The stock market continues to rise and dividend income keeps coming in. The uncertainty is still significantly high and the direction the stock market is going does not make sense. Time to see my May dividend income results below!
Dividend Income is the fruit from the labor of investing your money in the stock market. Further, Dividend Income is my primary vehicle on the road to Financial Freedom, which you can see through my Dividend Portfolio.
How do I research & screen for dividend stocks prior to making a purchase? I use our Dividend Diplomat Stock Screener and trade on Ally’s investment platform (one of our Financial Freedom Products) – commission free.
I also automatically max out, pre-tax, my 401k through work and my Health Savings Account. This allows me to save a TON of money come tax time (aka thousands), which allows me to invest even more. In addition, all dividends I receive are automatically being reinvested back into the company that paid the dividend. This helps take the emotion out of timing & making a decision.
On to the numbers… In May, we (my wife and I) received a total of $903.89 of dividend income. May was a boring month, to say the least, on the dividend income front. However, between re-openings and the tragic news from our police enforcement, it was another volatile month. We didn’t crack the 4 digits, but slow and steady will win the race.
Here is the breakdown of dividend income for the month of May:
First, I have to start with a similar message to my last dividend income month. Occidental Petroleum (OXY) cut their dividend AGAIN. They cut their dividend from $0.11 per share, per quarter, down to $0.01. A penny. Great. Goodness. I never thought THAT would happen.
Secondly, there is a new name in here with People’s United (PBCT). They are a dividend aristocrat that I began acquiring shares during April and May. AT&T (T) also came in heavy with over $120 in dividends in my taxable account with a “chip shot” of $50 in the retirement account from my wife.
Lastly, I have no idea what to expect for the quarter coming up. The stock market is consistently rising and it just doesn’t make sense to me. Given that we are still coming out of the pandemic, high unemployment with awful events occurring, the uncertainty is still high. I have been keeping my eye on the stocks to buy in a post-pandemic world, keeping it boring!
See – Top 5 Foundation Dividend Stocks
Related to retirement accounts, we received a total of $144.45 or 17.5%. The other 82.5% was from the individual taxable portfolio that can be used for everyday expenses. I like that the taxable amount is higher, which means more is accessible, right now, if I wanted/needed. Lastly, I always maximize the 401k and IRA, and that continues to pay-off in dividends, literally.
Dividend Income Year over Year Comparison
Dividend income, year over year is higher by $25.83 (including my wife’s dividend income of $175.93 last year with mine). This is a 3% growth rate from prior year. Barely inching growth here, woof. There were changes to my dividend income from last year to this year.
WestRock’s (WRK) dividend cut is felt, as you can see the decrease year over year. In addition, Muncy Bank (MYBF) does not pay until June this year. Further, Delta (DAL) paid me $22 last year and is a fat $0 in dividends right now, due to the entire industry crashing to a blistering halt.
However, two companies paid me this year versus last year. Two names happen to be two dividend aristocrats. General Dynamics (GD) and People’s United (PBCT) were bringing in dividend income for me. Love having the lengthy dividend increase history in my dividend portfolio.
We shall see what April 2021 brings, with how the markets have been shaking up. Loving the new dividend reinvestment lately, at much lower prices, that’s for sure.
No dividend increases this month. Sad. Leggett & Platt (LEG) chose to maintain their dividend and Caterpillar (CAT) never announced anything for the month. Lyondell Basell (LYB) joined Leggett & Platt in maintaining their dividend rate. What a time we are in. Check out Bert’s Expected Dividend Increases for June, though, to see what should happen this month!
I am hopeful for June to bring great dividend increases from the likes of Target (TGT), Starbucks (SBUX) and Kroger (KR). I believe all three can support a dividend increase, even if small. The pick me up will be if Caterpillar (CAT) decides to edge theirs up, even by a small margin, or not. In fact, I just realized that they are a Dividend Aristocrat. To find out more about who & what are dividend aristocrats, see our article below:
Dividend Income Conclusion & Summary
The name of the game is to apply what you learn through financial education. The next steps are to maximize every dollar for investment opportunities and live a balanced life. My plan is to demonstrate that dividend income can be a revenue engine. A revenue engine that allows you to take back control of your life. A revenue engine to help you reach financial freedom. Dividend investing, once you learn the right way, becomes easier and starts to immensely make sense!
There is a nice adjustment to my most recent monthly expenditures article. Sadly, my property taxes increased by 14% in 2018. Therefore, our average is $1,040 per month Due to that, my current dividend income would cover 87% of that amount. However, that includes both tax-deferred accounts/retirement accounts and my taxable brokerage accounts. I need to close the gap, the time is now!
Excited for the future, no doubt. Further, all of the investing from last year and moves this year, shows that my aim to save 60% of my income, and making every dollar count, has allowed promising results already this year.
Community, we made it through another month. The pandemic and uncertainty is still here, but we are getting better, with each passing week. The dividend income has remained fairly stable and deep down inside, I know that we’ll be stronger than ever. We are entering the final month of quarter 2 and we will learn more about how businesses are really doing in the coming 60-90 days. Buckle up everyone, this ride may get a little bumpy for us! As always, stay safe, healthy and of course – good luck and happy investing!