September was a very good month for dividends! And like most other dividend growth investors, I was very much looking forward to an even better month in December!
My first major milestone was reached in September, when my total dividend payout for the month exceeded $200 for the first time. Last time around, my largest payout was from SeaDrill (SDRL), which paid me $63 in dividends. I have since exited out of that position, and replaced SDRL with McDonald’s (MCD), which also happens to payout in the same month.
September-November were busy months for me, as I made many purchases. I added to positions in: Exelon (EXC), Intel (INTC), Norfolk Southern (NSC), CSX (CSX), Cummins (CMI), and MCD.
By doing so, I had a good feeling that December would be a fabulous month for dividends. 🙂 As it turns out, I was able to cross the $300 milestone for the first time! Here are the payouts for this month:
The total payout was $330.89. I received hefty payouts from two of my larger holdings, EXC and NSC. EXC paid $79.18, and NSC provided $50 in passive income. This helped offset some of the dividends that were lost from selling SDRL. I don’t have any regrets selling SDRL, but it is worth noting that their payout this quarter was a staggering $1.70/share. I previously owned 74 shares or so, so we are talking about $127.50 in passive income. That’s quite a chunk of change right there!
The next milestone will be $400/month. This will take some more time to achieve since I haven’t made any acquisitions, outside of recently purchasing some shares of The Southern Company (SO), to help me generate more passive income. However, my recent purchases of Abbott Laboratories (ABT), Kinder Morgan Inc. (KMI), and Air Products and Chemicals (APD) should give my February payout a big boost. I’ll probably fall just short of $200/month, in February.
As for January, things will be slow, as I have very few companies paying out in that part of the rotation. As a matter of fact, I only have Pepsi (PEP) lined up for next month. Although it would be nice to have a more even distribution of dividend payouts, this comes secondary to investing in the right companies at the right value. So, I don’t expect to achieve this type of balance anytime soon, if ever. It just so happens that most of the companies I am interested in investing in payout during the same time.
Overall, I’m very pleased with the progress that the dividend portfolio is making. It’s small victories, such as these milestones, that keep me motivated to keep pushing forward. I can only dream of the day when the passive income stream can return $1000/month. That seems like eons away, so until then, just keep swimming…