Thursday, October 10, 2019

2019 September Dividend Summary

The end of the year is quickly approaching and the local weather seems to be changing just as fast.  The rate at which the weather declined from the low 90s just a few weeks ago to now averaging highs from mid 50s to low 60s this week is a bit of surprise (with the lows dropping to near freezing during the nights).  Thankfully the decline in the temps has no bearing on my portfolio value or dividend income. For the first 9 months of the year, the PIV portfolio has experienced a nearly 25% dividend income increase compared to the same period in the prior and I anticipate the portfolio will end the year at about the same rate.  Below is the monthly dividend summary for September 2019.



September 2019 Dividend Summary


Those who hold Broadcom (AVGO) shares will likely already have noted that AVGO appears to have changed the months it will dividend payment dates.  In the prior year, the dividends for Q2 and Q3 were paid in June and September, however, this year they were paid in July and October.  They have yet announce the dividend for Q4 of 2019. If this trend continues it will likely be in January of 2020 rather than December 2019, which will make for only three dividend payments received in 2019 rather than four.  AVGO was not held in the PIV portfolio at this time last year, so it doesn't distort the comparison between 2019 and 2018.

With respect to DOW Inc (DOW), this company was recently spun off a separate company again so there is no prior dividend history for the same period in the prior year as noted in the summary above.  I discussed the recent history of this company recently when I initiated my position earlier this year, which can be read here.

The increases in the dividend rates paid by the railroads have been fantastic in recent years.  There have been two separate rate increases in the last 12 months, which wasn't expected.  Looking to seeing more activity like this as the railroads continue to improve the efficiency at which they operate.

The year to year dividend rate paid by the mutual funds held in the portfolio tend to be a surprise one way or another each quarter.  The activity within the funds would be the obvious driver of this volatility, in any event, the funds have performed well over the long term and will remain part of the portfolio for the foreseeable future.

YTD Dividend Chart for 2019



2019 Q3 YTD Rate vs. Volume Impact



Per the summary above, 2019 Q3 dividend income is up 19.4% versus the same 3 month period last year.  Thus far, the 2019 YTD dividend rate increase is at 1.3% versus the 2018 annual rate increase of 6.7% which I noted in the December 2018 dividend summary that you can read about here.  Dividend cuts from GE and KHC have weighed on the relatively low rate increase the portfolio has experience on the whole.  With respect to the volume variance, the quarterly impact is 18.8%, which is slightly below the the 9 month YTD impact of 22.5%.  This is below the 2018 annual volume variance of 33.8%, although certainly nothing to complain about. 

Portfolio Value as of October 9, 2019

Portfolio value (excluding cash): $303,792

# of positions: 52 positions in individual companies + 4 mutual funds

Current GICS Allocation Chart



3 comments:

  1. Always nice to see double digit year over year gains come in. Congrats. I see we share quite a few names for the month of Sept. That colorful chart keeps showing the power of your dividend growth!

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  2. Thanks DivHut. It is motivating to see how these graphs evolve as time goes on.

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