Seeking passive income through dividend investing. Greetings and thanks for visiting! I’m John, and I’ll be your guide here on dividendquest.com. Passive income from dividend investing is the focus of this blog, and I’ll delve into various aspects of dividend investing, my approach to dividend investing, my successes, my failures, and how dividend income has enhanced my financial security.
The month of January 2018 is officially closed and in the books. Here in the Pacific Northwest, compared to January 2017, it has been a pretty mild winter so far. Unfortunately, our hot water heater decided to die and so I’m currently awaiting the delivery of the new one which should arrive next week. It’s amazing how one takes hot for granted until it’s no longer so easily available.
Let’s do the numbers and see how well January went:
$844.51? That’s not too bad. I was hoping for the high 800s, but hey I’ll take it. Any money gained from not trading one’s time is a win in my book.
Overall, January was a fairly uneventful month. No new stock buys or sells and, thank goodness, no dividend cuts. EHI didn’t pay out in January but they did pay out early in December. One pleasant little surprise is that CLM raised its dividend from 23.26 cents to 23.65 cents. For me, this 1.68% increase amounts to an additional 78 cents per month. Yeah, that’s not exactly something to make one jump with joy, but I’ll take it anyway. For my ETF heavy portfolio, dividend increases are a rarity (although I hope that will change as I invest more in dividend growth stocks), so it’s always a surprise to me when it does happen.
Merry Christmas and Happy New Year! I hope your holiday season was good and Santa was kind to you, your family, and your dividend investing portfolio. Here in the Pacific Northwest, we had a bit of snow on Christmas Eve, so we did get a white Christmas. But the snowfall was short-lived and by Thursday it was completely gone, washed away by the rain that soon came afterward.
So how were my dividend payouts for December? Well, let’s do the numbers and see what the month’s total was:
Not bad! December’s dividend payout total was better than I had expected. Thanks to FGB shifting its payout date from late November to early December and EHI’s early payout of January’s dividend ($25.40), December got a $174.15 boost. This made all the difference in keeping December from being just another $600-something end of quarter month like September ($689.52), June($689.38), and March ($646.14).
Along with December’s end comes the end of 2017’s 4th quarter. So how does Q4 compare to 2017’s previous quarters? Let’s see:
2017 Q1: $2215.26
2017 Q2: $2369.74
2017 Q3: $2476.31
2017 Q4: $2527.39
Meh. Q4 was only a tad better (+2.06%) than Q3. Considering how few buys I made in Q3 and Q4, that was to be expected. Fortunately with few dividend cuts taking their toll, Q4 was a solid, albeit barely growing, quarter.
Overall, December was a good month and a nice finale to the year. Let’s keep our fingers crossed and hope that the new year is kind to dividend investors’ portfolios and our divided income will continue to grow.
On the last trading day of the year, I added 80 shares of New Residential Investment Corp (NYSE:NRZ) at $17.9063 per share to my dividend investing portfolio. With a dividend of 50 cents per share, my NRZ buy has a dividend yield of 11.17%. Nice!
NRZ is my second foray into dividend growth investing, as it’s among the many Dividend Aristocrat stocks that have a history of regularly raising their dividends. NRZ is a REIT like OHI, my previous Dividend Aristocrat buy, but NRZ specializes in residential real estate.
According to Zillow, the residential real estate market is expected to continue to do well next year. However, the rate of home price growth will slow but demand will still continue to exceed supply through the year.
I think NRZ is a good investment choice to end the year with and I hope it continues to grow its dividend, moving from a Dividend Challenger to a Dividend Contender.
With my sale of WDR and no new buys in nearly three months, I’ve built up quite a cash reserve for future stock buying opportunities. This month I decided to make three stock buys.
On November 1st, I bought an additional 100 shares of First Trust Specialty Finance (NYSE:FGB) for $6.59 per share, which will add $17.50 in dividend income every quarter. FGB is near its 52-week low, so it seemed like a good time to further invest in this ETF stock.
On November 3rd, I bought 100 more shares of Alpine Global Premier Properties Fund (NYSE:AWP) for $6.50 per share, which will add $5.00 every month to my total dividend income.
Finally, on November 7th I bought 225 shares of Omega Healthcare Investors Inc (NYSE:OHI) at $28.00 per share. With a quarterly dividend of $0.65 per share, income from OHI will by $146.25 every quarter for an annual dividend yield of 9.29%. Nice! I should also note that OHI is my first venture into “Dividend Aristocrat” stocks, so I hope OHI proves to be a good investment choice and will be the first of many future dividend growth stock buys.
