Friday, August 10, 2018

2018 July Dividend Summary

July is in the books and the month of August is just flying right by.  Of course, the fact that my wife and I took the kids on a camping trip down to California last week to camp with my wife's side of the family down in Malibu, CA likely contributes to the feeling of how time seems to be passing quite fast as of late.  We camped at a state campground called Leo Carrillo State Beach and had a great time.  We try to get down there every year, but have missed this venture that past couple of years.  Now that I am back home and back to our routine trying to catch up in some respects.  I feel like I have been inactive on the investing front, but I did make two separate purchases of AT&T (T) last month, but it feels like it has been longer than a few short weeks.  Nonetheless, the dividends have continued to roll in and which of course is satisfying to see.  Below the summary for July along with the YoY comparison.




As noted above, dividend income for July 2018 totaled $404, which is a 71% increase compared to the same period last year.  The majority of the increase is a result of additional shares of stock that I've added to the portfolio, much of them entirely new position since last year such as - CPB, GE (ouch!), KMB, PPL.  My preexisting positions in CSCO and KIM were added to during the past year and the dividends from the incremental increase in number of shares are also accounted for under the favorable volume variance.

The favorable net impact due to dividend rate increases resulted in a 5.5% increase compared to last year.  And, to be clear, with exception of the mutual funds that I hold, I do not DRIP dividends received from my individual stock positions.  So, this net increase of 5.5% is wonderful thing and when reinvested back into the market one will experience the wonderful effects of compound growth.  A net increase of 5.5% is very reasonable increase that an investor could reasonably expect to experience each year with a diverse portfolio.  I also like to highlight the contrast between dividend growth rates and the CPI index and on occasion to the annual changes of the cost of living adjustment (COLA) that SSI grants each year.  For example, just today, the Bureau of Labor Statistics just released the latest changes in the consumer price index (CPI) the For the 12 months ending July 2018 - an increase of 2.9% as noted below.



Lastly, here is an update on the P/Es & Dividend yields of the major market indexes as of 8/10/2018.

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