We are now nearly mid way through the year and the month of may has rung up another substantial YoY increase in dividend income - a YoY increase of 102.1% to be exact. Take a look below to see which companies contributed to my monthly dividend income.
When I look at the breakdown of the YoY increase between rate and volume, there is no real surprise. You'll note that many of the companies listed above and which I held last year at this time have relatively high yields and as such, the 4.5% blended rate increase is very reasonable. With respect with the favorable volume variance, you can see that this value came about as a result of both reinvestment of dividend income and investment of additional savings from income into new and existing positions as the volume impact is pretty evenly spread across 4 positions: T, GIS, OHI, and PG. I recently sold out my position in OHI which you can read more about here. What is also worth mentioning is that Nestle only has one annual dividend payment each year in May. I hold this position in a brokerage account since there is a tax withholding that I can claim on my annual tax return that I otherwise would not be able to do if the position were held in a tax advantaged account.
Also worth noting is the YTD dividend income variance of 95.2%. For the five months of 2018, dividend income amounts to $2,194.27 compared to the total for the same five months of 2017 totaling to $1,124.29. This is a fairly large increase YoY which is mainly attributed to the reallocation of investments and large purchases in late Q1 and early Q2 of 2017 during which I did not capture many of the dividend payments that I have in 2018. Looking expectations for 2018 in total, I expect to experience close to a +30% YoY dividend income variance. As many DGI focused investors can attest, it is not uncommon to experience these large double digit percentage gains in YoY dividend income during the first decade or two of one's attempt to earnestly and consistently invest in dividend stocks.
Looking forward to June, I expect to see increases from at least 6 companies that have recently announced a dividend rate increase: XOM, FLO, IBM, PSX, QCOM, and SO. As a result of these recent increases and the cumulative impact of the dividends to be received from my other equity positions in June, I should easily clear $1K milestone for June (I look forward to the day that I can look back and view $1K of monthly dividend income as peanuts).
Last month I decided to include the following snap shot of the major indexes with current and historic P/E ratios and dividend yields. The current yield on the DOW 30 is considerably lower that what it was this same time last year.
When I look at the breakdown of the YoY increase between rate and volume, there is no real surprise. You'll note that many of the companies listed above and which I held last year at this time have relatively high yields and as such, the 4.5% blended rate increase is very reasonable. With respect with the favorable volume variance, you can see that this value came about as a result of both reinvestment of dividend income and investment of additional savings from income into new and existing positions as the volume impact is pretty evenly spread across 4 positions: T, GIS, OHI, and PG. I recently sold out my position in OHI which you can read more about here. What is also worth mentioning is that Nestle only has one annual dividend payment each year in May. I hold this position in a brokerage account since there is a tax withholding that I can claim on my annual tax return that I otherwise would not be able to do if the position were held in a tax advantaged account.
Also worth noting is the YTD dividend income variance of 95.2%. For the five months of 2018, dividend income amounts to $2,194.27 compared to the total for the same five months of 2017 totaling to $1,124.29. This is a fairly large increase YoY which is mainly attributed to the reallocation of investments and large purchases in late Q1 and early Q2 of 2017 during which I did not capture many of the dividend payments that I have in 2018. Looking expectations for 2018 in total, I expect to experience close to a +30% YoY dividend income variance. As many DGI focused investors can attest, it is not uncommon to experience these large double digit percentage gains in YoY dividend income during the first decade or two of one's attempt to earnestly and consistently invest in dividend stocks.
Looking forward to June, I expect to see increases from at least 6 companies that have recently announced a dividend rate increase: XOM, FLO, IBM, PSX, QCOM, and SO. As a result of these recent increases and the cumulative impact of the dividends to be received from my other equity positions in June, I should easily clear $1K milestone for June (I look forward to the day that I can look back and view $1K of monthly dividend income as peanuts).
Last month I decided to include the following snap shot of the major indexes with current and historic P/E ratios and dividend yields. The current yield on the DOW 30 is considerably lower that what it was this same time last year.
You have to love that massive annual increase from Nestle, right? Congratulations on an excellent month and results PIV. These results are real and I hope you are excited with all of the progress you continue to make.
ReplyDeleteBert
Bert,
DeleteYes sir, experienced a nice increase in Nestle. It is a great global company with a portfolio of some wonderful brands. In fact, there are not very many nights that go by without me making a glass of chocolate milk with Nesquik in the early evenings :)
That's outstanding YoY growth, PIV.
ReplyDeleteI'm also glad to hear you're confident about crossing the $1K mark for dividends in June. I hope to eclipse that level as well. This is my first time stopping by the site if I'm not mistaken. I plan to be a more frequent visitor.
ED,
DeleteThanks for stopping by and checking out the site. Despite not having a special dividend from NGG this year and thus expecting a slight YoY decline, I still expect to surpass the 4 digit mark in June.