In total, these three new buys will raise my projected monthly dividend income by $13.48. That’s not much, but it does represent positive growth in passive income.
In late October I learned that Waddell & Reed Financial (NYSE:WDR) would slash their quarterly dividend from 46 cents per share to 25 cents (a 45.7% reduction!) beginning with its Q1 2018 payout on February 1st. This would drastically cut my annual yield for WDR from 10.61% to 5.77%.
I normally make 5.00% my “cut and run” point for a formerly high yielding taxable stock, but 5.77% was close enough to warrant immediately selling the stock off while the selling price was still good at the time (my total WDR cost basis is approximately $5203). So I sold off all 300 shares of WDR at $20.13 per share for a total sale of $6039, making a capital gains profit of approximately $836. Considering that I’ve held WDR for less than a year and have received some dividend payouts, my WDR investment proved to have a respectable total return.
Unfortunately, because I have owned WDR for less than a year, there will certainly be a tax hit, despite the dividend being qualified. As of this moment, WDR is currently priced at $19.22 so I’m glad I bailed out when I did. Another bonus to my sell off timing is that I sold after WDR’s October 10 ex-div date, so I collected a $138 dividend payout on November 1st. A nice parting gift from WDR.
Having a very ETF/CEF heavy portfolio, I was a unhappy about dropping Waddell & Reed Financial as it was one of the few company stocks I held. If the stock continues to drop and the dividend yield rises as a result, then I may snap it up again.
So what will I do with the cash from this sale? I will probably buy a dividend stock that yields 9-10%. I’m not sure when this will happen, but probably sometime soon as this sale put a serious dent in my projected averaged monthly dividend income.
September is over and done! The summer heat is now past and the transition to autumn is picking up steam, as the days are getting shorter and the trees are shedding their leaves. Yep, summer is over folks and I hope the past three months treated you well. Mine was good, as we took a quick tourist trip to Salt Lake City, stayed a few days at the Big Lake camp near Bend Oregon, and I’m nearly done with my patio extension project (I am such a procrastinator).
Well, let’s get to the meat of this posting. How was my dividend income for September? Let’s do the numbers and see…
* Includes Return of Capital
** Anonymous employer’s stock
Nice! A bit short of $700 for September! While no new dividend income records were broken, it was a solid month. No dividend cuts negatively impacted the month’s payouts, so that’s always good.
With September’s end also comes the end of the 2017’s 3rd quarter. So how did Q3 stack up against this year’s earlier quarters. Let’s see how well it did:
2017 Q1: $2215.26
2017 Q2: $2369.74
2017 Q3: $2476.31
Eh, Q3 was nothing to rave about, but overall it was a solid quarter. Quarterly dividend income this year grew by approximately $100 each quarter. That’s slow steady growth and there’s nothing wrong with that situation.
Other than the dividend income for the month and quarter, there’s really not much else about September to discuss. I hope September was a good month for your quest for dividend income.
Wow! August is over and the end of summer is drawing nigh as the days are slowly becoming shorter and the weather just a little bit cooler! It’s been a somewhat busy month for us, with the patio extension project we’ve been working on (still not done), plus a short pleasant vacation in central Oregon.
Well, let’s do the numbers and see how August’s dividend income shaped up:
I don’t believe it. I finally had a $900+ month! Yeah!! <fist pump> If all goes well, I may break $900 again next November (when FGB and WDR pay out in Q4). Breaking $1000 is my next major milestone, and it probably won’t happen this year but it seems highly likely in 2018. Wow!
However, there is a bit of bad news. Tix Corp. (OTCMKTS:TIXC) has suspended dividend payouts, so I can’t count on any quarterly dividend payouts for the foreseeable future. This will reduce my projected monthly dividend income by $5.50, which is a modest nick at worst. This isn’t much of a surprise, as the yield was insanely high and I suspected the dividend would be cut soon. But unlike my other dividend investments, I bought into TIXC for capital gains not its dividend. I will continue to hold TIXC and time will tell how this investment plays out.
In August, I didn’t make any stock buys, as I want to let the cash build up. Plus the market is doing so good right now that bargains are difficult to find, so I’m just going to wait until the market has a bad day and seize the opportunities that appear.
Needless to say, August was a damn good month. Not only did I have another record breaking month, I broke the $900 “barrier” for the first time. Awesomeness!