitely adjust the results to factor in the special dividend. I like how you showed the actual and adjusted dividend growth rate. 40% growth without the special dividend is really impressive when you think about it! Keep the pedal to the metal and continue grinding in 2019.

    Bert

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    1. Bert, will continue grinding in 2019. Yeah, that adjusted growth rate of 40% is really on the high end for me. Luckily in February I don't need to adjust, should be nice actual growth.

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  3. 40% YoY increase is amazing! Keep it up!

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